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Nonprofit guides

Top 10 Nonprofit Accounting Software Picks for 2024

April 17, 2024
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Nonprofits focus on clear financial management and responsibility to earn trust, achieve fundraising goals, and appeal to donors. To ensure this transparency, the right accounting software is crucial for tracking expenses and managing cash flow. 

Here’s a list of the best nonprofit accounting software options to manage your finances and boost fundraising initiatives.

10 Best Nonprofit Accounting Software at a Glance

  1. Quickbooks: Best for large and growing nonprofit organizations
  2. Sage: Best for non-profits present in multiple locations
  3. Zoho Accounting: Best for employee and volunteer collaboration
  4. Xero: Best for multi-project tracking
  5. MoneyMinder: Best for volunteer-run-nonprofits
  6. Wave: Best easy-to-use accounting software
  7. NetSuite: Best all-in-one integrated accounting platform
  8. FreshBooks: Best in billing and invoicing systems
  9. Aplos: Best pick for church fundings 
  10. Quicken: Best for budget management

What is a Nonprofit Accounting Software?

Accounting for nonprofits can get complicated, especially for organizations with outdated systems. If you lack high-potential tools for financial planning, unproductivity and errors are common. 

From budgeting to payment reminders, accounting software covers all of your financial requirements. Nonprofits can use the functionalities these platforms offer for:

  • Accepting and recording donation details 
  • Assisting with planning and reporting of grants 
  • Accurately filing Form 990 and other necessary tax forms 
  • Maintaining transparency for donors and board members

Accounting platforms automate most of these processes, helping you save valuable time while reducing errors and misreporting. 

Key Features to Look for in Accounting Software for Nonprofit Organizations

When choosing accounting software for nonprofits, it’s crucial to consider a few important features. While the size of your organization may influence your choice, some features, such as activity tracking and reporting and donor management, are essential regardless. 

Donor Management

Donor management is one of the key features of accounting software for nonprofits. As the name suggests, donor management involves managing all information about current and potential donors. This tool helps you actively track, find, and grow relationships with your donors. 

Often, nonprofit organizations have tighter budgets and smaller teams. As a result, it becomes time-consuming and tedious to keep track of all donors and their interactions. Accounting software offering donor management features can help you identify donor trends and improve your chances of receiving donations based on the relevant information.

Once you have identified potential opportunities, create online donation forms and send request messages. With comprehensive donor management functionalities, you can also track how often a donor contributes and predict their chances of donating in the future.

Fund Accounting

Fund accounting software feature allows nonprofits to track and handle their finances. It helps you track how and where the capital coming into your organization is used. Transparency helps improve accountability for everyone involved in the nonprofit and ensures you comply with accounting regulations.

With fund accounting software, you can also create automated reports for donors and other stakeholders.

Some of the top benefits of advanced nonprofit accounting software that offers fund accounting are:

  • Fund-based budgeting
  • Cash flow forecasting
  • Fund-based financial tracking
  • Multiple fund and bank account tracking

Donation Tracking

Donation Tracking

Nonprofits primarily rely on donations, grants, and other profit-free income to further their cause. These organizations must keep accurate records of these donations to ensure the funds are used properly. Here’s what a donation tracking feature can do for you:

  • Track and process donations separately from other funding sources to ensure proper allocation and compliance with accounting rules. 
  • Generate accurate reports for cash flow and donations by currency for transparency 
  • Manage multiple currencies and standardize for consistent reporting and easier financial analysis.

Billing and Invoicing

Nonprofit accounting software with built-in billing and invoicing features can significantly streamline financial processes. These tools allow organizations to:

  • Create invoices for purchases made during fundraising events and dinners
  • Scan and code incoming bills to track expenses accurately
  • Automate approval workflows, set due dates for vendor payments, and match vendor bills with services received to save time, reduce errors, and help prevent fraud.

Accounting software also allows you to download and share customized invoices in multiple formats, such as Word, PDF, and Excel.

