One of the challenges that nonprofit organizations face is maintaining accurate financial records. NPO accountants spend a lot of time trying to figure out how to manage their funds without getting overwhelmed by paperwork. If you are looking into quickbooks software for nonprofits and are unfamiliar with what it is all about, this guide was made with you in mind. Here we will be going over the basic concepts of quickbooks software for nonprofits including what it is and how it can benefit your organization.
In this article, you’ll discover two ways to use quickbooks for non-profits. First, by using the free version of the software, and second, by purchasing the paid subscription for Quickbooks for Nonprofit Organizations.
How Nonprofit Organizations Use QuickBooks Online for Accounting
Have you ever heard of accounting software for nonprofits? No, that’s not an oxymoron. It’s a thing.
The nonprofit sector has always been burdened with the task of doing more with less. That means less resources, less capacity, less people power and less money, but they are still doing amazing things for the community and turn to technology to help them make that impact of a larger scale.
One of the trends in the nonprofit sector over the last few years is that more nonprofits are starting to invest in software solutions instead of hardware – specifically because they recognize the need to increase efficiency in order to get a bigger bang for everybody’s buck.
And you better believe that accounting technology is part of that mix.
The nonprofit bookkeeping software offering from QuickBooks® is one of those solutions that makes it easier for an organization to do their work and get back to the impact they care about. But, things look different in the nonprofit world than they would in a traditional for-profit organization, so let’s take a deeper dive into the specific use cases for nonprofits and why QuickBooks Online could be the right solution.
How Nonprofits Use QuickBooks Online
Every nonprofit and charitable organization is managing their accounting in one way or another. It’s important to be able to do these tasks efficiently and store records reliably. One reason QuickBooks seems to be a good fit for nonprofits is because Intuit® has taken the time to ensure that it is not a square peg in a round hole by fitting into the nonprofit sector quite well.
One of the most inefficient uses of technology is to force a fit with the job you are trying to do. That’s why CRM systems focused on sales are not a good fit for nonprofits. On the surface they look like a good fit, but there are a lot of issues because the tool is not purpose-built for the sector. That’s why QuickBooks nonprofit financial software is great for nonprofits.
Nonprofit accounting. As a nonprofit, you might be tracking the expenses of various programs and funds. QuickBooks understands this and has a function that automates this type of accounting. It makes it easy to separate those accounts and expenses. This keeps the team on the right track and on budget.
Tracking donations and grants. Donations are a big part of a nonprofit’s work. Whether it is fundraising or allocating donor dollars, QuickBooks has a function that enables the organization to do it easily. The program also works nicely with popular fundraising platforms to automatically sync those donations.
Reporting. There are a lot of groups nonprofits report to: boards, staff, funders and the general public. In fact, there’s always a unique audience to report the organization’s impact; using QuickBooks, staff can can pull reports for finances very easily, saving time and effort. Much like Keela, QuickBooks helps you get back to impact.
Integrated tools. Another great feature of QuickBooks for nonprofits is that it plays nice with other tools. Accounting software can be robust, but it can only do certain parts of the job. A nonprofit needs to do much more than just accept donations and account for them.
One of the biggest jobs a nonprofit does is to build strong, lasting relationships by making emails, phone calls, events and use other stewardship tools to accomplish this. The important part is to keep track of these interactions to truly strengthen relationships for years. That is why having a CRM is imperative for nonprofits.
For functionality like this, QuickBooks relies on other nonprofit software, and information is passed between the programs seamlessly. That way, when someone makes a donation, it is tracked on a CRM focused on nonprofits and accounted for properly on QuickBooks. This is an ideal solution!
QuickBooks Online is cloud-based. More and more, nonprofits are becoming decentralized. This means that there is a lot of work done outside of the office with remote workers, as well as volunteers and contractors. Whatever the case is, nonprofits are relying on cloud-based technology to have their workforce access information from wherever they are.
This is of utmost importance when it comes to accessibility.
QuickBooks accounting systems for nonprofits offers cloud-based solutions as well. This means that information is made available as long as there is internet access. This makes it easier for everyone to work, collaborate and create impact from wherever they are in the world.
Automation. Automation is always an important point for technology. When monotonous processes are automated, individuals are more efficient. They have more time to do the work that really matters to them. QuickBooks automates a lot of the manual entry that would usually have to take place when doing accounting with pencil and paper. Receipts are digital, so there is less fumbling around with old paperwork.
