Cloud Accounting Software: Everybody’s Doing It, Should Your Nonprofit?
If you’re like most nonprofits, you’re always on the lookout for the most effective ways to further your mission while being fiscally responsible. This often leads to outdated financial management systems for nonprofit organizations who choose to hang on to their legacy systems in an effort to save money. The problem is these legacy systems are costing your nonprofit time and money, all wasted with ineffectiveness.
That’s why so many nonprofits are making the switch to cloud accounting software for their fund accounting needs.
But what’s so great about it anyway, and how do you know if cloud accounting software is right for your nonprofit organization?
Cloud-based financial management software allows your nonprofit reliable and affordable functionality and service that onsite systems can’t provide. It’s accessible to your team anytime, anyplace.
In order to remain successful in this digital era, many nonprofit organizations have replaced their outdated legacy systems for more modern, cloud-based financial management solutions. Making this move could also be a good idea for your nonprofit, but it’s hard to know where to start.
Here are a few questions to ask as you consider whether the cloud accounting software is the right technology for your nonprofit.
When choosing the right technology for nonprofit financial management and fund accounting, financial managers and CFOs need to ask the following questions:
- What can cloud accounting software offer? A cloud-based financial management solution alleviates the burden of system upgrades, support, and maintenance from your IT team, integrates with other applications, and improves productivity and mobility with remote access.
- Are there different kinds of clouds? There are public and private clouds and a hybrid cloud deployment involves a combination of public, private or on-premises infrastructure.
- Is the cloud secure enough to handle nonprofit accounting software? Cloud providers offer secure environments that incorporate the latest standards and are supported by a team of security experts. Their security measures exceed what many nonprofits have in-house for their fund accounting needs.
- Can the cloud improve reporting and transparency? Cloud accounting software streamlines accounting practices with built-in and customizable workflows and comprehensive audit trails that strengthen the audit process for nonprofits.
- How do I choose the right cloud accounting software for my nonprofit? Nonprofits are unique organizations that require specific management support. Choose a financial management solution that is aligned with operations, is flexible enough to keep up with changes, and that is easy to learn and use.
- So what exactly should I look for in nonprofit cloud accounting software? The best fund accounting solution will meet your organization’s needs, no matter how unique the structure. You want to find the best accounting software for your nonprofit, so be sure to look for a fund accounting system that includes these features:
- Gives real-time financial and operational insight into your nonprofit to help you understand the performance of your organization.
- Provides dashboard templates and customizable dashboards to create the reporting experience that’s right for you and your board.
- Allows you to demonstrate proper stewardship of funds through your budgeting, planning, and expense management.
- Ensures compliance of rules and regulations supported by comprehensive audit trails.
- Eliminates the need for manual processes with numerous automated workflows.
- Provides other benefits of cloud accounting software including available anytime access, seamless integration, and reduced IT costs.
- How do I choose a provider? Your cloud technology provider should be well-versed with the challenges faced by nonprofits and the cloud-based solutions that solve those challenges. The right provider will help you find the best accounting software for your nonprofit’s unique financial structure and fund accounting needs.
Nonprofit organizations are turning to cloud-based financial management systems to improve operations, strengthen oversight of fund accounting and grant projects, and alleviate the time and financial burden of managing IT systems while improving security measures.
Learn more about nonprofit cloud accounting software with our free ebook, Financial Management for Nonprofits. This ebook offers guidance to understand the tools and procedures you need and how to choose the technology best aligned with your operations and goals. Download the ebook now.