QuickBooks Online For Nonprofits may sound like a good idea. However, there are several things to be aware of. Many nonprofits and churches try hard to get it to work for them, but are unaware of the required workarounds to get the reports they need. Watch the video and you’ll see how it may not be the best choice for nonprofits.
In this video, we do an in-depth walk through how QuickBooks Online For Nonprofits tracks designated funds. We’ll then show you the steps you must take to get to your Cash Balance by Fund, Income Statement by Fund, and Balance Sheet. Plus, we compare it to Aplos, a true fund accounting software made for nonprofits.
What can true nonprofit accounting software do that small business accounting software cannot?
Nonprofit accounting allows you to track designated money in multiple funds, and pull reports based on those funds to track income and expenses. The ability to do all of this is called fund accounting. You can read a complete definition of fund accounting here.
Trouble Tracking At The Fund Level
Like with most small business accounting software, there is no way to easily track income and expenses for designated funds. Income is dropped into one general fund. Therefore you must use a combination of sub accounts, classes, external spreadsheets, or even separate bank accounts. Take a look at our complete evaluation of QuickBooks For Nonprofits.
QuickBooks Online For Nonprofits: The Verdict
Having a true fund accounting system will allow you to pass your annual audits, and produce reports for your board to show money is used appropriately. Plus, your supporters will have the assurance that you are stewarding your resources in the way they have asked. Unfortunately, QuickBooks Online For Nonprofits does not make this easy.
To learn more about how true fund accounting is different, try Aplos Nonprofit Accounting Software for free.