Automating Non-profit Accounting
One of the common misconceptions people have about non-profit organizations is that they are easier to manage
. Because non-profit organizations usually rely on donations from other people or enterprises, the common people would think that there really is not much accounting process going on inside.This, however, is far from the truth for non-profit organizations have some of the most complex accounting procedures from submission of Form 990 to dealing with excess benefit transactions. Since they have to make sure that they are able to make good use of every penny that they have, they have to make detailed reports of every expenditure and every money that comes their way. This is the reason why, non-profit organizations are the first candidates when it comes to automation.
Accounting soft wares used in non-profit organizations are actually different from those used in businesses and companies around you. The main difference lies in its ability to track donations.
Automating the system of accounting nonprofit organizations have can easily be done with the help of such soft wares as Sage Fundraising, Peachtree, and Sage MIP Fund Accounting. The Sage Fundraising software is a simple industry solution that allows users to track contacts and prospects as well as manage communications, tributes, events, and volunteers.
Peachtree and Sage MIP Fund Accounting is an accounting solution that can be customized for use in accounting nonprofit. Both can easily extract data from Quickbooks and both can easily be integrated with MS Word and Outlook. Sage MIP Fundraising allows users to track multiple funds spanning different budget periods. It can also create audit-ready statements as well as FASB-compliant reports. The Sage MIP Fund Accounting can be used alongside Sage Fundraising. A special edition Peachtree, on the other hand, allows users to have united way of chart of accounts. It can also generate summary reports on donor/ grantor activities. Peachtree is available in the US only while the Sage MIP Fund Accounting is available in most countries.
Accounting nonprofit organizations need not be a daunting task. Although the procedures may differ from accounting processes of profit groups, technology can provide the solution needed to make everything go smoothly.
by: VernaDerosier