Payroll 

Managing payroll is critical to running a nonprofit organization as it can help streamline payroll tasks. With these tools, you can:

  • Process staff salaries accurately and efficiently
  • Track deductions and tax details to ensure compliance
  • Generate payroll reports for better financial oversight

By utilizing the payroll features in your accounting software, you can save time, reduce errors, and maintain accurate financial records. This improves your financial workflow and helps you manage your staff expenses more effectively.

Reporting and Forecasting

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Accurate reporting is crucial for nonprofits to: 

  • Manage funds effectively
  • Ensure compliance with tax regulations
  • Maintain transparency with donors and grant-makers. 

By showcasing how donations are used and the impact they make, nonprofits can build trust, secure grant renewals,

Reporting allows nonprofits to showcase their impact. For example, highlighting the number of people housed through a shelter program provides concrete evidence of the organization's work and the benefits it brings to the community.

Third-Party Integrations

Nonprofits use many tools and services to keep a smooth workflow, including email marketing, online donation platforms, social media tools, and more. Accounting software must work in sync with these existing tools and systems. 

When all your tools work in harmony, it reduces the need for manual data entry. Here are some benefits of third-party integrations. 

  • Effortless flow of data without any extra effort.
  • Save time and the hassles of trying to connect your applications.
  • Reduced risks of errors, duplicates, and discrepancies in the financial records.

Integration also ensures your system is scalable. It gives you a 360-degree view of your financial performance and real-time insights into key metrics. 

Ease of Use

Usability is a crucial factor when it comes to any kind of software. Nonprofit organizations may lack the staff and resources to hire professionals who can handle tedious accounting platforms.

Look for software with an intuitive and user-friendly interface. User-friendly software ensures your team can quickly learn how to use the new software. It saves time and reduces the frustration of going through extensive training.

If you feel it is hard to use, it’s not a good choice to pick for your accounting needs. Ensure to choose an accounting software for nonprofits that simplifies your workflow instead of complicating it. 

Security

With the growing rate of cybercrime, a secure system is essential. Accounting software for nonprofits that offers data encryption, password protection, and regular software updates is a must. It will ensure the protection of your organization’s sensitive data from fraud and hackers.

Always consider a software platform that prioritizes security. It should also have compliance features that stick to industry standards for data privacy. You can protect sensitive information, such as donor details or volunteer records.

Customer Support

Timely expert support is crucial for nonprofits, as software features often require assistance and updates. Professionals running these organizations may need help effectively using even user-friendly accounting software, making initial support essential.

Choose an account software provider that offers customer support and training resources to ensure timely assistance and help your team quickly learn the new software.

Pricing and Affordability

Budget limits and managing overhead costs are constant challenges for nonprofits. Consider your budget before searching for a tool. 

Once you know how much you can spend, compare different accounting tools for pricing. However, it doesn't mean you should compromise on features. 

Factor in your organization's size when selecting the best accounting software since accounting tool provider companies may charge more when there are several users. Check for any hidden fees or scaling costs to understand future expenses. Also, find out if the software comes with a free trial or offers discounts to nonprofit organizations. 

Otherwise, there are many accounting software with free plans. If some features are not necessary for your small nonprofit, you can go for the free software and upgrade once your organization grows. 

Top Best Accounting Software for Nonprofits (Free & Paid)

Responsive Accounting Software Table
Software Features Free Plan Pricing Suitable for
QuickBooks What you'll get:
- Donor Management
- Fund Accounting
- Donation Tracking
- Billing and Invoice
- Reporting and Forecasting
- Third-Party Integrations
- Ease of Use
- Security
- Phone Support

What's missing:
- Payroll
- Affordable
30-day free trial plan QuickBooks Online Plus: $540/year
Advanced plan: $1200/year
Enterprise plan: $2160/year
Large and growing nonprofits.
Sage What you'll get:
- Donor Management
- Fund Accounting
- Donation Tracking
- Billing and Invoice
- Reporting and Forecasting
- Online and offline payment integrations
- Ease of Use
- Security
- Affordable
- Customer Support

What's missing:
- Payroll
30-day free trial plan $199/year Large and international nonprofits
Zoho What you'll get:
- Donor Management
- Fund Accounting
- Donation Tracking
- Billing and Invoice
- Advanced automation features
- Role based access
- Reporting and Forecasting
- Third-Party Integrations
- Ease of Use
- Security
- Customer Support
- Affordable

