Category

Accounting Software

Jan 08
0

5 Steps to Choose the Best Fund Accounting Software for Your Nonprofit

By | Accounting, Accounting Software, Nonprofit | No Comments
two people in front of laptop computer, Accounting Software

Fund accounting software helps nonprofits manage their finances better by providing clear financial reports, separating restricted and unrestricted funds, automating compliance processes, and offering real-time information for decision-making. It centralizes information to increase efficiency, links financial activities to specific grants, and ensures resources are used effectively to fulfill the nonprofit’s mission. If you’re looking to add fund accounting software to your organization, these five steps will help you choose the right one for your needs.

Five Steps to Find the Best Fund Accounting Software

As you search for the best fund accounting software for your organization, you may feel overwhelmed by the choices available. These steps will help you organize the software selection process so that you can quickly assess the options and make smart choices about the finalists before reviewing each one individually.

Step One: Gather Your Team

Even though you’re selecting software, the process begins with people, not technology. The first step in selecting fund accounting software is to gather the right people to participate in the selection process.

First, you’ll need a project leader, someone willing to devote the time, energy, and resources to guide the project’s successful completion. This person doesn’t necessarily have to be in IT – someone on your accounting team may be willing to take the lead.

After determining the project leader, you’ll need to gather a team who will work together to find the right accounting software. This team should include at least one department representative who will use the software. End-user participation is vital to the project’s success. The software must meet their needs first and foremost, so get them involved early and often!

Lastly, finding an executive champion or someone from the executive level in your organization who will promote the project among the leadership team is also essential for success. This person may be able to remove roadblocks, approve the budget, or help you navigate internal politics to achieve project success.

Step Two:  Define Requirements

Working with the project team, define the requirements for the accounting software.

Define your requirements by asking these questions:

  • What do we want to achieve with our new system?
  • What information do we need to make better decisions?
  • How many people need to access the system, and what roles will they have? Which processes do we want to automate?
  • What other applications are we using that need integration with the accounting system?

Document the expected improvements with a new fund accounting system, including Return On Investment or ROI and total cost of ownership.

Step Three: Understand Delivery Options

Fund accounting software is available in three delivery options: on-premises, hosted cloud, or native cloud. What does each mean?

  • On-premises or “on-prem” software is purchased upfront and installed on a computer in your office. It is accessed within your network by other users but cannot be accessed remotely. All the information in the system is contained on the premises, hence “on-prem.”
  • Hosted cloud software is owned by your organization but hosted by a data center offsite. It is accessed over the internet.
  • Native cloud accounting software is also called “SaaS” software. It is housed and maintained by the vendor offsite. Your organization accesses it securely through the internet.

As a team, explore what each option may mean for your organization and review the pros and cons of each delivery method.

Step Four: Develop a Requirements List

This is the time to assemble your “wish list” of requirements. Basic nonprofit accounting software should include general ledger capabilities along with account, bank, and credit card reconciliation; financial management; cash flow management; invoicing and payments; reporting; and possibly integration with other systems, such as donor management. Look for software developed explicitly for nonprofits. General business accounting software does not track fund accounting or grant funds and may require significant (and expensive) customization, while fund accounting software is developed with the unique needs of nonprofits in mind.

It’s also important to consider any complex needs your organization may have. For example, an organization with one location has different software needs than one with 10 locations across seven states. Those operating internationally have even more complex needs as accounting requirements vary by country, and languages and currencies also vary. List these factors as part of the requirements.

Step Five: Evaluate Software Vendors

Now, it’s time to evaluate software vendors. To find possible candidates, speak with colleagues from the nonprofit world. Ask for recommendations; many will be happy to share recommendations for vendors with whom they’ve had positive experiences.

Review information about each possible fund accounting software system online, watch demos, and read information about the system. Then, with your requirements in hand, speak with vendors and make appointments for consultations, demos, and discussions.

