Today's Technology for Tomorrow's Firm.
Issue link: https://cpapracticeadvisor.epubxp.com/i/852835
8 JULY 2017 ■ www.CPAPracticeAdvisor.com REVIEW: NONPROFIT ACCOUNTING SOFTWARE While it's common practice for very small nonprofits to utilize standard accounting applications, even the smallest nonprofit can benefit from utilizing a product designed specifically for its needs. Unfortunately, there are those who use spreadsheet software to manage their nonprofit, creating an even greater burden on both employees and accountants to track and manage finances properly. At times, very small nonprofits have been under the mis- taken notion that nonprofit software is out of their price range, but there are several products available that are very affordably priced, for even the most limited budget. Another issue that frequently arises is uniformity. Does your cli- ent currently run multiple systems, perhaps implemented as needed, but unable to integrate with each other? In an ideal world, nonprofits are able to track revenue and expenses, manage donors and donations, manage grants and fundraising activity, and produce the reports needed. The question is; how many applications are your non- profit clients using to accomplish those tasks? If the answer is more than one, it may be time to update their software. But what is the best product for your nonprofit client? A straightforward question with a not so straightforward answer. There are a few questions you can ask that will make it a little easier to find the best product to suit your client's needs. Do they need anytime/ anywhere access to the application? Are they funded primarily by grants or does funding come from private donors? Does their nonprofit offer a membership option? Getting the answers to these questions will go a long way towards determining which product is best suited for their needs; both now and in the future. For instance, if they're funded by grants, a grants management module can be extremely helpful. If the majority of their funding comes from private donations, they run frequent campaigns, and they are actively culti- vating new donors, then a fundraising/ CRM module is a necessity. If they offer a membership benefit, your client will need an eeffective way to track mem- bership levels and ensure that members receive all of the benefits promised. The products included in this review range from an entry level product well suited for small nonprofits to those suited to larger nonprofits with more complicated needs. Like the nonprofits themselves, the products vary in size and scope, from 1-2 user systems, to sophisticated enterprise level products that are best suited for the biggest nonprofit. With our new review protocol, we looked at each system carefully, noting whether each application contained specific features. Those features included cloud deployment options, a customizable chart of accounts, the availability of multiple account seg- ments, the option to process multiple transaction types, budgeting capability, donation tracking, donor management and fundraising capability, and host of other features that are important when making the decision to purchase a nonprofit product. When working with your client to determine the best solutions avail- able for their particular needs, other factors can come into play, such as deployment options, comfort level of the employee(s) who will be using the product, expected growth of the nonprofit in the coming years, and final cost of the application itself, including estimated downtime and time needed for any training. Most of the products reviewed here have online or downloadable demos, and all of the software vendors are happy to provide potential users with a product demonstration, if requested. While no two nonprofits are the same, the scope and depth of the products profiled here are sure to fit the needs of just about any nonprofit organization, large or small. ■ Mary Girsch-Bock is a freelance writer specializing in business and technology issues and is the author of her first book, several HR handbooks, training manuals, and other in-house publications. She can be reached at mary.girschbock@cpaprac- ticeadvisor.com THE PHILANTHROPIC TRACKING organization Guidestar.org estimates that there are cur- rently 2.2 million nonprofits in the U.S., with 1.8 million of those nonprofits active. In fact, five states - California, Texas, New York, Florida, and Pennsylvania - each have more than 100,000 active nonprofits currently registered. While most nonprofits currently operate as public charities, private foundations are also abundant. In fact, there are nearly thirty nonprofit classifications; ranging from charitable organizations to labor organizations to state-chartered credit unions. And they all share one thing: the need to manage funds properly; whether those funds are in the form of donations, grants, program income, memberships, or product sales. Read all reviews for NONPROFIT ACCOUNTING SOFTWARE online at: www.CPAPracticeAdvisor.com/12345902 Accounting Systems By Mary Girsch-Bock