What's missing:
- None listed
14-day free trial plan Standard: $180/year
Professional: $480/year
Premium: $720/year
Elite: $1440/year
Ultimate: $2880/year

*15% discount for Non-Profits and charities
Ideal for nonprofits of all sizes
Xero What you'll get:
- Billing and Invoice
- Payroll
- Third-Party Integrations
- Reporting and Forecasting
- Ease of Use
- Security
- Customer Support
- Affordable

What's missing:
- Fund Accounting
- Donor Management
- Donation Tracking
30-day free trial plan Starter plan: $348/year
Standard plan: $552/year
Premium plan: $744/year

*25% off for Non-Profits
Small nonprofits with basic accounting needs
Money Minder What you'll get:
- Donation Tracking
- Reporting
- Donor Management
- Third-Party Integrations
- Ease of Use
- Security
- Affordable

What's missing:
- Billing and Invoice
- Payroll
- Fund Accounting
- Customer Support
Yes (Limited Features)
30-day free trial for premium plans
Annual subscription: $199/year
Multi-chapter reporting: $299/year
Built for volunteer-led organizations
Wave What you'll get:
- Billing and Invoice
- Payroll
- Reporting and Forecasting
- Ease of Use
- Security
- Affordable

What's missing:
- Customer Support
- Donor Management
- Donation Tracking
- Fund Accounting
- Third-party Integration
Yes (with limited features) Starter plan: Free
Pro plan: $192/year
Best tool for small nonprofits (offers a completely free plan with basic accounting features)
NetSuite What you'll get:
- Donor Management
- Donation Tracking
- Fund Accounting
- Billing and Invoice
- Reporting and Forecasting
- Ease of Use
- Security
- Customer Support

What's missing:
- Payroll
- Third-party Integration
- Affordability
No NA Best for large organizations for tailored financial needs

Other Popular Accounting Software for Nonprofits

Responsive Accounting Software Table
Software Features Free Plan Pricing Suitable for
FreshBooks What you'll get:
- Donor Management
- Fund Accounting
- Donation Tracking
- Billing and Invoice
- Payroll
- Third-Party Integrations
- Ease of Use
- Security
- Affordable

What's missing:
- Customer Support
- Reporting and Forecasting
30-days free trial plan Lite plan: $68.40/year
Plus plan: $118.80/year
Premium Plan: $216/year
Select plan: pricing available on demand

*70% Off for 4 Months
Ideal for small nonprofits
Aplos What you'll get:
- Donor Management
- Fund Accounting
- Donation Tracking
- Reporting and Forecasting
- Third-Party Integrations
- Ease of Use
- Security
- Free customer support through email and call

What's missing:
- Billing and Invoice
- Payroll
- Affordable
15-day free Trial plan Lite plan: $474 per year
Core plan: $594 per year
Advanced plan: Pricing on request
Small nonprofits and churches looking for an easy-to-use platform
Quicken What you'll get:
- Billing and Invoice
- Reporting and Forecasting
- Third-Party Integrations
- Ease of Use
- Security
- Affordable

What's missing:
- Donor Management
- Donation Tracking
- Payroll
- Fund Accounting
- Customer Support
No $199 per year

*Offers 50% off on subscription
Suitable for small nonprofits in the early stages

1. QuickBooks: Best for large and growing nonprofit organizations

Gartner Rating: 4.1/5 

G2 Rating: 4/5

QuickBooks

QuickBooks is one of the most popular accounting software for nonprofits. It has the best accounting features and covers fund accounting, donor management, and payroll services in one place. It is a full-service program that allows you to track funds, manage donor details, and handle staff payments with ease. 

