Nonprofit accounting is about balancing many items as you deal with contributions, soliciting donations, funding, and community workers.
With appropriate bookkeeping adoption, it could assist and prevent any organization from falling backward.
As a result, any accounting software with seamless built-in data entry, insight, and analytics will help non-profits operate their mission more smoothly.
Why Is It Important to Keep Track of Nonprofits Accounting?
Nonprofit accounting is different from the practices of for-profit firms. Nonprofit groups must adhere to stringent financial accounting rules since they rely on donations and grants.
While it’s desirable to have a full-time professional bookkeeper or compliance officer on premises for emerging or rapidly expanding businesses, this isn’t always realistic for nonprofits.
Non-profit institutions are frequently operating on a limited budget and minimal workforce. But, it could be possible for a charitable organization to meet accounting requirements with specific industry-designed accounting software.
The reason is that not-for-profit organizations have certain accounting standards. For example, they must fulfill FAS 116 (Accounting for Contributions Received and Contributions Made) and FAS 117 (Financial Statements of Not-for-Profit Organizations) standards for reporting purposes.
Therefore, the software may help them commit the obligations while keeping track of funding, providing contributors and relevant parties with reliable financial statements, and generating balance sheet projections.
All that said, you should clearly know which accounting software is best suited for your non-profit or charity organization.
Here, we’ve compiled a list of the best accounting software for nonprofits to assist NGOs in keeping track of contributors, grants, and spending.
1) FreshBooks ($15 – $50 Per Month & Quotation-Based)
FreshBooks, popularly known as a cloud-based accounting and financial management software, is not limited to SMBs. Nonprofits may also benefit from this all-encompassing system. The software is prevalent because it can simplify business time tracking and billing processes.
You need FreshBooks if you’re in charge of a non-profit organization. Your organization will benefit immensely from this tool since it speeds up the contribution process, allowing you to accomplish more in less time.
Key Features:
- Automatic Payments and Recurring Billing
- Automated Tax Circulation
- Multiple languages and Multi currencies
- Automatic expense import
- Late Payment Reminders
- Both desktop and mobile apps are available.
Pros:
- A versatile solution for a nonprofit organization
- Recurring payments and Auto-bills save you time and effort.
- User-friendly and easy to navigate
- Excellent customer service
- A cutting-edge accounting system
- All plans come with time and mileage monitoring.
Cons:
- Restrictions on the number of customers and users.
- Lower-tier plans don’t provide access to bank reconciliation or an accountant.
- There are no quarterly tax forecasts.
2) QuickBooks Online ( $25 – $180 Per Month)
QuickBooks Online from Intuit is cloud accounting software that interacts with a bookkeeper regularly. Its four distinct pricing tiers and add-on services provide various customization, scalability, and capability.
With a nonprofit chart of accounts, QuickBooks Enterprise automates much of the work for you, providing a clear overview of your organization’s assets, costs, and revenue.
You can effortlessly transfer your data to the proper IRS forms when filing your taxes. The software allows you to manage various projects’ finances, verify various contributions, and maintain your top donors with customizable reports.
Key Features:
- Income, expense, and time tracking
- Categorize taxable and nontaxable sources of your fund
- Use your smartphone’s GPS to keep track of your mileage.
- Batch invoicing for quick billing
- Customize estimates & reports
- Sync inventories with third-party systems
- Payroll management
- Have mobile & desktop apps.
Pros:
- Rich-feature software for donations
- HubSpot and DocuSign integrations
- Reports tailored to the needs of the nonprofit industry
- Inventory management in QuickBooks Online Plus and Advanced,
- Premium customer care.
Cons:
- Limited account users with each plan
- Costly monthly plans
- Need learning curve.
3) Xero ( $12 – $65 Per Month)
Xero is cloud-based accounting software that allows nonprofits to monitor their cash flow from any location. Because of its lower cost and no additional charges for new users, this application is an inexpensive choice for charitable organizations.
This accounting software is easy to use and expand and can be customized to match the needs of your nonprofit, especially tracking donations.
Infoodle is also integrated with Xero accounting software, making communication and donor analytics much quicker and simpler.
Key Features:
- Limitless quotes, bill and invoice entries from donors
- Automate receipt captured with Hubdoc
- Send purchase orders to suppliers
- Set up online bank feeds and reconcile transactions
- Expenses tracking and inventory control
- Have a mobile app.
Pros:
- Multiple users
- Customized dashboards
- Funds and project management software
- Generate different reports and multiple currencies
- Advanced cash flow forecasting.
