20 Best Accounting Software for Nonprofits in 2024

Amid the pandemic, few sectors have had it so bad like the nonprofits sector. From donations to unemployment, the figures are gone so low in the valley—with no immediate respite in sight.

It will take time for nonprofits to recover, but accounting software will be there to keep tabs on all incoming and outgoing funds. In this article, we will present the 20 best accounting software for nonprofits, which are capable of helping the sector manage donors, grants, and expenses. In the end, you should have a better idea of which accounting tool is the most suitable for your nonprofit or charitable institution.

The accounting software market reached $12.01 billion in 2020. While the growth rate is below original estimates, it did not go as bad as to push it down negative levels like nonprofits. In general, it reflects the global decline in FDI as the UNCTAD noted. As with the urgency to speed up digitalization to the cloud, accounting software for IT and telecommunication showed robust growth of 17%, as did healthcare, at 15%, compared to the 2018 figures.

So how do nonprofit organizations resolve these problems? The answer lies in the use of the best accounting software providers but not the ones that most businesses employ. These tools, which are also referred to as fund accounting software, are tailored for nonprofits, while conventional accounting systems can be configured to serve the needs of nonprofits.

How secure is accounting software for nonprofits?

Nonprofits handle sensitive financial data, including donor information, and ensuring data security is essential for maintaining trust and compliance. Nonprofit organizations should evaluate the security features of accounting software to protect against data breaches, unauthorized access, and compliance issues. Here are key security features to consider:

• Data Encryption: Many leading accounting software solutions offer encryption, ensuring data remains secure during transfer and storage. Encryption safeguards information so only authorized users with decryption keys can access it.
• Access Controls: Effective accounting software provides customizable access controls, allowing nonprofits to restrict data access based on roles and responsibilities. This ensures that sensitive information, like donor or payroll details, is only accessible to authorized staff members.
• Two-Factor Authentication (2FA): Two-factor authentication adds a layer of security by requiring users to provide two verification forms, typically a password and a code sent to a mobile device. This helps prevent unauthorized access even if a password is compromised.
• Audit Logs: Nonprofits often undergo audits, and audit logs track all changes within the software, including user activities, data modifications, and access attempts. This feature not only helps in tracking unusual activity but also aids in maintaining transparency.
• Compliance with Data Protection Regulations: Many nonprofit accounting software platforms are designed to comply with data protection laws, such as GDPR or HIPAA (for healthcare-related nonprofits). These regulations ensure that donor data is handled responsibly and legally.

That said, here is the list of the best 20 accounting software for nonprofits you can implement in your institution.

1. NetSuite ERP

One of the many NetSuite ERP features is an accounting module that is designed for nonprofits. This system is scalable, and therefore, suitable for businesses of any size. It can automate different business processes, including revenue, order, billing, and inventory management, to name a few. The software can be used by virtually anyone in the organization, from top brass to rank-and-file employees, giving them total visibility into reports and KPIs. It effectively combines financial management and business intelligence, allowing users to drill down into data and come up with sound decisions.

Its fund accounting tool NetSuite for Nonprofits is designed to help users manage all their financial processes. It sports numerous features that are sure to satisfy your accounting requirements while providing you with useful business capabilities.

NetSuite ERP

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The tool effectively cuts costs, improves accountability, and ensures accurate financial management for all types of nonprofits. This helps organizations keep their focus on their missions as they are freed from the complexities that come with financial management and accounting. Whether your mission involves local or global communities, Netsuite for Nonprofits can help your organization survive and succeed in its missions as it allows you to maximize the potential of volunteers, increase external support and help you secure revenue-rich projects.

NetSuite for Nonprofits’ pricing details are not publicly available. You will have to directly contact the vendor and ask for a quote.

