Xero Accounting Software for Nonprofits

Xero Accounting Software for Nonprofits is the best accounting software for nonprofits, nonprofit treasurer software, and non for profit accounting software on the market. The Xero app is perfect for growing organizations, which need more than just bookkeeping but are not yet ready for complete ERP software. This intuitive and user-friendly accounting program enforces compliance with NFP policies through customizable workflow and control settings.

Xero Accounting Software for Nonprofits is the perfect accounting solution for non-profits and charities looking to run lean, be agile and take control of their financials. With a few clicks you can easily set up accounts and get on with reporting and budgeting. Import bank files, track donations, invoice your supporters and include individual transactions right down to the cents. Xero Accounting Software for Nonprofits lets you focus on the impact you’re making rather than the numbers.

How Xero can transform your nonprofit organization

Running a nonprofit in the US is a labor of love. Xero frees up your time by streamlining tasks and increasing your efficiency.

  • Easily and securely share critical donation and expense information online with donors, board members and volunteers.
  • Sync Xero seamlessly with third party apps for fundraising and donor management, marketing, payments and workflow management.
  • Stay connected from your phone or mobile device using the accounting app.
nonprofit accounting software dashboard

Really useful tools for nonprofits

These are just some of the features nonprofits in the US love about Xero.

Xero non profit accounting dashboard

Xero dashboard

Always get an up-to-date view of cash flow at a glance, with charts on the Xero dashboard.

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Invoicing software for charities

Payment services

Sync Xero with leading online payment service providers like Stripe and Paypal to help get your invoices paid sooner.

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Explore more features

Payroll software for non profit organizations

Mobile app

Manage your business financials while you’re on the road with the Xero mobile accounting app.

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www.Xero.com

From the 2019 reviews of nonprofit accounting systems.

Though not designed for nonprofit organizations, Xero can be a good fit for smaller organizations that are not currently managing multiple funds, projects, or grants.

Xero is a completely cloud-based application that also offers a mobile app for complete anytime/anywhere access. Xero is available in three versions: Early, Growing, and Established, with each version offering more extensive functionality.  Xero includes a default chart of accounts, though users can also import their current chart of accounts if desired. There are limited customization options in the chart of accounts, making it difficult to manage multiple grants or projects.

Xero easily handles multiple transaction types including online invoicing, inventory management including adding and editing inventory totals, electronic bank reconciliation capability, bill payment, fixed asset tracking, sales tax calculation, cash receipts, and customer quotes. Users can also create recurring invoices in t Xero if desired.

Users can easily import budgets into Xero, though the majority of budgeting for Xero users will likely occur in Microsoft Excel. There is a budget manager function that allows users to create a simple budget, and users can easily track budget totals. Users can create a new budget from scratch or copy an existing budget and edit amounts as needed. Xero allows users to create only one organizational budget, but secondary budgets can be created.

Xero does not offer donation or fundraising capability in the application, though it does offer integration with a variety of third-party nonprofit specific applications such as Expensify, Calxa, infoodle, and Asset.Guru. Though users can add sub-accounts to track a grant, the system is not equipped to handle management of multiple grants, projects, or funds.

Xero uses a two-step authentication model to ensure system security. Managers invite those that they wish to have access to Xero and create the level of system access best suited for the new system user by assigning them a role with access only to the features available in that particular role.

Xero offers good reporting capability, with a variety of standard system reports available. The product also includes a dashboard that displays a snapshot of current financials and transactions recently entered into the system. The dashboard is customizable, so users can display the information they need. Xero recently updated a variety of their standard reports, which now offer more flexibility and have an easy-to-read design. Reports offered in Xero include a Detailed Account Transactions report, Account Summary report, and a GL Exceptions report. Standard financial statements are also offered in Xero, including a trial balance, statement of cash flows, and balance sheet. All Xero reports can be exported to Microsoft Excel or Google Sheets, or saved as a PDF.

Xero offers good help and support resources through Xero Central, where users have access to popular support topics, as well as access to their account, including billing and subscription options. Users can type in a topic or ask a question in the Help box at the top of the screen, or choose to access some of the other resources include a Reviewer Guide. Podcasts, a video library and training options. Product support is free and is included in the cost of the monthly subscription and is accessible via email, with a chat option available as well.

While Xero does not offer nonprofit specific functionality, it can be a useful tool for very small nonprofits organizations that wish to transition away from spreadsheet software to an accounting and financial management application. Xero currently offers three versions; the Early version, which offers a limited number of invoicing, billing, and reconciliation transactions, and currently runs $9.00 per month. The Growing version includes processing for an unlimited number of invoices, quotes, bills, and bank transactions and currently runs $30.00 per month. The Growing version includes the same features found in the Growing version along with multi-currency capability, expense management, and project tracking, and runs $60.00 per month. Xero also offers a free 30-day trial so those interested can try out the product to see if it’s a good fit for them.   

2019 Rating – 4.5 Stars


Every business needs to keep on top of its finances.

Making sure you’re in control of what’s going in and out of your small business’s account is important to the financial survival of your company. 

So, how you will handle the bookkeeping of your small business?

There’s an option of using software, but many accounting software has a steep learning curve and can be expensive.

