Changing finance systems is often seen as a risky endeavour, leading many trusts to stick with their existing package. The fear of data migration issues, audit complications and staff disruption can make it feel daunting. However, with the right timing and thorough planning, the transition could ultimately streamline processes, improve reporting and strengthen financial oversight.
Is 1st September the best time?
At first glance, switching at year-end seems like the logical choice - closing one system with finalised figures and starting fresh on the new system. The pressure of the tight year-end statutory reporting deadlines, combined with the bounce of the new academic year bringing fresh budgetary and operational demands, places significant strain on finance teams.
This makes changing finance system at this time particularly challenging whilst also considering day-to-day requirements and delivering the constant month end reporting.
What about mid-year?
While no time of year is ever truly "quiet" in academy trust finance, a mid-year transition can often be a more practical option. Once the bulk of the audit and budgeting process is complete, teams may find it easier to focus on migration without the pressure of imminent external deadlines.
Being able to fully concentrate on ensuring a smooth system transition is imperative to maintaining the timely production of monthly management accounts, especially in the current constrained financial landscape where accurate, timely reporting is more critical than ever.
Changing systems early enough within the academic year should allow sufficient time for an independent review to confirm the change has occurred as planned. Making this a topic of internal scrutiny is a great way to build confidence in the new system and demonstrate to trustees and auditors that the change has been well managed. Key areas to review would include:
- Data migration – ensuring balances have transferred correctly and sufficient detail is retained for audit and record keeping requirements
- System access controls – verifying that user permissions are appropriate and protect financial data from unauthorised access
- Best practice adoption – identifying that new system’s capabilities are being maximised efficiently.
Final thought
While changing finance systems is often put off due to perceived risks, trusts that take the time to plan the transition effectively can modernise their finance function and improve efficiency. Taking the time to review existing processes, even without changing systems, can identify inefficiencies, streamline workflows and enhance functionality, ultimately improving the overall effectiveness of financial management within the trust.
The next step
If you require any advice with the above, please contact Matthew Stephens or your usual UHY academy adviser.
