The Best Accounting Software for Nonprofits (2024) top picks

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That is to say, accounting rules and procedures for nonprofits are different from those for-profit organisations. In fact, accountants who work for nonprofits have to follow rules set by the Internal Revenue Service (IRS) and their own states. Best Accounting Software for Nonprofits, Accounting for nonprofits is the process by which they plan their financial transactions, keep track of them, and report on them over time. When it comes to accounting for a nonprofit, it’s all about being honest with the donor.

Fund accounting is the only way that nonprofits have agreed to do their accounting. Fund accounting helps nonprofits divide their money into different groups so they can keep track of it and spend it the way the donor wants.

Donors can decide how their gifts will be used. If a donor specifies that their money must be used for a certain programme, the accountant will move the money right away to the right fund to make sure it isn’t used illegally. This article talks about how to do accounting for a nonprofit and gives you a list of the best accounting software for nonprofits.

Best Accounting Software for Nonprofits

Software4Nonprofits

We picked ACCOUNTS as the best accounting software for small groups like churches and community groups. It’s cheap and easy to use, and it comes with everything you need to track your income and expenses and make reports.

A small company in Canada called Cooperstock Software sells a programme called ACCOUNTS through Software4Nonprofits. The treasurer of a religious finance committee started the company because it was hard for him to find software that fit his needs. At the time, accounting programmes were more expensive and harder to use, so he made ACCOUNTS as an alternative.

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QuickBooks Online

QuickBooks Online from Intuit is a good choice of accounting software for nonprofits and many businesses, especially those that plan to work with bookkeepers or accountants often. It is the standard software for small businesses to use to keep track of their finances. It has four plans and add-on services that give it a high level of functionality, flexibility, and scalability.

Even though QuickBooks Online is easy to use, there is a learning curve, especially if you don’t know much about accounting. Also, many businesses can’t afford QuickBooks, especially when time tracking or payroll are added. The competition can offer easier and cheaper options. you can download this software fro its official website.

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MIP Fund Accounting

MIP Fund Accounting® was designed to meet the needs of nonprofits and government agencies in the 21st century. It lets organisations track by fund, handle restrictions based on an unlimited number of funding sources, and meet complex reporting requirements.

MIP is software that nonprofits and government agencies use to keep track of their funds. It is fully integrated and is used by both groups. Its full set of features and multi-segment chart of accounts can be changed to fit the size and needs of each organisation.

MIP is a set of programmes that work together and can be used in the cloud or on-site. It has functions for real fund accounting, purchasing, budgeting, payroll, human resources, timekeeping, fixed asset management, grant management, and dashboards.

Because the software is made to be flexible, our experienced consultants can change it to meet your needs. Users can manage and report on multiple cost centres at the general ledger level with this solution. This includes more than one group, fund, project, grant, programme, department, location, and other things.

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Blackbaud Financial Edge NXT

Blackbaud’s Financial Edge NXT is a cloud-based accounting solution that is made to make teams more open, secure, and compliant, and to cut down on the need for manual processes. The system is a fund accounting solution that includes a general ledger, projects, grants, endowments, accounts payable and receivable, fixed assets, banking, and more.

The system gives users access to grant and project accounting, which makes budgeting easier and gives them a way to keep track of accounts and make reports. The value proposition of the vendor is that using Financial Edge NXT will make nonprofits less reliant on manual processes, which will improve the accuracy of data entry.

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Sage Intacct

Sage Intacct is a cloud-based financial management system with advanced accounting features that helps companies manage their financial and operational data in one place. Because the platform is so complicated, it works best for midsize and small businesses that are growing quickly and have a finance team or an in-house accountant who knows how to get the most out of it.

Sage Intacct plans can be changed to fit your needs, and their products fall into different categories, like accounting and finances, planning and budgeting, and HR and people management. Here are some things that each has:

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Xero

One of the most affordable accounting programmes on this list is Xero, which is used by nonprofits. With this accounting software, nonprofits can keep track of their bills and pay them automatically. They can also connect the system to their bank and see all of their activities on Xero’s dashboard.

Xero also lets nonprofits share all reports with their board members, volunteers, and donors. They can also pay their staff online with Gusto and use their accounting app to check on their finances from anywhere.

Packages from Xero start at $12 per month. Nonprofits that have already registered can sign up for a free 30-day trial and get 25% off all Xero packages. If the accounting software doesn’t work well for an organisation, it only needs to give one month’s notice.

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NonProfitPlus

The accounting package from NonProfitPlus makes it easier to delegate by letting you keep track of donors, boards, and an unlimited number of users. It also has both fund-based accounting and encumbrance accounting, which makes it easier to keep track of the budget. Because it has so many features, NonProfitPlus is very easy to scale. As your organisation grows, more features of NonProfitPlus, like delegating tasks and keeping track of time, become useful.

Unlike most software for nonprofits, NonProfitPlus lets you keep track of your inventory. This is important if you sell things like T-shirts and mugs to raise money or thank donors. On the other hand, NonProfitPlus’s website doesn’t list prices. To get a quote, you have to talk to a representative, just like with Sage Intacct. Customers say they pay more than $600 a month for all of NonProfitPlus’s features, so if you’re looking for cheap nonprofit software, NonProfitPlus is probably not it.

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Oracle NetSuite

Oracle NetSuite is a platform for enterprise resource planning (ERP) that includes a strong financial management solution. Its price is based on the needs and circumstances of your business and is different for each user. Oracle NetSuite is great for midsize businesses, manufacturers, and companies that need advanced features.

As your business moves past the startup phase and becomes a more established company, you may want to invest in software solutions that will keep your operations moving forward. When a company gets to this point, they often find it easiest to combine all of their systems, such as accounting and financial management, onto a single platform for enterprise resource planning (ERP). Oracle NetSuite is the best choice for businesses that want advanced features because of this.

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FAQS

What financial reporting is required for 501c3?

GAAP says that all 501(c)(3) organisations must give detailed financial statements that show what they do. Businesses must give a balance sheet, a statement of activities, a statement of cash flows, and an income statement. The balance sheet lists all of the assets, all of the debts, and the net assets.

What is the best accounting software for a small non profit?

QuickBooks is our pick for the best accounting software for nonprofits because it is a full-service programme that lets you keep track of your finances, manage your donor lists, and even pay your staff.

Do nonprofits use GASB or FASB?

The GASB is in charge of setting standards for federal, state, and local governments, while the FASB is in charge of setting standards for non-profits, as well as private and public companies that follow the Generally Accepted Accounting Principles (GAAP).

What accounting method do nonprofits use?

Depending on your state, the level of GAAP compliance your nonprofit must follow will vary, but we recommend that you follow GAAP no matter where you live. GAAP says that your nonprofit should use accrual accounting for its accounting.