And for small business, which can be low on funds, it’s important that you get the most bangs for your bucks.

So, what a small business is to do if it wants to handle its own finances without breaking the bank?

The solution? Xero accounting software!

So what is Xero, and why should you use Xero for your small business?

If a small business is looking to take some of the accounting tasks themselves, then Xero is a cloud-based accounting software made for those small businesses.

Read on to know what makes Xero accounting software a better choice for your small business than other accounting software.

What is Xero accounting software?

Xero is entirely cloud-based accounting software for small businesses.

It performs bookkeeping functions like invoicing and payroll and allows you to connect the program to a live bank feed. 

Xero allows for both cash-based and accrual accounting systems so it is perfect for companies adhering to UK GAAP or IFRS.

What makes Xero a good choice?

Business snapshot

Business snapshot is a dashboard-style report displaying performance measures to help you understand your business’s financial position.

You need to have at least two or more months of reconciled transactions in Xero before any financial metrics are displayed and meaningful. The metrics include your business profitability and the average time it takes for your customers to pay you.

To ensure your information on the Dashboard is current, you need to reconcile your bank transactions regularly.

Use the Dashboard to discuss your business’s financial health with your dedicated account manager.

Dashboard

One of the greatest benefits of Xero software is that it provides a clear financial overview of your business.

Now, how is it possible? Well, Xero has a unique dashboard display, which allows business owners to clearly see how much money is coming in and going out.

Xero’s Dashboard provides quick links to the most crucial parts of your business’s accounts and also provides you with a snapshot of overall expenses, bank balances, creditors, and debtors.

And this way Xero helps you to track your payments and avoid bookkeeping errors.

Infect, you can customize the information to your liking by arranging the different cards around. This will make a more personalized experience.

Xero can be modified to fit all your small business needs perfectly.

Access from Anywhere-Anytime

Since the Xero is cloud-based, you can access it from wherever you want, whenever you want, without being limited to a single computer.

Xero accounting software can be accessed on your smartphone and does not require any type of IT maintenance or software installation.

To get started with Xero, all you need to do is purchase the monthly package as per your small business needs and then insert the username and password.

Any information you add or change can also be accessed by other users when you add them to the user’s list.

Permissions can be tiered so that you or key decision-makers access confidential information in your business.

Invoices

Those days are gone when businesses used Excel spreadsheets to track all incomings and expenses, and then create invoices in a Word Document.

With Xero, your invoices are not only customized for your business needs but creating, sending and tracking these invoices is also fast and straightforward.

All you have to do is just a few clicks and you can easily create an invoice from your computer, laptop or mobile device for a client and then email it.

Here are the main features of the Xero invoicing module:

  • Set up repeating invoices

You can create, saves and emails recurring invoices automatically from Xero

  • Bulk send invoices

Send all of your invoices simultaneously or email multiple invoices at once.

  • Invoice on your mobile

You can now create and send online invoices from your phone device as soon as you’ve finished a job.

  • Immediate payment

One of the best features of the Xero is that the invoices that you send can be “payment-enabled”.

So once it is received, the customer can click and pay immediately with any major debit or credit card.  You can use Stripe, GoCardless or other payment gateways to integrate with Xero.

  • On-charge billable expenses

You can now get reimbursed by passing money to your customers.

  • Replicate the last invoice

You can save time by replicating your last invoices, make any edits to the amount or description and send.

  • Multi-currency

You can invoice a customer in GBP or multi-currency. If it is multi-currency, Xero automatically keeps track or any exchange gain and loss.

  • Account statement

You can also send the customer account statement directly from Xero.

  • Credit notes

Like invoices, you can also create and send credit notes directly to your customers.

Bills to pay

Bills to pay is one of the critical modules of the Xero. It comes free as part of starter, standard and premium plans; however, in the starter plan, you can only have 5 bills.

Here are the essential features of this module:

  • Record bills online in a single location

You can email bills straight to Xero for paperless bookkeeping. While doing the data entry, you can view side-by-side files to enter your bills with the attached file.

With everything stored in the cloud, you can access bills at any time, from anywhere.

Xero uses OCR technology, extracting necessary information like date amount, supplier name, due date from the bills automatically. We have noticed though that it may not always be accurate, so it is worth reviewing it thoroughly.

  • See what bills are due for payment

The purchases overview enables you to view and monitor your bills in one place. 

  • Schedule payments and batch pay suppliers

You can pay multiple bills in one simple transaction.

  • Repeat and replicate bills

You can save time by replicating the last bill and make any edits to the amount or description.

  • Get your money back on billable expenses

You can now get reimbursed by passing money to your customers.

  • Pay with TransferWise

It allows you to pay and manage multiple bills through Xero using your preferred bank account.

  • Hubdoc integration

Hubdoc extracts critical information from each bill or receipt automatically. You can push all bills from Hubdoc to Xero on the click of a button.

Conclusion

Navigate your way through the beautiful sea that is nonprofit bookkeeping and accounting with Xero Accounting Software for Nonprofits. Many nonprofit organizations have a hard time finding reliable, user-friendly software to help them manage their business, but Xero makes it easy to make all your monetary paperwork as simple as possible.

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