Nonprofit Accounting

Knowing When to Say Goodbye to QuickBooks

Best practice resources for nonprofit financial leaders

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800.443.9441 | | June 2018 1 TIPSHEET Knowing When to Say Goodbye to QuickBooks ® TOP 10 ACCOUNTING SOFTWARE NEEDS FOR GROWING NONPROFITS You're part of a burgeoning nonprofit, and you have unique and complex accounting needs. Your organization may have used QuickBooks early on because it was affordable and worked well enough. But as your organization has grown, it has become apparent that QuickBooks isn't growing with you. In this tipsheet, you'll discover 10 of the most common accounting software needs for growing nonprofits and how fund accounting software can help you improve the accuracy and efficiency of your data entry and reporting processes. 1 Comply with industry accounting and reporting standards. To maintain nonprofit status, organizations are required to comply with the generally accepted accounting principles (GAAP) set forth by the Financial Accounting Standards Board (FASB). Some of the key provisions set forth in Accounting Standards Update No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities are that: • Expenses must be reported by function: program, management and general, and fundraising • Net assets must be presented on the statement of financial position as net assets without donor restrictions (formerly unrestricted net assets) or net assets with donor restrictions (formerly temporarily restricted net assets and permanently restricted net assets) If you're finding it increasingly difficult to manage nonprofit reporting requirements, then it's time to reevaluate your financial system. Fund accounting software is designed so that nonprofit staff can easily meet these standards without time-consuming workarounds and manual processes. 2 Demonstrate accountability with timely, accurate reporting. Due to the nature of their work, charitable organizations are constantly under pressure to be transparent. Fund accounting software allows you to quickly and easily run financial reports for your various supporters and stakeholders, so you can demonstrate responsible stewardship of contributed funds. However, using QuickBooks to track and report on diverse revenue streams can be complicated and tedious, especially when managing numerous projects and locations.

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