By Stephanie Elsen
Are you looking for a better way to handle the accounting for your nonprofit organization? There are so many accounting software products available and it can be hard to decide which one is right for you. In case you are wondering if CenterPoint Accounting for Nonprofits will be a good fit, here are some statistics about the nonprofits who look to Red Wing Software for their nonprofit accounting.
- About 48% need fund accounting and nonprofit specific features. When you are trying to manage different funds, it can be hard to do that in a basic accounting system that was made for small businesses. Most nonprofits who make a move to CenterPoint Accounting for Nonprofits have tried to make that kind of system work for their needs, but find that it would be far easier to use a system made for that purpose.
- 22% are outgrowing their basic software. Nonprofits that have grown over the years often move to Red Wing Software to accommodate a growing organization, more users, more data, and more! When a system gets bogged down, can’t be networked or accommodate additional users, it’s time to move to something new.
- 17% are doing the accounting by hand. Saving money can be appealing, and starting out by doing the accounting for your organization by hand is common. As time goes by, you will know when you are at the point of needing a better way to handle the accounting. This is when many organizations turn to CenterPoint Accounting for Nonprofits.
- About 13% are new organizations. If a nonprofit organization knows at the start what they need to get the reports, budgeting, and financial management tools in a meaningful format, they start by using an accounting system that can handle those things. By starting out with CenterPoint Accounting for Nonprofits, you can use the system for many years, instead of looking for something better after only a brief period of time.
Red Wing Software and CenterPoint Accounting for Nonprofits have helped thousands of nonprofits manage their financial information. Contact us today to see how we can help you by calling 800-732-9464 or e-mailing firstname.lastname@example.org.
Tracking by Funding Source
Fund accounting software allows you to track funding sources in a way that is useful to you, by department, program, grant, profit center, and more. Since information is tracked this way, reports can be pulled and viewed for each source, and the data is easily understood.
Fund accounting software provides budgeting tools so you are more accurate in your budget projections and reporting. You have the ability to budget by fund and by department, giving department heads or managers the information they need to quickly compare their actual spending to the budget.
Because non-profits have different reporting requirements than other organizations or businesses, it’s important to have a customized reporting tool that allows you to edit and save reports tailored to your specific needs.
Most organizations use past history and trends to determine their budget. With a limited number of funds that are predetermined, the goal of the budget is to cover operational costs as well as plan for future capital expenditures. Without comprehensive fund accounting and payroll tools, it can be difficult to organize and manage the budget efficiently. Here are five tips on maintaining a better budget.
- Manage budget by department and by fund. Some programs only allow budget management by fund. However, the ability to also manage by department gives quick access to a wealth of information about each department. Being able to see budget data by department and by fund can give department heads or managers the information they need to quickly compare their actual spending to the budget.
- Unlimited funds. Be sure whatever system you are using allows for an unlimited number of fund accounts, ensuring that the system can still handle all of your organization’s budgeting needs. Each organization is different and you may want to add additional funds down the line.
- Customizable reporting. Your organization clearly wants to see your data in a way that is most useful to you - complete and accurate. With a system that you can customize, you will be able to view reports with information specific to your reporting needs.
- Integrated payroll. If your pay data is not integrated with your accounting data, you may not easily be able to get a clear view of your budget and where it stands. By integrating the two, you will streamline your payroll processes and pay information can accurately be viewed within financial reports.
- Copy budget from previous year(s). With the ability to copy and edit a budget from a previous year, you can save significant time setting up your budgets each year. You will also be more confident in your budget, knowing it was based on a budget system that had already been in place the prior year.
With the above budgeting tips, you will find the budgeting process much simpler to set up and manage!