Guidance

Guide to the FMS comparison matrix

Updated 12 August 2024

Applies to England

1. Introduction to the FMS comparison matrix

For academy trusts to get the full benefits of using the academies chart of accounts (CoA) they must have a financial management system (FMS) that can automate a data upload to the DfE.

Feedback from academy trusts, shows that one of the barriers to adopting the academies CoA and automating is that trusts do not know which FMS products are using this functionality. The FMS comparison matrix allows users to identify which FMS can currently automate. This information will allow you to decide which FMS to choose if your current FMS provider can’t automate.

You will find the FMS comparison matrix here which can be used in conjunction with our guidance and checklist below.

2. Choosing an FMS which supports academies CoA & automation

Trusts using the academies CoA and automation are able to:

• pre-populate a high percentage of the accounts return (AR)
• make use of the draft trust financial statements
• partially populate the budget forecast return (BFR)

Benefits for academy trusts who use automation are:

1. efficiency savings: including time saved inputting and reconciling data and reduced auditor time if coded correctly first time

2. better data quality: as allocation of transactions and balance is less subjective, a trust will have improved insights via VMFI, benchmarking and transparent end to end audit trail of financial data

3. standardisation across trusts: will bring further benefits such as improved re-brokerage, auditors using one academies CoA and easier to change FMS provider

4. reduced impact of new DfE reporting requirements

5. potential to improve financial management and administration processes

6. ability to take advantage of new developments

7. DfE receives greater detail to help schools

The more trusts that adopt the academies CoA and use automation, the greater the benefits to all.

3. Using the FMS comparison matrix

Overview

Choosing the right FMS software has the potential to greatly improve efficiencies in your academy trust’s financial administration processes and financial reporting. This matrix table helps you compare systems and choose the right one for you.

This FMS comparison matrix is provided to help academy trusts find and compare FMS providers so that when your trust is considering upgrading their existing software or procuring new software, you’ll know which suppliers to obtain quotes from. If your supplier is shown as not being able to automate, contact them to find out why they are not able to.

This matrix is not designed to provide all the information required by trusts when making this decision but clarify key features of known FMS providers in the academy trust sector and speed up the time taken to narrow down the options to a provider shortlist. The matrix includes a list of FMS software providers results from the completion of the AR 22-23.

In producing this matrix, the DfE aims to make it easier for schools to switch between FMS and to establish a strong and competitive market which promotes transparency in pricing structures and services offered. In particular, the DfE is keen to acknowledge those FMS providers who have worked with us to provide the standardised academies CoA and have developed the automation functionality needed to send data efficiently to complete the DfE financial returns.

We will keep the matrix up to date. If your supplier has made progress to develop automation, we will update the matrix which will be noted in the change log.

How to use

You will find the FMS comparison matrix here which can be used in conjunction with our checklist below.

General notes for use:

• this is the best information we have available at this time, which is based on knowledge of working with the FMS provider and information available on providers webpages.
• providers listed are the results from the AR 2022/23 question “Which primary financial management system will your trust use for 2023/24?”, we have also show comparative results from AR 2021/22
• this information will be updated regularly to reflect updates received from FMS providers and will be listed on the ‘Change log’ tab.
• the matrix is primarily designed for academy trusts but may also be used by LA maintained schools, whilst noting that some of the criteria are specific to academy trusts.
• FMS providers are listed in alphabetical order.
• in some cases, where an FMS provider supplies more than one named software product, data is shown for each. Versions within a named software product are not split down.
• Sage and Xero software products are supplied by multiple providers and we have captured these where known.
• Read the ‘Disclaimer’ document in conjunction with using this matrix.

Using the matrix:

• firstly review sections 4,5 and 7 of the ‘Guide to the FMS comparison matrix’ see link below
• use the ‘Matrix (vertical search)’ tab to filter on the criteria to select your preferred FMS providers
• use the ‘Matrix (horizontal search)’ tab to hide columns when you are reducing down your top list of chosen FMS providers so it is easier to compare side by side

Caveats and limitations of data included in the matrix

The matrix source data is taken from trusts information provided in the latest accounts return. This data has then been cleansed with the support of FMS providers.

