There's never been more accounting software or enterprise resource planning (ERP) systems than there are today, with several claiming nonprofit expertise.
However, QuickBooks has become the most popular accounting software for nonprofits without even trying.
Why then are so many nonprofits moving away from QuickBooks?
Is it because QuickBooks lacks key functionality for nonprofits, or do users run into limitations that necessitate a migration to something more scalable? What other accounting options might be a better fit for nonprofits?
How to Compare Nonprofit Accounting Software
When comparing accounting software for nonprofits against QuickBooks, what are the key criteria to focus on to ensure an apples-to-apples comparison?
We recommend that you evaluate the following:
- Linear vs. Dimensional Chart of Accounts: how to avoid adding tens and hundreds of thousands of unnecessary accounts, and having to reinstall the software because your file has grown too big
- Ease of Use: of paramount importance for nonprofits because of high turnover rates for volunteers and staff members involved in bookkeeping
- Grant Management, KPIs & Return on Mission (ROM): ability to track and report outcome metrics, a.k.a. key performance indicators (KPIs)
- Security & Data Integrity: how to ensure the right users have the right access and avoid database corruption
- Pricing: understanding the three different pricing tiers and which one is the right fit for your nonprofit
Nonprofit Accounting Software Whitepaper
We use the criteria listed above to compare QuickBooks with Intacct cloud accounting software, Microsoft Dynamics GP (formerly Great Plains), and a few other accounting software applications that target nonprofits in our Nonprofit Accounting Software Comparison Whitepaper.
Our whitepaper also helps to explain why Intacct is rated higher (4.2/5 stars) than Dynamics GP (3.4) and QuickBooks (2.4) on G2 Crowd's side-by-side comparison.
Don't have time to read whitepapers? No problem, just contact us at The Resource Group and we'll personally walk you through everything.