Nonprofit | Accounting
March 17, 2021|
Are your accounting systems powering your mission or holding it back through redundant tasks and outdated workflows?
Nonprofit finance managers understand they need to focus on the numbers. They are faced with making difficult decisions each and every day concerning the organization’s direction and where precious donor money will flow.
Technological innovation can form part of a management solution through modern accounting software that allows accounting teams to:
And much more. Changing an accounting system is an important decision that is not done often. Your choice should empower your team as it grows and evolves with your organization, allowing it to reach its maximum potential.
Legacy systems of the past enabled finance teams to streamline their accounts payable, accounts receivable, and financial close processes. Today’s solutions do that, and much more.Modern software does so much more than spreadsheeting and managing donation forms.
Technology has transformed how we do business, and your choice of software should empower your organization with the latest innovative features.
These include accounting, tracking, and reporting tools that perform advanced forecasting and budgeting. Challenges continue to mount, and technology can help nonprofits deal with problems in the present so they can thrive in the future.
Economic downturns, reduced donor flows and government budget cuts negatively affect income flows to nonprofits. These income reductions are exacerbated by an increased demand for services and growing donor expectations.
Goals need to be set and KPIs need to be measured to monitor progress.
Finding new sources of funding will always be a challenge and some nonprofits are employing new business models to keep the funds flowing. Nonprofits are also leveraging the power of marketing and branding to stand out in an increasingly competitive landscape. Goals need to be set and KPIs need to be measured to monitor progress, ideally within a comprehensive system based on solid technological infrastructure.
Nonprofit accounting software is an integral component of an overall technological solution that fuses all departments so they work together as a unified force.
Nonprofits are unique in the business community. They require transparency across the organization and must be accountable to all stakeholders. Along with ensuring appropriate stewardship of funds, nonprofits must maintain compliance with shifting regulations.
Technology can help streamline processes so finance teams can fulfill all their financial duties while maintaining transparency and accountability. Some key features to look for when choosing an integrated accounting system to achieve these objectives include:
This checklist will ensure that you are up to date on all the features available for nonprofit accounting software. Each section has its own checklist, divided up according to the following categories:
Growing compliance regulations and a need for efficient stewardship of funds require transparency and accountability. This can be provided through system-wide tracking that gives visibility across multiple critical segments.
Nonprofits typically receive funding from numerous sources. This requires a fund accounting system that provides comprehensive fund tracking. Along with regular reporting and efficient operation processing, an accounting management tool should also produce a comprehensive audit trail.
Growing compliance regulations and a need for efficient stewardship of funds require transparency and accountability.
Some key features and tools required in such as system include:
Modern accounting software takes a general ledger and extends its features to let you analyze, manage and present accounting information according to your preferences. Rather than limiting process flexibility, the most intuitive financial software should adapt to your structure and workflows instead of the other way around.
By allowing you to automate your financial processes, accounting software should help you increase efficiency through intuitive tools that simplify your workflow. Some of these specialized features include:
Nonprofit organizations can leverage multiple benefits from in-depth insights into the organization using near real-time data.
Besides allowing managers to capitalize quickly on new opportunities, the use of real-time reports helps users quickly recognize if there is a need for timely corrective action.
From high-level summaries to underlying transactions, financial insights can provide a comprehensive view of the financial performance of the organization. This can be accomplished through multiple operating dimensions that let users:
Cloud-based integrated accounting systems help nonprofit organizations leverage the most innovative technology while lowering IT costs, reducing hardware costs, lowering technology risks, and improving productivity.
Software deployed on the cloud also gives organizations the flexibility to choose the solutions best suited to their unique needs, according to their top priorities. This allows for external integrations between departments through application programming interfaces that unite parts of the organization and reduce redundant tasks associated with separated workflows.
Cloud-based accounting software provides significant advantages that include:
Not all cloud vendors are equal. If you choose a cloud-based accounting software provider, it is essential to evaluate the vendor’s reputation and track record of success. Some key factors to consider when selecting a cloud provider should include:
Moving your accounting to the cloud means that your financial system is effectively being run by the software provider rather than your internal IT department. This makes your assessment of cloud vendors absolutely critical when choosing cloud-based software.
Businesses on today’s digital landscape use a variety of applications across their departments. Modern accounting software should provide convenient integrations that are easy to implement without any complex coding or IT skills. Whether it’s software that helps manage donors or organize fundraising campaigns, integrations are critical to streamlining the activities of an organization.
Modern accounting software should provide convenient integrations that are easy to implement without any complex coding or IT skills.
Some typical applications include:
Investing in a new accounting software system is not a frequent event. Along with assessing all requirements and priorities, the process should also include researching and vetting software providers. This ensures that you are working with a partner that is committed to providing you with a first-in-class system that will grow with your organization. Some key points to consider when choosing a company include:
enSYNC’s financeSYNC integrated nonprofit software is powered by Sage Intacct - an industry leader in cloud financial management. With a successful track record of bringing cloud computing power to accounting, Sage Intacct’s innovative and award-winning applications are recognized across the industry.
enSYNC’s solutions are designed to help nonprofits improve their performance and increase productivity through world-class integrated systems that streamline processes, automate workflows, increase connectivity and facilitate collaboration. From startups to large nonprofit groups, financeSYNC can help unite your organization towards achieving stellar financial performance that will power your mission.
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