Consider how much (or how little!) you are willing to pay. How big is your budget? Software options can range from simple and relatively inexpensive to more robust and quite pricey.What problems are you trying to solve? For example, are you trying to keep up with changing guidelines or compliance? Do you need better communication with grantors? Knowing the specific issues that are problematic for you can help you make the best choice in software.A smaller nonprofit, such as a Parent Teacher Association/Organization, won’t necessarily need comprehensive accounting functionality. How big is your nonprofit? This could be important, for example, if your nonprofit is large and requires vigorous fund accounting capabilities.It’s important to choose software that can help you meet these requirements. What type of nonprofit do you run? Some nonprofits, such as 501(c)(1) don’t file tax returns, while a 501(c)(3) or 501(c)(4) will file an annual return different rules apply to different types of nonprofits.To get started on your hunt for the best accounting software, take a moment to consider your needs: Tracking expenses, both in general and against specific budgets, projects, or grantsīudgeting, including preventing overspending against grants and restricted funds Member and donor management and communication Tracking revenue, such as donations, dues, fundraising, grants, investments, and so on (fund accounting) unrestricted assets, statement of activities, cash flow statement) Nonprofits can vary widely in their accounting software needs, but most will have some basic requirements:įinancial statements/nonprofit reports (statement of financial position, restricted vs. However, accounting for nonprofits can be very different from for-profit accounting. Nonprofits need to take care of the books, just like any organization that handles money and reports income and expenses to the IRS.
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