Nonprofit organizations must follow strict financial reporting, which sets them apart from for-profit businesses. 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.
This is where nonprofit accounting software comes in handy. These tools help organize finances, track cash flow, and create reports that reflect an organization’s health. This reigns especially true when working with nonprofit cloud-based accounting solutions.
What Are Nonprofit Cloud-Based Accounting Solutions?
Nonprofit cloud-based accounting solutions offer organizations the ability to access their financial records anywhere and at any time since all the data is stored via the cloud. Unlike traditional account software, cloud-based solutions don’t require manual updates. This is because cloud-based software works in real time to update and track donations, funding, and expenses.
Top Nonprofit Accounting Software
Sage Intacct
Sage Intacct is the most used nonprofit cloud-based accounting software with features to handle complex accounting needs, offer grant tracking, fund management, advanced customization/configurations, and thorough financial reports.
This particular accounting solution is an ideal accounting solution for nonprofits who want to grow and scale. Nonprofits dealing with multiple funding streams and who value compliance and accurate finance tracking choose Sage Intacct as their cloud accounting solution.
QuickBooks
A choice that is popular amongst small nonprofit organizations is QuickBooks. While QuickBooks does not offer the same level of accounting solutions as Sage Intacct, it is an affordable and easy-to-use option for organizations with straightforward financial recording needs.
While QuickBooks is not free, small nonprofits may choose it as their accounting software because of its affordable monthly rates which can fit into even the tightest of budgets.
The largest issue with QuickBooks is that many nonprofits eventually outgrow this software, leading them to explore more advanced options. Transitioning to a progressed nonprofit cloud accounting solution like Sage Intacct provides nonprofits with greater scalability. This enables organizations to manage large volumes of transactions and prepare for long-term growth.
Free or Low-Cost Software
There are many nonprofits, especially those just starting, that have limited budgets and benefit more greatly from low-cost or even free accounting software. A few examples of these are the platforms Wave and Aplos.
Even with the free versions of these two software, nonprofits can accurately record their funding, grants, and cash flow, ensuring they can manage their day-to-day financials effectively.
What is the Best Accounting Method for Nonprofit Organizations?
Choosing the right accounting method is just as important as selecting the right software. Nonprofits typically use either accrual or cash-based accounting. The cash method is simpler, recording transactions when cash changes hands. However, accrual accounting is often more appropriate for larger nonprofits with more complex financial operations.
For most organizations, Sage Intacct stands out as the best choice for scalability, compliance, and advanced reporting features. Whether you prioritize grant tracking and billing, spending management, or an enhanced financial reporting dashboard, Sage Intacct remains the #1 nonprofit cloud-based accounting solution for charitable organizations.
Learn how JFW Accounting Services can help integrate Sage Intacct into your organization and reap the benefits of nonprofit cloud-based accounting solutions.
Jo-Anne Williams Barnes, is a Certified Public Accountant (CPA) and Chartered Global Management Accountant (CGMA) holding a Master’s of Science in Accounting (MSA) and a Master’s in Business Administration (MBA). Additionally, she holds a Bachelor of Science (BS) in Accounting from the University of Baltimore and is a seasoned accounting professional with several years of experience in the field of managing financial records for non-profits, small, medium, and large businesses. Jo-Anne is a certified Sage Intacct Accounting and Implementation Specialist, a certified QuickBooks ProAdvisor, an AICPA Not-for-Profit Certificate II holder, and Standard for Excellence Licensed Consultant. Additionally, Jo-Anne is a member of American Institute of Certified Public Accountant (AICPA), Maryland Association of Certified Public Accountants (MACPA), and Greater Washington Society of Certified Public Accountants (GWSCPA) where she continues to keep abreast on the latest industry trends and changes.