2. Paychex

Next one on the list is Paychex. This cloud-based solution offers a comprehensive suite of tools to simplify the complex processes and requirements involved in nonprofit payroll and tax services. Among the online tools nonprofit groups can utilize Paychex’s fully automated payroll processing, which can be accomplished in a couple of clicks. And to help you save more time on accomplishing this process, you can use Paychex Voice Assist–a voice-activated feature that enables you to process your payroll hands-free and allows you to focus on other important tasks.

Paychex

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Paychex comes with robust payroll tax service tools that allow you to simplify tax administration. These tools include the capability to accurately handle payroll tax and automate payroll tax payments and filing with the right agencies.

3. Gusto

Gusto is an accounting tool that focuses on streamlining payroll and tax filing workflows for non-profit organizations. The platform is built with user-friendly features and an easy-to-navigate interface that allows businesses to send mass payouts to their employees, whether they are working remotely or on-site. The software is also designed with robust security features to protect the financial data of non-profit organizations.

An important feature of Gusto is that it allows organizations to monitor employee payroll and company spend in real-time. With the platform’s accounting dashboards, businesses can easily track the live status of their company’s financial health. moreover, Gusto leverages powerful automation tools to payroll and tax filing workflows.

For instance, the solution enables businesses to automate approvals for more productive workflows. Managers can set approval rights to users based on custom rules to ensure that workflows are properly followed and company budgets and expenses are properly distributed.

To streamline payroll and tax compliance processes even further, Gusto also automates payroll calculation, bill payments, and submission of a company’s payroll taxes. This enables non-profit organizations to ensure that they can pay their employees on time, submit year-end forms, and file taxes to avoid critical errors and costly penalties.

4. QuickBooks Online

QuickBooks Online is designed for use by growing businesses and freelancers but can be configured for nonprofits. The software has become the go-to tool for many nonprofits for their accounting needs mainly because of its ease-of-use and integrations with popular third-party programs. Using the platform eliminates the need for nonprofits to invest in costly fund accounting systems, very ideal, indeed, if you are on a tight budget. The solution effectively mimics the functions of business accounting systems; all it takes is some tweaking.

To customize QuickBooks Online to fit your nonprofit’s accounting processes, you will need to configure your account to treat customers as donors. This can be done by accessing the system’s account and settings. Another thing that you need to tweak is your income and revenue, which can be altered to reflect revenue and expenditures. You can also change the tax form to form 990, which is assigned to nonprofits. Now you can enjoy the benefits that come with using Quickbooks Online.

You can monitor both revenues and expenses based on donor, service activity, and project while populating the system with all your donors and subdonors, which is very helpful in establishing a contact database. This allows you to track donations and come up with reports that can be presented to decision-makers. Revenues from projects can likewise be monitored according to donor, giving you an idea who’s funding what. And if you want, you can also copy some information from your donor management tool. If you do not yet have one, you can take your pick from the best donor management software.

Quickbooks Online is being marketed under different pricing schemes, starting at $7.50/month.

5. Tipalti Approve

Accounting software Tipalti Approve is designed to streamline finance and procurement workflows for medium to large non-profit organizations. The platform comes with comprehensive features for simplifying purchase request creation and approval request processes, so non-profit organizations can have better control over their finances.

One of the main features of Tipalti Approve is that it organizes purchase request processes. Through the software, managers can easily create simple request forms that employees can fill out and submit. With these forms filled out, Tipalti Approve initiates the right workflows so purchase requests are properly routed. Once these requests are approved, purchase orders are automatically opened and data is automatically synced with integrated ERP systems.

Tipalti Approve also includes robust features for managing vendor information. Through the software, non-profit organizations can effortlessly maintain a comprehensive, searchable database of vendors. Users can also attach files and contracts to each vendor, along with renewal notifications, for added convenience. Moreover, Tipalti Approve has a built-in data enrichment service for adding labels and tags to vendors for easier searching.

Lastly, Tipalti Approve comes with powerful capabilities for generating reports and dashboards. Non-profit organizations can easily monitor their spending through purchase reports. Users can also access dashboards to get real-time insights into spending and approval delays.

