Successful management of a nonprofit organization requires attention to detail. Careful administration of expenses and meticulous reporting practices are essential to meet regulatory compliance, and to secure future funding.
However, many non-profit organizations continue using an accounting system that fails to meet the needs of their organizations. An article entitled, “Regular Upgrades Necessary for Non-Profit Accounting Solutions” from nfpAccounting Technologies identifies three signs that your organization needs to upgrade your non-profit accounting system.
1. Your current reporting capabilities are not meeting your reporting requirements
The financial requirements for non-profit organizations can change frequently. Your non-profit accounting solution should be able to record, catalog, and send the information quickly and accurately. After all, non-profits can’t afford to put their funding at risk by failing to deliver on the strict reporting requirements of government agencies and funders.
If your software can’t meet these requirements quickly, you should continue to look for non-profit accounting solutions that can keep up with changing non-profit regulations.
2. You lack customized reports
The need to customize software to produce reports or queries required of your organization is critical. You should not have to manipulate data outside the system in external spreadsheets or difficult to use reporting tools. Non-profit accounting software should save you hours (or days) off of your reporting cycle.
Does your current accounting solution allow this type of customization? If it can’t be changed to accomplish a specific task, consider upgrading to a non-profit accounting solution that allows customization.
3. You need to perform more comprehensive internal audits
Non-profit accounting should be able to accurately capture and provide information for auditing purposes, not just focus solely on documenting and reporting on financial data.
If your current non-profit accounting solution is unable to record important data such as history logs and transactions, you should consider upgrading to a non-profit accounting solution that keeps better track of your organization’s information. A good non-profit accounting solution will help organizations maintain a clear, complete audit trail.
You can read the full article here.
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