Here are a few tips to keep in mind when speaking with vendors, software resellers, and consultants:

  • Winnow the larger list of possible vendors into a short list based on your online research.
  • Create a request for a proposal document that contains your organization’s requirements. This can be shared with the shortlisted vendors so that the responses address the same points and provide an apples-to-apples comparison.
  • Some vendors simply sell software. Others install it but do not provide training. Ask what each vendor includes in their package.
  • Assess how well the vendor’s approach fits your organization. Ask who will work with you on the implementation and what support is provided. Ensure you “click” with the person you’ll be working with since you will spend considerable time together on this project.

Need More Help Choosing Fund Accounting Software?

If you are looking for fund accounting software such as Sage Intacct, MIP Fund Accounting, MIP Cloud, and more, we’d love to help you. With over 500 implementations, we bring extensive experience and expertise to the table.

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.

Dec 26
0

Five Considerations to Help You Choose the Best Accounting Software for Your Organization

By | Accounting, Accounting Software, Nonprofit | No Comments
person using financial software on a tablet and laptop

Is your current accounting and financial software platform helping you achieve your goals or hindering progress?

If you’ve decided that it’s time to invest in new nonprofit accounting software, this buyer’s guide is for you. Nonprofit software has changed rapidly over the years. While basic accounting software still contains familiar and essential elements like a general ledger, accounts payable, accounts receivable, and invoicing capabilities, new accounting platforms offer AI-enabled assistance that improves efficiency and automates routine processes. Integration with other platforms can also be easier, depending on the software vendor.

Let’s look at five questions to ask as you begin exploring nonprofit accounting software. With so many platforms available, you’ll want to narrow down the list before reviewing demos and meeting with vendors and consultants. These questions will help you focus on specific requirements for your organization’s needs—the “must haves” for your new accounting system.

Software Delivery Models

Before we dig into the five questions to ask, it’s important to understand the main software delivery models available today. These models include:

  • On-premises software, based on the client/server model, which is installed on a Windows-based computer network in your office.
  • Hosted software, which runs on-premises software in a third-party data center and adds a layer for online delivery.
  • Cloud software, or Software as a Service (SaaS), is developed to run online.

Each model has pros and cons to it. On-premises and hosted software tends to be (on average) more expensive to run over time since it requires dedicated hardware and personnel to monitor and maintain it. It also limits access to personnel located in the same office as the software; remote access isn’t available. Cloud software provides remote access, and updates are typically handled by the software vendor, for example.

Based on your answers to the following questions, you’ll know more about which type of software is right for you.

Five Considerations When Choosing Accounting Software

  1. Does my team need remote access? Cloud software allows remote access. This enables employees to work remotely. The opportunity for remote work may also improve your ability to hire skilled people from a wider geographic area; you aren’t limited to people who can commute to your location. If you offer only location-based services and never need remote access, you can choose any type of software. If remote access is essential to you, cloud platforms are the right way to go.
  2. Does my financial system need to integrate with other platforms? Cloud platforms can be more easily integrated with other platforms through APIs (Application Programming Interfaces). This leads to easier data sharing, better visibility, and enhanced productivity.
  3. Do users need real-time access to data? Real-time access can be more easily achieved through an integrated, cloud-based approach. Allowing users self-service access also improves visibility and helps team members use financial data as part of their decision-making process.
  4. Do we need to improve efficiency? Cloud accounting platforms can enhance your organization’s operational efficiency by streamlining traditional finance processes like consolidations and closings. Additionally, it allows you to automate tasks such as procurement, allocations, grant management, and compliance reporting, freeing up resources for more value-added activities. For nonprofits, the cloud helps avoid the drawbacks of “management by spreadsheet” and the limitations of single-user systems like desktop accounting software.
  5. Have we considered how to scale for growth? If your organization foresees significant changes in headcount, either adding staff or cutting back, cloud licenses tend to be more flexible, allowing you to increase or decrease licenses with ease and limited expense.

