Charities have always played a valuable role in our society. However, managing a charity can be a daunting task as charity managers face various challenges such as fundraising, managing volunteers, maintaining financial records, and ensuring regulatory compliance. Accounting is a crucial part of charity management, as it allows charities to report their financial activities and provide transparency to their stakeholders.
As such, the introduction of cloud-based accounting software to the charity sector has been a major boon. Cloud-based accounting software has transformed the accounting landscape by offering multiple benefits to charities. In this article, we will explore how cloud-based accounting software is helping the charity sector.
Ease of Access
One of the key benefits of cloud-based accounting software is that it allows charities to access their financial data from anywhere, at any time. Since all data is stored in a central location online, anyone with the right login credentials can access the platform from any device connected to the internet—be it a desktop, laptop or smartphone. This eliminates the need for charities to have an on-premise IT infrastructure, thereby saving on costs.
In addition, cloud-based accounting software also allows charities to share financial data with their stakeholders in real-time. This enables stakeholders to track the charity’s activities, finances, and performance, improving transparency and accountability.
Streamlining Financial Operations
The cloud-based accounting software has been designed to streamline financial operations of charities. Such software automates day-to-day financial management tasks like invoicing, expense management, and payroll processing. Automation has significantly reduced errors in financial operations and reduced the workload of charity staff. Charity managers can now focus on high-value tasks like fundraising without worrying about the financial operations of their organization.
Better Financial Decision-Making
Charities thrive on effective planning and decision-making. Cloud-based accounting software offers a real-time view of an organization’s financial status. As such, charity managers can easily plan their budgets, allocate resources, and track performances by referring to financial reports generated by the software. With accurate and up-to-date financial data at their fingertips, decision-making becomes more informed and accurate.
Ease of Collaboration
Cloud-based accounting software offers an intuitive and user-friendly interface that encourages collaboration. It allows multiple users to access the same financial data, data which is updated in real-time. This enables charity managers, accountants, and other stakeholders to collaborate on financial tasks and work together more efficiently. Such collaboration improves communication and ensures that financial and non-financial decisions are made in a timely and informed manner.
Cloud-based accounting software offers significant cost savings for charities. Such software eliminates the need for a large IT infrastructure and enables charities to adopt a “pay-as-you-go” model where they only pay for the features they use. Moreover, since such software offers automated bookkeeping and financial reporting, charities can save on the cost of employing an accountant or bookkeeper.
In conclusion, the benefits that cloud-based accounting software offers to charities cannot be overstated. As we have seen, such software offers ease of access, streamlined financial operations, supports accurate decision making, enables collaboration and, most importantly, offers cost savings to charities. By adopting cloud-based accounting software, charities can focus more of their time and resources on accomplishing their goals while enjoying the benefits of modern financial management software.
Join us for our short webinar on the 24th May where we will discuss the benefits the iplicit accounting software can bring to your organisation.