|
|
|
 |
 |
| Fundraising & Grants Innovations Internet Resources Interns & Volunteers Government Special Populations Community Resources Training Troubleshooting Planning & Management |
| Tech News is proudly supported by IBM |
 |
 |
|
Software for Nonprofit Accounting By Tech News Staff Writer Unless your organization boasts "financial planning" in its mission statement, chances are you don't relish the thought of doing organizational accounting. Some administrators opt to spend thousands to hand their financial headaches to a professional, while a few might try to dodge the issue altogether. But with spring in the air and tax-time upon us, now is the best time to get your numbers nailed. The easiest solution to your woes is the right software. Many companies offer nonprofit services and products to keep your bills in line, and some may even end up saving you money. What Should Be Your First Priority in Selecting an Accounting Package? No, it's not the price of the package. Although accounting programs can range from a few hundred to a few thousand dollars, the real difference lies in the scope and focus of the services they provide. When shopping, it's "the usual suspects" you need to keep in mind: Compatibility-Make sure your computers (and Internet connection, if applicable) can handle whatever you buy. The load specifications for most packages are listed on their Web sites. Compatibility is also a personnel issue-if you have an operations manager or a personal accountant, make sure they are familiar with the software, and are comfortable with implementing the accounting package you select. Functionality-A solution won't solve anything if it doesn't cover all your bases. Most packages include basic income and expense tracking, but if your organization is a special case (e.g., complex membership roles, multiple government-funding, for-profit subsidiaries), talk to a salesperson beforehand and check everything you will need from your accounting solution off your list with them. Support-This is only as critical as your next payday. What might happen if your data is lost, or unexplained discrepancies appear in your reports? Make sure the company has inexpensive provisions for the worst-case scenarios, and you'll never have to worry about them. And, finally,yes: Cost-As you'll see below, cost can vary widely depending on the type of solution. That said, none of these companies appear to be gouging anyone for the services and products they provide. If you're certain the product is a good fit with your organization's size, then the cost will almost certainly follow suit. Most nonprofit accounting packages address the core worries of operations managers: funding streams/restrictions, program costs, and government (particularly IRS 990) reporting. What distinguishes these packages is the range of their services-which should roughly correspond to the size of your agency-and the extras that not only help you run your business, but run it better. A Sampling of What's Out There The products summarized below run the gamut of services from grassroots to gargantuan. They are all exemplary models of the kind of service they provide. Within each category, however, there are many other options. Check the list of links at the end of this article for additional offerings, as well as insight and opinions. In this way, you'll be able to make a truly informed choice about what's right for your agency. NonprofitBooks Distributed by B2P http://www.b2p.com Cost: $279 for single-user license, $599 each for five-user licenses Until a very short time ago, many small nonprofits relied on a tried-and-true solution that their small-business counterparts had used for years-QuickBooks. The last QuickBooks Nonprofit Edition CD was pressed in 2002, and the line has now been discontinued. To fill the gap, Intuit turned to one of its development network partners, B2P to create an alternative. B2P's NonprofitBooks software builds on the acumen and easy touch of Intuit's long-time favorite. Many of the functions that made QuickBooks so popular have been incorporated into NonprofitBooks, including the simple graphic interface, step-by-step information gathering, and relatively cheap price tag. Best of all, the program works with older versions of QuickBooks, so little data is lost in the move. Using QuickBooks' off-the-shelf platform helped B2P to avoid "reinventing the wheel," allowing them to concentrate on designing functionality around small to mid-sized nonprofits' needs. Some criticisms of earlier editions of QuickBooks for nonprofits called it QuickBooks in "tax-exempt dress," substituting words like 'pledges' for 'invoices' and not truly addressing nonprofits' particular needs. However, B2P's program reflects its nonprofit background. NonprofitBooks creates all budgets in accordance with nonprofit FASB and IRS 990 requirements. It also makes good use of the UCOA (Unified Chart of Accounts), the new standard in NPO accounting. Its other functions include tracking by restricted and unrestricted monies, program-related expense tracking, and automated expense allocations that can be shared by several programs. If these kinds of functions fascinate you, you may even want to step up to NonprofitBooks Office ($999 for a three-user license), a full office-suite integrating accounting, donor management, and impact/outcomes management software. The only shortcoming of NonprofitBooks is its technical support, which is not included in the package and costs an extra $200 a year. FUND E-Z Accounting and Fund Raising Distributed by FUND E-Z http://www.fundez.com Cost: $1,980 for single-user license, $1,000 more for unlimited users (includes one year of tech support) FUND E-Z is another long-time player in nonprofit software, and has built its reputation catering to grassroots nonprofits that have very simple accounting needs. Their latest package, FUND E-Z Accounting and Fund Raising, follows in this tradition and keeps complexity to a minimum.
