You wouldn’t trust a GP with a surgery, so why trust a general bookkeeper with the finances of your RTO?
There are strict financial guidelines and requirements which must be met, both prior to an RTOs registration, and throughout the life of an RTO. Between the sometimes demanding ASQA requirements, and complexities of student payment plans, it is important that you entrust your RTOs finances to someone who truly understands the VET sector and unique financial requirements of an RTO.
Applying For And Maintaining Funding Contracts
If you plan on applying for and maintaining funding contracts, the requirements are rigorous. Assessments are made on a range of financial factors on your RTOs financial viability, including financial projections and business ratios. An RTO specific financial advisor understands the complexities of the VET sector, the financial intricacies of dealing with students, and the concerns around the natural fluctuations in business that RTOs experience throughout the year.
By trusting your RTOs Financial Viability Risk Assessment to an RTO finance professional, you can be sure that your application will be to the highest standard, increasing your success in audits and applying for and maintaining funding contracts.
Audits
Similar to the initial registration of your RTO, ASQA requires an acceptable level of financial viability risk at all times. This ensures that RTOs are continuing to achieve quality outcomes for students.
Again, enlisting an RTO finance professional with the on-going financial requirements, you can be sure that you won’t suddenly be reviewing your finances, and making large changes to your RTOs financial structure just prior to an audit. However, if you are in this position – relax – an RTO finance professional will be able to get you audit and funding contract ready!
Student Payment Plans
RTOs cater to many different people, from different backgrounds. The variety of students they receive is reflected in their finances, with payment structures that can be reflected, including pay-as-you-go and fee-for-service often seen in smaller RTOs, and public funding, more commonly utilised in large RTOs.
The payment structure of which students are enrolled also effects ASQA’s assessment of RTOs. Not surprisingly, government funded RTOs present at a higher risk to ASQA, and for this reason, undergo more rigorous evaluation.
This variety of payment options alone makes RTOs finances difficult to not only set up correctly, but continue to run smoothly.
With the LionHouse team of directors all having owned and managed RTOs across Australia, there is a deep understanding of financial requirements and complexities of RTOs. With a Certified Practicing Accountant on the board of directors, you can trust that LionHouse have the experience and knowledge to ensure your RTO is in the best position to succeed and thrive, ensuring that all of your financial boxes are ticked!
If you have any finance questions you’d like to run past an RTO finance professional, or if you would just like to explore what the costs of and RTO specific bookkeeping service would be, feel free to contact the LionHouse team today.
