How Can School Fee Management Software Help Reduce School Fee Arrears

School finance and accounts team must keep a balance between revenue and expenditure to run the school smoothly. Income to a school can come from state aids, donations and fee paid by students.

More often than not, a school depends heavily on fees paid by the parents. Delay in fee payment can disrupt the cash flow of the schools and put a strain on the school budget.

Additionally, the burden of following up for arrears and collection of fees also falls into the accounts team.

School fee management software can automate lots of processes and help schools to manage arrears in many ways:

Online Payment

Online payments make fee payment easy and convenient for parents. Some late fees could just be a result of parents being out of town or not being able to take out time during working hours to pay. Online payment gives them the convenience of paying at any time of the day or night from any corner of the world.


Integrated fee management systems can collect online payments, send receipts and also send reminders to parents for fees dues. You can set reminder frequency and timeline as per your school policy.

For example, remind parents one week prior to fee due date. Another reminder can be sent one week after the due date to all the parents who have not paid. Persistent reminders can help to get the payment as early as possible for the parent.

Unpaid Fee Report

A fee management system will maintain records of all fees unpaid and due. You can draw a report of defaulters from the system and decide on the appropriate action for the defaulters based on the time elapsed.

For example:

•  Send a weekly SMS reminder for fees due since a month,
•  Call up fee defaulters of previous term
•  Send a notice to defaulters delaying payment for more than 90 days.

The report gives you a ready list to contact and even an option to automate notifications and sending notice to parents. This leads to better management of arrears and unburdens the account team from the task of following up with parents.

Data Analysis

Patterns in data can tell us about expected fee collection and prepare accordingly. Arrears pending may follow a trend of dropping in some months and increasing in others. Looking at the pattern of past years can be helpful in such a case. This will help finance team to prepare in advance for months where the expenditure is expected to be more than the reserve in the bank.

Data analysis can also show patterns based on regions, districts, income level of parents, number of children in a family etc.

Fee management software not only automates fee collection and receipts, but also helps the school to reduce its arrears, automate reminders and be prepared for expected shortfall.

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