Financial Statements
The principal is responsible to ensure that the school board receives accurate monthly financial statements and understand it. It is also valuable for the principal and business manager or accountant review these documents before they are presented.
(Found in the Handbook for Principals 2024, under "Finance" on p. 64.)
January 2026 | Volume 14, No. 5
Build a Common Language
Provide Context, Not Just Numbers
Ensure Accuracy and Transparency
Ensure Accuracy and Transparency
Communicate Early and Often
Communicate Early and Often
Susan Jenkins
Business Manager—Georgia-Cumberland Academy
Serge Gariepy
Principal—Georgia-Cumberland Academy
Strengthening Mission-Driven Decision-Making
When principals and business managers work together with honesty, clarity, and shared purpose, financial transparency becomes a powerful expression of stewardship. Strong communication ensures that decisions—big and small—remain firmly grounded in the mission of leading students to know Jesus, grow in wisdom, and prepare for service.
Even experienced educators may not feel fluent in financial terminology. Principals often come from the classroom, bringing a valuable but different perspective to school operations. Accounting, however, has its own vocabulary and a distinct way of interpreting information. It’s not unusual for accountants and non-finance personnel to look at the same situation yet interpret it differently simply because they’re viewing it through different lenses. Business managers can play a vital role by translating complex reports into clear, accessible language. Rather than assuming familiarity, they should take time to explain key components such as the balance sheet, cash flow statements, budget-to-actual comparisons, and restricted versus unrestricted funds.
This is not about oversimplifying—it's about ensuring understanding. When principals grasp the meaning behind the numbers, they can confidently explain the school’s financial health to board members, teachers, and parents.
Financial documents tell a story, but only when interpreted with context. Business managers can help principals understand trends by offering comparisons with previous years, highlighting seasonal patterns, and explaining variances from the budget.
For example, a dip in cash during early fall may be normal if tuition payments arrive later in the semester. An increase in expenses might reflect planned investments in instructional materials or campus improvements. Context transforms numbers from potential sources of anxiety into opportunities for proactive conversation.
It is essential for the business manager to be fully committed to maintaining clean, accurate, and transparent financial records. The principal must be able to trust that the reports they receive are complete, reliable, and free from omissions. While regular audits help verify this accuracy, the foundation is a business manager who approaches the work with a mindset of integrity—prioritizing timely reporting, careful documentation, and the responsible stewardship of resources for all stakeholders. This requires openness, not defensiveness; a business manager must be willing to answer questions, welcome clarification, and collaborate freely to ensure the principal and board have the information they need to lead well.
Ultimately, financial communication is not just about accuracy—it’s about ensuring every decision aligns with the school’s mission. Business managers and principals should regularly discuss how financial decisions support spiritual development, academic excellence, and long-term sustainability. This business manager doesn’t shoulder financial decisions alone. When the principal and business manager share a clear commitment to the school’s mission, resource allocation becomes a true collaboration, strengthening all aspects of the school’s operation.
When principals understand how the numbers relate to staffing, program quality, facility needs, and student experience, they can help the board make decisions that uphold both stewardship and mission. This alignment also guards against reactive decision-making based on fear rather than faith-informed strategy.
Surprises in finance rarely produce good outcomes. Regular conversations between principals and business managers—whether weekly meetings or monthly reviews—build trust and prevent miscommunication. These conversations give principals the chance to ask questions, raise concerns, and prepare for upcoming board discussions.
Timely communication also increases the principal’s ability to forecast needs, identify emerging challenges, and celebrate financial wins with the school community.
Finally, business managers can support principals by providing concise, board-friendly summaries of financial reports. This may include dashboard-style snapshots, visual charts, or key performance indicators that make the information easier to digest. Clear, well-organized reports allow principals to focus on messaging rather than deciphering data.
As Christian school administrators, we share the responsibility of stewarding the resources God has entrusted to our ministries. Principals carry the daily weight of leading instruction, discipling students, supporting faculty, and overseeing everything from curriculum and facilities to fundraising and legal considerations. At the same time, business managers work faithfully behind the scenes to ensure that staff are equipped with the resources they need and that the school remains on solid financial footing. Yet when finances fall out of balance, it is ultimately the principal who must answer for the school’s financial health. That’s why clear, consistent, mission-focused communication between the principal and business manager is essential. When these two roles work in partnership, the entire school community benefits—especially when it’s time to present critical financial information to the school board.
A principal’s ability to speak confidently about the school’s financial position begins with a strong partnership with the business office. Financial statements can feel intimidating at first glance, but with intentional collaboration, they become powerful tools for mission-driven leadership.
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Through Clear Financial Communication
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MISSION: STRENGTHENING ADVENTIST EDUCATION ONE LEADER AT A TIME
Issue Coordinator
Physical Science, Chemistry, and Physics Teacher
Georgia Cumberland Academy