The Best Accounting Software for Nonprofits of 2024
When it comes to managing finances for your nonprofit organization, it’s important to have the right tools at your disposal. After careful research and consideration, we’ve compiled a list of the best accounting software options for nonprofits in 2024. Here are our top picks:
- Aplos: This software is the best overall option for nonprofits, offering a range of features including fund accounting, donation tracking, and financial reporting.
- FreshBooks: If you’re looking for a software that excels in expense tracking and management, FreshBooks is the way to go. It offers intuitive tools for tracking expenses, generating invoices, and managing receipts.
- Xero: For in-depth and customizable reporting, Xero is the best choice. It offers a wide range of reporting options, including custom reports, and allows for easy integration with other business tools.
- Zoho Books: Zoho Books is the best option for automations, with features like automated bank feeds, recurring invoices, and payment reminders.
- Intuit QuickBooks: This software is the best for nonprofit cash flow management. It allows for easy tracking of income and expenses, and offers tools for forecasting cash flow.
- Realm: For easy church donation management, Realm is the way to go. It offers a range of features specifically designed for churches, including online giving and pledge tracking.
- Wave Accounting: If you’re looking for free basic accounting tools, Wave Accounting is the best option. It offers a range of features including invoicing, receipt scanning, and basic financial reporting.
- Quicken: For volunteer-run nonprofits, Quicken is the best choice. It offers easy-to-use tools for managing finances, including budgeting and expense tracking.
- NetSuite: NetSuite is the best option for tailored accounting software. It offers a range of customizable features, including financial reporting, budgeting, and forecasting.
- Sage Intacct: If you’re managing large, global nonprofit financials, Sage Intacct is the way to go. It offers a range of features specifically designed for large organizations, including multi-entity accounting and global consolidations.
No matter what your nonprofit’s specific needs are, one of these accounting software options is sure to be a great fit.
Best (Overall) for Donor Management
Aplos
If you are a nonprofit organization looking for a comprehensive donor management solution, Aplos might be the right choice for you. Aplos offers a range of features, including fund accounting, donation tracking, online gift forms, financial and giving reports, and event registration. Its Core plan, priced at $49.50 per month, also includes budgeting, accounts payable (A/P) and accounts receivable (A/R), recurring transactions, and pledge tracking. The Advanced Accounting plan, priced at $189 per month, provides budgeting by fund, fixed asset tracking, income and expense allocation, and project-specific reporting. For organizations that support and manage multiple entities, Aplos offers an Enterprise plan that is tailored to each customer.
Aplos stands out for its customer relationship management (CRM) component. With this software, you can create donor profiles, communicate with donors, keep a record of the relationship, and personalize your engagement and retention strategies with targeted outreach tools. Donor management tools then help you increase retention, track donations, and fundraise.
Pros & Cons
Here are some pros and cons to consider before choosing Aplos:
Pros
- CRM software that allows you to create donor profiles and personalize engagement strategies
- Donation tracking and giving statements to help you keep track of donations
- Fundraising tools to help you raise funds for your organization
- Secure donor portal to ensure the safety of donor information
- Donor management tools to help you increase retention and track donations
Cons
- Lower-tiered plans do not include project- or campaign-specific budgeting and reporting
- Lower-tiered plans do not include income and expense allocation
- Plans can be pricey for some organizations
Overall, Aplos is an excellent choice for nonprofit organizations that need to attract and retain donors through targeted donor management, such as churches. With its comprehensive features and CRM component, Aplos can help you streamline your donor management processes and increase your fundraising efforts.
Best for Expense Tracking and Management
FreshBooks
FreshBooks is a cloud-based accounting software that offers a range of features for small businesses and nonprofits. Its Lite plan starts at $17 per month, with a promotion offering the first three months at $4.25 per month. The software is designed to help nonprofits track expenses and manage restricted funds.
