Last updated on September 27th, 2024

Financial management is a weighty responsibility for all organizations. School districts’ fiscal activities have the added burden of standing up to the multi-faceted demands and scrutiny of parents and taxpayers. More and more, school districts are outsourcing accounting – especially when it comes to budgeting, payroll, year-end closing, and financial statement preparation – to promote accuracy and compliance, while saving money, especially in smaller districts with limited resources and financial expertise.

The end of the fiscal year is a particularly busy time for school districts, with numerous financial responsibilities such as closing books, reconciling accounts, and preparing financial statements. This period requires a high level of knowledge and meticulous attention to detail to avoid errors and ensure compliance with financial reporting standards. By outsourcing these tasks to a professional accounting firm, school districts can ensure that their financial records are accurate, up-to-date, and in line with the latest regulations.

Accounting firms have the expertise and experience to handle complex financial tasks effectively. They are well-versed in the latest accounting software and technologies, which can streamline processes and improve accuracy. Additionally, their understanding of financial regulations and reporting standards ensures that a district’s financial statements are compliant and transparent.

Outsourcing year-end closing and financial statement preparation also allows school districts to focus more on their core mission—education. Rather than juggling administrative tasks, school staff can concentrate on improving student outcomes and implementing strategic initiatives. This not only improves efficiency but also leads to better use of resources and, ultimately, a higher quality of education.

Cost-effectiveness is another significant advantage of outsourcing the accounting function. By doing so, school districts can avoid the overhead costs associated with maintaining an in-house accounting department, such as salaries, benefits, training, and software. Instead, they can leverage the services of a professional accounting firm, which often proves to be more economical in the long run.

Like most fields today, there are not enough accountants for all of the roles available. Having to fill or replace an in-house accountant can take a lot of time and resources to complete a candidate search and subsequent vetting process and ensure a good fit. What’s more, changes like an in-house accountant leaving for another job or taking a leave to care for a family member can open a district up to disruptions – that risk doesn’t exist with an accounting firm that has extra staff on hand to do what’s required.

Moreover, accounting firms can provide a fresh, unbiased perspective on the district’s financial management. They can identify inefficiencies, suggest improvements, and help implement best practices. This can lead to better financial stewardship, improved budgeting, and more informed decision-making.

Risk mitigation is another crucial benefit. Errors in financial statements can lead to reputational damage and legal consequences. Professional accounting firms have stringent quality control procedures to minimize errors and omissions. They also maintain confidentiality and data security, protecting the district from potential financial and data breaches.

Lastly, outsourcing provides flexibility. School districts can scale up or down their accounting needs based on their requirements. This is particularly beneficial during peak periods, like the year-end closing when the workload increases substantially.

For over 55 years, RBT CPAs has been providing accounting, advisory, audit, compliance, and tax services to school districts throughout the Hudson Valley and beyond. If you’re interested in learning more about how your school district and RBT CPAs can be Remarkably Better Together, click here to request an introductory meeting.

RBT CPAs never offshores work outside of the U.S., so you always know who is handling your financial information.