Nonprofit organizations have specific accounting needs, yet many nonprofits select low-cost, for-profit accounting software packages. Alternately, some nonprofits purchase fund accounting packages once, but then decide against purchasing upgrades, thinking that what they have is good enough. While both options present short-term savings, the hidden costs can add up quickly over time.
Without the right tools, your accountants spend additional time and energy, creating and repeating error-prone manual processes that a purpose-built, modern fund accounting package would do for them. The effort invested immediately negates the initial cost savings of a low-cost or outdated accounting package and ongoing administrative costs continually impact your organization’s ability to devote funds to your programs.
If your nonprofit is currently using a for-profit or outdated fund accounting solution, there are five ways that system is costing you money. Read on to discover how your nonprofit can decrease administrative costs, streamline accounting practices, and reduce risk by switching to a modern fund accounting solution.