Dealing with non-profit and charity accounting can prove tricky, so if you don’t want to go at it alone, you can count on the numerous software available. Many small businesses don’t have the budget for pricey software, but luckily there are lots of free or affordable options out there.
By having all your records in electronic form, it makes it easier to keep on top of your finances and know the expected income and expenditure each month. The software needs to be able to deal with contributions from donors, grants, investments, and fund raising events as accurately as possible.
Non-profit organisations 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 organisations organise their spending, since there’s always the risk of unforeseen circumstances. 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 charity accounting training, so it helps if the software is uncomplicated and doesn’t need much familiarisation time.