Nonprofit Accounting Basics
Nonprofit organizations have to comply with many accounting rules and regulations, often making their accounting tasks seem overwhelming and challenging. Having worked with many nonprofit organizations over the years, we understand the challenges firsthand.
However, nonprofits don’t need to stress too much – with the help of nonprofit accounting software, nonprofit organizations can alleviate some of these challenges. We’ve put together a list of the most common accounting challenges nonprofits face and tips for overcoming them.
Challenges in Nonprofit Accounting
1. Grant Tracking
Nonprofits receive grants from many sources, making it challenging to keep track of when money is to be collected and how often.
It’s critical that nonprofits keep track of their grants with grant management software otherwise they could lose out on grants in the future.
Hiring is difficult for any company and for nonprofits it can be even more difficult, especially when it comes to accounting. Ideally, an in-house accountant is the way to go, but finding an educated accountant can be hard to find.
Unless the bookkeeping is outsourced, make sure that only ONE person is managing the accounting software – this will reduce errors and ensure that all information is entered on time.
3. Managing Cash Flow
Managing cash flow efficiently and effectively is a must for all nonprofit organizations.
Accounting software can help keep everyone informed of the cash flow situation with its ability to create custom reports, perfect for giving to the Board of Directors.
4. Managing Payroll
People want to get paid, making it important for nonprofit organizations to either understand how to implement payroll themselves or hire a third party to perform payroll for them.
Some nonprofit accounting software solutions come with a payroll module, allowing the ONE person managing the accounting to easily take care of the payroll process.
Solutions for Basic Nonprofit Accounting Challenges
Don’t let nonprofit accounting software be one of your nonprofit’s challenges. Capital Business Solutions provides nonprofit organizations with financial and fundraising software solutions and services, allowing them to spend more time raising awareness and meeting with donors.