Accounting systems are vital to the smooth running of your nonprofit. While you may not need to change your accounting system regularly, at some point, you may need to upgrade it. If your current accounting system is struggling to keep up with your organization’s needs, here are the benefits you’ll get when you modernize your system:
While the initial cost of modernizing your accounting system may seem hefty, modernizing it can save you a significant amount of money. Like many long-term investments, you may not see the return on investment immediately, but you’ll reap huge benefits in the future.
An outdated accounting system can frustrate employees and lower their morale, mainly if it’s tedious to use. Modernizing your accounting system can boost morale. Many modern account systems eliminate the need for employees to perform tedious tasks like manually inputting data. As a result, they can improve productivity and allow employees to focus on more meaningful tasks.
Performing bookkeeping tasks manually can consume a lot of time. Modern accounting systems can speed up the workflow by automating many processes that would otherwise take a lot of time to do manually.
Humans are prone to making calculation errors. Modern accounting systems are nearly incapable of making errors. As a result, they can enhance accuracy and prevent costly mistakes. However, it is worth noting that modern accounting systems aren’t foolproof. Due to data entry or interpretation mistakes, they are still prone to human errors. However, these errors are usually negligible.
If your nonprofit uses an outdated accounting system, you may lose all your data in a major disaster like a fire or flood. On the other hand, if you use a modern accounting system, you’ll be assured of the safety of your data. Unfortunately, many modern accounting systems store data on the cloud. As a result, they can guarantee the security of your data even if a disaster strikes your organization and affects its operations.
Multiple Device Support
Modern accounting systems provide cross-platform support and can be used on various devices, like desktops, laptops, smartphones and tablets. As a result, they can give you the flexibility to work from wherever you are.
Often, teams at work need to work on projects together. For example, the marketing team may need the accounts team to approve a budget for an ad campaign. Modern accounting systems provide real-time access to multiple users, allowing teams to collaborate on projects.
Modern accounting systems come with numerous advanced features missing from outdated systems. Some advanced features many modern systems come with include:
- Multi-currency support
- Payment gateways
- Real-time reporting
These features can help to smoothen the workflow and smoothen operations.
Enhanced Reporting and Analytics
According to the experts at Blackbaud, nonprofits are usually held to a high standard of accountability and transparency. They are required to comply with strict standards to maintain nonprofit status. Modern nonprofit accounting software can help your nonprofit to comply with strict standards. In addition, it can provide you with powerful reporting and analytics tools that can transparently show donors and other stakeholders how your organization uses funds.
Modern nonprofit accounting software can enhance operations and help you make informed decisions. If you have an outdated system, consider upgrading to a modern one to experience these benefits.