XfE + Xero: the perfect match for education

For years, school and trust finance teams have had to choose between two imperfect options: systems that feel familiar but slow, or systems that feel modern but not built for how education finance actually works.

That’s why more schools and Multi-Academy Trusts are moving towards a combined approach: Xero for the core finance engine, with XfE layered on top to make it work properly for education.

It’s not about chasing the newest tool. It’s about creating a finance setup that gives you clarity, control and consistency across the trust — without relying on spreadsheet-heavy routines.

Why schools are moving away from “old” finance systems

The challenge isn’t that traditional finance tools don’t work. It’s that they often don’t scale well in education.

As trusts grow, finance becomes more complex:

• multiple schools, each with different budget holders and spending patterns
• a need for trust-wide consistency across departments
• stronger governance expectations and clearer audit trails
• leaders and trustees wanting answers now, not in a pack built after month-end

When reporting takes too long, or when data isn’t consistent across schools, finance teams spend more time rebuilding numbers than interpreting them.

What Xero brings to school finance

Xero is widely recognised for doing the fundamentals well. For education, its biggest strengths are simple:

• Cloud-based access – finance can be managed securely from anywhere
• A familiar, modern interface – reduces friction for day-to-day processing
• Strong reporting foundations – a solid base for better visibility
• A connected ecosystem – works well with integrated tools such as online banking and spend management

For many trusts, Xero provides the platform they wish older systems could be: cleaner, faster, and easier to keep accurate.

Where XfE fits (and why it matters)

Xero is a fantastic platform - but education finance needs more than a standard accounting system.

XfE is built specifically for schools and trusts and sits alongside Xero to support the way education finance teams operate in the real world.

That includes:

• supporting trust-wide consistency across schools and departments
• delivering real-time reporting that helps teams stay on top of performance
• providing in-system KPIs, so insight isn’t dependent on spreadsheets
• strengthening governance with secure approvals
• supporting clearer workflows for bank, creditors and VAT checks
• helping finance teams reduce manual reporting and improve control month-on-month

In short: Xero provides the core finance platform and XfE helps shape it into a setup that works properly for education.

What “the perfect match” looks like in practice

When XfE and Xero are used together, trusts typically see improvements in three areas:

1) Clearer trust-wide visibility

Instead of waiting until month-end to understand the position, finance teams can monitor performance as it happens - across schools and departments and spot drift early.

2) Stronger control without extra admin

Governance isn’t just about having rules, it’s about having processes that are actually followed. Secure approvals and audit trails help trusts improve control without slowing teams down.

3) Less manual reporting

Many finance teams lose hours every month rebuilding packs, reconciling spreadsheets, and chasing clarity. With real-time reporting and in-system KPIs, reporting becomes less of a monthly rebuild and more of a routine.

Why this matters for MATs

For MATs, the biggest win is consistency.

When each school codes in slightly different ways, trust-wide reporting becomes harder than it should be. The finance team ends up fixing reporting problems after the fact, instead of using the numbers to make decisions.

A combined XfE + Xero setup supports a consistent structure that makes reporting cleaner, comparisons fairer, and month-end calmer.

A smoother month-end and year-end

Schools and trusts don’t just feel pressure at year-end, the pressure builds every month.

A finance system should help you:

• maintain consistency
• identify issues early
• keep reporting predictable
• stay prepared for audit and statutory returns

That’s what XfE + Xero together are designed to support.

The bottom line

XfE + Xero is the perfect match for education because it combines a modern, cloud-based finance platform with education-focused reporting, consistency and control.

If your trust wants fewer spreadsheet routines, clearer trust-wide visibility and stronger governance without extra admin, it’s worth seeing how the combined setup works.

👉 Book a walkthrough: https://www.xfeonline.co.uk/book-a-demo

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