6. FreshBooks

Cloud-based financial management and accounting software FreshBooks is not only for SMBs. Nonprofits also do well using this comprehensive platform. The software’s popularity stems from its ability to streamline organizations’ time tracking and invoicing processes. Indeed, sending invoices using FreshBooks takes only a few minutes.

If you run a nonprofit, FreshBooks is just the tool for you. It helps you accelerate the donation process, which can greatly help your organization in its undertakings. It enables donors to send donations through a variety of online payment options that are not only convenient but highly-secure as well. This, along with its invoicing and tracking capabilities, will ensure that your cause is better served.

FreshBooks continues to receive upgrades that are bound to benefit your organization further. For instance, it has become a collaboration tool and now sports a more visually appealing dashboard that can generate even more customized invoices, which the system can track. Tasks can now likewise be prioritized, thanks to the tool’s time tracking capability, resulting in more transparent accounting, which is a must for nonprofits. Its search functionality has also received a facelift, along with the addition of multicurrency support. The platform comes with mobile apps that support both Android and iOS devices and integrates with third-party applications, including G Suite, Shopify, Stripe, and PayPal. These are but the key Freshbooks benefits; the app goes a long way in terms of ease of use and pricing.

7. AvidXchange

If you are a growing nonprofit looking to streamline your accounts payable process, AvidXchange can be an excellent solution. It is a cloud-based software with modern automation features such as OCR technology that can reduce manual data entry and human error.  Meanwhile, customizable and automated workflows can help your AP team gain more visibility and control when it comes to tracking the status of invoices.

A common problem with accounting and accounts payable is paper chasing. Avidxchange helps address this problem with automated invoice processing. Your AP team no longer needs to deal with an endless and chaotic pile of paper documents since all your invoices can be automatically coded, passed on to the appropriate workflow, and sent electronically for approval.

One of the notable features of AvidXchange is integration. The platform has more than 180 integrations with leading ERP and accounting systems, which means your nonprofit can continue using your current accounting system of record while creating new custom approval workflows.

The software consists of four modules, which offers a lot of flexibility for companies and organizations when it comes to choosing apps they would like to implement in their AP processes. For example, the utility bill payment module is suitable if you are looking for a way to reduce the burden of capturing, receiving, and paying utility invoices. It has automated consumption analytics and payment processing so your AP staff can take some of the manual and repetitive tasks off their shoulders.

8. Rossum

All-in-one document gateway Rossum is a platform built to help teams collect their documents in a secure and unified inbox for easier processing. It comes equipped with self-learning AI technology and cognitive data capture to make it easy to record transaction information. What makes this document management tool unique is that it has a highly configurable interface that allows users to use it for accounts payable processes.

Once you set Rossum up for your accounting workflows, you can then use its notification systems and custom approval rules to optimize your processes. You can also integrate the platform with your ERP and RPA systems so you can further streamline your accounting processes.

Aside from the abovementioned, Rossum also comes with an analytics and reporting system. With this, you can easily access audit trails and keep tabs on who has access to your accounting files.

Rossum is available on a by-quote basis. Make sure to get in touch with the vendor to get more information on their pricing tiers.

9. A2X

Comprehensive accounting software A2X is designed to simplify bookkeeping processes. The platform reduces the need for manual entry and recording, automatically syncing transactions to ensure the accuracy of accounting records. These transactions can also be summarized into reports at the end of each month for easier financial tracking.

One of the most useful features of A2X is that it can automatically categorize transactions, a feature that can give non-profit organizations valuable insights into their finances. These transaction summaries also make it easier for organizations to reconcile bank records, spot irregularities, and ensure that all the numbers match.

By automating bookkeeping and accounting processes, A2X makes it easier for non-profit organizations to monitor their finances. Automated transaction recording also helps organizations keep closer track of every expense and improve financial transparency.

More importantly, this automation eliminates the need for manual entry. This helps non-profit organizations avoid the busy work of bookkeeping and focus on their organizational goals instead.

