Back to Basics: The Ins and Outs of Outsourcing School Business Tasks

 

Outsourcing district tasks like payroll processing and records retention can save time and money. Now is the time to consider the benefits.

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Maria A. Parry, CPA, SFO

 Published October 2025

Over the past quarter-century, technological advancements have led to significant changes in the functions of the business office. With increasing budget constraints and decreasing availability of qualified applicants, at some point, the school business official may need to ask the question: “What programs and obligations should the district outsource?”

Outsourcing involves contracting with private companies for personnel, products, and services that traditionally fall to in-district staff, such as substitute staffing programs, human resources software, payroll processing software, and accounting software, as well as professional services such as child study teams, therapists, counselors, and support personnel.

Business officials might consider outsourcing the following tasks:  

  • Payroll.  
  • Information technology.  
  • Records retention. 
  • Maintenance, custodial, and food service program management. 
  • Transportation.
If you are ready to start building your next year's budget, consider options for coordinating funding cuts, saving programs, and reviewing personnel needs.

Is the Time Right?  

The time may be right to consider outsourcing, considering rising costs and staff shortages. If key personnel are considering retirement, now might be the time for the SBO to research and compile financial information to present to district leaders and board members about the benefits of outsourcing.  

One possible advantage of replacing a position with an outside consultant may be the opportunity to save money, avoid layoffs, and possibly reinvest the saved dollars in the classroom or reinstate programs that could not be included in the current-year budgets. Alternatively, outsourcing may be the solution if you have been unable to fill a position due to a lack of experienced candidates or salary demands from prospective candidates that exceed your budget parameters. 

Contracting with an outside payroll company will allow business officials to focus on other tasks that need to be addressed, rather than being concerned about who is processing payroll data and remitting federal and state taxes due, and whether it will all be done before the ever-present deadline. Instead, the business official (or other designated staff person) would be responsible solely for reviewing and approving the data.  

Another opportunity for outsourcing may exist if multiple districts need a service but cannot afford to hire an outside consultant for it. Communicating with other business officials about potential needs can lead to a combined request for proposal for services, which may result in budget savings and help avoid cutting programs. 

If you are ready to start building your next year's budget, consider options for coordinating funding cuts, saving programs, and reviewing personnel needs.  


Start Now 

Business offices are undergoing rapid changes thanks to technology. While certain job responsibilities can be handled by automation and, consequently, require fewer staff, that doesn’t mean that personnel are no longer needed. School district officials should take the time now to begin looking into the future to consider what may/may not work with regard to outsourcing.  

Sometimes, keeping a switchboard operator available allows individuals calling the district to speak with a live person, rather than an automated system, which can make a difference in the district's culture. As a business official, your job is to balance what is best for the district vs. saving dollars. This can be done through planning, practice, and, of course, luck.

  

   

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