Pros and Cons of Quickbooks

Pros and Cons Table
Pros Cons
  • Online backup and protection for financial data
  • Straightforward accounting tool
  • Offers phone support
  • 1-month trial or discount price for first 3 months
  • Payroll features cost extra
  • Free trial unavailable for the enterprise plan

Pricing

  • $540/year for QuickBooks Online Plus
  • $1200 yearly for QuickBooks Advanced accounting plan
  • Enterprise plan for $2160 per year

What Users Like About Quickbooks

  • Simple and easy to use
  • Smooth accounting management
  • Quick accessibility 
  • Cloud-based software

What Users Didn't Like About Quickbooks

  • Price on the higher side
  • Fewer features compared to other options
  • Customer support is not up to the mark

Frequently Asked Questions About QuickBooks:

Can nonprofits use QuickBooks Online?

Yes, QuickBooks Online is available for nonprofits to manage their finances and donations. 

Do you need training or expert help to use QuickBooks?

QuickBooks is a simple and easy-to-use software, even for someone with a non-accounting background. Many online resources are available on QuickBooks to help learn about it. 

2. Sage: Best for nonprofits present in multiple locations

Gartner Ratings: 4.5/5 

G2 Ratings: 4.3/5

Sage Intacct

Sage Intacct is a well-rounded tool to handle complex finances. It is best for large nonprofits with multiple chapters. It is also a great tool to help manage multiple income streams, create budgets, and track funds and expenses.

Pros and Cons of Sage

Pros and Cons Table
Pros Cons
  • 30-day trial without credit card details
  • Offers call chat and email support
  • Over 12000 bank integrations (also includes PayPal Stripe and Square)
  • Volunteer management tools
  • Donation tracking
  • Easy to use
  • Only basic donor management tools available
  • Bank integrations available as a paid add-on feature

Pricing

  • Only one plan available for $199/year 

What Users Like About Sage

  • User-friendly interface
  • Intuitive and easy-to-use functionalities
  • Amazing reporting capabilities and features
  • Value for money

What Users Didn't Like About Sage

  • Difficult to rectify errors
  • The interface is a bit slow

Frequently Asked Questions About Sage:

Are Sage Accounting and Sage Intacct the same?

Sage Accounting and Sage Intacct are cloud-based accounting solutions. However, Sage Intacct caters to nonprofits, SMBs, and medium-sized businesses. On the other hand, Sage Accounting is more popular among startups, small companies, and self-employed individuals. 

What reports are included in Sage Intacct?

Sage Intacct offers several reporting options to help the user provide detailed information for informed decision-making. These reports include profit and loss, cash flow, and balance sheet reports. 

3. Zoho Accounting: Best for employee and volunteer collaboration 

Gartner Ratings: 4.5/5 

G2 Ratings: 4.5/5

Zoho Accounting is one of nonprofits' most popular and comprehensive accounting tools. It offers advanced accounting and other features to help nonprofits efficiently manage funds and grants.

You can send unlimited invoices, reconcile accounts, and generate detailed reports for donors. It also allows you to connect your bank account and an eCommerce platform without interruption. 

You can also create recurring invoices and import bank and credit card statements. All these features allow you to track funds and expenses to maintain an efficient system for finances. 

Pros and Cons of Zoho Accounting

Pros and Cons Table
Pros Cons
  • Advanced automation features
  • Online and offline accounts
  • Easy access to the dashboard
  • Advanced mobile app
  • 15% discount for registered charities and nonprofit organizations
  • Role-based access lets users work from a remote location
  • Free chat email and phone support
  • Separate cost for receiving donations
  • $2.5/user/month additional fees for extra users

Pricing

Zoho Accounting comes in different plan options: 

  • Free: $0
  • Standard: $180 per year
  • Professional: $480 annually
  • Premium: $720 per year
  • Elite: $1440 per year
  • Ultimate: $2880 annually

What Users Like About Zoho Accounting

  • Easy integration
  • Accounting management 
  • Automation efficiency is good
  • Best for collaboration and overall efficiency

What Users Didn't Like About Zoho Accounting

  • Limited customization options
  • Lacking reporting feature
  • Learning curve required

Frequently Asked Questions About Zoho Accounting:

Is Zoho Accounting secure?

Zoho Accounting software protects your data and privacy with two-factor authentication and other security features. 

What is the limit of Zoho accounts?

Zoho accounts support a maximum of 50 sessions at one time. If one exceeds these concurrent sessions, it is not accessible until you clear the previous sessions. 

