What growing nonprofits need from a bookkeeping software & financial tools

For many nonprofits, spreadsheet and simple financial tools work… for a while. As your programs expand, funding sources multiply, and compliance requirements increase, these DIY methods start to break down. It’s even harder when your team wears multiple hats. You don’t have hours and hours every week to track restricted funds manually or piece together reports for your board.

What growing organizations need more than nonprofit bookkeeping software is a central accounting platform that simplifies your work day.

Understanding nonprofit bookkeeping software versus accounting software

If you’ve ever found yourself wondering what’s the difference between “bookkeeping” and “accounting”, you’re not alone. The nuances in financial terminology can be confusing.

• Bookkeeping is about tracking and recording day-to-day transactions, including income, receipts, and other expenses.
• Accounting, on the other hand, involves big-picture strategy. Think forecasting, analyzing, interpreting, and reporting those transactions to tell the full story of your nonprofit’s financials.

Both play huge roles in keeping your nonprofit running smoothly. To grow the organization, meet compliance requirements, and make the most of every dollar, you’ll want tools that are scalable and easy to learn. This is especially true if you’re without a dedicated finance department.

A more robust system like Salesforce’s Nonprofit Success Pack (NPSP) coupled with Accounting Seed offers all the features needed to expand your accounting functions while supporting your unique funding streams.

Get a glimpse into how a California nonprofit uses Accounting Seed

Downtown Streets Team is a powerful example of how the right tools can amplify a mission. This nonprofit—dedicated to combating homelessness through community support and restorative programs—faced a familiar challenge: managing complex funding streams without real-time visibility.

Within 90 days of implementing Accounting Seed, their team uncovered $100,000 in unbilled expenses and moved to a continuous accounting model. The best part? They don’t have to wait months for critical insights anymore.

With Accounting Seed, Marina Peterson, CFO at Downtown Streets Team, mentioned how her accounting team became integral stakeholders who empower other departments to make more informed decisions.

“It’s not data entry anymore. I don’t want bookkeepers. I want people that understand technology and know how to make decisions with the numbers,” she shared.

Ensuring Financial Stability and Growth 

When Peterson came on board over a year ago, she was tasked with ensuring secure finances and stable growth. Previously, their accounting systems were completely outsourced, taking 60 days (sometimes more) to see a financial statement. As a nonprofit with heavy reliance on government funding, not being able to see, in real-time, if they were under or over budget was a critical component for being financially resourceful and secure.  

Read the full case study to see how this nonprofit accounting software helped Downtown Streets Team drive change in their community.

What to look for in nonprofit bookkeeping software

When it comes to choosing the right financial system, nonprofit professionals need more than just a basic ledger.

Our top tip is to look for a beginner-friendly platform with build-in educational support to help you get started. One such feature is Accounting Seed Copilot, the in-app AI assistant that provides answers to your questions and helps with task lists. More than that, it helps you learn the system as you go, so you’re not stuck wondering what to do next.

More features you can experience with Accounting Seed

Here are some particular features that a nonprofit bookkeeping software should include:

• Fund accounting & donor management: Track every dollar with clarity. Easily manage restricted and unrestricted funds, and keep donor and grant activity organized in one place.
• Real-time financial reporting: Share real-time dashboards and audit-ready reports with your board and stakeholders.
• Compliance & nonprofit accounting standards: Stay aligned with nonprofit regulations like FASB, GAAP, and IRS 990. Reduce risk with customizable workflows that reduce manual work.
• Integration: Because Accounting Seed is built natively on Salesforce, it seamlessly connects with your CRM and other donor tools, keeping all of your data in one place.
• Automation: Streamline routine tasks and reduce tedious data entry, so your team has more time to focus on strategic growth.
• Scalability: Growing teams need systems that scale without increasing headcount. Accounting Seed ensures you stay efficient and cost-effective, especially if you’re using Salesforce’s free nonprofit package.

Setting your nonprofit up for financial success

The right software should simplify your work day. But, as a growing organization, it will also carry your mission forward. If you’re looking for a system that goes beyond nonprofit bookkeeping and handles the heavy lifting, consider a solution built with your future in mind. Explore how our platform supports nonprofits’ growth.