Migrating to a cloud ERP brings a lot of benefits for not-for-profit (NFP) organisations. Rather than using a mismatch of systems and hard-to-scale manual processes across the organisation, cloud-based accounting software for non-profits is designed to accommodate all your requirements in one integrated system including accounting, fundraising, Constituent Relationship Management (CRM), Enterprise Resource Planning (ERP), inventory management, eCommerce, and more.
But deploying an ERP isn’t just about modernising systems. A well-designed and customised ERP will transform the entire organisation. It will reduce the cost of IT, better support hybrid teams with anywhere access, create a more secure and reliable IT environment, and provide plenty of efficiencies to drive productivity. Best of all, the right ERP solution will allow the organisation to focus more on their employees and other valuable resources on driving their mission.
While numerous benefits stem from implementing cloud-based accounting software for your non-profit organisation, this blog highlights what we consider as the most critical for your sector.
Financial and operational visibility
A lack of operational visibility is like driving without headlights at night, you can’t see where you are going or where you have been. Without centralised access to your growing volumes of data, you lose the ability to gain real-time insights, project inefficiencies go unchecked, you can’t pinpoint where your resources and funding will be best utilised to increase impact, and your ability to make informed, data-driven decisions is limited.
Cloud-based accounting software such as NetSuite establishes accountability with a single version of the truth that turns on the high beam. You gain the insight, predictability, and automation needed to attract funding, fulfil reporting requirements and deliver transparency to the board and other stakeholders. Role-based dashboards show real-time information and built-in FASB-defined reporting is all customisable, eliminating the need for spreadsheets and report assembly. It’s all done for you. And with full visibility of each volunteer, donor, and client, you are able to better target and engage constituents, building relationships for long-term growth and success.
Reporting and compliance
As a not-for-profit organisation, you must comply with a complex tangle of rules and regulations. These regulations also tend to undergo significant changes, making the process all the more challenging. Despite this, many organisations continue to rely on spreadsheets to assemble reports.
Cloud-based accounting software removes the need to manually ensure compliance supporting you to achieve audit-ready financial solutions and robust IT controls. For example, a good ERP will come with FASB Compliant Standard and customised reports, user-based dashboards, and KPIs, specifically designed for nonprofit staff and leadership. For non-profits, when selecting an ERP, it is essential to ensure your chosen system provides proper security, supports compliance, and offers audit trail visibility.
Platform extensibility
When using simpler accounting systems, growing not-for-profits, like many other organisations, often discover their existing systems cannot deliver the functionality they need for new processes and initiatives. This results in more stand-alone systems being added to their tech stack. Eventually, this can result in a complex “applications hairball” that’s rife with manual tasks and bottlenecks, increases the risks of errors, and ultimately, limits growth. With cloud-based accounting software for non-profits, the temptation to add more systems is tempered.
While the deployment of a more complex cloud-based accounting software may be daunting, it is often the best solution to streamline processes, remove manual steps, and give you the functionality you need to scale your not-for-profit.
Take NetSuite as an example. While you can choose the SuiteSuccess deployment model to rapidly launch using a designated set of processes, activities, and systems specifically designed for not-for-profits, the platform is also known for its extensibility. For not-for-profits, this means they can shape their instance around their unique business model and use cases. This was the case for Good360’s NetSuite deployment. Despite being a not-for-profit, the organisation still had a number of complex processes that demanded customisation. Good360 Founder and Managing Director, Alison Covington, explained at the time: “We are a charity, but we also run things like a large commercial operation with warehousing, non-repeating inventory, and a high volume of orders. NetSuite was able to be customised to these unique requirements.” She’s referring to their unique challenge around SKUs. Good360 works with over 3000 charities and schools across Australia, countless business partners, and must manage three and a half thousand square metres of warehousing. But they also rarely see the same inventory twice. Most businesses have SKUs that are reused in their supply chain, but at Good360 SKUs are never repeated. Annexa customised the instance to ensure Good360’s unique and complicated inventory system requirements were met.
Discounted licensing with NetSuite Social Impact program
NetSuite – like us here at Annexa – are serious about working with not-for-profits. This is reflected in their product donations and discounts, and capacity building just for not-for-profits. Let’s take a look at what this program means for you:
Suite Donation is a base donation and activation of NetSuite’s solution for all qualified not-for-profits. The standard donation would be a good fit if you are a small organisation looking for a solution to power your financial management operations, plus there’s no recurring cost. You can then purchase additional discounted users and modules which are calculated based on your organisation’s previous year’s revenue. For any additional solutions such as grant accounting, FASB reporting or not-for-profit budgeting, for example, you can again expect heavily discounted pricing.
Given that any ERP initiative involves considerable investment, Suite Donation provides a more affordable pathway for not-for-profits looking to begin their transformation journey. If you’re interested in learning more about Suite Donation or qualifying your organisation, an Annexa consultant will be able to help.
A NetSuite partner to propel your mission
We are award-winning 5-star NetSuite Partners here for ambitious not-for-profits looking to streamline processes, enhance operational efficiencies, reduce costs, and improve business visibility. Contact us online or call on 1300 994 550 to start the conversation.
Annexa helps not-for-profit organisations to amplify their impact with custom NetSuite systems that enable sophisticated budget forecasting and planning, financial reporting, payroll solutions and customer relationship management.