Choosing your fund accounting software can be a fun, exciting, and challenging time. You’re watching demos of new solutions, seeing all the ways you can integrate your processes, and receiving an overload of information.
With all this going on, it can be easy to lose sight of your software’s intended purpose, miss options to strengthen and simplify your internal processes, and overlook key security features.
Don’t make these mistakes as you’re trying to figure out the best nonprofit accounting software solution for your organization.
Mistakes Made When Choosing Fund Accounting Software … And How to Avoid Them
1. Placing a Heavy Emphasis on Price
You have a budget for your fund accounting software – and it’s great to stay inside that budget. However, it’s not okay to pick the cheapest solution just because it’s the cheapest.
Picking the cheapest fund accounting solution might not have all the modules, user access, security protections, etc. that you need to grow your organization. Or it might be cheap now, but when you go to add new users or upgrade later you’ll find it’s more expensive.
To avoid focusing on price, make a list of all the features and benefits that you need your software to have AND a list of all the features and benefits that you’d like your software to have. This will help you keep sight of what you need your fund accounting software to actually do for you – and not be mesmerized by all the bells and whistles of a fancy software or sticker shocked for what you actually need.
2. Not Thinking About Database Integration and Data Migration
Do you use third-party applications to complement your accounting processes? If so, you’re going to want them integrated into your accounting software.
This will make it much easier to see your operating budget, forecast for upcoming quarters and years, plan grants, and manage your human resource processes.
Changing fund accounting software solutions is not a simple process. It requires really good knowledge and understanding of how your current and new solution works.
You’ll need to sync and merge data, and if done the wrong way, can really mess up your accounting and financial information. This can cause you much more work than if you had leveraged your new software’s integration or set up offer.
Bottom line: Include the database migration and any integrations you need when finalizing the details of your new fund accounting software purchase. It will save you time and money in the long run.
3. Overlooking Security
Security is a HUGE concern – and something you definitely need to consider when choosing your next fund accounting software solution.
A few things to think about:
- Are there security modules available?
- If your solution will be hosted off-premise, what are the security protocols?
- Can you limit access to features, limit access by role, etc.?
Failing to consider security when you’re researching accounting solutions will fail your organization long-term. Take the time to ask about security during your demos, or ask questions come up, to ensure you protect your financial data.
Have questions about choosing a nonprofit accounting solution? We can help! Check out the software solutions we offer, services to help ease your transition, and resources as you navigate nonprofit accounting. Or give one of our friendly nonprofit accounting software consultants a call today at (888) 249-6008.