Ease of use is critical here, as smaller organizations won’t have the funds accounting services for nonprofit organizations or personnel to dedicate to advanced accounting processes. It also offers advanced reporting for budget comparisons, encumbrance tracking, and various financial statements compliant with nonprofit accounting standards, such as FASB 117. This being said, its custom reporting capability is only available with the Pro add-on, which will cost more than the standard system.

Features of Accounting Software

Blackbaud Financial Edge NXT is a cloud-based accounting solution that was custom created for nonprofits. The system features tools for budgeting, fund accounting, and in-depth financial reporting. Zoho Books helps nonprofits manage the financial aspect of operations and can be used to maintain accurate financial records, generate reports for stakeholders, and ensure compliance with all accounting standards. The Zoho brand also has Zoho Grants, a cloud-based solution designed specifically for a nonprofit to manage grants and scholarships. You can streamline the grant application process, evaluate applications, track submissions, and manage funds.

Best for Small Organizations

Make a list of tools that fulfill all of your needs and note the wants that they satisfy. Some truly free options, such as open-source accounting software, may be hard to learn or have limited support. I looked at some of the best accounting programs on the market to compare their key features and see how well they serve the needs of nonprofits. When it comes to online payments, FreshBooks integrates with popular payment gateways, allowing nonprofits to receive online payments from clients and donors.

• Nonprofit staff and stakeholders can securely access reports, financial data, and other pertinent information in real-time.
• That said, these missing features aren’t major drawbacks, and Aplos is still a strong choice.
• A customizable solution can automatically account for and allocate funds from grants and donations, allowing your organization to focus on actual outreach rather than behind-the-scenes administrative tasks.
• If you’re intimidated by setting it up on your own, consider their $249 coaching option, which includes two hours of live support followed by 30 days of email support.
• This level of organization will want to ensure board members have full clarity of the organization’s finances through proper bookkeeping, cash management, and reporting.
• They’re too big for small-scale solutions but not large enough for enterprise-level software.

NonProfitPlus: Best for Restricted Funds Accounting

However, QuickBooks may offer discounts for nonprofits who sign up for QuickBooks Online or QuickBooks Desktop Enterprise. Get in touch with the QuickBooks sales team directly to ask about discounts. My experience testing and researching the software — which includes considering verified user reviews from trustworthy sources — contributes to the remaining 10% of the score. Additionally, we found Blackbaud more complex to use, which led us to deduct points for ease of use. If you feel an ERP is more than you need, QuickBooks Enterprise might be a more suitable alternative. Your non-profit organization needs to automate workflows for productivity and employee morale, reduce errors, analyze and control spending, and add more financial controls.

• The finances are a mess, you’re struggling to understand how much money you can spend and people are complaining that they don’t get reimbursed when they pay for things on the organization’s behalf.
• However, QuickBooks may offer discounts for nonprofits who sign up for QuickBooks Online or QuickBooks Desktop Enterprise.
• Unfortunately, while Aplos’s nonprofit features stand out, its accounting features are more limited.
• You’ll want to ensure your business is staying compliant and up to date with the latest IRS tax regulations, including IRS Form 990, which federal tax-exempt organizations require.

Aplos

NetSuite has a higher level of customization than other solutions, which can be incredibly beneficial for nonprofits. It can accommodate the unique requirements of different nonprofits and quickly scale as the organization evolves. Accounting is a critical process for nonprofits to fulfill their mission, meet regulatory and legal requirements, demonstrate transparency, manage financial resources, make more informed decisions, and much more. It provides the foundation for financial stewardship, accountability, and long-term sustainability for nonprofits.

Why do nonprofits need accounting software?

Monitor project progress, track applications, and allocate resources, all from a single platform. The Tipalti Microsoft integration enables a nonprofit to streamline AP automation, accelerate global payouts, simplify procurement processes, and optimize employee expenses. MoneyMinder was specifically created for volunteer-led nonprofit organizations that are often overwhelmed by complex accounting programs. Araize FastFund Accounting is our https://www.bookstime.com/ pick for the best cloud-based solution for organizations that want total remote access. It offers comprehensive accounting, fundraising, and payroll services and can be accessed from anywhere in the world. Smaller or new nonprofits probably don’t need software with as many features as QuickBooks Enterprise Nonprofit.

• Zoho Books excels at collaboration—you can delegate as many tasks as you need to other organization members.
• Monitor project progress, track applications, and allocate resources, all from a single platform.
• If you prefer desktop software with built-in nonprofit features, we recommend QuickBooks Enterprise.
• Though software that is marketed specifically to nonprofits may be slightly easier to integrate into your operations than general accounting software, you certainly don’t need to use dedicated software for nonprofits.
• The standout feature of MoneyMinder is its ease of use, even with zero bookkeeping knowledge.

We recommend the Plus plan because of the location and class tracking features, which can be used to monitor income and expense by program service, administrative, and fundraising purposes. However, Advanced is also an excellent choice if you require more than five users. While it performed well in accounting, we deducted points for the added cost of payroll, the lack of inventory features, and the absence of receipt scanning. We found the normal balance software to be somewhat complex and lacking in assisted bookkeeping features, which could be a drawback for some users. For organizations set on sticking with QuickBooks Online, Intuit has been recommending QuickBooks Online as the accounting system for nonprofits.

Current versions of Quickbooks must instead be customized to enable nonprofit-specific functionality. For organizations, this requires savvy Quickbooks experts capable of customizing the software to meet their organization’s particular needs. Many NPOs instead look to adopt new nonprofit accounting software solutions that work out of the box. We like Sage Intacct’s nonprofit management module, which includes data tracking for projects to gain insight into performance.

She is a former CFO for fast-growing tech companies with Deloitte audit experience. When she’s not writing, Barbara likes to research public companies and play Pickleball, Texas Hold ‘em poker, bridge, and Mah Jongg. Get matched with a QuickBooks-certified bookkeeper who understands nonprofits and keeps your books up to date. Some of the links that appear on the website are from software companies from which CRM.org receives compensation.