How can the wrong nonprofit accounting software prevent you from achieving your mission?
Effective money management is a huge part of your success as an organization. At a minimum, you want to achieve financial transparency, demonstrate long-term fiscal responsibility, comply with guidelines and regulations, raise money without spending too much, stay within budget, and effectively plan ahead.
If you really want to thrive, you also need to understand all the daily details of your operations and finances so you can make improvements or eliminate wastefulness. To get the biggest results from your valuable resources, you should have the ability to be proactive if something starts to go wrong, before it becomes a problem. For example, you should be able to quickly notice if a fundraising campaign isn’t working, so you can make changes before resources are wasted.
Like it or not, data security is also increasingly essential to your long-term success as a nonprofit. You should have the ability to keep data safe and secure, so donor information isn’t at risk from problems such as cyberattacks or natural disasters.
Last, but certainly not least, as a nonprofit you should have a daily understanding of the resources you’re spending measured against the progress you’re making towards your goals and mission.
Sounds like a lot, doesn’t it? That’s why the right nonprofit accounting software can play such a major role in your success by giving you the right tools you need to get the job done.
Here are some major signs your current accounting software is slowing you down from achieving your mission:
1. Bookkeeping takes too much of your time
If you or other workers spend countless hours on basic bookkeeping and manual data entry rather than on tasks that add more value to your organization, this is a good sign that you need to upgrade your accounting solution.
2. FASB and tax compliance is an ordeal
Do you feel confident that your organization is fully complying with financial accounting standards and regulations? If revenue recognition, liquidity disclosures, and similar topics are a source of confusion and frustration, or if you’re handling everything in complicated spreadsheets, it’s time to upgrade to a software solution that will make it easier to manage this information.
3. You have a low return on investment for fundraising efforts
Donors love to support nonprofits with a low ratio of expenses to funds raised. If keeping your fundraising ROI up seems like an impossible task, it’s time to invest in an accounting and ERP solution that includes donor management, so you can communicate with the right donors at the right time about the right incentives.
4. Your data is poorly protected
Cyberattacks are an increasing risk to nonprofits of all types and sizes. Your accounting solution needs to have up-to-date cybersecurity and data backups. Accounting software for nonprofits will include data protection measures so donor information and other valuable data remains safe.
Want to learn more about software solutions for nonprofits?
OTT, Inc. is a business solutions partner with a special focus on helping nonprofits use technology to achieve their missions. Our proven methodology, the Trusted Partner Path, uses a 5-step process to ensure the success of your organization’s technology investments. Contact us today to talk to a nonprofit software solutions expert.