| In the old days, accounting was simply keeping | | | | Because of the unique elements involved in non |
| count of the funds that go in and out of a | | | | profit fund accounting, the accounting software of |
| particular endeavor. It is used to calculate | | | | choice has to be flexible enough to meet specific |
| expenses and return of investment. Back then, all | | | | accounting needs. It has be cable of integration |
| the computations were done on paper, using | | | | with other applications to form a suite of |
| books and spreadsheets. In today’s computer | | | | programs that practically automates the |
| age though, technological advancements have also | | | | accounting process. |
| improved the way organizations meet their | | | | Many of these non profit fund accounting |
| accounting needs. | | | | programs offer features such as fund and donor |
| Accounting software nowadays is commonly | | | | management, along with the ability to increase |
| implemented by organizations in the effort to | | | | donations by use of a web interface or a website |
| eliminate human error and streamline the way | | | | that fosters relationships with donors and |
| they manage their finances. Businesses use these | | | | prospective donors. The software also has to be |
| accounting programs to accurately record | | | | easy to navigate, and should allow key members |
| overhead expenses and calculate income they can | | | | of the organization to access campaigns and track |
| generate. Currently, there are more than a | | | | donor activity. |
| hundred accounting programs available on the | | | | Since nonprofit fund accounting deals a lot with |
| Internet. | | | | voluntary donations from providers who do not |
| The case is not the same in non profit | | | | receive equivalent services in return, it is |
| organizations. A non profit organization is an entity | | | | important that the non profit organization |
| that strives to promote awareness towards a | | | | maintains its integrity. This is why donor |
| particular environmental, economical or cultural | | | | involvement, especially in the accounting process, |
| issue. These organizations receive donations in | | | | is important. By having the donors involved they |
| considerably significant amounts, and do not | | | | can see how the organization manages their |
| operate in order to generate income. Instead, | | | | donations, thus assuring them that they are |
| these organizations raise funds that they use in | | | | getting closer to the realization of their goals. |
| the effort to achieve advancement of their cause. | | | | |