Sahel EDU

How to build and track a private school budget, from the start of the year to the end

A private school’s budget rests on a simple equation: the income expected (enrolment multiplied by fees, corrected for what will really be collected) minus the planned costs. The hard part is not the total for the year but the timing: money arrives in instalments, salaries are paid every month. This guide gives the method and a worked example in abstract units, useful with a spreadsheet or an exercise book.

Start from enrolment and fees to estimate income

Theoretical income is the number of students at each level multiplied by that level’s fees, all items together. It assumes every family pays everything, which almost never happens.

Expected income is therefore worked out by applying a realistic collection rate, taken from the experience of earlier years rather than from hope. It is the most sensitive figure in the budget.

Expected enrolment by level, cautious rather than optimistic.
Fees by level, separating registration, tuition and other items.
Discounts and scholarships to deduct, known from the start of the year.
Expected collection rate, based on the previous year.

A worked example in abstract units

Imagine 200 students and fees of 100 units per student per year. Theoretical income is 200 × 100 = 20,000 units. With a collection rate of 90%, expected income is 18,000 units.

Planned costs are expressed as a share of theoretical income: the payroll weighs 58% (11,600 units), rent and fixed costs 15% (3,000), supplies and upkeep 7% (1,400) and a reserve for the unexpected 5% (1,000). The total is 17,000 units. The year’s surplus is therefore 18,000 − 17,000 = 1,000 units, or 5% of theoretical income.

Two sensitivities show at once. If collection falls to 80%, income is only 16,000 units and the year ends at −1,000. Ten points of collection are therefore worth twice the whole surplus. Conversely, ten fewer students cost 10 × 100 × 90% = 900 units.

Theoretical income: 200 students × 100 = 20,000 units.
Expected income at a 90% collection rate: 18,000 units.
Planned costs: 17,000 units (85% of theoretical income).
Planned surplus: 1,000 units. With an 80% collection rate: −1,000.
Ten fewer students, at a 90% collection rate: −900 units.

List the costs: fixed, variable and unexpected

Put each cost in a category and say who decides it. Fixed costs do not move with enrolment. Variable costs follow the number of classes or students. The unexpected must exist in the budget, otherwise the first breakdown will blow it apart.

The payroll deserves separate follow-up: salaries of permanent staff, hours of part-time teachers, social contributions and deductions. The contribution rates are for the school to validate.

Salaries of permanent staff and hours of part-time teachers.
Rent, electricity, water, internet connection, insurance.
Supplies, chalk, paper, upkeep of the premises.
Costs linked to exams and school ceremonies.
A reserve for the unexpected, set as a percentage.

Track cash flow month by month

Take the example again. If tuition is paid in three instalments (40% at the start of the year, 30% in month 5, 30% in month 8) and the year has 10 months, expected income arrives like this: 7,200 in month 1, 5,400 in month 5 and 5,400 in month 8. The costs fall at 1,700 a month.

Adding up month by month, the cash stands at 5,500 at the end of month 1, then falls to 400 at the end of month 4, although the year ends at 1,000. If the second instalment arrives a month later than planned, the cash goes negative by 1,300 in month 5. The year’s budget was balanced, but the cash flow was not.

A monthly table: expected receipts, expected payments, running balance.
The lowest point of the year, to spot in advance.
A tuition due-date calendar matched to the big payments.
A reserve or an agreed deferral to get through the dip.

Revise the budget during the year

A budget is not a fixed commitment. Each month, compare planned and actual figures, look for the cause of every large gap and correct either the spending or the forecast. The most frequent cause is collection slower than planned.

Income gap: chase families in arrears without waiting.
Cost gap: ask for a decision before the spending, not after.
A new cash flow table every term.
A short report to the proprietor or the school board.

With Sahel EDU: the real figures to compare with the budget

Sahel EDU has no forecast budget module for the whole school: the budget is prepared in your spreadsheet. It does, however, supply the real figures that feed it. Fees are entered item by item with their payment schedules, each student has a total owed, a total paid and a balance, and the list of unpaid fees can be read by class.

Expenses are recorded by category, with a reason for any cancellation, and the day’s cash box closes with a fixed difference. A “month at a glance” view shows what was collected, what was spent and the balance by category, and lists can be exported to a spreadsheet. For separate cash boxes, such as the parent association’s, the budget for the year exists line by line, with planned and actual figures.

Fees by item and payment schedules, balance by student and by class.
Expenses by category and a day’s cash box with a fixed difference.
The month at a glance: collected, spent, balance.
Export to a spreadsheet to build your own budget follow-up.

Frequently asked questions

What collection rate should a budget use?

The one your school has actually recorded in earlier years, calculated on the amounts due. Without a history, use a cautious value and revise it every term.

Why can a balanced budget leave the cash box empty?

Because income arrives in instalments while salaries are paid every month. A balanced year does not prevent a cash dip between two instalments.

What share of income should go to salaries?

There is no single rule. Work out the share you have actually recorded, watch how it changes and check that it leaves a margin after the other costs.

Does Sahel EDU prepare the school’s budget?

No, it does not offer a forecast budget for the whole school. It supplies actual income, unpaid fees and expenses, exportable to a spreadsheet, to compare with the budget.

Can I try this follow-up on my own data?

Yes. The free trial lasts 30 days, with no commitment. The price is then negotiated with each school and can be read on the Pricing page.

Try Sahel EDU for free

Try Sahel EDU free for 30 days, no commitment. Afterwards, the price is negotiated with your school and confirmed in writing.

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