What Nonprofits Need to Look for in Accounting Software

Many nonprofit organizations need the same accounting system features and functionality as other for profit companies.  These basic accounting system features would include:  General Ledger, Accounts Receivable, Accounts Payable, Payroll.  In addition to the basic accounting system features, they also have requirements specifically for their nonprofit organization.  These features are unique towards nonprofit organizations.

Examples of these features would be:

  1. FASB 116 Compliance
  2. FASB 117 Compliance
  3. Accounting for Restrictions
  4. Grant Management
  5. Inter-fund Processing
  6. Cross-fiscal Year Reporting
  7. Fund Raising

Microsoft Dynamics GP is  a great solution for nonprofit organizations.  Backed by years of innovation and with more than 41,000 customers, Microsoft Dynamics GP extends the reach of insight, productivity and collaboration across your entire organization.  How does Brittenford Systems and Microsoft Dynamics help Virginia nonprofit organizations meet the unique features listed above?

Microsoft Dynamics GP adheres to FASB 116 and FASB 117 in primarily three ways.

  1. It provides end-users with the option of up to 66 account number segments.
  2. You have the ability to produce reports based on any one segment or combine them for reporting.
  3. You are able to create complex queries and restrictions on grants and other transactions that also obey time restrictions.

Grant Management in Microsoft Dynamics GP automates many of your grant management processes, helping you track grants more easily, demonstrate accountability, and attract future funding.  As you enter transactions, the Analytical Accounting module will automatically validate them against your budget, helping you keep tight control of actual spending against allocated funds.  Manage funds more efficiently by putting data in a centralized location.  Your staff can produce timely reports and work more productively without bottlenecks.  You can also integrate Microsoft Dynamics CRM to assist in more fundraising capabilities.  Fundraising management helps your nonprofit maintain donor profiles, create fundraising campaigns, manage the related responses and donations, record pledges and offer self service portals to accept more donations, pledges and event registrations.

Although some nonprofit organizations use ordinary accounting software to handle their day-to-day accounting operations, they do run the risk of shortcutting their record keeping and reporting requirements from the IRS and GAAP.  QuickBooks is a common accounting software used by organizations and does not have most of the key features a nonprofit would need.  Most of these companies that use QuickBooks might be really small and not subject to the outlines from the IRS and GAAP or they choose to ignore the requirements.

Brittenford Systems is a Microsoft Dynamics Partner focusing on nonprofit organizations in the Virginia area.

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ERP professionals providing insight and advice for not for profit organizations.