Nonprofits use a different approach to accounting than for-profit companies called fund accounting. The goal of a nonprofit is not to make money but instead to raise money and use it toward a stated purpose, so it makes sense that there would be different requirements for accounting software. Xero is similar to software like QuickBooks and Wave as it’s not a dedicated financial software for nonprofits. It’s fully customizable to fit the needs of your growing nonprofit organization.
For instance, it has become a collaboration tool and now sports a more visually appealing dashboard that can generate even more customized invoices, which the system can track. Tasks can now likewise be prioritized, thanks to the tool’s time tracking capability, resulting in more transparent accounting, which https://accounting-services.net/ is a must for nonprofits. Its search functionality has also received a facelift, along with the addition of multicurrency support. The platform comes with mobile apps that support both Android and iOS devices and integrates with third-party applications, including G Suite, Shopify, Stripe, and PayPal.
Financial reports enable more informed discussions, greater transparency, and better decision-making. Nonprofits must also adhere to specific accounting standards, like the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 958 for Not-for-Profit Entities. Donors may pose restrictions on how contributions should be used, making revenue recognition another challenging task. We included user reviews in our evaluation to incorporate actual user feedback.
Plus, QuickBooks’s mobile accounting app is at least as user-friendly as its software—so if you plan to do a lot of on-the-go donor management or financial tracking, QuickBooks is one of your best options. You can use QuickBooks Enterprise Nonprofit to track expenses and donations, budget by program and compare to actuals, and create donor and grant reports. This version of QuickBooks allows you to accept donations and securely store donor information in your database. If you upgrade to the Gold, Platinum, or Diamond plans, you can even get payroll services for your organization and pay your staff directly through QuickBooks. While Wave offers free plans, its payroll (tax services), transactions and bookkeeping and accounting support cost extra. Payroll services start at $20 per month and bookkeeping support starts at $149 per month.
Comprehensive accounting software A2X is designed to simplify bookkeeping processes. The platform reduces the need for manual entry and recording, automatically syncing transactions to ensure the accuracy of accounting records. These transactions can also be summarized into reports at the end of each month for easier financial tracking. An important feature of Gusto is that it allows organizations to monitor employee payroll and company spend in real-time. With the platform’s accounting dashboards, businesses can easily track the live status of their company’s financial health. Moreover, Gusto leverages powerful automation tools to payroll and tax filing workflows.
- Set reports to be automatically created and emailed to board or committee members on any schedule you’d like.
- AccuFund Accounting Suite immediately stands out due to its flexibility.
- We selected QuickBooks Online as the most user-friendly online accounting software for nonprofits on our list, even though it’s not exclusively designed for this sector.
- Or, maybe you need a stronger management system for things such as grants and donors.
Accounting provides nonprofits with financial data and reporting that supports more informed decision-making and planning. By analyzing financial data, nonprofits can assess the financial health of the company, evaluate the impact of programs, and make better decisions to optimize resource allocation. In this article, we define nonprofit accounting, examine its importance, and look at a variety of nonprofit accounting solutions (including strengths and weaknesses) to fit every business size and shape. Accounting software programs for nonprofits come at different price points. That’s why we considered giving price a significant weight to give more credit to account software programs that deliver great nonprofit accounting features at an affordable price. 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.
Aside from the abovementioned, Rossum also comes with an analytics and reporting system. With this, you can easily access audit trails and keep tabs on who has access to your accounting files. Once you set Rossum up for your accounting workflows, you can then use its notification systems and custom approval rules to optimize your processes. You can also integrate the platform with your ERP and RPA systems so you can further streamline your accounting processes.
It is best for small businesses, start-ups or nonprofits looking for simple and professional accounting and billing solutions. A majority (75%) of nonprofit Quickbook Desktop Pro users on TrustRadius are from small businesses (1-50 employees). It is best for small businesses or nonprofit seeking basic accounting needs and that does not require a complex, customized payroll and dimensions. One of the main benefits of accounting software is to ease the burden of financial audits. CFOs and financial managers use data to find patterns in behavior, identify trends to help plot the best course for their operations, and to take advantage of the opportunities good data can provide.
What is fund accounting, and why is it essential for nonprofit accounting software?
Why We Chose It QuickBooks Online is a full accounting software that provides some fund accounting functionality. It includes extra features such as sales and expense tracking, estimate creation, customer management, receipt organization, tax deduction maximization, and invoicing and payment acceptance. The low starting cost makes it affordable even for nonprofit organizations. However, it does lack some of the more industry-specific features of other fund accounting solutions.
Bill.com offers three monthly plans ranging from $39/user/month to $69/user/month as well as an Enterprise plan available by quote. All subscriptions are priced depending on the features that a user requires. The software consists of four modules, which offers a lot of flexibility for companies and organizations when it comes to choosing apps they would like to implement in their AP processes.
QuickBooks Online for Nonprofits: Most user-friendly
For nonprofits, its most relevant plan is the $6.99 Quicken Classic Business & Personal plan (normally $9.99). All Xero plans offer reporting, payment acceptance, file storage, contact management, tax calculations and the ability to connect Xero to a bank account. Its $15 per month plan ($7.50 per month for the first four months during the current promotion) offers invoicing and quotes tools, bill tracking for five bills, bank and Xero syncing and 30-day cash flow snapshots. Its $42 and $78 plans ($21 and $39 per month, respectively, for the first four months during the current promotion) add bulk transaction reconciliation, higher bill pay limits, project tracking and analytics. QuickBooks is one of the most popular solutions for organizations with tight budgets, which rings true for many nonprofits and government organizations.
# Research All Options
Donor contribution summary reports can be sent to donors via direct mail or email. Each version includes an unlimited number of profiles for prospects and members that can be stored in one or multiple hierarchies or entities. Membership dues can be configured, automated, and tracked alongside several accounting software integration, which includes QuickBooks. Bloomerang’s free version is available for start-ups and small nonprofits which only manage up to 250 records and up to $100,000 in annual revenue. The paid version starts at $79 per month for organizations managing up to 1,000 records. Integrated payment processing means Bloomerang works great as a one-stop shop for collecting donations.
You can tweak the software to operate at your pace by adding new modules for new functions and applications. It’s not the best nonprofit accounting software for novice users, however. The incredibly efficient automations and reporting will save you hours of work, but you might have to make several calls to their customer service or get an expert to put you through. The unique value of Sage Intacct is that it’s a vast platform with unique accounting solutions tailored to suit various types of nonprofit organizations. It’s the best accounting software for nonprofits that want to grow on a pay-as-you-need basis.
Use Software Developed for Your Industry
However, it is possible to have QuickBooks Premier hosted, and there are a number of QuickBooks hosting services available. Unfortunately, while Aplos’s nonprofit features stand out, its accounting features are more limited. Only the customized plan includes in-depth income and expense tracking, budgeting by project or fund, asset tracking, and recurring transactions.
Pricing is usually determined by how sophisticated the software is and the features your organization needs. A solution like MoneyMinder has a free version that costs nothing, which is quite rare for accounting software. A tool like Quickbooks can go from $40 to more than $3000 for the most advanced features. There are also some free accounting software for small businesses and nonprofits. In many cases, nonprofit accounting software might offer a starter fee of $30 to $40 per month for the most basic accounting features. Conveniently, Financial Edge is not as difficult to use as advanced nonprofit accounting software might ordinarily be.