Features
FreshBooks’ Lite plan offers invoices for up to five clients, unlimited expense tracking, estimates, and sales tax tracking. Its second and third-tier plans, priced at $30 and $55 per month respectively, offer additional features such as the ability to bill up to 50 clients, automate expense tracking, set up recurring donations, track mobile mileage, customize emails, and track project profitability and accounts payable.
Expense Tracking
FreshBooks’ software stands out for its extensive expense tracking tools. You can connect a bank account, and FreshBooks will generate spending reports. You can also categorize spending within the software. Time-tracking tools tell you how long it takes an employee to complete a project’s task. Once you know the time employees spend on a project, you can allocate project funds to those employees.
Restricted Fund Management
FreshBooks’ software also offers tools for managing restricted funds. Nonprofits that need to track restricted funds should consider FreshBooks. The software allows you to manage restricted funds, with the ability to set up and track restricted funds, generate reports, and manage fund balances.
Pros & Cons
Pros of FreshBooks include a 30-day free trial, affordable pricing, restricted fund management tools, and extensive expense tracking tools. However, there are some cons to consider, such as the fact that FreshBooks is not a nonprofit-specific software and there is an extra cost to add new team members. Additionally, it may not be suitable for large nonprofits.
**Learn more: **Read our full FreshBooks review.
Best for In-Depth and Customizable Reporting
Xero
Xero is an accounting software that offers a range of features for nonprofits, including reporting, payment acceptance, file storage, contact management, tax calculations, and bank account syncing. Its plans start at $15 per month ($7.50 per month for the first four months during the current promotion) and offer different tools depending on the plan.
Features
Xero’s highly customizable and in-depth reporting tools make it stand out. You can access real-time reporting, customize reports via a drag-and-drop interface, input your own if-then statements and other formulas to compare and calculate scenarios, share reports, set specific key performance indicators (KPIs), and track categories or business areas. By tracking categories, you can know if funds are being allocated to the right projects based on donor intent.
Pricing
Xero’s plans start at $15 per month ($7.50 per month for the first four months during the current promotion) and offer different tools depending on the plan. Its $15 per month plan offers invoicing and quotes tools, bill tracking for five bills, bank and Xero syncing, and 30-day cash flow snapshots. Its $42 and $78 plans add bulk transaction reconciliation, higher bill pay limits, project tracking, and analytics. However, you must pay $40 extra for payroll software through Gusto.
Who Should Use It
Nonprofits that need in-depth reports on different projects and the ability to compare actual reports against alternative scenarios for planning purposes should consider Xero’s accounting software. Its highly customizable and flexible reporting tools allow for a deep dive into financial data and analysis.
Pros & Cons
Pros:
- 30-day free trial
- Unlimited uses and clients
- Advanced reporting
- File storage and sharing
- Invoices
- Professional quote creation tools
- Sales tax calculations
- 24/7 online and live chat support
Cons:
- Extra $40 fee for payroll tools
- Limited bill tracking in first-tier plan
- No analytics in lower-tiered plans
- No nonprofit-specific features
- No 990 filing guidance
- Limited quotes and invoices in first-tiered plan
Overall, Xero’s highly customizable and in-depth reporting tools make it a great choice for nonprofits that need detailed financial analysis and reporting. Its plans offer a range of tools and features at different price points, making it accessible for organizations of varying sizes and budgets.
Best for Automations
Zoho Books
Zoho Books is a cloud-based accounting software that offers a range of features to help nonprofits manage their finances efficiently. The software offers a free plan for one user, which includes invoicing, payment tracking, expense tracking, and accounting reports. The paid plans range from $15 to $240 per month (if billed annually) and offer additional features such as custom domain names, workflow automation, recurring expense tracking, and project expense tracking.
One of the standout features of Zoho Books is its automation tools. With Zoho Books, you can automate repetitive tasks such as sending recurring invoices, sending payment reminders, categorizing transactions, and auto-charging cards for recurring transactions. This can help reduce labor costs and improve efficiency for nonprofits.