10. Zoho Books

Zoho Books also caters to nonprofits. It is a smart system that is easy-to-use and provides you with total control over your finances by helping you make sound business decisions. Key Zoho Books features include invoice creation and facilitating online payments so that you get to accelerate the payment process. The system is highly intuitive that you do not need to possess accounting experience to use it. It is easy to navigate as well with its simple but visually appealing dashboard, from which all needed accounting tools can be accessed.

Zoho Books

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For nonprofits, Zoho Books’ capabilities have a lot to offer. It can manage contributions the way it does for businesses. It keeps a record of all your sponsors and the amount that they have contributed to your cause. In case you need to, you can also manage taxes associated with donations. All sponsors are automatically treated as contacts and are stored by the system and can be added to your account. You can likewise use the software’s invoicing capabilities, which can generate customized invoices according to your needs.

Zoho Books is being sold in three distinct pricing plans, starting at $9/organization per month.

11. Zoho Expense

Expense monitoring and tracking app Zoho Expense brings the gift of automation to all processes relevant to expense management. It automatically records all transactions and even converts your receipts into expenses, which can be used in report generation. The system is capable of capturing transactions conducted via credit card and convert them into expenses as well. It supports mobile devices, from which all expenditures can be accessed and reports submitted. With Zoho Expense, you can be sure that you are spending according to organizational policies. All expense data can be monitored through the platform, with the system making data entry almost effortlessly with its drag-and-drop functionality.

Zoho Expense

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To nonprofits, Zoho Expense offers numerous benefits that are sure to make expense management a bearable task. Expenses can be recorded automatically by simply uploading a photo of your receipt, wherever you are. Its project management features, meanwhile, enable you to properly plan program spendings, which can be reexamined as needed using the app’s analytics. Finally, nonprofits will surely appreciate the fact that the vendor offers them discounted plans. Very ideal indeed for organizations who are low on cash flow.

Zoho Books comes in two distinct pricing schemes starting at $2.5/user per month. A free version of the app can also be availed by those who need only its basic features.

12. Yooz

Yooz is all about providing nonprofit organizations a state-of-the-art accounting solution to handle the complexity of grants and donations from the campaign activities generating them. A powerful AI Deep Learning algorithm churns any number of data generated by these campaigns quietly while a user-friendly interface ensures that users are not intimidated by the platform.

Nonprofits can generate more than their share of paper trail or digital forms, but Yooz is designed to handle all of them. It can work with any format of scanned images and files from any operating environment, from PDFs to JPGs.

Yooz

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Yooz provides nonprofits the unmatched simplicity, mobility, and traceability that it is known for. It allows users to capture data seamlessly and automatically syncs with the master data, eliminating the need for manual updates that are also prone to human error.

For security, Yooz implements a FakeDetection module to detect forged documents and eliminate fraudulent transactions, a known hazard in today’s high-stakes world. Internal controls are overseen by powerful robotic process automation (RPA) technology for additional safety to nonprofit organizations.

13. Bill.com

Bill.com is an end-to-end accounting platform created for SMEs and freelancers. Completely web-based, the app makes it easy for users to access their data wherever they may be. Nonprofits stand to benefit from the numerous features that accompany the tool.

Using Bill.com, you can accept donations, record them, and even track newly received contributions. It can be configured to schedule one-time or recurring donations on a monthly, quarterly, or annual basis. It even comes with bank account management tools that make it easy to keep tabs on all transactions with donors and sponsors.

All nonprofits generally face problems when it comes to recording expenses. Luckily, Bill.com automatically records cash inflow and outflow and syncs all data from other business systems you leverage for transactions. It also comes with ePayment processing tools that make it easy to facilitate transactions as securely as possible. Last but not least, the platform has a robust reporting module that lets users gain insight into their company data. Should you need to extend the functionalities of the platform, it comes with API capabilities and has native integrations with a number of third-party business systems.

