The challenges facing non-profit organizations are unique, from generating compliance data to generating outcomes and providing real-time insights. Volunteers and staff of nonprofit organizations can simplify accounting and bookkeeping tasks with accounting software, providing financial records that are accurate and comply with reporting requirements.
Nonprofit accounting software provides groups with tools to handle their money in a transparent way so the donors can know the flow of donations. The software tracks money in all its forms (grants, donations, gifts, and member contributions).
Keep yourself informed about market trends and changes due to COVID Impact and global economic slowdown. Special accounting reporting can be handy for grant submission.
Identify emerging market opportunities in the Nonprofit Accounting Software Market by sizing up the available market segments.
Nonprofit Accounting Softwares: What is it?
A nonprofit organization does not sell products or provide services for profit; rather, they focus on activities that benefit the public, their members, or a specific group. For tax-exempt organizations like nonprofits, accounting software specifically tailored to their needs is required. Nonprofit accounting software specializes in funding in its various forms (grants, donations, gifts, or contributions from members).
Organizations that require nonprofit accounting must manage their finances in a transparent way so donors can understand how their donations are used. Nonprofit accounting is also necessary in order to comply with grant submission regulations.
The accounting software for nonprofits integrates with other solutions for managing donations as well as fundraising software, CRM software, or donor management software.
Why do nonprofit organizations need accounting software?
Donations and grants support nonprofits, so they have strict financial accounting guidelines they must meet. Nonprofit accounting is vastly different from for-profit accounting. Organizations that are not for profit must meet the reporting requirements of FAS 116 – Accounting for contributions received and made plus FAS 117- Financial statements of nonprofit firms standards.
In spite of its gargantuan size, this enormous data has tremendous meaning to modern businesses. It is what provides them with growth and innovation, thus allowing them to generate products and services embraced by consumers worldwide.
1. QuickBooks Online
Almost every nonprofit and charity organization manages its accounting in some way. It’s imperative to have the ability to do these tasks efficiently and store records securely.
It is because Intuit has taken the time to make sure that QuickBooks does not fit like a square peg into a round hole by tailoring it to fit the nonprofit sector quite well that QuickBooks seems to work well for nonprofits.
Forcing a technology to fit your job is an inefficient use of technology. That’s why CRM systems geared toward sales are not ideal for nonprofits. The two seem like a good fit on the surface, but there are too many issues with QuickBooks since it isn’t built specifically for nonprofits.
In order to accomplish this, nonprofits must build strong, lasting relationships via emails, phone calls, events, and other means of stewardship. This is why a CRM is imperative for nonprofits to keep track of relationships for years to come. QuickBooks relies on other nonprofit software for functionality like this, and the information between the programs is automatically fetching.
You can access cloud accounting tools from any location on a PC, notebook, tablet, or smartphone. Compared to traditional accounting systems, you can analyze data whenever, and from whichever workstation you prefer. Cloud accounting, thus, has changed the entire bookkeeping and accounting process.
This way, a donation is tracked in a CRM for nonprofits and accounted for in QuickBooks. What a great idea!
2. Sage Intacct
Automate your business processes using extensive automation to reduce labor costs and improve productivity. Gain real-time financial and operational visibility across your organization.
Sage Intacct’s applications include accounting, contract management, fund accounting, cash management, purchasing, vendor management, subscription billing, financial consolidation, revenue recognition, inventory, financial reporting, and more.
For nonprofit organizations, Sage Intacct’s reports, dashboards, and visualizations help them to make better decisions. Sage Intacct helps nonprofits to generate timely, insightful financial reporting. With real-time data, finance leaders and executives can look ahead and plan for programs, fundraising, staffing, and other important factors based on real-time information.
You can view financial information alongside your organization’s outcomes using outcomes dashboards, allowing you to demonstrate how well it is achieving its mission over traditional financial reports alone.
3. NetSuite
NetSuite offers comprehensive cloud-based software, which incorporates HR, professional services automation, financials, Enterprise Resource Planning (ERP), and omnichannel business, operated by 28,000 customers across 200+ countries.
Nonprofit organizations are looking for ways to maximize resources in light of tight budgets, limited resources, rising demand, and an increase in competition for funding. Hence, in order to survive and thrive in the long run—Volunteers should utilize the resources more effectively. Besides, donor relationships should also strengthen to keep it thriving. Alongside, pursuing new supporters and developing projects should also be consistent to generate additional income.
Effective use of business technology is critical to nonprofit organizations’ success in managing their costs, growing their resources, and achieving social impact. These efforts are augmenting increasingly by using of new technologies, including cloud-based solutions.
The integrated cloud ERP, CRM, and eCommerce solution from NetSuite has enabled hundreds of nonprofit organizations around the world to decrease costs, improve operations and free up resources.
Through its Global Social Impact program, software donations, and pro bono services, our people and products are leveraged to help nonprofits and social enterprises worldwide.
Which non-profit accounting software is best for me?
Consider your organization’s needs as well as the experience of the person who will handle accounting for your nonprofit when choosing a system. Volunteer-led and smaller organizations will likely be better off with free or low-cost software. That has streamlined, simple, and has basic accounting capabilities.
Accounting software costs more if your organization is larger, has many donors, or accepts many online payments. If your organization is larger, has hundreds of donors, or accepts a lot of online payments, you will likely need a more powerful program. Enterprise solutions are needed for large-scale organizations with many donors, such as Blackbaud’s Financial Edge or QuickBooks Enterprise Nonprofit.
