Fund Accounting Software – Ideal for Non-Profit Organizations
Fund accounting software has wide applications in large organizations with complicated accounts to be managed. There are companies offering a range of fund accounting and fundraising software solutions that are suited to the unique needs and missions of nonprofit organizations and government agencies. Often the non-profit organizations are dependent on funding from external agencies. For such organizations, this can be a useful tool. The Fund accounting software is getting increasingly sophisticated by the day, with the regular addition of added features; that is a key reason why companies prefer to use this software.
Non-profit organizations require fund accounting software for maintaining records and keeping track of their funds. Non-profit organizations maintain a separate balance sheet date for each account. The balance sheet includes basic financial elements such as assets, liabilities, and fund balance. Fund accounting software is advanced software ideally suited for complex accounting functions. There are small businesses which do not require such complicated calculations; such organizations can opt for simpler software like QuickBooks or One-Write Plus.
Nowadays in the market you will find many vendors with their own versions of fund accounting software. Before opting for fund accounting software, it is always better to check whether the package is complying with the regulations set by the Financial Accounting Standards Board. This is important in case of non-profit organizations that have to present financial information in the form of audited statements.
The smaller non-profit organizations prefer fund accounting software with relatively lesser number of features so that they are able to generate simple financial reports. On the other hand, large non-profit organizations go in for the more advanced versions of fund accounting software with additional features, enabling them to manage complicated accounts. Irrespective of the size of the organization, you need to hire an accountant or a bookkeeper with domain area expertise, so that he is able to use the software in the first place. Inexperienced staff would not able to use the software properly.