Nonprofits face unique financial pressures. They must manage donations from individuals according to government regulations. Many organizations feel the weight of this dual responsibility to donors and regulators. Finances must be managed carefully and charitable donors remain uniquely invested in how their donations are being used.

With this in mind, specialized accounting software for nonprofits (or NGOs) integrates donor funds tracking with more traditional financial management tools. But switching to specialized software can be a laborious task.

We will explore why specialized accounting software is needed for nonprofits, the benefits it presents, and how we can help you implement such a system. If you are used to working in a certain way, it can seem daunting to change, but it doesn’t have to be. We have 25 years of experience in helping organizations like yours successfully navigate the migration to a new, specialized financial system.

Why Specialized Accounting Software Is Important for a Nonprofit Organization

Nonprofit organizations need an accounting solution that will allow them to track individual donor and grant funding. Additionally, capturing demographic and other non-financial information to support stewardship reporting is a must. Combining fund management and flexible reporting with standard commercial accounting features provides organizations with a “best in class” solution.

A big plus for any nonprofit financial software is an integrated donor management or, in accounting terms, a Contributory Receivables module. Having your donor transactions integrated with your financial software ensures accurate capture and tracking of all donor-related activity. Meanwhile, you can be sure donor transactions are secure and properly accounted for.

Automated, streamlined donor management provides your team with the stewardship reporting needed to support successful fundraising and charitable activities. Your year-end finance process to account for gifts, pledges, and other charitable giving is more accurate and less stressful with an integrated Donor Management system.

Improved Reporting and Analytics for Financial Management

When using Financial Edge NXT, you can benefit from a whole host of features, including:

  • Financial planning and analysis designed for nonprofit and fund-based organizations.
  • Customizable internal controls and workflow to ensure the highest standards of accounting and operations.
  • Integrated grant accounting makes tracking income and expenses, across fiscal years, from grant sources easy.
  • Purpose-built ERP systems support effective communication between the Advancement and Finance Teams
  • Out of the box Nonprofit Specific reporting with flexibility to report in both internally and externally required formats.

Managing funds does not have to be a headache when you have Financial Edge NXT software to simplify the process. The ability to easily analyze funding sources and how those funds are being spent will enable your Organization to be more impactful in its mission. 

Nonprofit Accounting System Implementation Process

Let’s talk about what a successful implementation process looks like. Once you’ve selected your nonprofit software vendor, the planning process begins.  A successful implementation always starts with a project plan. There are many details to consider, which is why organizations turn to Capital Business Solutions (CBS). CBS has developed an implementation template and process that supports a successful implementation outcome.

But, for now, let’s take a big-picture look at the entire process.

Project Kickoff Meeting – Pre-Design Meeting

The project kickoff meeting will enable the project team and client to establish common goals. It is a chance to discuss expectations, timelines, and project outputs.  This initial meeting will give you a much better idea of how the system will work for you. It will also allow our consultants to identify and plan for potential issues and system gaps that may derail the implementation process.

FE NXT Design Management, Training and Testing

This stage involves CBS and the Client working together in order to implement the new system. A consultant will conduct training for key staff members to familiarize them with the system and prepare them to make informed decisions in line with the system’s design.  Once configured, the CBS consultant will guide the Client through the testing steps to ensure the system is compatible with the Client’s desired outcomes.

The CBS process helps clients build the confidence needed to use the system in a production environment. Thorough testing is always put in place before going live with the software, and it avoids having to run dual systems for several months after going live. The testing process also reinforces training for your key users to ensure they are comfortable using the system. 

Data Conversion from Other Systems

Data from your organization’s legacy system can be retained and made useful in the new system. Converting data between systems may be necessary and very time-consuming. CBS Consultants will build custom mapping templates for the client to use in making the data extraction process as smooth as possible. The CBS Project Manager and CBS consultant will make sure the conversion process stays on track and results in highly usable data from your legacy system landing appropriately in your new system.

Whatever your current accounting system, a CBS consultant will provide guidance on what data to convert and assist in streamlining the conversion process. Regardless of your legacy system we will work with you to cleanse and migrate the appropriate data to your new financial system.

Additional Consultant-Led Training and Best Practices

The final step before going live is focused, end-user training. Training is done hands-on with your configured system and data.  The CBS training agenda is based on each employee’s interactions with the system. Training is designed so employees walk through how they will use the system, rather than the generic textbook approach. As your system is prepared for its live launch, we may identify specific issues where reinforcement training will be helpful. We’ll make the time to provide follow-up training with your team as they become more familiar with the system and uncover additional areas of need.  CBS’s layered approach to training ensures your Finance Team has the specific information and expertise necessary to use fully utilize the system.

CBS consultants not only provide customer training, but they’ll also assist in developing a set of best practices to support your successful, long-term use of the system. Your organization already has financial procedures in place. At the conclusion of your implementation project, you’ll meet with the CBS consultant who will recap the project and identify additional areas in the system that training or consulting may offer additional benefit.

Consulting Support for Cutover, Go Live Assistance, and Post Live Support

Of course, it would be easy just to hand over the reins completely once the system goes live. This is not a productive way of working. Support has to be on hand while a team learns to use a new system. This is exactly what we provide. Our support team will always be just a phone call or email away.

We help organizations manage changes that may not feel natural. As your staff and donors adjust to the new system, our experts can help you spot emerging issues. If an emergency arises or something isn’t working, we’ll be on hand to help solve the problem.

Advantages of Capital Business Solutions

There are numerous glowing testimonials that can be found from previous clients of Capital Business Solutions. A word that often comes up is ‘patience.’ We will always take our time with clients and explain everything in language they will understand.

One of our most memorable testimonials is:

“Capital Business Solutions provided a painless, ‘no-hitch’ conversion from our antique software to the Blackbaud system. Not being strong computer users, we depended heavily on Capital Business Solutions to provide guidance and training for the new system. They came through beautifully, and their help with the redesign of our Chart of Accounts has proven invaluable. I will recommend their services without hesitation.”

This is exactly what we do. We help everyone get up to speed with what our software can help them achieve.

If you’re ready to start planning your implementation, then please get in touch at  (888) 249-6008 or through our contact form. A member of our support team will be happy to talk with you about the details of your case.