Unlike most software for nonprofits, NonProfitPlus includes inventory management, which is crucial if you stock merchandise (like T-shirts and mugs) to raise money or reward donors. On the other hand, NonProfitPlus doesn’t list any pricing on its site—as with Sage Intacct, you have to get in touch with a representative for a quote. Customers report paying more than $600 a month for NonProfitPlus’s full suite of features, so if you’re looking for https://greatercollinwood.org/main-benefits-of-accounting-services-for-nonprofit-organizations/ affordable nonprofit software, NonProfitPlus probably isn’t it. But even with its extensive accounting features, QuickBooks’s nonprofit software still doesn’t have as many nonprofit-specific features as Sage Intacct and Aplos. It’s also on the pricier end of accounting software that wasn’t built for nonprofits. If you’re trying to balance a nonprofit budget on, well, a budget, Xero, Zoho Books, and FreshBooks are cheaper options, and Wave Accounting is completely free.

• Once you’ve got a bookkeeping system and a bank account in place, you need some way of making sure the information in both of those systems lines up.
• However, it also offers a few nonstandard features such as volunteer tracking and board management.
• When we contacted a sales representative for a starting price, we were told there is no set starting price as each solution is uniquely catered to the NetSuite client.
• Accurate bookkeeping for nonprofits is essential to demonstrate financial accountability, make informed decisions, maintain transparency with stakeholders, and fulfill legal requirements.
• When it’s time for payroll, you can click right into the system to see everyone’s hours.

Managing Grants

• Your non-profit must prepare annual financial statements to report its activities.
• In such situations, the immediate needs of the program take precedence over the building of operating reserves.
• To avoid common mistakes, non profits should maintain consistent record-keeping, adhere to donor restrictions, implement internal controls, and regularly review and reconcile their financial records.
• Unlike traditional business accounting, which focuses on profit, nonprofit accounting monitors how organizations use their funds to achieve their mission.

This is crucial for maintaining nonprofit compliance and meeting reporting requirements. Budgeting is essential to nonprofit bookkeeping as it helps organizations plan expenses and track spending against revenue. In addition to tracking incoming funds, it’s equally crucial to record how the nonprofit is using these donations.

Bookkeeping for Nonprofits: A Basic Guide & Best Practices

Creating invoices for goods, services, and donations ensures compliance and that each transaction aligns with nonprofit bookkeeping standards. Financial statements provide insight into how much money your nonprofit has, where you spend it, and how it’s used. As mentioned, nonprofits have to follow strict rules to justify their financial position and fundraising expenses. It goes without saying that you should never use your personal bank account for your nonprofit organization. You can always ask your bank about your account options and use those tailored for nonprofits. For-profit entities are individuals, corporations, or partnerships that conduct business for profit.

Financial Strategy and Planning

You’ll have secure, 24/7 access to your books and records, from anywhere you have a broadband connection. Write and print checks, sync with your bank account, generate reports…all in the same place. Financial ratios help nonprofits measure the financial health of the organization. Learn about the key components of a nonprofit’s statement of cash flows and how to properly interpret this important statement. Understanding the statement of cash flows is essential for assessing the financial health and sustainability of any nonprofit organization. In-kind donations require special handling in nonprofit accounting systems.

Key Features to Look for in Bookkeeping Software

Bookkeepers must ensure the financial reports providing this information are correct and updated. While an accountant will interpret financial reports and make informed suggestions for the board, a bookkeeper is responsible for organizing the nonprofit’s data to create these reports. Nonprofit organizations face unique challenges in managing payroll, particularly when integrating volunteer efforts with paid staff compensation. Bookkeeping needs to account for these 5 Main Benefits of Accounting Services for Nonprofit Organizations distinct elements to ensure accurate financial reporting and compliance.

Nonprofit bookkeepers oversee the day-to-day operations of the organization. A bookkeeper may assist with software selection as well as support and training. And we’ll even help you understand the story behind the numbers, so you’re never left speechless in front of your finance committee. See our step-by-step guide here on how to switch to Wave from Quickbooks.

Tax Acts

With our nonprofit bookkeeping and accounting services, we’ll ensure your books are always audit-ready. Plus, give you timely financial reports and expert advice that help you carry out your mission. We find that small to mid-sized nonprofits benefit most from investing in the Plus or Advanced plans of QuickBooks Online. The Plus plan includes all of the essential accounting features your organization needs in a cloud-based platform and provides access for up to five users. However, if you want to add more users to your account or leverage more complex tools like batch invoices and fixed asset auto-tracking, it’s worth upgrading to the Advanced plan.