Hands-On Experience

Once you’ve thought about the answers to these questions, you’ll know whether you should explore cloud-only accounting software or consider on-premises platforms too.

Exploring demos and videos online is the best way to learn about the various accounting platforms available. Then, it’s time to engage internal stakeholders in the process of requirements gathering and all the steps needed to hone in on the right software. Fortunately, today’s market offers a wealth of choices for nonprofits. The trick is matching the best platform to your organization’s needs. An experienced consultant can help.

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.

Nov 26
0

Plan for Growth with Dedicated Nonprofit Accounting Software

By | Accounting, Accounting Software, Nonprofit | No Comments
person using nonprofit accounting software on laptop

Over 23 million companies use QuickBooks, the standard small business accounting software. Approximately 8.6% of users are nonprofit organizations. For nonprofits growing beyond the startup phase, QuickBooks offers a better way of managing financial and accounting data than spreadsheets alone; however, it has many limitations. If your organization currently uses QuickBooks and has begun to feel frustrated with these limitations, we will explore alternatives and next steps to move beyond simple accounting software and into nonprofit-specific accounting software.

QuickBooks for Nonprofits

QuickBooks has become the de facto alternative to spreadsheets for many businesses, including nonprofit organizations. The nonprofit version includes donation tracking, fund accounting, and specialized reports.

Many nonprofits struggle with several limitations within this version. It is not especially helpful for houses of worship, for example, which often spend considerable time, money, and effort customizing income, expenses, and reports. It does not scale easily so, if your organization is growing rapidly, you may find the system hinders more than helps your productivity.

Lastly, it is not made to integrate with other platforms, which results in siloed data. Organizations find themselves extracting data from QuickBooks and uploading it into Excel to run reports and data visualization, both of which defeat the purpose of moving from spreadsheets in the first place.

A QuickBooks Alternative for Nonprofits: Sage Intacct

If your organization encounters these limitations, Sage Intacct is an alternative to QuickBooks for Nonprofits.

There are many reasons why Sage Intacct provides an excellent alternative to QuickBooks. Here are our top three.

  1. Automation
  2. Integration
  3. Enhanced reports

1. The Benefits of Accounting Automation

If you have ever had to copy and paste data, upload data into your accounting system, or generate PDF invoices and email them to customers or clients, you know how time-consuming manual processes can be. Consider how long it takes to run end-of-month or end-of-quarter reports, prepare invoices, and email them. Think about how long it takes to follow up on invoices, create data visualizations, and conduct other vital accounting tasks.

Many of these routine tasks can be automated with nonprofit accounting platforms like Sage Intacct. Sage designed the platform with automation in mind, which means you do not need an IT person to program the automation—you can do it yourself.

One good example for nonprofits is expense approvals. In many organizations, approving expenses is a manual process. A staff member must email an approval form and receipt to a manager who approves it in writing. Then, the documentation is sent to accounting to reimburse the employee. This process requires several emails and often several days to complete.

Sage Intacct automated the process from start to finish. Once employees enter expense information into the system, it automatically routes it for approval. This single automation can save minutes for several employees, adding up to hours of potential time savings in a year. And that’s just one automation!

2. Integration with Other Software

QuickBooks is notoriously finicky to integrate into other software. This results in siloed data and a stand-alone accounting system. This may be acceptable for small organizations, but as your organization grows, you will want to generate comprehensive reports encompassing multiple management departments. The best way to accomplish this is through integrated platforms that share data seamlessly.

Sage Intacct offers excellent integration within the Sage suite of products and other platforms. Whether your organization sells memberships, workshops, or other online activities and needs e-commerce integration or wants to improve communications with a customer relationship management (CRM) platform, Sage Intacct offers seamless integration. Users can choose from 350 integrations in the Sage marketplace or use APIs (application programming interface) to integrate with their chosen platforms. This makes Sage Intacct an excellent choice for organizations that require their accounting systems to integrate with multiple software platforms.