4. Xero: Best for multi-project tracking

Gartner Ratings: 4/5

G2 Ratings: 4.3/5

Xero

Xero is a great accounting tool that supports in-depth reporting and customization tools. Its drag-and-drop feature makes it easy to create custom reports. 

If you're a nonprofit that requires in-depth reporting that includes multiple project tracking, Xero is for you. 

It also offers file storage and sharing options to keep other key members in the loop. Xero comes with unlimited uses and clients, helping you save on each user's cost. 

Pros and Cons of Xero

Pros and Cons Table
Pros Cons
  • Offers 24/7 online support
  • Supports over 1000 third-party apps
  • User-friendly and intuitive dashboard
  • 30-day trial period
  • 25% off for nonprofits
  • Multiple currency support
  • Some nonprofit-specific features are not available
  • Payroll feature is available for an extra cost of $40
  • Limited analysis available for certain plans

Pricing

  • The Starter plan is for $348 per year
  • The Standard plan is available for $552 per year
  • The Premium plan is for $744 per year

What Users Like About Xero

  • Simple and easy-to-use software
  • Simplified integrations
  • Efficient reporting features
  • Automation features work well and save time

What Users Didn't Like About Xero

  • Not intuitive enough
  • Limited functionalities
  • Average customer support

Frequently Asked Questions About Xero:

Is free support included in Xero?

The customer help team offers free support 24/7. You can contact the Xero team using the button in the software or at the bottom of each support article. 

Are there any discounts available for nonprofits?

If you are a registered charity, trust, or society, you can access a 25% discount on your Xero subscription. 

5. MoneyMinder: Best for volunteer-run-nonprofits

G2 Ratings: 4.6/5

Money Minder

MoneyMinder is a good tool for volunteer-led nonprofit organizations. This accounting software is easy to use. If you have restricted funds and lack experienced staff, MoneyMinder is the most straightforward option.

Pros and Cons of MoneyMinder

Pros and Cons Table
Pros Cons
  • Import and export of accounting data
  • Analytical accounting
  • Easy to create financial documents (income statement, balance sheet, etc.)
  • Real-time financial tracking
  • Low annual subscription compared to competitors
  • Account and bank integration for an additional $59 per year
  • No donor management tools
  • Free plan with limited features

Pricing

  • Annual subscription for $199 
  • Multi-chapter reporting is available for $299 per year

What Users Like About MoneyMinder

  • Easy-to-navigate software
  • Helpful budgeting and reporting options
  • Efficient reporting features
  • Automation features work well and save time

What Users Didn't Like About MoneyMinder

  • Some users find it expensive

Frequently Asked Questions About MoneyMinder:

What languages does MoneyMinder support?

Some languages that the software supports are English, Chinese, Czech, Dutch, Greek, German, French, Italian, Japanese, Korean, Polish, Portuguese, Russian, Spanish, Swedish, Thai, Vietnamese, etc. 

Who mostly uses MoneyMinder software?

Multiple categories of businesses use MoneyMinder, such as small-sized, medium-sized, and large-sized businesses, nonprofits, and freelancers. 

6. Wave: Best accounting software for easy of use 

G2 Ratings: 4.4/5

Wave Accounting

Wave Accounting offers a free plan for nonprofits and small business owners. The platform offers various features, including unlimited expenses, invoices, and receipts. 

Wave offers benefits like:

  • Easy access to expense tracking
  • Unlimited users can work on the platform
  • Manage profit and loss statements and balance sheets without restriction
  • Automatic bank transaction syncs to save time

Using Wave accounting, you can track grants and donations, special events, and contributions. It also lets you integrate and work with many third-party apps.

Pros and Cons of Wave

Pros and Cons Table
Pros Cons
  • On-the-go invoices through the Wave app
  • Reasonably priced
  • Income and expense tracking
  • No feature to track restricted funds
  • Payroll comes as an add-on
  • Online payment options are available for additional fees of 2.9% + $0.60 per credit card transaction
  • Additional cost for live-person chat and email support in the free version

Pricing

  • The Starter plan is available for free
  • The Pro plan is for a $192 annual subscription

What Users Like About Wave

  • Easy to set up
  • Straightforward interface
  • Simple to manage from anywhere

What Users Didn't Like About Wave

  • No online support in the free version
  • Integration with other apps

Frequently Asked Questions About Wave:

How secure is Wave accounting software?

