5 Reasons Cloud Accounting Helps Nonprofit Organizations Run Better
Running a nonprofit finance organization is a tremendous challenge. You’ve got day to day operational issues, including managing cash, providing your management team with financial visibility and helping your organization stick to its budget. But you’ve also got unique challenges — from dealing with strict requirements to accounting for and reporting sources and uses of funds.
Cloud accounting can improve operational efficiency – making nonprofit organizations run better!
Here’s 5 reasons why.
- We’re Not Kidding…Big Efficiency Boosts! You want to make your core financial operations faster and more efficient, thanks to Intacct’s ability to automate finance and management workflows and approvals. Plus, easily manage grants, programs, and funds. Track qualified and non-qualified expenses, and monitor performance and outcome measures.
- Goodbye Manual Reporting: You want to take the pain and inefficiency out of your financial, operational, and compliance reporting with easy-to-use automated reporting tools. Forget the data re-entry and collection of disparate spreadsheets. You want to automatically create GAAP financial statements, Form 990 submissions, and FASB compliance reports – and point-and-click your way to drill down to virtually any other view of your data.
- Hello World-Class Fund Stewardship! Innovative cloud accounting software solutions available today make it straightforward to ensure that your organization is appropriately stewarding donations and grants. You can track an unlimited number of funds, grants and donations and you can tie time and expenses at the employee, task or project level back to one or more sources of funds. Because grants, endowments, gifts and other programs may run for many years and cross fiscal periods, today’s accounting software allows all reporting, analysis, modeling and planning to cross fiscal periods and to span multiple fiscal periods.
- Compliant Revenue Management: Revenue management can be complex for nonprofits such as membership associations and faith-based organizations that bill members on a different time schedule than the way you recognize revenue. For example, you may bill your members in advance, but recognize revenue at regular intervals as the year progresses. Cloud accounting software, like Intacct, allows you to decouple your billing schedule from revenue recognition so you can efficiently and accurately manage even the most complex billing and revenue recognition schedules.
- Cloud Computing was Made for Nonprofits: Cloud adoption is accelerating for nonprofit organizations. Running a nonprofit finance organization is a tremendous challenge. You’ve got day-to-day operational issues, including managing cash, providing your management team with financial visibility and helping your organization stick to its budget. With cloud accounting software in place, like Intacct, you can take advantage of complete security and guaranteed performance with efficient, pay-as-you-go subscriptions.
In a survey by TechValidate, the top challenges nonprofit organizations struggle with include a reliance on spreadsheets to support financial processes and reporting (65%), limited access to reports and information to drive decision making (60%), excessive manual data entry/re-entry (55%), and difficulty in adapting existing software to new business requirements (45%).
At the end of the day, very few philanthropic organizations and other nonprofit entities place a great deal of value in growing and managing a large information technology organization – they don’t want to purchase, operate and maintain hardware and infrastructure to support financial management. Cloud accounting promises a far lower total cost of ownership, freeing precious cash and allowing finance teams to focus on the organization’s true mission.
This content was originally posted here.
In business since 1971, CompuData is an award-winning business technology solution provider. Headquartered in Philadelphia, PA, CompuData has helped thousands of small to midsize clients nationally and in the Philadelphia metro region (PA, NJ, DE, NY) optimize their business with technology.