QuickBooks for Nonprofits: Costs, Pros and Cons, Alternatives

Entering data into multiple systems or spreadsheets that don’t talk to each other is risky. If your nonprofit relies on systems that aren’t automated or integrated, it can take extra time to export data from one system and then manually import it into another. Additionally, manual data entry can introduce dreaded typographical and other painful errors.

• Like the auditors, you need to dig into the details, and you do this by reviewing and reconciling the accounts.
• Small to midsize nonprofits will be best served by QuickBooks Premier, QuickBooks Premier Plus or one of the QuickBooks Online options.
• For small organizations like churches or community organizations, we selected ACCOUNTS as the best accounting software.
• It goes without saying that you should never use your personal bank account for your nonprofit organization.
• You just review the transactions to ensure they are properly categorized and fill out any required fields.

Researching average bookkeeper salaries for your area can give you an idea of what your competitors may charge. Bookkeeping has the potential to be a profitable business if you’re able to maintain a solid roster of clients who are willing to pay competitive rates for your services. A typically remote bookkeeper’s salary is just over $55,000 a year, but it’s possible to make much more than that, depending on your clientele and the rates you charge.

Connect to apps your nonprofit counts on

Donor-advised funds (DAF) let the donor receive an immediate tax deduction and even get involved in recommending grants to the organization of your choice. For NPOs, most operating expenses are entirely made up from funds, grants, and donations. The entry should contain information such as the donor’s name, the amount of money, and the date. Nonprofit bookkeepers don’t need to have formal education or a CPA. If you want to become a bookkeeper for a nonprofit, try looking at internships that could help you learn more about the processes. You may want to visit the National Council of Nonprofits to learn more.

• Complex operations require a higher order of functionality not usually met by outdated systems or spreadsheets.
• Essentially, you should view bookkeeping as the financial oversight process that’s necessary for operating your nonprofit daily.
• Nonprofits rely on accurate, timely financial information throughout the year.
• General purchases and deposits are handled by non-profit bookkeepers.
• Just like the statement of financial position, the statement of activities keeps net assets that have conditions and stipulations attached to them separate from unrestricted funds.
• Just because your nonprofit qualifies as tax-exempt under Section 501 doesn’t mean that all of your donors’ contributions qualify as charitable deductions.

Absolutely, we can have regular meetings so you can advise on the reporting you need and you can access your bookkeeping online at any time to pull reports and review the books. Paying attention to the fine details in the nonprofit bookkeeping process will make your organization Audit-Ready all year long, and your year-end process a dream. Cleaning up old, uncleared amounts in your bank accounts will make it easier for you to REALLY know how much money you’ve got in the bank. It is up to you to take the time to review the details of your balance sheet accounts regularly, making sure that you have correctly accounted for all of your expenses and any money owed to you. The deposit was recorded on the day the money came into the organization, but it really sits in a drawer somewhere until someone goes to the bank on Friday. A year ago, we had a client who noticed that none of their Square deposits were showing up on their bank statement.

Is accounting software secure?

You probably reconcile these each month when you get the statement from your bank. (If you don’t, you should. You ABSOLUTELY should.) These are easy because you know exactly https://www.bookstime.com/ what the balance is supposed to be. It’s an easy report to focus on and share with your board since it tracks the ways money comes into and flows out of your organization.

When you reconcile your bank accounts, all you’re doing is comparing each transaction from your bank statement with the ones you have in your books. We recommend doing a bank reconciliation at least once a month to make sure your books are up to date and accurate, to help track cash flow, to prevent fraud and to detect bank errors. Most nonprofits elect some kind of treasurer or financial officer to manage all of the organization’s finances. Using a personal bank account and keeping a shoebox full of receipts isn’t going to cut it. Using the details you recorded about your nonprofit’s transactions, create a broad overview of your financial position and develop a plan to get your revenue where it’s supposed to be.

Fund accounting tools designed to take organizations further

For organizations, this requires savvy Quickbooks experts who are capable of customizing the software to meet their organization’s particular need. Many NPOs instead look to adopt new nonprofit accounting software solutions that work out of the box. As you compare online bookkeeping courses, consider the range of topics nonprofit bookkeeping covered, the course format, and the cost. Whether it makes sense to obtain just one bookkeeping certification or additional tax and accounting software certificates can depend on your niche and the types of services you plan to offer. MoneyMinder is a simple and easy-to-use online program that you can access anywhere.

We also looked at customer reviews on Capterra, a leading software review provider. No one understands the complexity and nuance of nonprofit bookkeeping quite like the compliance professionals at Foundation Group. As with other QuickBooks products, QuickBooks for Nonprofits requires users to enter transactions using familiar-looking forms (invoices, bills, checks, etc.).