Cons:
- Limited billing and invoices at entry-level plan
- No live phone representative
- No desktop app.
4) Wave (Free)
Wave is accounting software that builds in a cloud system, offering accounting solutions for nonprofit organizations. This platform is designed with an adjustable dashboard so that users can monitor accounting records well. Users can also find additional features for increased scalability for their organizations, such as Wave Money or Wave Payroll.
Furthermore, Wave is an ideal application for nonprofits because it is free to use. Also, it has a built-in accounting system that users with little accounting knowledge can use immediately.
Thus, NGOs can manage payroll, donation accounts, and tax receipts. The software features a simple layout, making it easy to operate.
Key Features:
- Automated tax calculation
- Tax filing and compliance
- Enable tracking expenses and incomes
- Bookkeeping, receipt scanning, invoicing, and accounting
- Allow online banking connections
Pros:
- Best suit for small-scale nonprofits
- Can integrate with other tools
- Can monitor complex grant conditions
- Unlimited users and transactions
- It is available for mobile apps.
Cons:
- Lack of customization options
- Not suitable for bigger NGOs
- Do not support desktop apps.
5) Sage Intacct (Quotation-Based)
Sage Intacct is a cloud accounting software that provides a dashboard fully featured with a data overview for nonprofits to keep track of their operations. The application has the ability to manage nonprofits’ important finances and give expert services to assist integration with Safe Intacct itself.
The software is built to serve the best small and medium NGOs in accounting technicals. Moreover, it can be used for an operational overview, reporting, and financial process automation.
The dashboard is easy to navigate and offers a variety of accounting-related tools, including cash flow management, AP, AR, general ledger, and many more.
Key Features:
- Offer full features of finance, cash flow, and activities
- Allow nonprofits to manage all sources of financing on one platform
- Control budget capitals
- Plan budget for campaigns or programs
- Handle billing, purchase orders, and revenue recognition.
Pros:
- Payroll processing is efficient
- Offer solutions to accounting processes
- Provide scalability for more users
- Consolidate quickly to manage complexity
Cons:
- New users need time to learn the tool
- Reporting could be problematic
- Do not support mobile and desktop apps.
6) Aplos ($79 – $189 Per Month & Quotation Based)
Aplos is the finest software for its excellent general accounting functionality and core features specifically targeted to nonprofit operations. This cloud-based tool offers complete management options for contributors and members.
Aplos is a full-featured CRM solution that tracks, manages, and engages members and donations.
True Fund accounting tools are also integrated with this software to verify that funds are spent correctly under contribution limitations.
Key Features:
- Website creation and hosting tools
- All-in-one fundraising administration
- Donor management (CRM software)
- Monitor monthly or yearly contributions
- Automate donation receipts, emails, alerts, and recurring funds
- Secure online nonprofit campaigns via the donor portal
- Have a desktop app.
Pros:
- Web-based donations
- Coding-free website builder
- Generate various financial reporting for funds, including balance sheets and income statements.
- End-to-end solutions for donor and event management
- Customize different contribution forms
- Easy transaction imports through bank integrations.
Cons:
- Extra service fee for more than two users.
- No built-in payroll feature
- No mobile app.
7) Nonprofit+ ( From $675 Per Month)
Acumatica’s NonProfit+ is a powerful cloud accounting solution that allows customers to trace donors and their funds. Tracking contributions, creating personalized reports, and sending out letters to sponsors can all be done with NonProfit+ at your fingertips.
NonProfit+ is a great option for NGOs with restricted budgets. With the money management module, you can specify and limit the allocated donation with sincere purposes.
Key Features:
- Nonprofit Chart of accounts & fund accounting
- Advanced audit trail for donation
- Budgeting & cash management
- Contribution summaries and sophisticated reports tailored to the nonprofit sector
- Transparent funds, donor & volunteer management
- Have a mobile app.
Pros:
- Integrated payroll but with charge
- Support, updates, and security patches
- Creates and maintains pledge receipts
- Unlimited customer support and product updates.
Cons:
- Limited users
- Inconvenient for an external bookkeeper to access
- No desktop app.
8) Trolley ( $49 – $199 Per Month & Quotation-Based)
Formerly known as Payment Rails, Trolley is a cloud platform that allows customers transfer payments to over 200 countries worldwide. It proceeds with accounts payable workflows for nonprofit organizations with medium to high volume transactions.
The trolley feature can monitor transactions and rewards in real-time. The software’s powerful security measures likewise protect the organizations’ data.