Bill.com offers three monthly plans ranging from $39/user/month to $69/user/month as well as an Enterprise plan available by quote. All subscriptions are priced depending on the features that a user requires.

14. SignRequest

While not wholly an accounting suite, SignRequest can bolster your accounting process. It provides another layer of security to the movement of funds, for example. You can make secure your bank accounts and allow only authorized individuals access to those. Apart from that, you can bar the use of cash-on-hand or petty cash unless you have given authorization through a document signed via the application.

And while the tool itself provides security for various workflow processes, it also tightens the security measure around your signatures and documents. It has 256-bit SSL encryption that prevents unsanctioned access or editing of files.

SignRequest has a free plan, making it an attractive tool for charities. However, if your organization has more complex requirements than what the free package offers, the paid subscriptions are affordable still and would not break the bank.

15. Zoho Invoice

Zoho Invoice is a robust accounting and invoicing software that can serve both businesses and nonprofit organizations. The product is used primarily in invoice creation and management but also sports very useful accounting features. Using the solution, you can manage and track invoices and even share the same–all from a single dashboard. It allows you to monitor all transactions while being able to generate and send out invoices in different currencies and languages. Its simple interface makes the platform easy to use, eliminating the steep learning curves that usually come with such systems.

The software enables nonprofits to send invoices in a moment’s notice and even automates the generation of recurring invoices. Donations can be accepted both offline and online so that organizations can better focus on their cause without having to worry about receivables.

Zoho Invoice

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Nonprofit organizations are known to manage huge amounts of expenses. Zoho Invoice helps address this by allowing for invoice tracking so that users are constantly updated regarding expenditures. Mission time can likewise be tracked using the app’s time tracker and projects added to the system with time spent on them tracked individually.

Zoho Invoice is available in a variety of pricing plans, starting at $9/organization per month. For those who need only its basic features, a free version is available.

16. FreeAgent

Online bookkeeping software FreeAgent is a highly capable system that charities can take advantage of. And while it is primarily designed for small businesses, solo entrepreneurs, and freelance professionals, it has tools that make it viable for use in nonprofit fund accounting. That is because you can configure its features to suit your fund accounting needs.

FreeAgent even has a neat dashboard that lets you know the status of your charity’s finances at a glance. With this, every time you launch the application, you know immediately where you stand regarding your cashflow. In that regard, the platform has a powerful function that helps you stem your organization’s expenses. This is in the form of the expense module, wherein you can view expenditures in the past few days, weeks, months, or a certain period. You can even take snaps of receipts and upload them to the software for automatic accounting.

In line with that, FreeAgent can connect with your bank accounts. This way, whenever there is movement in your accounts, you can see it on your dashboard. This profers you with a broad view of your financial status without missing a single cent.

For nonprofit entities, FreeAgent offers a 50% discount off its three packages: Limited Company, Partnership/LLP, and Sole Trader. To avail of this reduction in cost, just provide your charity registration number.

17. Sage Business Cloud Accounting

Though it is designed specifically for small businesses, cloud-native accounting platform Sage Business Cloud Accounting is also suited to nonprofit organizations. It aims to help them overcome common accounting challenges, such as compliance. The also software makes most complicated accounting processes fairly simple, getting rid of complexities arising from the simultaneous administration of numerous projects and the use of a variety of currencies. The system resolves these problems by effectively tracking all donations and expenses while supporting different currencies.

The program likewise stores all information relevant to transactions, which further assists nonprofits in complying with standards. It provides transparency to all organization activities by giving them accurate and detailed data. This ensures total accountability, ensuring that stakeholders and donors remain engaged. The system’s powerful reporting tools enable it to generate reports that can be used in making data-based decisions. You can likewise boost your fundraising activities using Sage Business Cloud’s project tracking feature.

Furthermore, Sage Business Cloud Accounting offers two free licenses to nonprofits. The Sage Foundation also provides a 50% discount on subsequent user licenses.

