Libraries are the heartbeat of communities. But behind-the-scenes you wrestle with financial constraints and complicated funding structures. Not to mention the pressure to justify your library's value. Sound familiar?
If you're managing library finances, you know how challenging it is to balance budgets, keep up with grants, and generate reports that satisfy auditors. The mismanagement of any of these things can mean fewer programs, reduced hours, or even the loss of beloved community services.
According to Library Journal the average total operating budget for U.S. public libraries in 2023 was approximately $9,339,000. And with somewhat limited funding, every dollar must be accounted for and strategically allocated. But sometimes that's easier said than done.
How can this be done easier and more efficiently? One option is cloud-based ERP solutions.
Just ask Emily Foote, Fiscal Officer of MidPointe Library System, now ranked 4th in program attendance among the 251 libraries in Ohio.
ERP can revolutionize how you manage your library's finances. With the right tools, you can gain real-time financial clarity, simplify complex processes, and make data-driven decisions that keep your library thriving.
Libraries don't operate like traditional businesses, right? But they still require financial oversight. Budgeting, grant management, reporting, and performance analysis are all critical.
Budgeting
Budgeting in a library is like playing 3D chess (you're welcome Star Trek fans). You're constantly strategizing on multiple levels with various funding sources, each with its own rules and limitations.
At the same time, community needs are evolving, and unexpected expenses (hello, facility repairs) can throw everything off-balance. Traditional budgeting methods (think spreadsheets and manual data entry) leave too much room for error and don't allow for near real-time adjustments.
Cloud-based financial solutions simplify this process by providing a central hub for budget tracking. Near real-time tracking allows you to see spending trends and forecasts for the future.
Forecasting tools analyze past data to predict future financial needs, giving you a clearer picture of where to allocate resources. This helps you avoid overspending—or underutilizing—public funds. The result? Smarter financial planning, better resource distribution, and fewer budget surprises.
Libraries that leverage these tools are better equipped. (Especially since you are required to satisfy yearly reporting requirements...) The bonus of having accurate data is crucial for short-term report demands and long-term sustainability.
Grant Management
Grants are a lifeline for libraries, but managing them is a full-time job. (Literally. That might be your actual job.) And different grants come with different reporting requirements, spending restrictions, and deadlines. Miss a reporting deadline and you could lose funding. Misallocate grant dollars and you might face compliance issues.
The stakes are too high for manual tracking.
A cloud-based ERP system automates the entire grant management process. You can set up alerts for deadlines, track expenditures against grant allocations, and generate compliance reports with a few clicks.
Instead of sifting through endless spreadsheets, you can focus on securing new funding opportunities and strengthening your existing partnerships. And that helps your community.
Almost 94% of library funding comes from local, state, or federal government. And over half of libraries obtained grant funding from federal or state sources. Effective grant management isn't just helpful—it's essential! And ERP software can help keep your grant ducks in a row.
Reporting
Your community and boards want to see improvement. And you need to prove it. This means financial reports should go beyond basic income and expenses. They want to know:
How the library is using its budget?
Which programs generate the most engagement?
Where are cost-savings possible?
How many programs do you offer and what do they cost the public?
Is the library utilizing funds appropriately?
Cloud-based ERP tools can generate customizable reports. This allows you to break down budget performance, compare actual spending to forecasts, and highlight financial insights. Visual dashboards make data easier to interpret. So whether you're presenting to government officials or library board members, you can tell a compelling financial story.
Financial reporting can also be a powerful tool in showing how library resources can benefit the community. Tying financial data to every dollar spent can help your library in analyzing the effectiveness of your services. And reports give the proof of concept.
When you show quantifiable impact, you build a stronger case for continued funding and support. And more transparency leads to more trust, and... well... more trust can lead to more funding.
Long story, short: Libraries aren't just about books—they're about impact.
Performance Analysis
You know your library is doing great things. But how do you actually know? Analyzing its performance helps you track circulation trends, optimize your budget, and measure community engagement. Without it, you’re making decisions based on gut feelings instead of real data. Are your programs reaching the right people? Are peak hours covered? Are funds going to high-impact services? Without clear insights, it’s tough to answer these questions confidently.
Now, you could manage all this manually—with spreadsheets, reports, and a whiteboard covered in marker smudges. But an ERP system makes life easier by pulling all your data into one place. It automates financial tracking, monitors assets, and generates reports easily. No more scrambling for information when you need it most. Instead, you get a clear picture of what’s working, what’s not, and where to focus your efforts.
To serve your community effectively, you need solid data, and an ERP system helps you turn that data into smarter decisions. So why guess when you can know? Your library (and your sanity) will thank you.
Even without the latest technology, you can still adopt financial best practices to improve efficiency.
Be proactive with budgeting. Regularly review financial data and adjust plans based on data insights.
Centralize grant tracking. Keep all grant-related documents, reports, and deadlines in one accessible system.
Leverage financial reporting. Use data to highlight successes, identify challenges, and make informed decisions.
Align spending with community needs. Make sure financial resources are directed toward the most impactful programs and services.
The financial landscape for libraries is shifting. More than ever, there is an emphasis on accountability, transparency, and data-driven decision-making (new acronym? DDDM?). Here's what to expect in the coming years:
Increased demand for financial transparency. Your community will continue to push for more detailed reporting on library spending and performance.
Greater reliance on data analytics. Libraries will use financial data to improve services, measure impact, and make strategic decisions.
Adoption of cloud-based solutions. Cloud solutions will become the standard, allowing library employees to boost processes and collaborate more efficiently.
Libraries that embrace these changes will not only survive, but thrive.
At the end of the day, your position is about keeping the finances in order—but it's also about making libraries stronger and better equipped to serve your community. And cloud-based financial solutions offer a smarter way to manage budgets, track funding, and achieve impact.
The takeaway? The financial health of a library determines how well it can support the people who rely on it. With the right financial tools in place, libraries can make a real difference in their communities.
I'd rather see how MidPointe Library System was transformed...