Managing finances for a nonprofit organization can be a daunting task, but with the right accounting software, it can become a lot easier. There are various accounting software options available in the market, but we’ve compiled a list of the best accounting software for small nonprofit organizations.
1. Affordability
Nonprofit organizations operate on a limited budget, so it’s essential to choose an accounting software that is affordable. Look for software that offers a reasonable price point, and take advantage of any discounts or promotions offered to nonprofits.
2. Fund Accounting
Nonprofits operate on multiple sources of funding, including donations, grants, and sponsorships. Therefore, the accounting software should have the capability to track and manage different funds, including restricted and unrestricted funds.
3. Financial Reporting
Nonprofit organizations need to provide financial reports to stakeholders, donors, and the board of directors. The accounting software should be able to produce financial statements, including the balance sheet, income statement, and statement of cash flows.
4. Integration with Other Systems
Choose software that integrates with other systems, such as payroll, CRM, and fundraising software. This integration ensures that data is consistent across all systems, reducing errors and saving time.
5. User-Friendly Interface
The software should have a user-friendly interface that is easy to navigate. Nonprofits often have limited staff, and the software should not require extensive training to use.
6. Security
The accounting software should have robust security features to protect sensitive financial data. Look for software that offers multi-factor authentication, data encryption, and regular backups.
What is the best accounting software for a small nonprofit?
Some of the best accounting software for small nonprofits include QuickBooks Nonprofit, Aplos, and Xero.
Can I use regular accounting software for a nonprofit?
Yes, you can use regular accounting software for a nonprofit, but it may not have the features required for nonprofit accounting, such as fund accounting and donor management.
What is fund accounting?
Fund accounting is a method of accounting that separates financial resources into different funds, such as restricted and unrestricted funds. This method ensures that nonprofit organizations can track and report on the use of funds.
Can I use Excel for nonprofit accounting?
While Excel can be used for nonprofit accounting, it is not recommended. Excel is prone to errors, and it can be difficult to maintain data consistency across different spreadsheets.
How much does accounting software for nonprofits cost?
The cost of accounting software for nonprofits varies depending on the features and the number of users. Some software starts at $10 per month, while others can cost up to $200 per month.
Do I need accounting software if I have an accountant?
Yes, you still need accounting software even if you have an accountant. Accounting software can help you track expenses, manage funds, and produce financial reports.
Can nonprofit accounting software be accessed remotely?
Yes, most nonprofit accounting software can be accessed remotely, which is essential for nonprofits with multiple locations or staff working remotely.
What is the difference between nonprofit accounting software and regular accounting software?
Nonprofit accounting software has features that are specific to nonprofit organizations, such as fund accounting and donor management. Regular accounting software may not have these features.
• Simplifies financial management
• Increases accuracy and reduces errors
• Provides real-time financial information
• Improves transparency and accountability
• Reduces administrative workload
• Saves time and money
• Research different software options before making a decision
• Consider the specific needs of your nonprofit organization
• Take advantage of discounts and promotions offered to nonprofits
• Test the software before making a long-term commitment
• Train staff on how to use the software
• Regularly update and maintain the software
Choosing the right accounting software is essential for small nonprofit organizations. Look for software that is affordable, has fund accounting capabilities, produces financial reports, integrates with other systems, has a user-friendly interface, and has robust security features. Research different software options, take advantage of discounts, and train staff on how to use the software. By using accounting software, nonprofits can simplify financial management, increase accuracy, and improve transparency and accountability.