Wave is a secure nonprofit accounting software. It uses strict physical access protocols to store data on servers. All the information gets encrypted when using Wave software for accounting needs. 

Can you create financial statements in Wave?

You can easily create financial statements and reports using Wave accounting software. 

7. NetSuite: Best all-in-one integrated accounting platform

Gartner Ratings: 4.2/5 

G2 Ratings: 4/5

NetSuite

NetSuite is an Oracle product known for offering enterprise-level solutions. It is one of the most comprehensive accounting tools in the market. It covers everything you need to simplify every financial aspect of running a nonprofit. But you'll need some time and effort to learn how to use the software. 

NetSuite can help combine all your financial system needs into one platform. You can use it for real-time financial reporting, accounts payable and receivable, and fund accounting. 

It also has advanced features to automate your admin tasks. As a result, it can save time so that you can focus on increasing your reach and engaging donors and other contributors. 

Pros and Cons of NetSuite

Pros and Cons Table
Pros Cons
  • Core accounting features
  • Proper security and support compliance
  • Audit trail visibility
  • Suited for large enterprises with complex workflows
  • Set up a schedule for billing grants automatically
  • Needs training to learn
  • No pricing information available


Pricing

Not available

What Users Like About NetSuite

  • Easy and simple customization options
  • Easy to create and pull financial reports
  • Integrates well with other applications

What Users Didn't Like About NetSuite

  • No upfront pricing details available 
  • Difficult to learn
  • Challenging to implement

Frequently Asked Questions About NetSuite:

What are the benefits of NetSuite Accounting?

NetSuite Accounting software for nonprofits offers multiple features and functionalities to manage finances. It helps increase accounting efficiency, gives real-time financial information, and offers compliance with accounting standards. 

Can you use NetSuite for fund accounting?

NetSuite for nonprofits offers key features for fund accounting. It allows you to manage funds and segment data using different categories. 

8. FreshBooks: Best in billing and invoicing systems

G2 Ratings: 4.5/5

FreshBooks

FreshBooks is another feature-rich accounting software for nonprofits. It covers all your fund accounting and donation tracking needs. You can create and send recurring invoices and track expenses. 

The platform's time-tracking tools can help you check the time an employee takes to complete a task. As a result, you can calculate the exact funds for the project. 

It also lets you manage multiple projects and clients and view reports in one place. Primary and feature-rich plans with more advanced features at custom pricing are available.

Pros and Cons of FreshBooks

Pros and Cons Table
Pros Cons
  • User-friendly and intuitive dashboard
  • Expense tracking and management
  • 70% off for 4 months
  • Available for mobile device
  • Professional billing and invoicing
  • Data protection with industry-standard SSL and encryption
  • Not suitable for large nonprofits
  • Costs $11/month per additional user


Pricing

  • $68.40 for Lite plan annual subscription
  • $118.80 per year for Plus plan
  • $216 per year for a premium plan
  • For Select plan - pricing available on demand

What Users Like About FreshBooks

  • Simple and easy-to-use interface
  • Easy expense tracking
  • Customer Support
  • Useful invoice management feature

What Users Didn't Like About FreshBooks

  • Pricing on the higher side
  • Limited functionality

Frequently Asked Questions About FreshBooks:

Can you have two businesses on FreshBooks?

FreshBooks allows you to run more than one account. You can use this software to manage your finances independently from each other. 

Does FreshBooks integrate with your bank?

Yes, FreshBooks integrates with the bank account, allowing you to easily transfer funds and track financial transactions with the bank.

9. Aplos: Best pick for church funding  

G2 Ratings: 4.7/5

Aplos

Aplos is another popular accounting tool designed from scratch targeting nonprofit organizations and churches. It means you can expect customized features for your church-based organization.

It easily generates financial statements for donors and other involved parties and offers a complete bookkeeping solution for nonprofit organizations. 