Transparent information on criteria trusts may wish to check an FMS provider against, is not always available. You will therefore see many comments showing ‘Information not available’, and it is hoped that this will encourage FMS providers to make this information available on their web pages in due course. If you want more information about a particular provider, contact them directly to ask about their ability to automate and provide detailed information about your trusts’ requirements.

We will update the matrix as and when we receive new information from FMS providers to ensure the data stays current. We will also update the matrix for additional relevant criteria if we have the data.

See the ‘How to use’ section for guidance on using the matrix.

If an FMS provider wants to provide updates to their data, they should contact the DfE via our Zendesk help desk and we will endeavour to update the matrix within one working week.

If a trust is currently using an FMS provider currently not listed, contact the DfE at [email protected] and we will make further investigations to add them to the matrix.

4. Suggested first steps when reviewing your FMS options

Agree the regularity of reviewing your FMS: Recommend the regularity of a regular review of your FMS, to be agreed by your trustees.

If your FMS has not been reviewed for some time or it is time for your next review, we recommend taking the following steps:

Speak to your current FMS provider: Discuss your current service offer with your provider. I.e.do they support the adoption of the academies CoA and automation? What additional features does their upgrade offer you? Can you negotiate a better deal by getting quotes from other FMS suppliers?

Speak to your auditor: They are a vital partner in your journey to adopting the academies CoA and using automation as they will be using your data to sign off your financial statements and AR.

• do they have experience of what their other clients use?
• can they help you in mapping your existing CoA to the academies CoA if you decide to upgrade?
• how can they help you in making future efficiencies on audits?

Speak to your peers: Over 50% of trusts have adopted the academies CoA, and they are increasingly realising the benefits of automation. Find someone in your network who has adopted the academies CoA.

Understand your requirements: Identify your requirements, setting out what you want from your FMS provider and try to prioritise what is most important to you. You may not require all the functionalities that the providers have to offer. The starting point would be to assess your current and near future needs and consider which providers are appropriate for your setting. We strongly recommend that you take this opportunity to incorporate the academies CoA and automation into that list of requirements for all the reasons listed in the benefits section above.

Prioritising will help you to make decisions later and tells providers exactly what you need. This will also help your trust choose a preferred FMS provider by using a balanced score card or weighted decision matrix to help focus your analysis. Use the checklist at the end of the guide to help you.

Think about what is essential for you, what would be nice to have and what you will need in the future to fit in with the strategic aims of your trusts.

Talk to people who will use the FMS to find out what their requirements are. If you miss something out it may cost more once you have negotiated or installed your new system.

Review the checklist below.

Review the FMS provider matrix: (See above) FMS comparison matrix

5. Procuring an FMS

If you require assistance with this process, visit the ‘Get help buying for schools’ service. The service includes a team of procurement specialists that can save you time and money by offering free support when you’re buying any goods or services for your school.

Be aware of changes to public procurement announced in the Procurement Act 2023. It is expected that changes will come into effect from October 2024. More information can be found on the Transforming Pubic Procurement webpage.

Use self-guided tools

You can use our tools at any time to help you at specific stages of your procurement. It’s easier to use these tools if you’re already familiar with the buying process. See the buying routes to find out more about the process.

6. Switching to the academies chart of accounts (CoA)

Evidence suggests that Academy Trusts will often take the opportunity to switch to the DfE’s standardised academies CoA at the point of switching FMS provider. This guide is designed to help you understand the options available for you and your trust in considering adopting the academies CoA and automating your returns.

The academies CoA is the academy sector standard for financial reporting that underpins all trusts’ financial returns. Further information on switching to the academies CoA can be found in the guide to adopting the academies chart of accounts.

The companies vary significantly in current scale of their operations, so you may wish to find out more from any prospective provider about the size of their current customer base and any future product plans they have.

7. Checklist

Requirement	Yes	No	Comments
Does the provider support DfE automation?
Does the provider support migration to the Academies Chart of Accounts?
Does it meet your integration needs?
Does the product meet your reporting requirements?
Does the provider provide value for money?
Will they migrate your previous financial records into your new FMS?
What will the installation time be?
What software cloud solution are you looking for?
Is the contract length suitable?
What other reporting requirements would you like? If you’re a MAT, what academy reporting/consolidation options are there?
What is their reputation like? What do your academy peers think of their service?