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20 February 2016 • www.CPAPracticeAdvisor.com NONPROFIT ACCOUNTING SOFTWARE Reviews 2016 Review of Nonproft Accounting Systems By Mary Girsch-Bock T here are an estimated 2.3 million nonproft organizations currently operating in the U.S.; one nonproft for every 175 Americans. Some of these are one-person operations, but 1.6 million of those nonprofts are currently regis- tered with the IRS. While smaller nonprofts may feel that they can get by without nonproft sofware, using spreadsheets to monitor organizational activity, this process is not recommended for any small business owner, particularly the nonproft, where additional detail, such as donation amounts, donor information, program details, member- ship details, and grant and fund budgets need to be tracked. Today, while many nonprofts continue to struggle with spreadsheets, recent surveys have shown that many nonprofts are fnally starting to see that there is a wealth of products available that can make their job considerably easier. Is your client using one product to manage organi- zational expenses, another to track donors, and still another to create budgets and fnancial statements? Tis is a common occurrence in many nonprofts, where sys- tems are typically older, and have been purchased as needs have arisen. Te result is that none of the sofware systems 'talk' to each other, increasing the need enter information two and sometimes three times. So what would be the best sofware for your client's nonproft organization? Are they primarily funded by grants? Are those private foundation grants or federal/ state grants? Do the majority of their funds come from private donations? Or are fundraisers and other events held in order to raise money? Is your client's organization a membership organization, where tracking membership dues are necessary? Do they rely on volunteers to handle a lot of the jobs needed in the organization? By determining the needs of your client's nonproft frst, identifying the sofware product best suited to their organization will be a lot easier. Knowing that funding comes from grants means that you'll only have to look at sofware that ofers grant management capability. If the organization is donor driven, a donor management tool is imperative. If the needs of the nonproft are changing or unclear, modular sofware might be a beter option, as modules can be added as needed, without the fear of outgrowing the product. Te products included in the nonproft review range from small 1-2 user systems to sophisticated products that only the largest nonprofts could take advantage of. An excellent grant management product is also discussed in the review. Te areas we looked at in this review include the fol- lowing: Basic System Functions - this addresses everything from ease of navigation to modules included in the product, along with deployment method: on premise, online, or both. Core NFP/Fund Accounting Capabilities – which addresses the most important aspects of the product, looking at everything from account structure, along with the ability to support flexible account structure and multiple segments? We also look at the ability to create and manage multiple budgets, automatic fund balancing, and grant management capability. Audit trail functionality is also addressed, as is the availability of electronic features such as online bill payment, the ability to email invoices and statements to recipients, the ability to accept elec- tronic payments, remote access, and ebanking capability. Management Features - looks at the availability of management tools such as fnancial dashboards, advanced security, collections, and additional fundraising activities. It also looks at more advanced budget capability including in-depth analysis and the ability to create what-if scenarios. Financial Statements and Reporting - looks at the kind of reports that can be produced by the system, as well as the ability to further customize system reports. Integration/Import/Export - in this section import/ export options are explored. Can information be exported to Excel or other spreadsheets? Can reports be exported as PDF's? Can information from other applications be imported into the system? Help/Support - An area of particular importance for new users, we look at the tools provided to make the transition to a new product easier. Are there videos, webinars, or instructional tools available for new users to reviews? Is the 'help' function strong? W hat are the training options, and how are those training options delivered? It's important to remember that many other factors can play a role when determining what sofware is best for your client including ease of use, fnal costs, and ability to add/upgrade the system when necessary. Most of the products in this review offer online or downloadable demos that potential users can try out prior to making a decision. And why there's no doubt that needs of two nonprofts will never be the same, no mater the other similarities, these reviews can help lead the way to the best solution for your client. ● BASIC SYSTEM FUNCTIONS CORE NFP/FUND ACCOUNTING CAPABILITIES MANAGEMENT FEATURES FINANCIAL STATEMENTS & REPORTING INTEGRATION/ IMPORT/ EXPORT HELP/ SUPPORT OVERALL RATING Abila MIP Advance AccuFund for Nonprofts Aplos Fund Accounting Araize FastFund Nonproft Accounting Blackbaud Financial Edge NXT Cougar Mountain Denali + FUND Nonproft Accounting FUND E-Z Nonproft Accounting OneNFP Financials & OneNFP Fundraising QuickBooks Online Nonproft Version Serenic Navigator Nonproft Accounting Mary Girsch-Bock Mary Girsch-Bock began her career as an accountant in the property management and healthcare industries. She is now a feelance writer specializing in business and technology issues and is the author of her frst book, several HR handbooks, training manuals, and other in-house publications. She can be reached at mary.girschbock@cpapracticeadvisor.com.