Key Features:
- Automated massive payouts in real-time
- Foreign exchange tracking & payments notifications
- Customized approval workflows for nonprofit contributions
- IRS tax form collection & reporting
- Bank account validation & reconciliation
- Built-in risk mitigation, AML watchlist screening & fraud screening.
Pros:
- Manage payment recipients efficiently
- Easy-to-prepared taxes report
- Payroll requirements are simple to follow
- Bank-level security & secure data encryption
- Custom rules allow managers to grant or deny access to users based on their role.
Cons:
- Hard to incorporate new products into existing systems
- Although you don’t need its Currency Exchange systems, you’re compelled to use and pay for them.
- No mobile & desktop app.
9) Blackbaud Financial Edge NXT (Quotation-Based)
Fund accounting software is a cloud-based solution for nonprofits and government agencies. It assists users in keeping tabs on the financial status of the organizations by managing cash flow and spending, tracking funding transfers and generating reports on such transactions.
The application focuses on essential accounting solutions, such as advanced budgeting, online reporting, and advanced project and grant management.
Furthermore, Blackbaud Financial Edge NXT is a thorough solution to handle both basic and complicated grant requirements if your organization presently depends on government grants for financing.
Key Features:
- Allow nonprofits to monitor funding and financing requirements online
- Generates numerous budgeting conditions
- Management on budgeting plans
- Enables POs, billings, and invoicing creation
- Can consolidate reports
Pros:
- Provide a better view of financial analysis and planning
- Reliable budget management
- Track reporting
- Smooth implementation
- Offer a better view of the nonprofit’s overall budget plans and finances.
Cons:
- There are no donor management features
- Both desktop and mobile apps are not supported.
10) Tipalti Approve (From $149 Per Month)
Tipalti Approve is another cloud-based accounting platform for nonprofits of all sizes. The software is equipped with a complete set of tools that make it easier to create purchase orders and go through the approval request procedures. As a result, non-profit organizations may operate at a higher level of financial management.
Moreover, Tipalti Approve is known for its ability to streamline purchasing. The system enables managers to quickly and simply develop straightforward request forms that their staff members can then complete and submit.
Then, automated ERP data synchronization occurs when these requests are authorized.
Key Features:
- Create POs and track expenses.
- Handle budgeting with smart view filters
- Able to connect with SSO and ERP
- Offers AP automation to increase time-saving
- Manage all other procurement processes of nonprofits.
Pros:
- Efficient data tracking and entering
- Automated data synchronization in real time
- Straightforward order status
- Best for organizing procurement process
- Easy to follow the tasks on the platform.
Cons:
- No invoice integrations
- Desktop and mobile apps are not available.
11) AvidXchange (Quote-Based)
AvidXchange is a great option if you are growing nonprofits trying to simplify the accounting system and process. The software is a cloud-based application with cutting-edge automation capabilities, including optical character recognition (OCR), which may help minimize the amount of time spent manually entering data.
Additionally, configurable and programmed procedures can assist the AP staff gain greater insight and control over invoicing status monitoring.
On top of that, paperwork is a prevalent issue in accounting tasks. Thus, Avidxchange is one solution to this issue.
Key Features:
- Monitor expenses, cashflow, APs, and ARs for nonprofits
- Automate invoicing and scheduling payments
- Fully integrated with 200 more software
- POs and bank reconciliation
- Automate billing system
- Generate professional reports.
Pros:
- High capacity for workflow
- Live chat support is very helpful
- Time-saving with the automated billing process
- Beginner accountants can use the platform
- Friendly user-interface.
Cons:
- Quite costly
- Do not support both mobile and desktop apps.
12) FastFund Software Suite ($42 – $94 Per Month)
FastFund Software Suite is a cloud-based software that fits perfectly for nonprofits. Micro to medium-sized nonprofit organizations that rely heavily on donations should use FastFund Raising. It is used for a variety of purposes, including but not limited to educational and religious purposes.
This software is a feature-rich, user-friendly platform for managing your donors. Users can record cash flow, donations, and pledges.
It also keeps records of demographic and personal data. Furthermore, when a donor makes a donation, NGOs can divide it into many gift designations and credit the donation to the donor’s solicitor.
Key Features:
- Manage to donate funds
- Handle budgets and bank reconciliation
- Create and record vendor’s personal data and invoices
- Automated check printing
- Schedule payments
- Record billing, APs, and ARs
- Full integration.
Pros:
- Special training is included for users
- Customizable donor profiles
- Manage accounting and reports for nonprofits
- Very responsive customer support.
Cons:
- Some features still need to be improved
- Both desktop and mobile apps are not available.
