What school business managers should consider before year-end

As the school year draws to a close, so too does the financial year for many school business managers, bringing with it the all-important audit season. Whether you’re preparing for your upcoming audit or considering a change in audit partner, early preparation and strong communication are key to a smooth process.

Allen Audit & Advisory Principal Richard Allen discusses what school business managers should focus on before year-end to set themselves up for success.

Get on top of reconciliations and documentation

The number one priority? Stay on top of your reconciliations.

“Reconcile accounts monthly to ensure accuracy,” says Richard. “When accounts are tidy and up to date, the audit process runs far more efficiently.”

In the lead-up to year-end, make sure you have your financial documentation in order. That includes:

Income statements, balance sheets, and cash flow statements

Bank statements and reconciliations

Payroll records and authorisations

Invoices, purchase orders, and receipts

Grant agreements and expenditure reports

Asset registers and updated depreciation schedules

Board minutes and policy approvals

Organising this information in advance can save days, or even weeks, during audit season.

Avoid the most common audit delays

When asked what typically slows down audits, Richard points to a few recurring issues.

“Missing or incomplete documentation is the biggest one, especially around grants or capital assets,” he explains.

“Unreconciled accounts and delayed responses to auditor queries also cause major setbacks.”

To avoid this, communicate with your auditors early and confirm key dates, deliverables, and expectations. Schools that maintain open, proactive communication throughout the year tend to experience far fewer surprises when audit time arrives.

Strengthen compliance and internal controls

Richard says audit readiness is key to building strong, compliant financial practices. “We often see issues around grant compliance, internal control weaknesses, or unreported related-party transactions,” he says.

“Schools can reduce these risks through regular reviews, clear segregation of duties, and cross-training staff to detect irregularities.”

By treating the audit as an opportunity for improvement rather than a once-a-year requirement, schools can strengthen their governance and financial health year-round.

Use the audit as a tool for better decision-making

As well as verifying compliance, a good audit provides sharp insight into a business. “Audit findings can highlight areas to improve budgeting, forecasting, and risk management,” Richard notes.

“They help schools benchmark against best practices and enhance transparency to stakeholders.”

This approach turns the audit into a strategic exercise that supports long-term planning and builds trust with boards, parents, and funding bodies.

Choosing the right audit partner

If your school is considering changing providers, Richard recommends looking beyond the basics. “Choose a firm with experience in the education sector, strong communication skills, and a collaborative approach,” he advises.

“Technical expertise matters, but so do integrity, responsiveness, and a deep understanding of school operations.”

References from similar institutions and consistency in methodology are also important indicators of a reliable partner.

Start early and stay organised

Richard’s closing message for school business managers is simple but powerful. “Start early and stay organised. Use a deliverables calendar, communicate regularly with your audit team, and treat the audit as a strategic opportunity,” he says.

“A well-prepared audit can uncover valuable insights that support better decision-making and long-term financial health.”

Plan your next audit

Allen Audit & Advisory specialises in working with schools and education providers across Australia to deliver efficient, insightful, and sector-specific audit services.

If you’re preparing for year-end or re-evaluating your current audit relationship, our team can help you strengthen your processes and gain confidence in your financial governance.