QuickBooks Online is a robust accounting software solution that, when leveraged effectively, can provide a variety of benefits for nonprofits of all shapes and sizes. Although QuickBooks Online makes all of these processes simpler, it’s still most effective to navigate them with expert help from nonprofit financial professionals, like the team at Jitasa. Your nonprofit’s chart of accounts serves as a directory for all of the financial information stored in QuickBooks Online. When you need to access or report on any details of your organization’s assets, liabilities, net assets, revenue, or expenses, this resource ensures you know exactly where to look. NerdWallet independently reviews accounting software products before determining our top picks.
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However, Wave doesn’t offer fund accounting or any other nonprofit-specific features, so we hesitate to recommend it to nonprofit bookkeepers and treasurers. The same is true of ZipBooks and other free accounting software options. We like Sage Intacct’s nonprofit management module, which includes data tracking for projects to gain insight into performance.
Nonprofit accounting beginner’s guide and key financial statements
- Most NPOs’ operating expenses are entirely from funds, grants, and donations.
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- As you might expect of a software company with customizable products, Blackbaud does not publish its pricing.
- Next, make a list of the features your organization needs to properly track, report and manage its funds and taxes.
In addition, as you build new global entities, you can seamlessly add them to the software. Accounting software that is designed for for-profit companies can be customized for nonprofits’ needs. 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. Accounting is a critical but underappreciated part of a nonprofit’s operations. We reviewed some of the most popular accounting systems to help you make the best decision. This plan is ideal for enterprise-level nonprofits that require extensive reporting, multiple users, and a dedicated support team.
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Accounting software helps businesses record and keep track of their day-to-day financial transactions. But, many nonprofit organizations cobble together accounting, donor management, and payroll services by using multiple programs. Software can help simplify and streamline these tasks, ensuring that financial records are in order and reporting standards are met. Intuit QuickBooks offers several plans, ranging from $35 to $235 per month ($17.50 to $117.50 per month for the first three months during the current promotion). Plan differences revolve around the number of users, customization options, inventory management, automations and expense tracking.
Financial management is easy with QuickBooks fund accounting software. Connect your bank and get instant updates for expense tracking and cash flow. Nonprofit organizations face unique accounting challenges such as managing donations, grants, restricted funds, and ensuring compliance with regulatory standards. QuickBooks for Nonprofits quicken for nonprofits addresses these challenges with specialized features like fund accounting and donor management, enabling streamlined financial operations and greater accuracy. This being said, important features to look for may include syncing bank and credit card accounts; industry-specific reports; and receipt, bill, and revenue categorization.
What is fund accounting, and why is it essential for nonprofit accounting software?
Most software firms are more than happy to work with nonprofits and may offer discounts that ensure you can meet your organization’s mission statement without sacrificing too many donor funds to in-house software. If you’re worried about price or have questions about whether a certain accounting tool will work for your nonprofit or not, don’t hesitate to get in touch with the company in question. Most notably, Striven offers add-on “Portals” that enable communication between your nonprofit and its stakeholders. Using Striven’s stakeholder portal, it’s easy to create and share transparent financial reports with your donors, board members and other key stakeholders.
And you better believe that accounting technology is part of that mix. The nonprofit sector has always been burdened with the task of doing more with less. That means less resources, less capacity, less people power and less money, but they are still doing amazing things for the community and turn to technology to help them make that impact of a larger scale. To get more specifics on how the TechRepublic team tests and evaluates the software we write about, read our in-depth software review methodology page. Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you.
This plan is ideal for small to medium-sized nonprofits that need efficient financial tracking and project management features. The Plus plan offers comprehensive features that enable nonprofits to manage projects, billing, and contractors, making it a popular choice for growing organizations. Nonprofits must carefully track specific types of transactions, including donations, restricted grants, and in-kind contributions. Properly setting up accounts to track these activities helps ensure accurate financial reporting and compliance. Therefore, although Premier might be expensive out of the gate, this QuickBooks for nonprofits option can provide the greatest industry-specific tools to help you manage your nonprofit finances and accounting tasks. For even greater capabilities, including the nonprofit edition option we mentioned above, there is QuickBooks Premier.
Set up automatic reports to be created and emailed to colleagues, board members, and donors. With QuickBooks Online and QuickBooks Advanced, you can Instantly review the statement of financial position, the statement of financial activities to budget, actual reports, and more. Send your donors yearly donation statement with thank you letters attached.
This program integrates with Raiser’s Edge, a program of choice for donor and constituent management, and allows you to track expenses and budgets across fiscal years. The point of this statement is to help determine whether or not the organization meets its goals or has enough funds to support its programs. You’ll be able to provide a snapshot of the organization’s financial health so that stakeholders can assess its performance and decide its future direction. Most importantly, you should adhere to proper disclosure procedures in all financial statements as outlined in GAAP guidelines.