13 Best Accounting Software for Nonprofit Organizations in 2024

13 Jan 13 Best Accounting Software for Nonprofit Organizations in 2024

Donors may restrict how contributions are used, making revenue recognition another challenging task. Also called the Statement of Activities, the income statement shows revenues, expenses, and changes in net assets over a specific accounting period. First, they collect all financial records in one place, right from invoices and bank statements to fundraising and other financial transactions. Its advanced reporting and analytics help improve your returns and keep the involved parties informed.

• Its ease of use really stands out, with multiple customer service channels that make it simple for users to get help when they need it.
• We included user reviews in our evaluation to incorporate actual user feedback.
• These platforms allow organizations to manage many elements of their finances in one place.
• In contrast, nonprofit accounting centers on tracking funds, including responsible oversight of fund management.
• Additionally, developing a strong volunteer program can help offset certain overhead costs by engaging skilled volunteers in tasks that might otherwise require paid staff.

Customizable Accounting and CRM Software for Growing Nonprofit Organizations.

The best bookkeeping nonprofit accounting software depends on your organization’s needs. Donor management is one of the key features of accounting software for nonprofits. As the name suggests, donor management involves managing all information about current and potential donors. This tool helps you actively track, find, and grow relationships with your donors. Fund accounting is a method of accounting that tracks and reports on the financial activity of specific funds or programs within an organization.

Accordus‘ services

NetSuite is a collection of accounting modules that can be tailored to suit your nonprofit needs. The system offers accounts payable and receivable, fixed asset and cash management, tax compliance, and general ledger tasks. The AP automation and cloud-based software also offers pricing uniquely catered to each NetSuite client. It’s important for nonprofit organizations to engage qualified accountants and use fund accounting software that ensures compliance, accurate reporting, and Bookstime effective utilization of resources. The more these types of companies can automate their AP process, the easier it will be to focus on strategic initiatives. Araize is cloud-based accounting software so it could be great for a global or remote workforce.

Is there a free version of QuickBooks for nonprofits?

Since nonprofit organizations manage donations and grants and receive funding from various sources, a specialized approach to accounting is crucial to preventing any hiccups in compliance. Tipalti is a comprehensive global payables solution that offers a variety of features and services for nonprofits. The accounts payable automation solution enables nonprofit organizations to quickly process expenses, pay multiple suppliers, and save up to 80% of the time completing the workflows.

You can create custom reports based on the requirements of your donors and board members and even apply allocation. You can create a chart of accounts that fits the activities of your accounting services for nonprofit organizations organization, budget reports, and forecasts. Powerful, easy-to-use accounting software that has everything you need to confidently run your business. Martin loves entrepreneurship and has helped dozens of entrepreneurs by validating the business idea, finding scalable customer acquisition channels, and building a data-driven organization. During his time working in investment banking, tech startups, and industry-leading companies he gained extensive knowledge in using different software tools to optimize business processes. Once you have a clear picture of your organization’s nonprofit accounting needs and capacity to adopt a new system, you can start shortlisting and comparing your options.

• Sage is an affordable accounting option that could work well for nonprofits that are just starting out.
• It offers advanced accounting and other features to help nonprofits efficiently manage funds and grants.
• My experience testing and researching the software — which includes considering verified user reviews from trustworthy sources — contributes to the remaining 10% of the score.
• Your accounting software should integrate seamlessly with existing tools like donor management systems, CRM platforms, or fundraising software.
• It’s designed to enhance efficiency and accuracy in nonprofit financial management.
• Managing donor-restricted funds, tracking multiple revenue sources, and ensuring proper allocation and usage of grants and donations.

Using a nonprofit fundraising software like Funraise in conjunction with a nonprofit compliance specialist like Harbor Compliance means that you’ve got every „t“ crossed and every „i“ dotted. No matter how good the fight, you need to start with sound finances, so you can build a better world on a sturdy foundation. Join us on a magically practical and practically magical journey through the world of nonprofit accounting.