In this post, we will review the top nonprofit accounting software solutions to help you make an informed decision about which one is right for your organization.
According to a study by the Urban Institute, about 1.5 million nonprofit organizations are registered in the United States alone. If you are running a nonprofit, then you know that managing finances is one of the most important—and challenging—tasks on your plate.
The good news is that there is a range of nonprofit accounting software solutions designed specifically for organizations.
Nonprofits face distinct challenges in financial management, including handling donations, grant management, and adhering to specific reporting standards. Traditional accounting software often falls short in addressing these requirements.
Nonprofit Accounting Software is crafted to handle these complexities, ensuring that organizations can maintain financial integrity while focusing on their mission.
Easily Manage Finances
One of the main benefits of using accounting software for nonprofits is that it makes it easy to manage finances. With all of your financial information in one place, you can easily see where your money is going and make sure that it is being used efficiently.
You can also create budgets and track spending so that you stay on track financially. Additionally, most accounting software includes financial reporting features so that you can see how your organization is performing financially.
Keep Track of Donors
Another benefit of using accounting software for nonprofits is that it helps you keep track of donors. When you have all of your donor information in one place, it is easy to send thank-yous, update donors on your progress, and follow up as needed.
Additionally, many accounting software programs allow you to track payments and pledges so that you can see which donors have fulfilled their commitments. This information can be helpful when soliciting donations from other individuals and businesses.
Prepare for Audits
Finally, another benefit of using accounting software for nonprofits is that it helps you prepare for audits. When everything is organized and in one place, it will be much easier to find the information that auditors need.
Additionally, most accounting software programs generate reports that can be helpful in preparing for an audit. These reports can provide an overview of your organization’s finances and help you identify any areas that may need further attention.
For more content like this, check out our Nonprofit Resources Hub.
Aplos – Nonprofit Accounting Software
Nonprofits have unique needs. The Aplos nonprofit accounting software makes it simple for you to do accounting the right way. Upgrade for more granular reporting so you can harness the ability to see the exact data you need across your funds, departments, projects, and locations.
Aplos Features:
- True Fund Accounting – Easily track funds, such as grants and special programs, so you are ready for the financial reporting requirements that come with restricted gifts.
- Custom Chart of Accounts – Create a flexible chart of accounts that fits your nonprofit structure, including correctly tracking your funds and using tags to manage fundraising campaigns or projects.
- Tracking Donations and Other Income – Easily identify your tax-deductible income by purpose, manage membership and sponsorship invoices, and track other forms of income without the headache or extra spreadsheets.
- Generate Nonprofit Financial Statements – Customize and save your nonprofit reports such as a Balance Sheet by Fund or Income Statement by Fund.
- Donation Reporting – Get more insights into your giving with pledge tracking, donations by donor, lapsed donors, or other giving reports.
- Budgeting Reports – Track your financial health by comparing your budget to your actual accounting.
Aplos Pricing:
- Lite – $79/m
- Core+ – $139/m
Xero – Accounting Software for Nonprofits
Monitor the flow of cash in and out of your nonprofit with a handy dashboard. Stay on top of expenses and plan ahead with the cash summary report.
Accounting for charities with Xero’s software means you can share financial reports with board members, donors, volunteers and others in a click.
Xero Features:
- Keep track of cash flow
- Share reports with stakeholders
- Pay staff online and on time
- Connect Xero to apps for nonprofits
Xero Pricing:
- Early – $12/m
- Grow – $34/m
- Established – $65/m
Wave – Free Accounting Software for Nonprofits
With Wave, you can spend more time on the cause, less time managing the books. Wave makes it easy to track your organization’s cash flow. You need to have capital to keep giving back, but you don’t have to sacrifice your cause to run your nonprofit like a cash flow positive business. Wave is simple and easy to use for anyone — no accounting experience needed. And it’s completely free.
Wave Features:
- Monitor your nonprofit’s financial health – Log in anytime to get a big picture sense of your church’s financial position. Wave displays instant invoicing, payroll, and payments data updates, along with dashboards for cash balances.
- Easy to understand accounting reports – You don’t need to be an Excel wiz to understand your organization’s financials. Export profit/loss, sales tax, cash flow, comparative, and more reports with visual graphs that makes the information easy to comprehend.
- Hands-off bookkeeping – Automatically import your transactions into your bookkeeping software with easy and unlimited bank account and credit card connections. Bulk transaction updates make for quicker bookkeeping.
- Cut costs with detailed expense tracking – Manage accounts payable, categorize expenses, and find out where most of your church’s money is going. Over time, Wave will reveal valuable money-saving opportunities.
Wave Pricing:
- Free
QuickBooks for Nonprofits
QuickBooks for nonprofits is a comprehensive accounting software package designed for organizations of all sizes. It includes features such as grant management, donor tracking, and financial reporting. QuickBooks Enterprise also offers various pricing options, making it more affordable for small nonprofits.
Quickbooks for Nonprofits Features:
- Automate program and fund accounting
- Accept all donations
- Streamline all your donation apps
- Sync your bank
- Stay IRS compliant
- Automate your reports
Quickbooks for Nonprofits Pricing:
- Plus – $85/m
- Advanced – $200/m
Blackbaud – Fund Accounting Software
Blackbaud is an all-in-one accounting software package that includes features such as budgeting, forecasting, and expense management. Nonprofits, educational institutions, and charitable organizations use Blackbaud’s fund accounting software to streamline financial management operations and increase the impact of our customers’ missions.
Blackbaud Features:
- Track and report on transactions by net asset class to maintain FASB compliance
- Maintain a clean account structure with the ability to capture program, grant, and department information unique to your organization
- Govern your financials—from user-specific access rights to powerful approval controls—so you can rest assured that your data is secure
- Easily manage unique financial reporting requirements and demonstrate stewardship of contributed funds
- Give managers and users access to actionable data to drive strategic decision making
Blackbaud Pricing:
Blackbaud must be contacted for pricing.
Sage Intacct – Cloud Nonprofit Accounting Software
Sage Intacct is a cloud-based accounting software package that includes features such as project management, fund accounting, and multi-entity management. It also offers integration with Salesforce, which can be beneficial for nonprofits that need to track both financial and donor data.
Sage Intacct Features:
- Tailoring transactions and approval workflows to eliminate redundant data entry
- Automatically routing and tracking digital approval signoffs on transactions
- Automating fund, grant, revenue, and billing processes
- Providing anytime, anywhere access for staff and volunteers, can increase finance department productivity by more than 30%.
Sage Intacct Pricing:
Sage must be contacted for pricing.
When it comes to choosing nonprofit accounting software for your organization, there are many factors to consider. We hope this blog post has been helpful in giving you an overview of the top nonprofit accounting software packages currently on the market.