Overall, it is just a cleaner experience.
QuickBooks Desktop Premier for Nonprofits
If you’re a larger nonprofit organization that needs one of the most robust accounting software solutions on the market, you might consider QuickBooks Desktop Premier as the best option for you. With QuickBooks Premier, as opposed to Desktop Pro, you’ll be able to access an industry-specific platform designed for nonprofit organizations.
Unlike QuickBooks Online, however, QuickBooks Premier is a desktop-based solution, meaning it must be downloaded to your computer and will only be accessed via that particular device. This being said though, QuickBooks Premier for Nonprofits will offer all of the features of the most advanced version of QuickBooks Online and more.
With QuickBooks Premier, your accounting software will use nonprofit terminology in features, reports, and include tools specific to your needs, such as end-of-year donation statements, IRS Form 990, and donor contribution summary reports. Moreover, on a basic level, QuickBooks Premier a full general ledger package that includes accounts receivable, accounts payable, class tracking, and budgets by class or donor.
You’ll be able to complete the most basic accounting tasks—like downloading bank and credit card transactions—to the most complex nonprofit tasks, like generating letter templates to use for fundraising and contributing acknowledgments with QuickBooks Premier. You’ll also have the option to add QuickBooks Payroll and Payments to your nonprofit accounting software for additional fees.
QuickBooks Premier for Nonprofits is available in two different versions, Premier and Premier Plus. The regular Premier version will cost a one-time payment of $649.99. The Premier Plus, on the other hand, will require an annual subscription of $499.99 per year, but will also include unlimited customer support, automatic data back-up and recovery, and access to the latest features and updates.
All in all, although QuickBooks Premier may not have the same flexibility and accessibility as the first three solutions on our list, this is one of the best accounting systems for nonprofits who need one of the most robust solutions out there. If you’re a larger nonprofit organization with more complex accounting needs, QuickBooks Premier is likely going to be one of your top options.
Zoho Books
The next nonprofit accounting software on our list? Zoho Books—a simple, affordable, and functional solution for nonprofit organizations and other small businesses alike. Although like QuickBooks Online, Zoho Books was not created specifically for nonprofits, the software has a number of accounting features to accommodate nonprofit organizations, plus an add-on tool within the Zoho Suite of products that can make this solution even more compelling.
First, in terms of accounting capabilities, Zoho Books allows you to get set up with their web-based accounting software quickly and easily, with four plans to choose from, as well as a mobile app that can be used regardless of plan level. With the Zoho Books nonprofit accounting software, you’ll be able to:
- Manage your funds and categorize your expenses
- Create separate expense accounts and generate expense reports
- Accept donations in multiple currencies
- Send payment receipts to donors
- Track projects, associate expenses with projects, and assign users to individual projects
- Track donations and assess progress over time
- Collaborate with employees and volunteers regardless of location by adding them as users
Zoho differentiates their plan levels based on the number of users, workflow rules, and additional features—with the higher-level plans offering the greatest amount of functionality. For the Standard plan, you’ll pay $20 per month, for the Professional Plan, you’ll pay $50 per month, and finally, for the Premium Plan, you’ll pay $70 per month. You also have the option to use the free plan.
This being said, however, Zoho Books also offers a 14-day free trial and 15% off their original pricing for registered charities, trusts, and societies.
Moreover, if you want to take your nonprofit accounting software to the next level with Zoho Books, you can look into Zoho Creator, a customizable database that includes prebuilt apps designed specifically for nonprofit organizations. Within Zoho Creator, these nonprofit apps include a volunteer portal, a donor management platform, and an event management module. You can use each module separately or you can integrate the data between the different Zoho modules. Plus, Zoho Creator also gives you the ability to create your own business apps as well.
Pricing for Zoho Creator starts at $25 per user per month—however, if you contact Zoho directly, they’ll work with your nonprofit to give you a customized price quote.
All of this being said, with the Zoho Books accounting software and Creator integration option (as well as the option to integrate with a variety of Zoho products), Zoho Books is great accounting software for small nonprofits and larger organizations alike.
Conclusion:
Back in the day, you can’t imagine the software world without Microsoft and Quickbooks. You may come from an accounting background or a business owner who wants to better manage your books and get organized. You might be making the switch from Microsoft finance software to Quickbooks for nonprofits. It is always good to make a switch with informed decisions. To be honest, everyone makes decisions that are informed on their own.