Dealing with non-profit accounting can prove tricky so if you don’t want to go it alone, you can count on the numerous software available on the market. Many small businesses don’t have the budget for pricey software, but luckily there are lots of free or affordable options out there.
The software needs to be able to deal with contributions from donors, grants, investments, and fund raising events as accurately as possible. It should also make it easier for you to collect information to submit your IRS Form 990 (mentioned above in this article).
Non-profit organizations are always hoping to attract new people and software can help you out with this task. Readable reports for funding sources are necessary so that others can see where their contributions have gone/are going. Non-profit accounting software can also help you plan future initiatives.
It is especially helpful if this software can predict cash flow so you know what to expect financially and can be more prepared for how unpredictable funding can be. It is of utmost importance that non-profit organizations organize their spending since there’s always the risk of unforeseen circumstances and the more prepared you are, the less disruptive this will be.
The software program needs to be easy to use and flexible since many different users will be operating it. Non-profits are often staffed by volunteers, who might not necessarily have non-profit accounting training so it helps if the software is uncomplicated and doesn’t need much familiarization time.
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