- “How much salary should I give myself?”
- “Should I take out more bank loans?”
- “What should I do if my school is losing money?”
- “When should I start expanding my school?”
I’ve always heard school owners saying that School Finances gives them headaches!
So, I’ve interviewed Shannon, who is a certified CPA and Profit First Professional to talk about how to manage school finances efficiently.
I really enjoyed this interview and got inspiration on how to manage my own finances too=)
Timestamp added below the video, but I HIGHLY recommend you to watch the whole interview as there are so many golden nuggets in there.
Thank you so much Shannon for the wonderful information and contributing your time to help us learn more!
Introduction – Who is Shannon? 0:00
What is Profit First? 0:50
Application of Profit First on Schools 1:59
Profit First Principle 1: Small Plates 2:35
Profit First Principle 2: Sequencing Principle 3:41
Profit First Principle 3: Removing Temptation 4:30
Profit First Principle 4: Enforcing a rhythm 5:17
Difference between Profit First and Traditional Accounting 6:30
What exactly is a bank loan? Is it an expense? 9:40
What are Operating Expenses? 12:30
Why do we need a Profit to help student better? 13:45
School Expansion: Should I use a bank loan? 15:50
When should I pay off my bank loan? 18:00
How to pay off my bank loan faster? 18:45
Additional streams of income for schools 20:00
Advice for Passionate Educators to build schools 24:11
What’s the best bank loan? 26:33
Should I take out a personal loan for my school? 30:45
Your school needs to be sustainable before you can get a business loan! (not the other way round) 33:55
What to do if my school is losing money? 37:00
Should I still invest in new training/software/equipment if my school is losing money? Positive Return of Investment is ok! 37:18
What is Return on Investment? 39:20
Money Loss Trap: Avoiding investment when school is losing money 39:40
How much salary should I pay myself as a school owner? 45:20
How often should I check my school’s bank account? 50:45
How much should I allocate my school’s budget? 53:35
How can school owners manage their finances and do their bookkeeping themselves? 54:45
Can we use excel to manage our school’s finances? 57:08
When should I hire an accountant? 58:51
What accounting ratios should we look at for a healthy school? 1:01:46
Has it been easier use Profit First than using traditional accounting methods? 1:03:00
What advice can you give for school owners who are suffering losses right now? 1:03:55
How can we predict when our school will close? 1:05:54
How to realistically budget for next year, and setting targets in the future 1:07:11
Interested in Profit First and accounting? Email firstname.lastname@example.org.
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