Running a charity organisation is a rewarding experience. Charitable organisations are the backbone of many communities, providing essential services and support to those in need.
However, running a charity also comes with its own set of challenges.
One area that can be particularly tricky is managing the financial side of things.
From keeping track of donations to preparing for audits, there’s a lot to juggle.
In this article, we explore nine common accounting challenges charity organisations face and how NetSuite, a cloud-based ERP system, can help you overcome them.
1. Bookkeeping Chaos
Recording donations, paying invoices, and processing expenses can be overwhelming for nonprofit accounting teams, especially with part-time bookkeepers or volunteer accountants.
The solution is creating a repeatable process and automating tasks like importing bank and credit card transactions.
NetSuite streamlines these processes, allowing for better organisation and efficiency.
2. Accurate Financial Reporting
Nonprofits require accurate financial reports to track donations, grant funds, and program restrictions.
NetSuite provides tools to generate essential financial statements like the Statement of Financial Position, Summary of Activities, and Budget to Actual reports.
With NetSuite, you can ensure compliance with the Charities Statement of Recommended Practice (SORP) and maintain transparency in financial reporting.
3. Modernising Accounting Systems
A nonprofit accountant’s favourite phrase is, “Because this is how we’ve always done it.”
Modernising your accounting system allows you to:
- Digitise employee expense reporting (stop losing receipts!)
- Pay your bills/vendors online
- Eliminate 90% of the paper from your office
- Connect your fundraising system to your accounting system
- Securely view and manage your accounts from anywhere
NetSuite enables organisations to do all of this.
This modernisation eliminates paperwork, increases accessibility, and improves overall efficiency.
4. Accounting for Grants
Managing grant funds requires up-to-date financials and accurate reporting.
NetSuite helps nonprofits maintain financial transparency, making it easier to secure grants and manage funds effectively.
5. Managing Payroll
Nonprofit employees often wear multiple hats, complicating payroll management.
NetSuite enables precise payroll tracking based on job function and time allocation, ensuring each role is appropriately compensated, aligning with the organisation’s budget and compliance requirements.
6. Filing Tax Returns
Meeting tax deadlines is crucial for nonprofits.
NetSuite’s capabilities assist in the timely filing of tax returns, including Making Tax Digital (MTD) compliance where applicable.
7. Dealing with the Board of Directors
Maintaining a good relationship with the board of directors is essential for nonprofit leaders.
NetSuite’s reporting features provide transparency and accountability, helping to build trust with board members and facilitating smoother decision-making processes.
8. Implementing Effective Controls
Compliance and transparency are paramount in nonprofit organisations.
NetSuite offers tools for the segregation of accounting duties, physical controls, conflict of interest policies, and whistleblower policies to ensure effective internal controls.
9. Preparing for Audits
Passing audits requires adherence to generally accepted accounting principles (GAAP).
NetSuite’s robust reporting capabilities and internal control features assist nonprofits in preparing for and passing audits with ease.
About NetSuite
Oracle NetSuite is a market-leading unified business management suite, trusted by more than 36,000+ organisations in 200+ countries. The suite combines Enterprise Resource Planning, Financial Management, CRM, and eCommerce solutions to provide businesses with a truly cover-all customisable, customer-specific, pixel-perfect experience.
As a unified business management suite, NetSuite enables companies to manage all key business processes in a single, fully-integrated system, thereby eliminating the need for multiple enterprise applications.
From startups to mid-market companies to large organisations, NetSuite ERP provides businesses with the visibility and control to make the right decisions no matter their industry.
With no need for dedicated hardware, no upfront license fee, and no maintenance fees associated with hardware or software, it’s no surprise companies are turning to this powerful cloud-native platform to lower their operating costs and improve operational efficiency.
Why subscribe to NetSuite via FinanSys?
Founded in 1998, FinanSys is a one-stop NetSuite Solution Provider dedicated to delivering complete NetSuite cloud computing solutions across several industries — financial services, insurance, property management, professional services, hospitality, nonprofit, energy and oil.
When you choose FinanSys as your NetSuite Solution Provider, you’re not only hiring experts who are well-versed in the software, you’re getting 25+ years of experience in implementations, customisations, integrations, support, and training.
Additionally, by purchasing NetSuite through FinanSys and/or being on our NetSuite support, you can take advantage of a unique offer that is not available through any other provider of NetSuite.
You will get a 1:1 license of UniFi at no additional cost.
With the UniFi subscription, you will receive a variety of features and apps, including No-code Application Builder, Middleware & Integration Engine, HR, Enterprise Asset Management, Accounting Automation and Business Intelligence (to name a few!).
This is a great benefit for NetSuite users who typically have to purchase full user licences and implement various third-party software to meet these needs.
This offer from FinanSys provides a cost-effective solution for organisations looking to enhance NetSuite, automate their processes and strengthen their reporting capabilities.
UniFi is an all-in-one solution that facilitates a limitless number of use cases at no extra cost. Making FinanSys the most affordable provider of NetSuite.
Find out why UniFi was created here.
Conclusion
While charitable organisations face many operational challenges, NetSuite offers comprehensive solutions that address these issues head-on.
By automating and streamlining financial processes, NetSuite not only alleviates these burdens but also empowers charities to focus on their core mission: making a difference in the lives of those they serve.
Explore how NetSuite can transform your charity’s operations today and take the first step towards a more efficient and impactful future.