13) Yooz ( Quotation-Based)
Yooz is an automated account payable software system hosted in the cloud and offers consumers the most comprehensive set of automation features. Unique integration of Big Data technologies and AI Deep Learning helps users save significant time and money when it comes to generating, storing, and maintaining bills.
Additionally, it offers nonprofit organizations unrivaled simplicity, flexibility, and traceability, all of which are attributes for which it is known.
Finally, it eliminates the need for human error-prone manual updates by allowing users to record data in real-time and automatically syncing it with the master database.
Key Features:
- Forged papers may be detected using the FakeDetection module
- Robotic Process Automation (RPA)
- Real-Time Monitoring
- AI-Based Smart Data Extract
- Customizable Automated Workflows for your nonprofit organization
- Have a mobile application.
Pros:
- A user-friendly and customizable platform is provided.
- Robust capability for automatic GL coding and PO matching
- Purchases, bills, and payments are automatically approved or rejected.
- Secure and compliant with the highest standards
- Make your work more accurate and visible.
Cons:
- Customization of the dashboard is not possible.
- Limited metric data.
- No desktop application.
14) Bill.com ( $45 – $79 Per Month & Quotation-Based)
Bill.com is an all-in-one accounting software for small and medium-sized businesses and nonprofit organizations. The software is completely cloud-based, allowing users to view their data from any location. And nonprofit organizations stand to gain from the tool’s multiple capabilities.
You will be able to collect donations, keep track of them, and even monitor any newly incoming contributions if you use Bill.com.
Moreover, it also includes bank account management capabilities to help you keep track of all transactions with contributors and sponsors.
Key Features:
- Cash inflow and outflow management of donations
- AP & AR automation
- Intelligent Virtual Assistant (IVA)
- Approval workflows for a nonprofit organization
- Dashboard syncing
- Accounting integrations
- Support for mobile apps.
Pros:
- The improved payment process for suppliers
- Enhancing the efficiencies of the AR procedure
- Streamlined processes across organization systems.
- Can use ready-made templates to send professional invoices
- Accountancy software like Xero, Quickbooks, Sage Intacct, and others automatically synchronized.
Cons:
- No 24-hour customer assistance.
- No way to segregate the bills paid from the bank account.
- The desktop app is not ready to use.
15) Zoho Books ($0 – $200 & Quotation-Based)
Nonprofit organizations may also use Zoho Books. Thanks to this cloud-based technology that helps you make sensible business choices, you have ultimate control over your fund. In addition, invoice generation and online payment facilitation are key Zoho Books capabilities that allow you to speed up the payment process.
Since it is user-friendly, you don’t need any accounting knowledge to utilize this system.
Furthermore, with its primary yet aesthetically attractive interface, all of the necessary accounting functions may be accessed without difficulty.
Key Features:
- Automatic Bank Feeds
- Tracking of Project Time
- Integrated payment gateway into the system
- Keeping track of your inventory
- Have both desktop and mobile applications.
Pros:
- Subscription packages come at a competitive price
- Integration with these Zoho products, such as Zoho Commerce and Zoho Inventory
- Packed with features with reasonable pricing
- Keep track of all of your donors and the donated funds
- Data input is eliminated in favor of automation.
Cons:
- Unable to create and administer numerous organizations from a single account.
- Fixed assets cannot be tracked.
- Restriction on the number of invoices sent.
Buying Guides To Choose The Best Accounting Software For Nonprofits
Accounting software should help solve problems, not give you more trouble. Consequently, determining the obstacle(s) preventing your job from getting done is the first step in selecting nonprofit accounting software. Then, seek features that may overcome these obstacles.
You’ll want a CRM system with solid tracking, analysis, and engagement features if you have a big donor or membership base.
Alternatively, you may want a system that makes it simple to make contributions online and do some basic accounting tasks.
Additional features to watch out for:
- Making well-informed choices and planning ahead: Consider accounting software that gives a customized ledger for tracking your organization’s funds. Using a personalized ledger, you should be able to monitor all of your money, from restricted to unrestricted to particular fund groups. And it should assist you in making data-driven choices about investments and fundraising.
- Preparation of a financial plan: Customized budgeting tools in your accounting software are essential for developing and monitoring a strategy for funding campaigns in the current fiscal year and making predictions for the future.
- Implementing comprehensive internal controls and audit trails: The accounting software for a nonprofit should let you control day-to-day activities like timesheets, employee payroll, managing human resources, auditing, and reporting.
- Adhering To GASB and FASB accounting standards: The accounting software system you choose should make it easy for you to generate customized reports to keep detailed records. These reports should also include Governmental Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB) standards for simple auditing.
