Leading Nonprofit Accounting Software in 2025

Look for software with features like fund accounting and donation tracking tailored to nonprofit needs. Consider if the software integrates well with existing CRMs for a smooth changeover. Taking advantage of staff training to allows quick adaptation to the new system after transition. Seamless integration between your accounting software and other systems accounting services for nonprofit organizations is crucial. Start with ProfitBooks’ free Startup plan to establish proper nonprofit accounting practices without financial pressure. The built-in donation tracking and fund-based reporting help you learn proper categorization while maintaining compliance from day one.

Best For NAV Users Wanting an On-premises Solution

Nonprofits may be subject to audits by external auditors or regulatory agencies. Nonprofits must always comply with a variety of legal and regulatory requirements, like tax laws, accounting standards, and reporting obligations. Proper accounting practices ensure a company meets these obligations and avoids potential legal and financial consequences. With clear fund separation, user permissions, and detailed reporting, you can easily meet FASB and IRS Form 990 requirements. All donations given online are tracked by donor and purpose with zero work required.

• If you need custom reports for donors or board members, you can generate tailored reports and even apply allocation as needed.
• Its core accounting system is strong, and the ability to add modules as needed makes it flexible for various nonprofit sizes and types.
• It provides nonprofits with tools to manage donor relationships, track contributions, and streamline campaign planning while maintaining financial accountability.
• Typical small-business accounting revolves around profit—how much a company is making, spending, losing, and saving.

True Fund Accounting

Aplos supports the tracking of multiple fund sources with specific restrictions and reporting requirements. You can track grants, donations, and special funds separately to support true fund accounting and compliance with state and federal regulations. It includes over 70 built-in reports that provide insights into church and non-profit performance and health. Choose a software that’s easy to set up and use, especially for employees with limited tech skills. Keep cost-effectiveness in mind, and remember that many providers offer discounts for nonprofits. Look for software that has fund accounting features to categorize income and expenses by fund and donation tracking for handling contributions.

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• It’s affordable and user-friendly, making it a hit with smaller nonprofits who have basic accounting tasks.
• Using general accounting software might require integrating third-party software applications for nonprofit-specific functions, adding to the overall cost.
• This reigns especially true when working with nonprofit cloud-based accounting solutions.
• We also like its grants management module, which streamlines the entire process from application through reporting.
• Maintaining transparency in financial reporting and providing timely and accurate data is crucial for establishing brand trust and credibility.

The service is designed for ease of use, transforming hours of work into minutes. If you’re looking for the simplest bookkeeping software for nonprofits, QuickBooks is a great choice. Best of all, it offers a free plan for businesses with up to three clients, making it an affordable online bookkeeping option for nonprofits just getting started. They will work closely with the project manager to develop a clear plan for how the grant funds will be used and make sure that all required reports are submitted on time. As a result, donor management is essential to running a successful nonprofit organization.

Nonprofits deal with restricted funds, grant compliance, donor tracking, and specialized reporting that traditional business software can’t handle properly. Picking the right nonprofit accounting software depends on your organization’s accounting needs. It’s a simple and easy-to-use cloud-based accounting solution designed for volunteer-led organizations whose members are not so adept at or thoroughly committed to bookkeeping. Multiple organizations and faith-based nonprofits often depend on the ability to raise money and convince donors. Aplos’s donor and event management features are powerfully equipped for that Medical Billing Process purpose. QuickBooks immediately stands out as the best accounting software for nonprofits because it’s an incredibly robust platform with suitable programs for nonprofits of all sizes.

• This results in organizations trying to make square pegs fit in round holes, relying on a patchwork of solutions, and following online tutorials to make general-purpose software work for the NPO.
• It’s impossible to overestimate the importance of responsive and efficient customer support.
• This is where internal teams often struggle to stay up-to-date on changes in tax laws, nonprofit reporting requirements, and best practices, leading to potential errors or oversights.
• For example, there needs to be ways to differentiate different donation types, like money from grants versus donors.
• In addition to the functionality described above, you’ll need extra features.

Features of Accounting Software

• Since QuickBooks was also made for non-accountants, it’s easy for first-time nonprofit bookkeepers to get a handle on nonprofit finances.
• Another option is LedgerLite, which is a simple but effective program that can be used by businesses of all sizes.
• Fund accounting software’s primary goal is to show you and your shareholders, namely board members and donors, exactly where their money is going.
• It ensures you can allocate and report on restricted funds, like grants, accurately.

Invest in comprehensive training programs to maximize the return on your software investment. Even better, think carefully about the level of support your accounting software options offer before committing to a tech solution. Calculate how many hours per month staff currently spend on financial management tasks, multiply by their hourly cost, and compare that to software costs.

It is the #1 cloud nonprofit accounting software, designed to enhance financial stewardship and support the missions of growing nonprofits. With over 30 years of experience in the nonprofit sector, Sage Intacct helps organizations build trust with donors, increase their influence, and expand their impact through integrated cloud solutions. Ultimately, considering that Aplos is accounting software designed solely for nonprofit organizations, there’s no doubt it’s going to be one of the best solutions out there.