Each statement relies on quality information regarding the organization’s income from cash donations, grants, in-kind gifts, and expenses. Bookkeepers must ensure the financial reports providing this information are correct and updated. As a bookkeeper, it may be necessary to meet with your nonprofit’s accountant weekly, monthly, quarterly, and yearly. Weekly meetings with https://greatercollinwood.org/main-benefits-of-accounting-services-for-nonprofit-organizations/ an accountant should go over how to adhere to your budget goals and track fund accounting.
Free Accounting Software for Nonprofits
This public accessibility means your financial management needs to be spotless. Keep in mind that financial reporting should be accurate and consistent and reflect the true nature of the organization’s operations. Donors will be more likely to give if they feel confident that you will use their money wisely. This includes investing in necessary overhead expenses such as technology, personnel, and other operational costs.
Best for Expense Tracking and Management
Not only does QuickBooks Online offer four different plans, but also the ability to connect to nonprofit tools, and all at a generally more affordable cost than Aplos charges. This being said, the five nonprofit accounting software options on our list are pretty upfront about their features, plan structures, and everything they have to offer. There are a lot of stakeholders when the nonprofit organization needs to raise funds. The reports need to be transparent and accurate to maintain the credibility of the company and build trust with the stakeholders.
- Since every nonprofit is different, it’s impossible to say one software is the best – but there are some excellent options.
- The program’s vast functionalities are equipped to track every transaction and handle complicated finances.
- Cross-train staff on essential functions and maintain clear process documentation.
- Unfortunately, while Aplos’s nonprofit features stand out, its accounting features are more limited.
Types of Funds
When compared to Aplos, our top pick, Wave serves well for fundamental accounting needs at no cost, but lacks the specialized features for nonprofits that Aplos provides. We particularly appreciate its dynamic CRM, which efficiently tracks and engages with members and donors. Aplos also offers us over 70 types of financial reports, making organizational performance assessment straightforward. Separate program, management, and fundraising costs to comply with IRS and FASB guidelines. They build credibility with foundations, attract major gifts, and help you spot cost overruns before they derail programs. Accurate records let boards set realistic budgets and give program managers data to adjust spending on the fly.
Free Resources
With this knowledge, you’ll be able to make data-driven decisions and manage your nonprofit’s finances with confidence. Nonprofit accounting is crucial for any organization that relies on donations and grants to fulfill its mission, not just those without revenue. Nonprofit accounting ensures your organization uses its financial resources effectively to move your mission forward. Since nonprofit organizations don’t center on profit but on a nonprofit mission, they have different bookkeeping practices. While the basic bookkeeping principles may apply in both cases, certain seemingly small details make significant differences in how a nonprofit’s finances are done.
Prepare data for the accountant
- But if you’re after a powerful, all-purpose program that can meet vast accounting needs for nonprofit organizations, then you have to consider QuickBooks Enterprise Nonprofit.
- Nonprofits should provide transparency to stakeholders by publishing their financial statements, annual reports, and audited financial statements on their websites or other accessible platforms.
- Nonprofit bookkeeping refers to the recording, tracking, and analyzing of an organization’s revenue and expenses.
- Choose software that supports fund accounting, generates Form 990 reports, and integrates with donor management tools.
- While many start with basic tools, growing nonprofits often need robust accounting software for nonprofit organizations to handle complex funding streams effectively.
- There are nonprofit accounting software options that are made specifically for nonprofits, but you may also find that more general accounting solutions would work best for you.
Aplos has everything you need in one place for streamlined accounting – affordably. Still have questions about how ZipBooks can meet your foundation’s needs? Our team of dedicated customer accounting services for nonprofit organizations support professionals can’t wait to show you how much smoother your foundation will run on ZipBooks.
For example, under expenses, you may have subaccounts for payroll taxes if your organization has employees. The first step in setting up a chart of accounts is to determine what types are needed. This will vary depending on the size and nonprofit, but some common categories should be included in any chart of accounts. This means they must maintain transparent financial records that show how donations are being used to fulfill their mission. Fund accounting rules leave plenty of room for error – especially if you’re new to bookkeeping. We put together our recommendations for non-profit accounting best practices.
Even minor errors in recording transactions can result in poor decision-making and potential legal issues. We provide different levels of support, depending on the plan and/or the add-on features you choose. Any connections between you, your bank accounts, and Wave are protected by 256-bit SSL encryption. Stay informed about changes in nonprofit regulations that might affect you. Respond promptly and honestly when donors ask questions about how you used their money.