By Becky Harpham, a nonprofit marketing expert who enjoys helping nonprofits with their finances and keeping up with the latest SEO trends.
Face it – we live in a very technology-focused world these days. So why haven’t you been doing your monthly financial reporting in a cloud-based enterprise resource planning (ERP) yet? Here are five reasons why you should make the switch right away:
Many cloud-based accounting systems include built-in accounting practices that will strengthen your day-to-day tasks effortlessly. Once you’ve gotten everything up and running with your new cloud accounting software, many other systems you use every day can be automatically integrated. Whether it’s your payroll system, expense tracking or payment gateways, these systems have the capability to be automated with your cloud accounting system.
Never question if you hit the save button again as most cloud-based accounting systems back up your work automatically. And with all of your nonprofit’s sensitive data in the cloud, it will be safely stored even if your computer goes haywire.
Source: NTEN 2018 Cloud Report
Still not convinced your data is secure? According to NTEN’s State of the Nonprofit Cloud Report, 67.44% of respondents said the security of their data was the deciding factor when determining software options. Since many nonprofit don’t have the funds for an IT security to be on their staff, let the cloud-based ERP software give you peace of mind that your data is safe and secure.
3. Cuts Costs
Not only is the cloud going to make your team more efficient and secure, it will also cut your costs! NTEN’s State of the Nonprofit Cloud Report stated 64% of nonprofit CFOs said adopting cloud technology would cut operational costs by up to 20%. By cutting these operational costs, it is crucial to your nonprofit to let go of managing your accounting systems internally, so you can focus on your overall mission. With the 20% of operational costs your saved, you could allocate it into different areas of need because every dollar counts towards achieving your nonprofit’s goals.
Whether your accountant is in-house or through an outsourced agency, cloud-based accounting software provides flexibility. It can be accessed wherever you have an Internet connection. Goodbye complicated and old-school systems and welcome easy to use cloud-based systems into your nonprofit’s life. Not to mention the capability to log in from a smart phone, you’ll have easy access if you happen to be out of the office.
Much like document sharing platforms, cloud-based accounting software platforms allow more than one person to be in the system at once. While you’re reconciling your accounts, your boss can pull a monthly financial statement for a meeting without interrupting your work. Its real-time capabilities allow you and all other users to see the most up-to-date information possible. With limitless mobility and collaboration, implementing cloud services will be an advantage for your nonprofit today and for years to come. In fact, after performance, access was cited as the as the second highest advantage of using cloud services.
Source: NTEN 2018 Cloud Report
With these benefits, and countless others, it is crucial your nonprofit’s accounting practices make the switch to a cloud-based ERP system.