3. Enhanced Reports

Most accounting software comes with standard, out-of-the-box reports. These include profit and loss statements, balance sheets, income statements, sales reports, and similar standard financial reports. Nonprofits, however, often need additional reports and added depth to the information to report to boards, auditors, constituents, and donors the effectiveness of their programs and how their money is spent. Standard accounting packages rarely include these reports or require extensive customizations to create them.

With Sage Intacct, you will have access to many reports that accommodate numerous nonprofit financial accounting needs. It even accommodates FASB-required financial reporting requirements.

Ready to Step Up? Learn More About Sage Intacct

As your organization grows, you will need a comprehensive accounting system that accommodates nonprofits’ unique financial reporting and accounting needs. Consider Sage Intacct as you plan for future growth.

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.

Nov 19
0

Integration, the Key to Donor Management Automation

By | Accounting, Accounting Software, Donations, Nonprofit | No Comments
person at computer using integration management software

Donor management encompasses all marketing and communication steps necessary to attract new donors and nurture existing donor relationships. Tasks included as part of the donor relationship management process include attracting new donors through marketing campaigns, events, advertising, and more; follow-up communications with new donors, such as thanking them for their gift and sending required information for tax purposes, and continual marketing to them through newsletters, advertisements, personalized emails, direct mail, and more. Lastly, data from donor campaigns must be analyzed and interpreted to build on successes and retire unsuccessful campaigns.

This mostly manual process benefits from automation. Automation in the donor management process reduces manual tasks, streamlines data and reporting, and can enhance donations. However, to automate the donor management process, nonprofits must ensure that their donor marketing or customer relationship management (CRM) and nonprofit accounting platforms are fully integrated.

Why Is Integration Vital to Donor Management Automation?

Integration of critical platforms, such as donor management software and nonprofit accounting systems,  ensures that all data is up-to-date and accessible in one place, reducing the risk of errors and data duplication.

Enhanced efficiency is another significant benefit. Automation through integrated systems streamlines administrative tasks like data entry, donation tracking, and reporting. This frees up staff time to focus on strategic activities like donor engagement and fundraising campaigns.

Improved donor relationships are also a key advantage. With integrated systems, nonprofits can personalize communications and interactions based on comprehensive donor profiles. This helps build stronger relationships and increase donor retention by ensuring timely and relevant outreach.

Finally, integration ensures seamless communications. All channels, such as email marketing, social media, and event management tools, work together cohesively. This creates a unified experience for donors and ensures consistent messaging across platforms.

By integrating their systems, nonprofits can enhance their operational efficiency, improve donor engagement, and ultimately increase their impact.

Five Ways in Which Automation Helps Donor Management

There are many ways in which automation helps donor management. These include:

  1. Reduced manual data entry: With system integration and automation, data entry is reduced or eliminated. Donor information entered into the accounting system flows seamlessly into the CRM and vice versa. This saves significant time and effort.
  2. Eliminate mistakes: By reducing manual data entry, your organization can reduce the chance of mistakes and duplicate data.
  3. Better reports: Integrated CRM and accounting platforms also ensure that as donor information is updated in the CRM, the accounting information is automatically updated too. This ensures that reports generated from the accounting platform contain the latest information.
  4. Improved insights: Integration ensures that reports contain data from multiple sources, leading to better insights. Such reports can also be generated rapidly, leading to more accurate decision-making about donor campaigns. Marketers can capitalize on trends and respond swiftly to opportunities.
  5. Enhanced donor communications: Automated donor management can also enhance communications by sending customized thank-you letters and follow-up campaign materials.

Take Advantage of Automated Donor Management Today

As you can see, nonprofits receive many benefits from integrating CRM and accounting platforms and automating their donor management tasks. Start today with a comprehensive review of your existing platforms. Which may need to be updated? What can be integrated? Then, look at the possible benefits of donor management automation. What can your organization achieve through automation?

With the answers, you can take the next step and ensure software and systems are prepared to accommodate automated donor management programs.

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.