Like NonprofitBooks, FUND E-Z Accounting offers automatic distribution of expenses across programs, creates reports by funder, program or grant, and has flexible reporting periods. It also has a simple graphic interface modeled on Excel-style charts and Windows, and is well known for its simple input and data extraction. FUND E-Z differs from NonprofitBooks in its emphasis on donor relations and the resulting ties to its sister module, FUND E-Z Fund Raising. The FUND E-Z Fund Raising module works to organize pledges, gifts, donors, and prospects in a database format that can be categorized by event, campaign, demographic, biographic, lifestyle, or giving history. It also has functions for creating reports on and mailing lists of donors, and can export data directly into FUND E-Z Accounting, where it is tallied against existing money and expenses. This tag-team makes FUND E-Z an excellent solution for small nonprofits with simple program expenses that want to concentrate on fundraising and donor management. If you have more complex needs, however, it might be time to step up to a more powerful program. FUND Suite Distributed by: Cougar Mountain http://www.cougarmtn.com Cost: $3,099 for single-user license For those looking at industrial strength solutions (the kind that can engage full-time accountants, and handle over a $1,000,000 in assets), Cougar Mountain is a good example of what the big boys have to offer. Cougar's FUND Suite 7.1 includes all the normal accounting functions with a powerful back end that can handle any spreadsheet, and an unlimited number of funds and budgets. In addition, the pricey bundle includes payroll, purchase order, and other functions not always associated with nonprofit accounting packages. FUND Suite also includes a standard report writer, although to really customize reports one must buy the add-on GL report generator. And through a new partnership with Campagne Associates, Cougar Mountain's software can exchange information seamlessly with Campagne's Giftmaker Pro software, managing donors, events and membership on a level of complexity above FUND E-Z and its like. It's good to keep in mind that this heavy-duty software requires a decent Pentium computer with lots of memory in which to flex its muscles. Cougar Mountain's software offers just about any function you could require in an accounting system, but these add-ons (Report Generator, Inventory, Point of Sale, Ecommerce) are not without price. Overall an excellent solution for mid-sized and larger organizations, this package is not for the weak-of-heart (or pocket). Buying, and "Buying-in" All of the above are popular solutions, but none may be right for your agency. Each is representative of many like it and each has its relative strengths. In general, any package you buy should include flexible reporting (i.e., can revisit past months' reports), individual program and fund tracking, report templates that your organization can use, and the ability to export data into other software. Anything beyond this should be dictated by the size and complexity of your agency. Introducing any new system into an office is bound to create some upheaval. When the stakes are as high as where your next rent check is coming from, it pays to take care with that transition. In the set-up, make sure each piece of your financial process is represented in the software, and every piece corresponds to a person who is familiar with its operation. Train staff on the new software so that they know what can be accomplished, and how they should be reporting their numbers. Make sure everyone understands that the bottom line is accountability: to yourself, to the government, and to your funders and board. Buying the software is the hard part-reporting those numbers shouldn't be! For more detailed information on purchasing accounting software, see "Tech Tip" in this issue of Tech News. Also, check out these resources: CPA Software News http://www.cpasn.com/articles/2002/notforprofit.shtm Software for Small Computing Systems http://www.mapnp.org/library/infomgnt/software/software.htm NPF Accounting http://www.nfpaccounting.com Nonprofit Financial Center http://www.nfconline.org Quality 990 http://www.qual990.org
|
Planning & Management.... Software for Nonprofit Accounting (March, 2003) Would You Like To Improve Agency Communications? Develop an Intranet! (October, 2002) How to Accurately Plan Your Agency's IT Budget: A Workshop Synopsis (October, 2002) "Something from Nothing" - How Housing Works built a state-of-the-art IT infrastructure on a shoestring budget. (August, 2002) Making the Build-or-Buy Decision: A Thorough Analysis Before You Decide (February, 2002) Online Facilitation (December, 2001) The ABCs of ASPs (November, 2001) The Pros and Cons of ASPs (November, 2001) Using an Application Service Provider To Transform Your Agency (November, 2001) The Nonprofit Web Site: Tips for Attracting and Retaining Visitors (April, 2001) A Case Management System Case Study: Providence House (January, 2001) Covering Web Site Costs and Online Fund Development (January, 2001) I&R Best Practices: Profiles of Three NYC I&R Services (November, 2000) One To One Marketing for Nonprofits (May, 2000) Planning for Success: A Practical Approach to Technology (March, 2000) Networking for the Small Nonprofit: The Asian American Federation of New York (December, 1999) Developing a Technology Plan: Key to Getting Needed Funds (October, 1999) Should Your Organization be an E-Commerce Provider? (October, 1999) Stretch Your Technology Budget - Take Advantage of Product Donations (June, 1999) Contact Tracking That Works (April, 1999) How We're Using Information Technology to Further Our Mission (February, 1999) PeopleKnowledge: One Solution to Data Management (December, 1998) Softward Licensing: Protecting Your Organization From Lawsuits (October, 1998) Other Articles of Interest.... GuideStar: Getting Form 990 Online (October, 2001) Nonprofits Benefit from ePayments Technology (April, 2001) Paving the Way to the Future: DYCD's Comprehensive Contract Management System (January, 2001) Creating the Paperless Office (November, 2000) Globix Technology Grants Help Nonprofits Realize Operating Efficiencies (November, 2000) TECH-U-NET: Providing Technology Guidance to Nonprofits (November, 2000) Technology Technical Assistance: Why Use it, How to Manage it (May, 2000) New Web Site Facilitates Quality Program and Evaluation Planning (March, 2000) Lessons From the Life of a Learning and Access Center (December, 1999) Distance Learning and Training can be Low-Key, Low-Tech, and Low-Budget (October, 1999) If Your Computer is Looking a Little Green Around the Ears, it Might be a Virus (June, 1999) Program Donates Technology to Nonprofits (April, 1999) New York Today Offers Free Web Services for Nonprofits (February, 1999) Register Your Internet Domain Name Now (February, 1999) Diffusion Fund Enables Advanced Telecommunications for Disadvantaged. . .(December, 1998) BrookynX - A Guide to Getting Your Communities on the Net (October, 1998) Learning the FAQs: Free Education and Training for Nonprofits (October, 1998) |
 |
 |
|
| Search | Home |
| About Tech News Events Link Library Feedback Site Map Subscription |
