Best Nonprofit Accounting Software of 2024

Why we like it: From its advent, Aplos software was designed for nonprofits and faith-based organizations. That means it comes with a wealth of features particular to the nonprofit sector, including customizable chart of accounts; fund tracking to efficiently keep tabs on grants and donations; a variety of reports to track accountability, such as fund-based balance sheets and income statements as well as contribution statements; as well as tools designed to encourage giving and track donations. With robust accounting features; tools related to fundraising, marketing and CRM; and optional add-on products for soliciting and receiving donations by text message, payroll and online bill payment, Aplos is a complete accounting and nonprofit management software solution.

» MORE: Best accounting software for churches

Why we like it: The more you can automate your accounting tasks and business workflows, the more time you and your staff can dedicate to doing good in the world. Sage Intacct’s software comes with a number of automation features to simplify your nonprofit accounting and reporting, including an AI-powered general ledger and a revenue recognition tool that’s built to save you time and ensure your organization remains compliant. You may also appreciate Sage Intacct’s reporting and insights capabilities, in particular the digital board book the software can generate to visualize and present your organization’s impact and financial health to interested parties. Read our full Sage Intacct review.

Why we like it: QuickBooks is a mainstay in the realm of accounting software, and with several plan options for its cloud-based QuickBooks Online product, the software can grow with your nonprofit organization. It lacks some of the industry-specific reporting and features that nonprofit-specific software offers, but its desktop software cousin, QuickBooks Enterprise, offers those capabilities if your nonprofit outgrows the substantial features and functions of QuickBooks Online. Read our full review of QuickBooks Online.

Why we like it: With more than 20 not-for-profit app integrations available, Xero is a user-friendly, scalable, cloud-based accounting software that can be customized to fit the needs of your nonprofit organization. Need to manage a membership base? Connect Xero with MembershipWorks. Need to track donations? You can link your Xero account to Infoodle for seamless donor communication and analysis. And even without integrating Xero with third-party software, you can manage your donor contacts directly in Xero’s built-in contact management tool. The feature allows you to view a record of all transactions with each contact, save documents relevant to each donor and include important notes to refer back to in the future. Read our complete Xero Accounting review.

Why we like it: Zoho Books is another well-established accounting software product with multiple plan options that allows for your nonprofit to grow without needing to switch software. One of its more unique features, however, is that the software is available in 10 languages including Spanish, German and Japanese. And it’s not just reports that are available in a variety of languages — it’s the entire product. That could be a game changer if your nonprofit staff and/or volunteers include nonnative English speakers. Read our Zoho Books review.

Why we like it: FreshBooks accounting and invoicing software offers a strong list of features that many nonprofits will find useful, including expense tracking, time tracking, project management and more. For nonprofits that spend a good deal of time in the field and working on the go, FreshBooks’ highly rated mobile app for iOS and Android may be particularly appealing. The app enables you to create and send invoices; track expenses, time and mileage; manage client communications; and even view financial reports.  Read our FreshBooks review.

Why we like it: QuickBooks Enterprise is a general accounting solution, but it still includes certain industry-specific features, like a nonprofit chart of accounts that shows your organization’s assets, expenses and revenue from both donations and retail sales. At tax time, you can easily transfer your data to the relevant IRS forms. Customizable reports allow you to manage budgets for various programs, view contributions by donor and track top-tier donors. QuickBooks Enterprise is desktop software, but users can pay more for cloud access. Read our review of QuickBooks Enterprise.

Why we like it: Free accounting software may be especially enticing to newer nonprofits; it will allow you to put your limited funds to work where they can have the most impact. With Wave’s free accounting software, you can enjoy unlimited expense tracking among unlimited users, access to standard accounting reports such as a profit and loss statement and balance sheet, automatic bank transaction syncs, and a customizable chart of accounts so you can track industry-specific accounts such as grants and donations, special events and in-kind contributions. Through Zapier, you can integrate Wave Accounting with dozens of third-party apps to fill the inevitable gaps you’ll encounter when using free software. Read our full Wave Accounting review.

Why we like it: If you run a more established nonprofit with a large employee base, then you may need software to help you manage not only your organization’s finances but your employees as well. AccuFund’s core software includes general accounting functions such as bank reconciliation, a general ledger, financial reporting and dashboards and accounts payable. Additionally, AccuFund offers add-on modules and products to round out the solution you need for your particular nonprofit. The company’s robust HR management product includes payroll, tax management, time tracking, employee self-service portal and additional tools.

What is nonprofit accounting software?

Accounting software designed specifically for the nonprofit sector will handle general accounting functions — such as a general ledger, chart of accounts, profit and loss statements, balance sheets and other financial management tools — in addition to fund accounting, donation tracking and reporting on functional expenses, among others.

These more industry-specific features help to ensure that your organization remains accountable to its mission and board, accurately files Form 990 and other necessary tax forms, attracts and manages regular communications with donors and remains compliant with established nonprofit accounting standards.

How to choose nonprofit accounting software

When choosing nonprofit accounting software, you’ll want to identify the obstacles blocking your work. Then, look for features that can push those roadblocks aside.

That might be robust CRM functions that let you track, analyze and engage a large donor or membership base. Or maybe you need a way to easily accept online donations and some basic accounting functions.

Here are a few other features to look for:

• The ability to budget by fund, project and/or tag.

• Automated reporting for IRS Form 990.

• Grant management features to meet time and use restrictions.

Balance the features you need alongside your budget and whether the software checks other boxes, like scalability and ease of use, to choose the best accounting software for your organization.

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