This is essentially the nonprofit accounting version of the balance sheet equation. Once you’ve got a bookkeeping system in place, you need to start creating financial statements. Looking at these documents can tell you how much money you have, where your money is, and how it got there. Where exactly your income and expenses come from and how you accounting services for nonprofit organizations group them in your budget will depend on the nature of your organization. An annual operating budget for a university will be very different than a budget for a small local art gallery. When you let us handle your nonprofit’s bookkeeping needs, you will be paired with one of our staff bookkeepers whose expertise is best matched to your needs.
The 8 Best Accounting Software for Nonprofits in 2023
QuickBooks offers a discount on its QuickBooks Online software through TechSoup. This version of QuickBooks Online offers the accounting features and functionality nonprofits need, including the ability to manage nonprofit finances, file Form 990 and file taxes. Wave’s free invoicing tools offer the ability to send customized and branded invoices and automated payment reminders. You can also accept credit cards, bank payments and Apple Pay from invoices. Its free accounting tools offer income and expense tracking, reports (such as overdue invoice reports) and a reporting dashboard.
Best for Volunteer-Run Nonprofits
- Every interaction with them has improved us, from guiding us through successful accounting practices to ensuring that we have robust Human Resource offerings.
- They took the time to understand our company culture and the type of people who would fit best in our environment.
- They are very skilled at matching the right candidate to the right position, and with their help, I was hired for a role I would never have found otherwise.” ~ Sally U.
- Its mobile app lets you collaborate on the go, and it integrates with hundreds of third-party apps.
- The best accounting software for nonprofits should offer nonprofit-specific features like fund-based accounting, donation tracking, and Form 990 generation.
The software should also be user-friendly and scalable to accommodate the organization’s growth. What sets YPTC apart is our background in nonprofit-specific financial management. For over three decades, we’ve worked with executive directors and board members across a variety of organizations to fulfill their missions more effectively and efficiently. Typical small-business accounting revolves around profit—how much a company is making, spending, losing, and saving. In contrast, nonprofit accounting centers on tracking funds, including responsible oversight of fund management.
Nonprofit Accounting Jobs
NetSuite, which was purchased by Oracle a few years ago, offers a wide range of accounting, CRM, and ERP (enterprise resource planning) solutions for dozens of industries—including nonprofits. NetSuite’s cloud-based Social Impact software includes fund accounting, inventory management, and even ecommerce support. Unlike most software for nonprofits, NonProfitPlus includes inventory management, which is crucial if you stock merchandise (like T-shirts and mugs) to raise money or reward donors. On the other hand, NonProfitPlus doesn’t list any pricing on its site—as with Sage Intacct, you have to get in touch with a representative for a quote. Customers report paying more than $600 a month for NonProfitPlus’s full suite of features, so if you’re looking for affordable nonprofit software, NonProfitPlus probably isn’t it. Unfortunately, while Aplos’s nonprofit features stand out, its accounting features are more limited.
A Guide to Nonprofit Accounting (for Non-Accountants)
For example, bookkeeping ensures your nonprofit uses its revenue wisely and maintains its tax-exempt status. Accounting, on the other hand, is using that information to provide a detailed analysis of your finances. In other words, effective bookkeeping practices will accurately record and monitor your financial activity throughout the fiscal year. When the time comes to report your financial activity or make a budgetary decision, you’ll be equipped with precise and thorough information. That way, you can be sure that your nonprofit maintains both its 501(c)(3) status and the trust of its supporters. Don’t make the mistake of thinking that your nonprofit tax exemption includes payroll taxes!
- However, Wave doesn’t offer fund accounting or any other nonprofit-specific features, so we hesitate to recommend it to nonprofit bookkeepers and treasurers.
- For-profit bookkeeping, on the other hand, emphasizes profitability and investor returns.
- The form details your organization and its aims, and shows where your funds came from and were distributed during the tax year.
- Specific positions such as Accounting Coordinator or Finance Director will have different ranges and median salaries depending on skills, experience, and location.
- You can also accept credit cards, bank payments and Apple Pay from invoices.
- Included free with your engagement, our team of Intacct and Quickbooks Online experts will migrate, setup, and review your chart of accounts to ensure it aligns with GAAP and nonprofit standards.
What Are Operating Expenses? (With Examples)
In addition, as you build new global entities, you can seamlessly add them to the software. NetSuite’s accounting software offers accounts receivable and payable, cash management, fixed asset management, a general ledger and tax management solutions. When we contacted a sales representative for a starting price, we were told there is no set starting price as each solution is uniquely catered to the NetSuite client. These financial statements can provide helpful insight into your nonprofit’s financial health so that you can adjust accordingly and plan your next moves. Essentially, you should view bookkeeping as the financial oversight process that’s necessary for operating your nonprofit daily.
- These taxes are listed on an employee’s pay stub, with the first two shown as FICA (Federal Insurance Contributions Act).
- First, find out which considered software offers a free trial or a version you can use to try the software before buying.
- We recognize that accounting never stops, and nonprofits need our help no matter where they’re located.
- That helps us ensure your transactions are entered accurately and on time to give you confidence in your decisions.
- By tracking categories, you know if funds are being allocated to the right projects based on donor intent.
- When our experience as finance and accounting recruiters is combined with our extensive and vetted network, we are able to deliver stellar results so our candidates get matched with the best companies to work for.
Restricted net assets are donations that have certain terms and restrictions attached, have special accounting procedures, and must be kept separate from other net assets. Nonprofits have tight rules around what they can and can’t spend money on. They need an organized system that makes sure purchases are ordered, budgeted for, and fulfilled properly from the get go.
