What are the Different Types of Nonprofit Accounting Software?

Accounting Services

To start with, using a generalization, there are two types of accounting software solutions – generic accounting software and industry-specific software. There are versions for non-profits, churches, governments, restaurants, retail, construction, etc.

Government (Federal, State, and Municipal) Accounting Software – Governments have different requirements and specifications for how they bring in and spend money than do corporations. They must deal with regulations and, sometimes, a completely different set of accounting rules. Accordingly, they have very specific software needs and companies have created systems just for them.

Basic Business Accounting Software – These packages include most of the standard accounting modules and features. There are a wide range of solutions and some are specifically for small to medium-sized businesses (SMBs) and others are massive (and expensive) but powerful accounting solutions for corporations in multiple countries and in multiple currencies. The basic software can be used by industry-specific organizations, as well, but they may have to be customized to fit their needs (or vice versa.)

General Ledger Software – This type of software is usually integrated into a complete software package, but occasionally you’ll see software just for the general ledger transactions. All the accounts and journals are entered and monitored here and the software can generate income statements, balance sheets and statements of cash flow.

Manufacturing Accounting Software – Some companies, including non-profit agencies, need accounting software specifically for manufacturing, light assembly, kitting, and other supply chain operations. These systems track warehouse and distribution data, inventory, assets, and job costing and job management information.

Inventory Control Software – For agencies that deal in inventory tracking – for example, a Goodwill store – this software can help control and monitor inventory levels allowing an organization to stay competitive. It can be a system where amounts are entered by hand or it can be a complex program that manages data with bar code scanners and RFID tags.

Fixed Assets Software – These applications, usually also part of complete accounting systems, help you track depreciation of assets as well as maintain accurate asset inventory tracking.

Accounts Payable Software – This, as well as Accounts Receivable software, is normally a major component of accounting software. It helps agencies track what is owed as an outstanding balance, as well as how long any balances have been outstanding.get new updates at http://www.readingeagle.com/business-weekly/article/accounting-state-of-the-profession-success-planning-talent-acquisition

Accounts Receivable Software – This software monitors what is owed to your organization, and how long it has been owed/when is due.
ERP Accounting Software – An ERP (Enterprise Resource Planning) solution is very popular among medium to large organizations. It is usually a complete package, customized with all the modules needed to run your agency – accounting, job management, supply chain management, human resources and payroll. They can be costly and take a long time to implement, but if used correctly can make any nonprofit run at maximum efficiency.

Budgeting Software – This application is very important to nonprofits and government agencies. Forecasting and correct budgeting is very necessary when limited or highly-scrutinized funds are required. This type of software helps automate the planning, budgeting, forecasting, reporting and analysis process for an organization.

Accounting Services

Fund Accounting Software – Tracking funds helps agencies understand how their money is being managed. You can track how funding is being spent across the organization and the programs or services you provide, providing feedback and transparency as well as results for stakeholders.

Tax Accounting Software – Some agencies may have a separate tax solution to help them submit tax information to city, state, and federal entities. The systems range from small personal tax applications, like TurboTax, to complex tax solutions for large organizations to handle reporting on donations, payroll, grants, etc.

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