Zoho Books also offers restricted fund management tools, which can be helpful for nonprofits that need to manage funds for specific projects or purposes. In addition, the software offers a 15% discount for registered nonprofits.
While the free plan does not include automation rules or chat or phone support, the paid plans offer a range of features that can be helpful for nonprofits. Overall, Zoho Books is a great option for nonprofits that need highly intuitive software that even employees with no accounting experience can use.
Best for Nonprofit Cash Flow Management
Intuit QuickBooks
Intuit QuickBooks is a popular accounting software that offers a range of plans for nonprofits. With prices starting at $30 per month, it provides nonprofit-specific tools to manage restricted funds and Form 990 filing guidance.
Why We Recommend It
The software offers a discount for nonprofits through TechSoup and a 30-day free trial. Its plans range from $30 to $200 per month, with the first three months available at a 50% discount. QuickBooks Online Advanced plan offers a Cash Flow Dashboard that helps nonprofits keep track of each project’s cash flow. The software’s reporting tools also help create a spending roadmap to avoid overextending cash flow. Additionally, the CRM feature helps manage donor retention to keep cash flow healthy.
Who Should Use It
QuickBooks is best suited for mid-sized nonprofits that need better control of their cash flow. Its higher-tiered plans include advanced features such as automations, inventory management, and expense tracking.
Pros & Cons
Pros
- Discounted nonprofit version
- 30-day free trial
- Cash flow forecasting
- CRM to manage donor retention
- Nonprofit-specific tools
Cons
- Must pay extra for payroll services
- Limited users in each plan
- No workflow automation in lower-tiered plans
- Nonprofit-useful features in most expensive plans only
Overall, QuickBooks is a reliable option for nonprofits looking to manage their cash flow effectively. Its nonprofit-specific tools and discounted version make it an excellent choice for mid-sized nonprofits.
Best for Easy Church-Donation Management
Realm
If you are looking for an easy-to-use option for managing donations, Realm is a great choice. With its Inform plan, you can create donor profiles, manage donor pledges, and view donor history and statements. You can also provide donors with giving options such as text, web-based, or recurring giving, and allow restricted giving.
Realm offers a superior 24/7 customer support in a variety of formats, including an online Help Center, phone support, online webinars, personalized training, local user groups, and an annual client conference. This makes it easy for your church to get the support it needs in the format that works best for you.
One of the best things about Realm is that it has fewer features than some competitors, making it less overwhelming to use. However, this also means that it may not be appropriate for all nonprofits.
Unfortunately, Realm does not list its prices publicly, so you will need to contact them directly to find out how much it will cost.
Who should use it:
Churches that need an easy-to-use option and basic accounting functionality for managing donations should consider Realm.
Pros:
- Superior 24/7 customer support in a variety of formats
- Donor profiles
- Pledge and donation management tools
- Easy to use
Cons:
- Fewer features than some competitors
- Not appropriate for all nonprofits
- Price not available publicly
Best for Free Basic Accounting Tools
Wave Accounting
Wave Accounting is a free accounting software that offers a range of basic accounting tools for small businesses and nonprofits. While the payroll, transactions, and bookkeeping support come at an additional cost, the free version of Wave offers invoicing, accounting, and banking tools.
Why You Should Consider Wave
Wave’s free invoicing tools allow you to create customized and branded invoices and send automated payment reminders to clients. You can also accept credit cards, bank payments, and Apple Pay from invoices. Its free accounting tools provide income and expense tracking, reports such as overdue invoice reports, and a reporting dashboard. Finally, its banking tools enable you to automate bookkeeping, receive instant payments, and deposit checks via a mobile app.
Who Should Use Wave
If you are a nonprofit with extremely basic accounting needs and a nonexistent budget, Wave is an excellent choice. Its free forever plan offers a range of essential accounting tools to manage your finances without breaking the bank.
