Nonprofit organizations of all types face opportunities, challenges, and tough decisions every day. Not-for-profits in all sectors (education, faith-based, health, business and commerce, the arts, community service, etc.) find that growth amplifies all of those things.
As your nonprofit organization increases in size and faces added complexity in its administration and operations, you may find yourself with an accounting system that can’t stay in step with your needs and goals. Manual accounting processes can eventually hurt productivity and result in inaccurate data due to human error. That can lead to wasted time, insufficient and erroneous information, and lack of focus in serving your mission.
Nonprofit accounting software offers a solution that helps organizations overcome those hurdles. It gives nonprofits the tools they need to manage income and expenses, enabling organizations to accurately record and report on grants, donations, assets, payments, and other transactions. Not-for-profit accounting software helps satisfy the requirements of accountability and transparency, which is especially important because nonprofits are subject to federal audits.
What To Look For In Web-Based Accounting Software For Nonprofits
The right automated nonprofit accounting system will give you the ability to fulfill the accounting, tracking, and reporting requirements specific to your organization. Whether you’re a church, chamber of commerce, recreational sports team, theater or another type of nonprofit organization, at a minimum, you’ll want a cloud-based system that automates core financial management functions such as Accounts Receivable, Accounts Payable, and Financial Close.
Other attributes to consider include:
- Fund Accounting—To process, track, and report on funding from multiple sources.
- Flexible Financial Processes—Giving you flexibility with your general ledger so you can manage and analyze your financial information in a way that’s compatible with your organizational structure and workflows.
- Real-time Insight—Providing a thorough view of your organization’s financial performance, allowing you to identify new opportunities and recognize where corrective measures need to be taken.
Advantages Of Not-For-Profit Accounting Software
Nonprofit accounting systems provide a variety of benefits to organizations. While features and capabilities vary from solution to solution, generally you can expect to gain these benefits:
- As a cloud-based solution, it’s accessible to you from any device at any time no matter where you are (provided internet connectivity is available).
- You can manage grants more effectively (if it has a project accounting module).
- You can track both financial and operational data, so you have more insight into how to make your organization run more cost-effectively.
- You’ll eliminate manual effort, enabling you to close books faster.
- You can get accurate financial reports quickly, regardless of your organization’s complexity.
- You’ll save time and reduce errors.
- You’ll reduce your organization’s IT-related expenses (no premise-based equipment required).
If you’re interested in learning more about nonprofit accounting software, please feel free to contact us. At Cargas, we specialize in cloud-based systems, including Intacct® accounting software. We would be happy to learn about your specific challenges and needs and guide you toward a viable solution.