Reputation is everything for nonprofits to continue their mission. Requests for transparency and accountability with financial reporting demand that contributions are used as intended. Programs like AccuFund nonprofit accounting software can help organizations meet obligations without losing too much time with the public they serve.
Here are three ways that accounting software can help nonprofits overcome the challenges of keeping their books in order.
Manage Cash Flow
Without cash flow, a nonprofit cannot keep the doors open and fulfill its mission. Yet, it remains one of the most difficult challenges for this type of organization. Managing cash flow in an effective and efficient manner can alleviate concerns about how programs operate.
Accounting software keeps an electronic track of how money flows in and out of the organization so leadership can focus on their main goals.
Simplify Grant Tracking
Most nonprofits have to keep track of multiple grants from different sources, which can make managing records a time-consuming task. Not knowing how grant money is spent can disqualify them for future grants.
AccuFund nonprofit accounting software keeps a record of when grant money is used and whether it was used for the right reasons. This type of software helps to ensure everything runs smoothly.
Generally, pledges make up a large portion of charitable giving and donations that a nonprofit receives. It can be difficult to keep track of pledges, especially if they frequently come in throughout the year. knowing what was pledged and when it is paid is important for the nonprofit to know how much money they can expect to fund programs and services.
Accounting software designed for nonprofits can help with accurately tracking these records. It can send reminder alerts to ensure employees stay on top of what gets pledged during a campaign and throughout the year.
Some say money makes the world go around. If this true for nonprofits, not keeping track of money coming into the organization can end its existence. Accounting software is a great solution that gives nonprofits high levels of transparency and accountability so they can make solid decisions without betraying trust.