Pros & Cons
Here are the pros and cons of using Wave Accounting:
Pros
- Free forever plan
- Free customized invoicing
- Free payment acceptance and reminders
- Free income and expense tracking
Cons
- Per-transaction fees for payment processing
- Tax services cost more
- Support costs more
- No restricted fund tracking
Overall, Wave Accounting is an excellent choice for small nonprofits with basic accounting needs. Its free accounting tools offer essential features to manage your finances and keep your organization’s budget in check.
Best for Volunteer-Run Nonprofits
Quicken
Quicken is a budgeting and financial management software that offers plans ranging from $4.99 to $9.99 per month (billed annually and offered at a promotional discount for the first year). The most relevant plan for nonprofits is the $6.99 Quicken Classic Business & Personal plan (normally $9.99), which offers the ability to create multiple budgets for different projects and track projected cash flow.
Form 990 Filing Guidance Tools
Quicken provides tools to help nonprofits file the Form 990, which is the annual information return that most tax-exempt organizations must file with the IRS. These tools can help nonprofits stay compliant with IRS regulations and avoid penalties.
Restricted Fund Management Tools
Quicken also offers tools to help nonprofits manage restricted funds, which are funds that are earmarked for specific purposes. These tools can help nonprofits ensure that they are using restricted funds in accordance with donor intent and avoid legal issues.
Pros & Cons
Pros:
- 30-day money-back guarantee
- Very affordable
- Tax reports
- Projected cash flow reports
- Expense and fund-specific management tools
Cons:
- No free plan
- Limited features compared to competitors
- Must install Quicken on a computer, then use companion web service
- Quicken Home & Business plan only available for Windows computers
Who Should Use It?
Quicken is best for very small nonprofits that do not have employees for whom they have to process payroll. With no payroll tools, Quicken allows solo-run nonprofits that rely on volunteers to perform basic business accounting, such as allocating funds based on donor intent to different categories or budgets. In addition, they can track expenses and capture receipts to simplify tax filings and report to donors the nonprofits’ overhead-versus-project costs. Finally, they can generate checks to pay for expenses and bills.
To learn more about Quicken, read our full Quicken review.
Best for Tailored Accounting Software
NetSuite
NetSuite offers a customized solution that caters to the unique needs of each client, making it a great choice for large companies with extensive digital infrastructure and unique needs across resource management, accounting, customer relationship management, and human resources.
The accounting software offers accounts receivable and payable, cash management, fixed asset management, a general ledger, and tax management solutions. In addition, NetSuite’s suite of modules includes an enterprise resource planning (ERP) solution, a CRM, a human resources (HR) solution, automation capabilities, analytics and reporting, and omnichannel commerce capabilities. You can buy modules to create a custom solution that meets your nonprofit’s needs and then integrate third-party apps such as Salesforce.
NetSuite’s global tax management covers 110 countries, making it an ideal solution for international nonprofits. The interface is highly customizable, allowing you to tailor the software to your specific needs. However, there is no upfront pricing, and a one-time implementation fee is required.
Overall, NetSuite is a complex solution that offers full-featured accounting and reporting plans, making it an excellent choice for large nonprofits with unique needs.
For more information, read our full NetSuite review.
Best for Managing Large, Global Nonprofit Financials
Sage Intacct
Sage Intacct is a robust accounting software that offers a range of features and functionality, making it an excellent choice for global nonprofits that must work across currencies and tax codes to manage their financials. With Sage Intacct, you can consolidate the financials of multiple global entities into one platform, then connect business management software such as Salesforce. You can also consolidate across multiple currencies and local tax codes automatically and in minutes.
One of the standout features of Sage Intacct is its ability to automate accounting tasks for added efficiency. This includes accounts payable and receivable, cash flow management, collaboration tools, contract and subscription billing, payroll management, project costing and billing, project accounting, financial reporting, sales and use tax calculations, and time and expense management.
Sage Intacct also offers tools for managing restricted funds, which can be a critical need for many nonprofits. Additionally, Sage Intacct provides Form 990 filing guidance tools, which can help nonprofits ensure compliance with tax regulations.
