Best Accounting Software for Nonprofits 2023 Reviews

Set reports to be automatically created and emailed to board or committee members on any schedule you’d like. Nonprofits rely on accurate, timely financial information throughout the year. Here are a few items to watch closely each month on your nonprofit financial statements.

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. While not wholly an accounting suite, SignRequest can bolster your accounting process. It provides another layer of security to the movement of funds, for example. You can make secure your bank accounts and allow only authorized individuals access to those. Apart from that, you can bar the use of cash-on-hand or petty cash unless you have given authorization through a document signed via the application.

Alternatives to QuickBooks for Nonprofits

For instance, as of this writing, Xero is currently offering 50% off for three months. Xero also has discounts for organizations using Xero to manage multiple entities. Kristine Ensor is a freelance writer with over a decade of experience working with local and international nonprofits. As a nonprofit professional she has specialized in fundraising, marketing, event planning, volunteer management, and board development. It is a growing company that claims to be used by over 40,000 nonprofits.

Wave Accounting is an online invoicing and accounting solution that simplifies nonprofit bookkeeping processes. Some of the notable features of the software include payment tracking, payroll management, credit card processing, and finance management, among others. Wave Accounting features a finance dashboard that displays cash flows, bills, net income, bank account statements, and other financial insights useful to a nonprofit treasurer. Rather than track how much profit is earned like small businesses, nonprofit organizations track how money is spent. QuickBooks makes it easy to allocate revenue and expenditures to specific funds or programs, automatically allocates overhead to programs, fundraising, general, and administrative expenses for you.

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Not all nonprofits need to report to the IRS, but the ones that do need to report where the money came from, how it was spent, and why it was spent. QuickBooks makes it easy to tag expenditures to fundraising, programs, or general admin so that you can report exactly how each dollar was spent for each program or fund across your organization. At the end of the year, all of your data is organized in one location to save you time when preparing IRS Form 990. Zoho differentiates their plan levels based on the number of users, workflow rules, and additional features—with the higher-level plans offering the greatest amount of functionality. For the Standard plan, you’ll pay $20 per month, for the Professional Plan, you’ll pay $50 per month, and finally, for the Premium Plan, you’ll pay $70 per month. Therefore, whether you’re looking for functionality, cost-effectiveness, or an accounting-first approach, QuickBooks Online is going to be one of the best accounting software options for nonprofits.

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All nonprofit bookkeepers must meet with an accountant to help report quarterly taxes, submit Form 941, create financial statements, and complete government-related reports for grants and business contracts. As a bookkeeper, it may be necessary to meet with your nonprofit’s accountant weekly, monthly, quarterly, and yearly. Weekly meetings with an accountant should go over how to adhere to your budget goals and track fund accounting. The easiest way to do this is with quality accounting software that helps create standardized reports. Regardless of your nonprofit size, there are several accounting software options available. In the world of nonprofit work, the term “statement of financial position” is widely used to describe how an organization plans to use its money.

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. You can determine whether these are one-time or regular experiences and choose how to raise funds for different programs that don’t gain as much financial support. A budget and strategic plan will help plan nonprofit bookkeeping for better use of these funds and others. If your nonprofit can afford to hire a bookkeeper, you should find someone with fund experience. Bookkeepers with this background will help create internal reports that don’t need much updating by your accountant and can save your nonprofit money and time. When you start a nonprofit bank account, you’ll want to authorize someone as a signatory.

Availability can vary and are subject to occasional downtime and may change without notice. You can also consolidate the financials of multiple global entities into one platform, then connect business management software such as Salesforce. You can consolidate across multiple currencies and local tax codes automatically and in minutes.