Aplos allows you to receive online donations and gifts through an online church giving form. It also allows you to easily manage your staff and donors in one place.

Its advanced reporting and analytics help improve your returns and keep the involved parties informed. You can also manage events and email campaigns to raise awareness about your cause.

Pros and Cons of Aplos

Pros and Cons Table
Pros Cons
  • Donation tracking
  • Easy event management
  • Budgeting and fund accounting tools
  • Specifically designed for nonprofits and churches
  • Free email and call support
  • Tools to create and host nonprofit websites
  • Trial period is only 15 days
  • No feature for payroll management
  • Additional cost for add-on users


Pricing

  • The Lite plan is available for $474 per year
  • The Core plan is $594 per year
  • Advanced plan's price is available on request (starts from $189 for customized features) 

What Users Like About Aplos

  • Smooth integrations
  • Easy to learn and operate
  • Effective budget and fund management features
  • Straightforward interface

What Users Didn't Like About Aplos

  • No error reports
  • Limitations in reporting
  • Issues with the support

Frequently Asked Questions About Aplos:

Is Aplos a cloud-based software?

Aplos is a cloud-based accounting software for nonprofits. It stores and helps manage your accounting information on secure services. You can access your accounting details from anywhere, working remotely with its cloud capabilities. 

How do I create a budget in Aplos?

You can check the Aplos’s fund accounting feature and click on the Accounts option. Here, you will find the Budgeting option to create a budget in Aplos. 

From the Budgeting page, you can click on the Plus ‘+’ icon to create a new budget. 

10. Quicken: Best for budget management

G2 Ratings: 4.2/5

Quicken is a comprehensive money management software that offers a range of features for nonprofits. It allows you to track income and expenses, create budgets, and generate reports. With Quicken, you can easily categorize transactions, monitor cash flow, and gain insights into your organization's financial health.

The software also provides tools for tracking investments, managing rental properties, and planning for taxes. Quicken's user-friendly interface and robust reporting capabilities make it a popular choice among nonprofits seeking to streamline their financial management processes.

Pros and Cons of Quicken

Pros and Cons Table
Pros Cons
  • Comprehensive financial management features
  • Budgeting and forecasting tools
  • Robust reporting and analysis capabilities
  • Integration with online banking and bill pay services
  • Steep learning curve for new users
  • Limited customization options for nonprofit-specific needs


Pricing:

Quicken offers several pricing plans:

  • Starter: $35.99/year
  • Deluxe: $51.99/year
  • Premier: $77.99/year
  • Home & Business: $103.99/year

What Users Like About Quicken

  • Easy to manage finances
  • Relatively cheap
  • Tracking expenses
  • Simple financial reports 

What Users Didn't Like About Quicken

  • Expensive payroll option
  • No income and expense allocation option in lower tier plan

Frequently Asked Questions About Quicken:

Does Quicken require a subscription?

Quicken is a subscription-only plan to avoid the hassles of the plan upgrade process. However, for first-time users, it offers a 30-day money-back guarantee plan. 

Can I install Quicken on multiple computers?

Quicken applies no limits on how many computers install the software in one subscription plan. You only need to use the same Quicken ID on each computer.

Ending Thoughts - Choosing the Best Nonprofit Accounting Software

Choosing the right accounting software is crucial for everyone looking to start a nonprofit organization. It can help in:

  • Effectively managing finances
  • Maintaining transparency
  • Ensuring compliance with regulations

When selecting a solution, consider factors such as ease of use, affordability, and scalability. Look for features like fund accounting, donation tracking, and reporting capabilities. 

Ultimately, the best accounting software will empower nonprofits to make informed financial decisions and build trust among donors and stakeholders.

Nonprofit Accounting Software - FAQs

Why do nonprofits need accounting software?

Accounting software is not a mere tool to manage expenses and funds, it helps keep up with compliance rules. Nonprofit organizations also need regular audits that are only possible with accurate financial record keeping.  

With such tools, it becomes easy to track each penny. You can effectively manage assets, donations, grants, and other income. It also helps remain transparent with the donors and earn their trust in your organization.  