While Sage Intacct does not offer its prices publicly, it does offer a 30-day free trial. However, it’s worth noting that Sage Intacct is very pricey and may not be suitable for small nonprofits. There is also a steep learning curve associated with the software.
Overall, Sage Intacct is an excellent choice for large, global nonprofits that require robust accounting software with multi-entity consolidation and multi-currency functionality.
Methodology
When compiling this best-of 2024 guide for nonprofit accounting software providers, we took into consideration a range of factors to ensure that we included a variety of options to suit different needs. We evaluated each provider based on their value for cost, ease of use, features and functionality, and customer support.
Cost and Fees
Our aim was to include a mix of providers that offer plans at varying price points to cater to small and large nonprofit organizations. However, we prioritized providers that offer a lot of features and functionality for their given price. We believe that the cost of the software should reflect the value that it provides to the organization.
Ease of Use
We understand that nonprofit organizations have varying levels of experience with accounting software. Therefore, we included a mix of options that cater to those with no experience as well as those with advanced experience. We aimed to provide a range of choices that have zero learning curves to some with more advanced features.
Customer Support
We prioritized providers that offer attentive and knowledgeable live customer support. We also looked for providers that offer a variety of support formats, such as phone, live chat, forums, webinars, personalized training, and more. Our aim was to provide options that cater to different preferences and needs.
Features and Functionality
We included providers that offer basic accounting features for nonprofits on a budget, as well as those with a robust feature and functionality offering coupled with a steep learning curve and a bigger price tag. Our goal was to help nonprofits balance providers’ features against their level of tech knowledge and their budgets.
In conclusion, we evaluated each provider based on their value for cost, ease of use, features and functionality, and customer support. We aimed to provide a range of options that cater to the needs of different nonprofit organizations.
How to Choose an Accounting Software for Your Nonprofit
When it comes to choosing the right accounting software for your nonprofit, there are a few key factors to consider. By following these steps, you can ensure that you select a software that meets your organization’s needs and budget.
Step 1: Determine Affordability and Availability
The first step is to determine whether the software you are considering is affordable and available for your organization. Look for software that offers a free trial or a version you can use to try the software before buying. Additionally, consider software that offers nonprofit discounts. Finally, check out the prices of each plan and narrow down your list of considered software to the ones you can afford.
Step 2: Identify Necessary Features
The next step is to make a list of the features your organization needs to properly track, report and manage its funds and taxes. Ensure that the software you choose has the ability to track and allocate restricted funds, process payroll, and pull reports to aid you in filing your 990 form. Reference your list of considered providers and the plans you can afford. Find the provider and plan that most closely matches the list of features your organization needs.
Step 3: Evaluate Advanced Plans
Once you have chosen an affordable software and respective plan that includes the accounting features and functionality your nonprofit needs, evaluate its more advanced plans. Determine if you are likely to be able to afford them and if they include the necessary features your nonprofit needs as it grows.
By following these steps, you can confidently choose the right accounting software for your nonprofit, ensuring that your organization’s finances are properly managed and reported.
Frequently Asked Questions
Is QuickBooks Suitable for Nonprofits?
Yes, QuickBooks is a great option for nonprofits. It provides basic nonprofit accounting functions, such as managing donors and grants, receiving donations, managing restricted funds, and accessing necessary financial reporting. Additionally, QuickBooks allows you to upgrade to higher plans for advanced functionality as your nonprofit grows.
Is There a Nonprofit Version of QuickBooks Online?
Yes, QuickBooks offers a discount on its QuickBooks Online software through TechSoup. This version of QuickBooks Online provides all the accounting features and functionality that nonprofits need, including the ability to manage nonprofit finances, file Form 990, and file taxes.
What Features Should You Look for in Accounting Software?
