With QuickBooks Pro, you’ll be able to manage your nonprofit finances and accounting needs, choosing from one of two options. One of the best options for nonprofit accounting software is QuickBooks Online. NerdWallet’s accounting software ratings favor products that are easy to use, reasonably priced, have a robust feature set and can grow with your business. The best accounting software received top marks when evaluated across 10 categories and more than 30 subcategories. Xero, Wave Accounting and QuickBooks Online are among the best accounting software for small charities.
- Keep in mind that financial reporting should be accurate and consistent and reflect the true nature of the organization’s operations.
- With a less overwhelming set of features compared to some competitors and award-winning customer support, Realm offers churches an easy platform for managing donors and their donations.
- Whatever the case is, nonprofits are relying on cloud-based technology to have their workforce access information from wherever they are.
- The Plus plan offers comprehensive features that enable nonprofits to manage projects, billing, and contractors, making it a popular choice for growing organizations.
What is fund accounting, and why is it essential for nonprofit accounting software?
As a member of a nonprofit organization, you need accounting software with more than just the basic bookkeeping functions. To rank the best accounting software for nonprofits, we first considered whether the software offered nonprofit-specific features, like donation tracking and Form 990 generation. We also considered price, ease of use, data security, types of plans, and customer reviews. Typical small-business accounting revolves around profit—how much a company is making, spending, losing, and saving. In contrast, nonprofit accounting centers on tracking funds, including responsible oversight of fund management. Fund accounting software’s primary goal is to show you and your shareholders, namely board members and donors, exactly where their money is going.
QuickBooks Online for Nonprofits: Most user-friendly
Ideally, the reports you run within your accounting software should help you automate the board presentation process and allow you to communicate effectively with your board members and other stakeholders. Plus, by choosing the nonprofits edition, you’ll be able to create end-of-year donation statements, create form 990, run donor contribution summary reports, and more. All of this being said, let’s explore the details of the desktop-based QuickBooks for nonprofits solutions you have to choose from. Finally, the last QuickBooks Online for nonprofits option is the Advanced plan. This option will give you the greatest capabilities to manage your nonprofit finances, but will also be the most expensive of the four QuickBooks Online versions.
Is there a free version of QuickBooks for nonprofits?
However, if you’re used to pricier programs like Financial Edge, you may find that the reports aren’t as customizable. The net income on an income statement for nonprofits is what remains after subtracting total expenses from total revenues. You may also need to provide other information, like unrealized gains or losses on investments and noncash transactions, such as depreciation or amortization expenses.
More about Accounting
Additionally, for any of the four QuickBooks Online for nonprofits options, you also can choose to surpass the discount and instead opt for a 30-day free trial. Moreover, for the QuickBooks Online Plus or Advanced plan, you can use TechSoup to purchase the software at a discounted nonprofit rate. If you want to be able to do more within your QuickBooks for nonprofits accounting software, you might then consider the QuickBooks Online Plus plan. Although not specifically designed for nonprofits, QuickBooks Online can nevertheless meet the needs of nonprofit organizations in a variety of ways.
Cooperstock Software offers another program called DONATIONS, which is free if you have 100 donors or less per year. Smaller or new nonprofits probably don’t need software with as many features as QuickBooks Enterprise Nonprofit. For smaller organizations and charities with more basic accounting needs, QuickBooks has other plans that start as low as $30 per month ($15 for the first three months). Nonprofit accounting associations offer resources, training, and support specifically tailored to the needs of nonprofit organizations. These associations can provide information on best practices, accounting standards, and regulatory compliance for nonprofits.
Fund accounting, also known as fund-based accounting, is the accounting system nonprofits use to keep their books and track funds. Our list of the year’s best free accounting software can help you keep your books in order while you plan for growth. Unfortunately, NetSuite’s site is pretty sparse, and it’s definitely on the pricier side of accounting software (third parties estimate it starts at around $499 a month). Still, since Oracle NetSuite focuses on ERP and CRM software, it’s a better fit for midsize to large nonprofits with a bigger budget for accounting. Industry-specific solutions (software developed with nonprofits in mind) can start around $75/month. Small businesses wanting to stay below that total may need to consider a more generic software such as Xero or Sage 50c.
We collect the data for our software ratings from products’ public-facing websites and from company representatives. Information is gathered on a regular basis and reviewed by our editorial team for consistency and accuracy. Robust feature set includes thorough record-keeping, comprehensive reporting, excellent invoicing and inventory management, plus a capable mobile app. Aplos tops our list because it’s built specifically with nonprofit businesses and churches in mind. That means you don’t have to spend extra money on nonprofit integrations to get the tools you need. Plus, unlike some of its industry-specific competitors, Aplos is transparent about its pricing — making it easy to estimate and compare subscription costs.
If your payroll is complex, with multiple consultants, contractors and part-timers, dedicated accounting software may make more sense. However, if it’s simple, you may be able to use software that does both. On the other hand, if you’re a small nonprofit or an organization just starting out, you might consider Wave accounting software. One of the only true free accounting software solutions on the market, Wave provides essential quicken for nonprofits accounting capabilities, as well as the option to expand your functionality with their paid Payments or Payroll add-ons. Although there’s no doubt that any of the QuickBooks for nonprofits options may serve your business well, it’s also worth considering the other accounting software solutions on the market. Last but certainly not least, you’ll want your nonprofit accounting software to accommodate team collaboration.