18. Xero

Accounting tool Xero has grown in popularity among small businesses, offering robust tools that are designed to meet the requirements of growing companies. If the software can work wonders for businesses, nonprofits will find it a boon that can help them resolve their accounting headaches.

It can record and track grants, expenses, donations, and even volunteers, allowing organizations to keep their missions on the right track. It likewise excels in helping nonprofits to be more transparent with board members, donors, and volunteers, allowing them to keep their trust and their cash flows in the process.

Xero enables organizations to share financial data with stakeholders, quickly and accurately. Accounting for donations and expenses is streamlined, making it easier so that you can stay better focused on your missions. The system likewise helps in processing payments, invoicing, and payroll to help you maintain healthy relationships with both your sponsors and employees.

And because it harnesses the power of the cloud, you can access your accounting information even from the field. Xero integrates seamlessly with many business apps so that you get to enjoy additional functionalities in a single solution. But the best part is that the vendor offers a considerable discount to nonprofits, perfect for organizations that lack cash flow.

Xero is being sold in three distinct pricing modules, starting at $20/month.

19. Invoiced

Created to help businesses automate their entire financial processes, Invoiced can be an equally effective tool for non-profits for managing funds and automating other accounting tasks.  This cloud-based accounts receivable software supports multiple currencies so that receiving donations from overseas is not a problem. The platform combines the power of four interconnected modules in one — Invoice-to-Cash, Payment Plans, Subscription Billing, and Customer Portal — so accounting workflow becomes easy and seamless.

The platform’s Invoice-to-Cash module integrates with a wide range of payment channels and online payment systems enabling donors to donate via credit cards, debit cards, or electronic/online payment means like PayPal. If your non-profit offers subscription plans, Invoiced’s Subscription Billing module can help you manage recurrent donations much akin to recurrent billing in businesses.  The platform also allows you to create sign-up pages to make it easy for your prospective donors to choose the subscription plan that they prefer.

Invoiced has Basic and Advanced paid plans to fit the different needs of non-profits. The Basic Plan is priced at $100.  Should you need to meet more volume, enterprise plans are available by quote.

20. DocuPhase

DocuPhase is a multi-application automations software. It can be a nonprofit organization’s valuable asset, as it is a robust platform that has numerous capabilities. Its main use is for accounts payable automation, which can assist nonprofit entities in keeping track of their dues. This can also assist them in sending payments to their vendors or suppliers on time to maintain profitable relationships.

The software enables nonprofits with tools and technologies such as Optical Character Recognition. With it, DocuPhase can read the contents of scanned documents and use the information it gathered to fill forms. As a result, there is no need to manually enter data on the end of the user. Because of this feature, nonprofit organizations can automate payments to their suppliers based on the information from invoices.

Additionally, DocuPhase can make audits easy for the organization. Its enterprise document management system can store the necessary financial information that you can pull up when the auditors come knocking.

You can experience DocuPhase’s capabilities when you sign up with the vendor on their website. You can also request a quote so that you can begin considering whether it is what your organization needs.

Find the Best Accounting Tool for Your Organization

And there you have it, our 20 best accounting software for nonprofits. By this time, you should be able to find the right accounting platform for your nonprofit. It is highly recommended that you start with NetSuite ERP. This accounting solution has the necessary financial tools to assist you in managing your expenses. Plus, it has features that are specific to nonprofit organizations, making it easy for you to generate the documents you need for end-of-fiscal-year reporting or compliance.

Once you have checked NetSuite ERP, you can move down the list, which includes simple accounting tools, platforms that enhance your accounting process, or solutions that strengthen the security of your financial documents and workflows. Best of all, some of the listed products have special pricing for nonprofits. Meanwhile, others have affordable subscription plans, and some are entirely free or freemium.

However, if you wish to broaden your search, you can read our article on the best free accounting solutions. While they may not have specific tools for nonprofit organizations, they still have the necessary features to help you keep your finances in check. Moreover, it will guide you in your search for great tools that don’t impact your bottom line.

