Keeping finances organized and compliant is a top priority for nonprofit managers, but finding the best nonprofit accounting software can be a challenge. QuickBooks is a popular starting point, but some feel pressured to switch to a more complex — and costly — system. Often this push is based on myths rather than facts.
Busting QuickBooks Myths
“We Need Something QuickBooks Can’t Do.”
I sometimes hear that QuickBooks “can’t do” something. In reality, it often can — if you know how to use it. QuickBooks has —
- Extensive Integrations. QuickBooks Online offers hundreds of integrations and third-party apps that can extend its functionality to suit a wide range of nonprofit needs.
- Custom Reporting. With the right configuration, QuickBooks can generate the detailed reports required for nonprofit decision-making.
“QuickBooks Is Only for Small Organizations.”
Some believe QuickBooks is too basic for larger nonprofits. However, many organizations with significant revenues use it successfully. Its simplicity lets you focus on what matters while still handling the complex transactions that require expert oversight.
Assessing Your Needs
Before jumping to a “more robust” system, consider —
- Are You Using It Fully? Sometimes the issue isn’t the software but not using all its features.
- Is Your Setup Right? A properly configured general ledger is essential. Without the right setup, even a powerful tool won’t deliver the insights you need.
- Expert Advice. A nonprofit accounting specialist can help determine whether your challenges come from the software itself or just from the way it’s set up.
Should I Stay or Should I Go?
Sometimes, nonprofits feel trapped in a system because of perceived barriers. Consider these common roadblocks and the counterpoints —
- “We Know the Current System.” Familiarity can breed comfort, but it might also mean missing out on more efficient processes.
- “We’re Under a Long-Term Contract.” Contracts aren’t indefinite. Use the time to evaluate if a change could yield long-term benefits.
- “We’ve Invested So Much Already.” Past expenditures are sunk costs. Future improvements should be based on the best available alternatives.
- “Our Organization Is Too Complex to Change.” Often nonprofits overestimate the complexity of their needs. Simplifying workflows could not only make the transition easier but also lead to more effective financial management.
Next Steps to Finding Your Best Nonprofit Accounting Software
No accounting system is perfect, and QuickBooks — when set up correctly — can serve nonprofits of all sizes. Rather than rushing into a new system, evaluate if improving your current setup might better meet your needs.
- Review Your Setup. Engage with a nonprofit accounting specialist to evaluate your current configuration.
- Explore Integrations. Research the many apps and integrations available for QuickBooks Online that might resolve your pain points.
- Plan Strategically. Whether you decide to optimize QuickBooks or make a change, base your decision on your organization’s future needs, not just past investments.
By carefully assessing your options, you can support your mission by finding the best nonprofit accounting software for your organization.
Dan Weiss, founder and President of Counterpart CFO, leads a team of flexible, part-time CFOs specializing in nonprofits. To read more from Dan, follow him on LinkedIn or subscribe to his blog at www.counterpartCFO.com.