When choosing accounting software for your nonprofit, consider which features are most important to your situation. The best accounting software programs offer similar features, but some are better for specific actions. For example, some software is best for accounts payable (A/P) and banking and cash management, while others are geared towards retail companies, offering cost tracking, inventory management, and collecting and submitting sales tax. Other features to consider include whether the software has a mobile app, how good its customer service is, and how well it does with accounts receivable (A/R) and financial reporting.
How Do Nonprofits Prepare Financial Statements?
To prepare financial statements, nonprofits should document incoming funding, such as donations and fundraised money, throughout the year and break it down by month. They should also track outgoing funds, such as salaries, wages, and other business expenses, and break them down by month. Provide an annual total of both and subtract the sum of all expenses from the sum of incoming funding. Finally, write an explanation addressing how surplus (profits) will be reinvested into the nonprofit.
Is Accounting Software Secure?
Yes, leading accounting platforms offer standard security features, such as data encryption and secure credential tokenization. While human error can play a role in security breaches, you can trust that your accounting platform will keep your information safe.
What are the top recommended accounting software solutions for small to medium-sized nonprofit organizations?
There are several accounting software solutions available for small to medium-sized nonprofit organizations. Some of the top recommended options include QuickBooks Nonprofit, Aplos, Xero Nonprofit, and Sage Intacct. These software solutions offer features such as fund accounting, donation tracking, and financial reporting specifically tailored to the needs of nonprofit organizations.
How does QuickBooks compare to other accounting software for nonprofit use?
QuickBooks Nonprofit is a popular choice for nonprofit organizations due to its user-friendly interface and robust features. However, it may not be as comprehensive as some other options, such as Sage Intacct, which offers more advanced financial management and reporting capabilities. It’s important to evaluate the specific needs of your organization and compare the features and pricing of different software solutions before making a decision.
Are there any completely free accounting software options tailored for nonprofit organizations?
While there are some free accounting software options available, they may not be tailored specifically to the needs of nonprofit organizations. Some examples of free accounting software include Wave and GnuCash. However, these solutions may not offer features such as fund accounting or donation tracking that are essential for nonprofit financial management.
Which accounting software offers the best features for nonprofit financial management and reporting?
Sage Intacct is widely considered to be one of the best accounting software solutions for nonprofit financial management and reporting. It offers advanced features such as fund accounting, grant tracking, and real-time financial reporting. Other options such as QuickBooks Nonprofit, Aplos, and Xero Nonprofit also offer robust features tailored to the needs of nonprofit organizations.
Can nonprofit organizations find robust accounting software that is also user-friendly for volunteers or non-accountants?
Yes, many accounting software solutions offer user-friendly interfaces that are accessible to volunteers or non-accountants. QuickBooks Nonprofit, for example, is known for its intuitive interface and ease of use. Other options such as Aplos and Xero Nonprofit also offer user-friendly interfaces and support for multiple users.
What should nonprofits look for in accounting software to ensure compliance with financial regulations?
Nonprofit organizations should look for accounting software that is specifically tailored to the needs of nonprofit financial management. This includes features such as fund accounting, donation tracking, and grant management. In addition, it’s important to ensure that the software is compliant with financial regulations such as GAAP and FASB. It’s also important to consider the pricing and support options offered by different software solutions.
Next Up In Business
As we move forward in the business world, there are several trends and developments to keep an eye on. Here are some key areas to watch:
- E-commerce: With the rise of online shopping, businesses must adapt to the changing landscape and prioritize their online presence. This includes optimizing their website for mobile devices, offering seamless checkout experiences, and utilizing social media platforms to reach customers.
- Sustainability: Consumers are increasingly conscious of their environmental impact and are looking for companies that prioritize sustainability. Businesses can differentiate themselves by implementing eco-friendly practices, such as using renewable energy sources and reducing waste.
- Artificial Intelligence: AI technology is becoming more prevalent in the business world, and companies that embrace it can gain a competitive edge. AI can be used for tasks such as customer service, data analysis, and even product development.
By staying up-to-date on these trends and making strategic decisions, businesses can position themselves for success in the ever-changing landscape of the business world.