Nonprofit Accounting Software Features
Nonprofit accounting software varies greatly in terms of the features available in each individual product. The features available may include, but are not limited to, the following:
Donor Contribution Reports – Nonprofit accounting software allows users to create donor contribution reports, which summarize yearly donations to the organization.
Grant and Endowment Management – Nonprofit accounting solutions typically offer grant and endowment management functionality, which provide users with a clear overview of the organizational grants and endowments an organization has applied for, given, and received.
Audit Trail – A key feature of any accounting software, the audit trail functionality of nonprofit accounting solutions allows users to stay on top of every single organizational transaction. Any auditors or inquiries into a company’s practices are easily answered by providing the information gathered by the software, which creates a clear audit trail.
Invoice Customization – While there are separate invoicing software solutions available, the beauty of nonprofit accounting software is its diverse feature set. Solutions in this category may come equipped with a dedicated tool to help users create and customize invoices. Instead of wasting time creating a brand new invoice every single time, users can create multiple templates specific to the needs of an organization.
Accounts Receivable Automation – This feature aids organizations in simplifying the processing of invoices, saving finance and accounting teams time and money.
Accounts Payable Automation – Automation is always a good thing when it can save time. AP automation means that users no longer have to worry about manually entering invoices, and companies maintain full control over organizational spending.
Payment Processing – Certain nonprofit accounting solutions may offer payment processing features bundled within the tool as part of the fundraising aspect of the application. Having payment processing features means that donors can contribute directly within an application, cutting down the number of steps needed to donate. Simplifying the donation process is an excellent way to get donors to do so, and solutions equipped with this feature accomplish that.
Payroll – Some solutions may offer payroll functionality, so organizations can track spending on employees directly within the application. This contributes to financial planning for the administration, as users are provided with a comprehensive breakdown of overhead and can assess in detail if it is warranted as well as whether the organization is over- or under-spending.
Financial Reporting – All solutions contain reporting tools built in; reporting is a vital function of nonprofit accounting tools, which cater to tax-exempt organizations.
Data Import – Solutions typically offer easy-to-use data import tools for users looking to input data from donor management and fundraising solutions.
Cloud-Based Solutions – Solutions in the nonprofit accounting category typically offer a cloud version of their software. As more solutions are hosted and deployed in the cloud, the quality of a solution’s cloud offering becomes increasingly important.
