Organizations grow and change over time just like people do. They start small and grow in new and interesting ways. As a nonprofit grows, its accounting needs change, too. Often, organizations begin with simple spreadsheets or out-of-the-box small business accounting software. There comes a time, however, when spreadsheets take more time than you have in your day to update, or when your software is sluggish, overburdened, or simply not flexible enough to meet your current requirements.
In this article, we’ll explore what to do next if you’re unhappy with your current system. We’ll discuss the steps to evaluate your needs and select a flexible nonprofit accounting system that supports your current growth and future needs.
Symptoms of Accounting System Growth Pains
Doctors ask patients about the symptoms of their maladies. What are the symptoms of accounting system growth pains?
- A system that makes it difficult to get the reports you need – you find yourself exporting data into spreadsheets, then manipulating spreadsheets to generate the charts, graphs, and reports you need.
- After typing data into your accounting system, you need to key the exact same information into another system because the systems don’t ‘talk’ to each other.
- Duplicate data is rampant because everyone must type information into multiple systems. Even something as simple as typing “Rd” instead of “Road” leads to duplicate information and problems.
- Month-end closing takes hours, even days, when you feel like it should be much easier.
- It’s almost impossible.
Sounds familiar? If any of this sounds like your situation, you may be experiencing accounting system growing pains. It’s like a pair of shoes that no longer fit – they pinch because your feet have grown. It’s time to get the right size.
Imagine the Possibilities with a New Nonprofit Accounting System
Now imagine the possibilities with a new nonprofit accounting system. Cloud systems provide a comprehensive solution that includes accounting, finance, operations, human resources, and other systems all in one interconnected platform. Information entered into one part of the system flows naturally into other parts, providing unmatched real-time visibility. Preparing for audits, sharing information, and even simple monthly reconciliations are all much easier with a modern cloud-based accounting platform.
Searching for a New Accounting System
How do you begin the search for a new nonprofit accounting system?
- Select a team from within your organization to steer the search. The members don’t need to be IT experts. A cross-sample from across multiple departments is the best way to steer a software selection team.
- Work with a consultant. A good consultant who understands the nonprofit world and its unique accounting and reporting needs will save you time and effort by steering you towards software that supports your organization’s growth.
- Make a list of the current pain points with your existing system and the wish list of what you’d like to see in your new one.
- Take your time. Your new nonprofit accounting system will be with your organization for many years to come. Take the time now to research, review, and select the best one to support your growth.
It can be challenging to know the next steps when your organization has outgrown spreadsheets and standard accounting programs. With the right partner by your side, you can step forward into the search for a new nonprofit accounting program with confidence.
Welter Consulting
Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact us for more information.
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