Choosing Accounting Software
How do you choose the right accounting software for your organization?
Nonprofits need to pay attention to consider 3 factors when choosing accounting software:
3. The complexity of reporting/allocation needs.
Factor 1 – Accessibility
Will desktop or online software satisfy your needs?
If multiple people need access to accounting software on a regular basis and those people will have regular access to the same computer, then a desktop software may work for your organization.
However, if they will NOT have regular access to the same computer, it may be worthwhile to consider a remote, cloud-based, or online accounting software.
Online software usually provides much more accessibility than desktop software and allows for multiple users and access via the internet.
This can be important for board members that change or when multiple people need to access the file, which they often do.
Factor 2 – Pricing
Will the accounting software fit into the budget or is it enough of a priority to tweak the budget for the software purchase?
Desktop software usually has a higher up-front cost and needs to be upgraded on a regular basis.
Online software is usually priced by monthly subscription, which can spread the cost over the course of a year.
Factor 3 – The Complexity of Reporting & Allocation Needs
Your organization wants to make sure that the accounting software has double-entry bookkeeping capabilities, reconciliation capabilities, and the capacity to build reports for your internal management and board.
It’s worthwhile to invest in software that can grow with your organization’s reporting and allocation needs.
When choosing your accounting software, pay attention to its accessibility, pricing, and the complexity of the organization’s reporting and allocation needs.