It lets you keep your financial details in one place and get 360-degree visibility. This, in turn, saves time and helps with informed decision-making. It also means you stay in line with the vision and mission. You get timely and clear financial reports and avoid human errors in tallying the numbers.  

As a result, your nonprofit can achieve higher efficiency and productivity, keeping every finance-related detail sorted.   

What features should I look for in accounting software?

While each organization's features are highly subjective, well-rounded software must cover some basic accounting features. Consider the following features in nonprofit accounting software.

  • Reporting capabilities to easily generate reports showing donors compliance and impact.
  • Support for third-party apps, scalability, and security.
  • Reasonably priced.
  • Offer all fund accounting software features to ensure the tracking and reporting of funds separately.
  • Donation tracking, as most nonprofits rely on donations.
  • Grant management tools, like grant tracking and reporting, are a must. 

How do I choose the best nonprofit accounting software for my organization?

Finding a suitable nonprofit accounting software can be a great help. Here are some of the most important features to consider:

  • Easy-to-use
  • Affordable
  • Feature-rich fund accounting software
  • Scalability
  • Reporting and performance tracking options

Considering the size of your organization also helps narrow down your options. You’ll need a more robust program if your organization manages hundreds of donors and payments.  

On the other hand, smaller nonprofits can manage with free or low-cost options that offer basic accounting functions.  

Remember to select a tool that is scalable in such cases. It will help effortlessly transition your accounting needs if your organization grows later.  

How do nonprofits prepare financial statements?

A nonprofit financial statement provides an accounting overview of the organization's overall financial health. Some essential steps that nonprofits follow while preparing financial statements:  

  • Collecting Financial Data

First, they collect all financial records in one place, right from invoices and bank statements to fundraising and other financial transactions. 

  • Creating the Balance Sheet

The balance sheet is essential to give a snippet of a nonprofit’s financial well-being. It has details on assets, liabilities, and net assets (equity).

  • Preparing the Income Statement

Also called the Statement of Activities, the income statement shows revenues, expenses, and changes in net assets over a specific accounting period.

  • Statement of Cash Flows  

The cash flow statement records all the financial movements of cash, including the details of cash in charity. They cover operating, investing, and financing activities for this statement.  

  • Disclosures and Notes

The disclosure note is also an important document for financial statements. It helps clear the financial position of the charity to donors and the public. It covers policies, events, commitments, etc.

  • Review and Audit

The documents often go through external audits to indicate the authenticity of their numbers. It also helps show transparency to their supporters.

 

Is QuickBooks free for nonprofits?

While QuickBooks isn’t 100% free for nonprofits, it does offer a discount. If you access this software through TechSoup, a nonprofit tech marketplace, you can get it for only a $75 admin fee. If you go via the QuickBooks website, you’ll get the QuickBooks Plus plan for $90 monthly.  

You can also try QuickBooks Online Advanced free for 30 days. It means from the time you enroll till 30 days of using the tool, it is available for free.  

After completing this period, the software will ask you to give a valid credit card for authorization to continue using it.

Is it safe to use nonprofit accounting software?

Yes, using nonprofit accounting software is safe when you choose a reputable provider. Look for software with robust security features, such as encryption, secure data storage, and regular backups. Ensure the software complies with relevant regulations, such as FASB and GAAP. Additionally, check for user access controls and audit trails to maintain financial integrity. Reputable providers will prioritize the security and privacy of your organization's sensitive financial data.

What are the different types of accounting for nonprofits?

There are three main accounting methods for nonprofits:

  • Accrual-basis accounting
  • Fund accounting
  • Cash-basis accounting

GAAP (generally accepted accounting principles) encourages businesses to use accrual basis accounting. The reason behind this is its ability to provide an immediate and clearer snapshot of sales records.  

However, there is no one-size-fits-all approach, so the best-suited accounting depends on the nonprofits.  

Research at your end and see if your state has some regulatory requirements for accounting methods. Also, identify your current and future needs.  

Weigh the expertise level and structure of your financial teams. All these steps will help you find the best accounting method for your nonprofit.  

Keep reading :

Nonprofit guides
The Ultimate Guide to Nonprofit Accounting [2024]

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