NFPs Go Way Off the Shelf

Accounting Technology,  December, 2005  by Wayne Schulz

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It was none too long ago that nearly all but the largest not-for-profit organizations thrived on simple off-the-shelf accounting systems.

While not specific to the NFP industry, these generic systems have always been extremely popular due to their lower cost and ease of use. These more generic accounting systems are great for situations where reporting requirements are less specific and fund accounting is not required (or contemplated). In these environments, a generic accounting solution such as QuickBooks or Peachtree fills the bill quite nicely.

As an NFP's complexity and size increases, the need for accurate accounting increases. Typically, the larger nonprofit organizations are required by their funding sources to maintain their records by individual funds. In these situations, there is clearly a steady trend toward focusing on software written specifically for the nonprofit industry. This software almost always allows for a self-balancing chart of accounts, usually ...