Academies Chart of Accounts: what is it and what does it mean for your trust?

During the summer term, the Education and Skills Funding Agency (ESFA) released an update to the academies chart of accounts (ACoA). Trusts that have already adopted the ACoA will need to take note of these changes and add them to their MIS and budget plans for the new financial year. But what is the ACoA, what does this mean for you and your trust, and what are the benefits of adopting it?

This blog will help to answer some of these questions for trusts that are thinking of adopting the ACoA. Read ahead to learn where to start and discover what can you achieve by investing the time and effort into converting.

What do I need to know?

The Academies Chart of Accounts (ACoA) was introduced in May 2019. This underpins the key financial reports for academies, the academies accounts return (AAR) and the budget forecast return (BFR).

To adopt the ACoA would require you to change your existing ledger code structure to the ledger codes in the DfE’s academies chart of accounts. Trusts’ cost centres do not need to change. One Education can support you with this mapping, taking the time to work at your own pace. Alternatively, you can choose to map your existing chart of accounts to the DfE’s chart of accounts via your FMS software suppliers.

Is the move worth it?

We understand this can be a difficult decision. Initially, there will be a lot of time and effort invested in converting to the ACoA. But ultimately, this will allow for more accurate financial records, as well as better financial planning and reporting, which will map directly into the AAR and BFR. It will also allow for more reliable benchmarking data comparisons.

The adoption of the CoA is not currently mandatory. However, as with many things introduced by the ESFA, it is likely that this may become mandatory in the future.

More detailed information can be found on the academies chart of accounts page. There are also a number of ESFA webinars available, which you can join to learn more about the CoA and the benefits it can bring to your trust.

Please do not hesitate to contact your Finance Consultant if you wish to discuss converting to the ACoA and they will happily discuss the next steps with you.