But accounting is not all there is to keep your organization afloat. You also need to continue receiving donations from your patrons and other supporters. You can do online fundraisers using online giving platforms to augment your income and ensure you can continue helping your constituents.

Key Insights

• Importance of Specialized Accounting Software: Nonprofits benefit greatly from accounting software tailored specifically to their needs, providing tools for donation management, project tracking, and financial reporting.
• Top Recommendation: NetSuite ERP stands out as the best accounting software for nonprofits, offering a comprehensive suite of tools for financial management, donor tracking, and robust reporting capabilities.
• Diverse Options: The article lists 20 different accounting software options suitable for nonprofits, ranging from comprehensive ERP systems to simpler, user-friendly tools, ensuring a fit for various organizational needs and sizes.
• Automation and Efficiency: Many of the listed software, such as FreshBooks, AvidXchange, and Zoho Books, emphasize automation features, helping nonprofits streamline processes like invoicing, payroll, and expense management.
• Cost and Accessibility: Several of the software options offer special pricing plans for nonprofits, discounts, or free trials, making them more accessible for organizations with limited budgets.

FAQ

1. What is the best accounting software for nonprofits? The best accounting software for nonprofits is NetSuite ERP. It provides specialized tools for managing donations, tracking projects, and robust reporting to offer a comprehensive view of the organization’s financial health.
2. How can accounting software help nonprofits during financial crises? During financial crises, accounting software can help nonprofits by providing accurate financial tracking, ensuring accountability, and facilitating transparent reporting to donors and stakeholders, which is crucial for maintaining trust and securing future funding.
3. What features should nonprofits look for in accounting software? Nonprofits should look for features such as donation management, project tracking, automated invoicing, expense management, payroll processing, and robust reporting capabilities. Additionally, ease of use and integration with other tools are important factors.
4. Are there affordable accounting software options for small nonprofits? Yes, there are affordable options like QuickBooks Online, Zoho Books, and FreeAgent that offer essential accounting features at a lower cost. Some tools also provide discounts or special pricing plans for nonprofit organizations.
5. Can general business accounting software be used by nonprofits? While general business accounting software can be used by nonprofits, it’s often beneficial to choose software specifically designed for nonprofit needs to ensure the best fit for tracking donations, grants, and other nonprofit-specific financial activities.
6. How do accounting software tools improve transparency for nonprofits? Accounting software improves transparency by providing detailed and accurate financial reports, enabling nonprofits to track every transaction, manage donor information, and present clear financial data to stakeholders and auditors.
7. What are some automation benefits of using accounting software for nonprofits? Automation benefits include reducing manual data entry, minimizing errors, streamlining workflows for tasks such as invoicing and payroll, and saving time, allowing staff to focus more on the organization’s mission rather than administrative tasks.
8. Are there free accounting software options available for nonprofits? Yes, some accounting software options like Zoho Invoice and FreeAgent offer free versions with basic features that can be suitable for smaller nonprofits with limited needs.
9. What should nonprofits consider when choosing accounting software? Nonprofits should consider factors such as the software’s ability to handle nonprofit-specific tasks, ease of use, cost, scalability, integration capabilities, and the level of customer support provided by the vendor.
10. How do cloud-based accounting solutions benefit nonprofits? Cloud-based accounting solutions offer benefits such as remote access to financial data, automatic updates, enhanced security, and the ability to collaborate easily with team members and stakeholders from different locations.

By Daniel Epstein

Daniel Epstein is a senior financial research analyst at FinancesOnline and the architect behind our Fintech and ERP content division. His main areas of expertise are blockchain technologies, cryptocurrencies, and the use of biometrics in fintech solutions. His work has been frequently quoted by such publications as Forbes, USA Today, Entrepreneur, and LA Times. With more than 1,800 solutions scrutinized in the last 5 years spent on our team he always prioritized offering readers an unbiased perspective on modern financial technologies.