Effective financial management is essential for the success and sustainability of nonprofit organisations. Unlike for-profit businesses, nonprofits often operate with tight budgets, fluctuating revenue streams, and a reliance on donations and grants. Therefore, the importance of accurate financial tracking, transparency, and reporting cannot be overstated. Accounting software can significantly enhance the ability of nonprofit organisations to manage their finances efficiently, ensuring compliance and providing insights for better decision-making.
As we enter 2025, there are a variety of accounting software options available to nonprofits, each offering unique features to support their specific needs. In this article, we will explore some of the best accounting software for nonprofits in 2025, focusing on their key features, benefits, and how they can help organisations optimise their financial management.
1. QuickBooks Online for Nonprofits
Overview
QuickBooks Online remains one of the most popular accounting solutions for nonprofits. With a user-friendly interface, robust functionality, and excellent customer support, QuickBooks is trusted by organisations of all sizes. It is particularly known for its simplicity and ease of use, making it ideal for organisations that may not have in-house accountants.
Key Features
- Customisable Charts of Accounts: Tailor your financial records to track donations, grants, and other nonprofit-specific income and expenses.
- Nonprofit Reporting: Generate reports such as profit and loss statements, balance sheets, and budget-to-actual reports, with the ability to easily track restricted funds and grants.
- Integrations: QuickBooks integrates with various third-party apps, such as donor management systems, which is useful for streamlining data flow across your nonprofit’s operations.
Benefits
QuickBooks Online provides excellent value for nonprofits, offering a variety of pricing plans suitable for different budgets. Its ease of use, combined with comprehensive features, allows nonprofit leaders to focus on their mission rather than worrying about complex financial processes. Furthermore, its cloud-based system ensures accessibility from anywhere, an important consideration for organisations with remote teams or multiple locations.
2. Xero
Overview
Xero is another top accounting software that is popular with nonprofits due to its simplicity, scalability, and robust feature set. Known for its collaborative features, Xero allows team members to access real-time financial information, making it an excellent option for organisations with multiple stakeholders involved in financial oversight.
Key Features
- Nonprofit-Specific Features: Xero allows users to track donations, expenses, and funding with dedicated categories, simplifying the management of restricted funds.
- Multi-Currency Support: For nonprofits with international donors or activities, Xero offers seamless multi-currency support.
- Customisable Reports: Generate a wide range of reports, including budgeting reports, cash flow statements, and project reports, which are critical for nonprofit financial management.
Benefits
Xero is known for its intuitive design and collaborative nature. It allows multiple users to access the system, making it easier for nonprofit teams to manage finances. The software also offers excellent customer support, a large number of integrations, and mobile access. Xero’s scalable plans make it suitable for small organisations as well as larger nonprofits, providing flexibility as organisations grow.
3. Aplos
Overview
Aplos is an accounting software specifically designed with nonprofits in mind. Its focus on nonprofit-specific needs makes it one of the top choices for organisations that need more than just standard accounting features. Aplos helps nonprofits track donations, manage grants, and handle fund accounting with ease.
Key Features
- Fund Accounting: Aplos offers robust fund accounting capabilities, allowing organisations to track multiple funds and ensure compliance with donor restrictions.
- Donation Management: The platform includes integrated tools for managing donations and automatically generating receipts for donors, which streamlines administrative tasks.
- Nonprofit-Specific Reporting: Aplos generates standard nonprofit reports such as Statement of Activities, Statement of Financial Position, and Budget-to-Actual Reports, which are essential for tracking performance and ensuring transparency.
Benefits
Aplos is a great choice for nonprofits that need specialised tools for tracking funds and donations. Its ease of use, combined with powerful nonprofit-specific features, makes it ideal for smaller to mid-sized nonprofits. Aplos is also competitively priced and provides excellent customer support, helping organisations manage their finances more efficiently while ensuring they remain compliant with industry regulations.
4. NetSuite for Nonprofits
Overview
NetSuite by Oracle is an enterprise-level accounting software solution that is also widely used by larger nonprofits. It provides a comprehensive suite of financial management tools, including advanced reporting, financial planning, and analytics. This cloud-based platform is particularly beneficial for nonprofits that require sophisticated financial management tools.
Key Features
- Advanced Reporting and Analytics: NetSuite offers in-depth reporting capabilities, including real-time financial dashboards, custom reports, and multi-year comparisons, making it ideal for larger nonprofits.
- Grants Management: NetSuite supports comprehensive grants management, helping nonprofits track the entire lifecycle of a grant, from application to fund usage.
- Integrated Financial Planning: NetSuite offers robust budgeting and forecasting tools, which help nonprofits plan for long-term sustainability.
Benefits
NetSuite is best suited for larger nonprofits with complex financial management needs. Its advanced reporting and analytics tools provide deep insights into the organisation’s financial performance, which is invaluable for strategic planning. While it may be more expensive than other options, NetSuite offers a high level of customisation and integration, making it a powerful choice for large nonprofits with diverse financial operations.
5. Sage Intacct
Overview
Sage Intacct is a cloud-based financial management solution that caters to nonprofits with advanced accounting needs. It is known for its robust functionality, scalability, and strong financial reporting features, making it a suitable choice for medium to large-sized nonprofits.
Key Features
- Comprehensive Reporting: Sage Intacct offers detailed financial reporting with the ability to create custom reports that reflect the unique needs of a nonprofit.
- Grant Management: The software includes features for tracking grants, ensuring that restricted funds are allocated and spent in accordance with donor guidelines.
- Multi-Entity and Multi-Currency Support: Sage Intacct supports multi-entity and multi-currency operations, making it ideal for nonprofits with international activities or multiple branches.
Benefits
Sage Intacct is a powerful tool for nonprofits that need to manage complex financial structures, such as multi-location operations or large grant portfolios. It is particularly useful for organisations that require robust financial reporting, including budgeting and forecasting. While it may be a better fit for larger organisations, Sage Intacct offers a high level of scalability and flexibility.
