Nonprofits have unique needs when it comes to accounting. From fund accounting to grant administration, program management to compliance reporting – nonprofit organizations often rely heavily on software to achieve their mission. So how do you know when it’s time to select a new accounting software solution for your organization?
There’s usually a handful of symptoms you’ll start to encounter when it’s time to replace your accounting solution. For example, you’ll have multiple systems that aren’t communicating well together. In addition, these systems may no longer be meeting your needs.
You'll probably find that you're filling the gaps with spreadsheets, paper processes, and you may even have software systems that have approached end of life.
When selecting a new accounting solution, think about the systems you use to manage donors and grants, as well as program, project and event management.
Also, it’s important to consider your reporting needs. By doing so, you can uncover and document some of your more critical requirements. Especially when you consider that nonprofit organizations are usually being audited throughout the year.
Think about the programs and the initiatives that your nonprofit organization is sponsoring. How do you measure success and communicate that information to your board members? For some organizations, it's the number of meals served, or it's the number of students that have received tuition assistance, or it's the number of people that have been hired.
Bottom line is you need an accounting solution that can help you capture, analyze and report on the information that’s key to the success of your nonprofit organization.
So when you’re ready to select a new accounting software solution, make sure to allocate sufficient time, resources and subject matter experts to participate in the process.
Learn more about best practices for selecting nonprofit accounting software by contacting The Resource Group.