Your nonprofit needs to upgrade its accounting software. How can you find the most innovative solution?

Performing a needs analysis within your team or department is key before deciding to upgrade accounting software or jumping into a purchasing process. It’s tempting to just start the purchase process especially if you are fed up with your current system. But understanding what your team needs and is capable of implementing is important. Your team might be eager to look at the latest software or use what peers have implemented but knowing your teams’ strengths and limitations is key. If you upgrade to a more robust system, is your team tech savvy enough to know how to run more complex reports or will you need to hire a consultant? How does this impact overall cost? Complete a needs analysis before moving to the purchasing or RFP stage.

To enhance your evaluation of current accounting software, consider conducting a user experience (UX) survey among your staff. This survey should focus on their daily interactions with the software, uncovering specific usability issues and efficiency barriers they face. Gathering direct feedback from the end-users provides invaluable insights into the software's functionality and helps identify critical areas for improvement or replacement in your accounting processes. This user-centric approach ensures that any new software you consider will better meet the actual needs of your team.

When defining goals and requirements for new accounting software, it's crucial to conduct a comprehensive needs assessment. This should include a detailed analysis of your current and future accounting needs, considering both operational and strategic aspects. Focus on scalability, customization options, integration capabilities with other systems, and user accessibility. This thorough evaluation helps in creating a detailed checklist that aligns perfectly with your organizational goals, ensuring the new software not only meets current needs but is also adaptable for future growth and changes.

Do you have a network of people or organizations who do what you do? This can be your most powerful resource for finding the right software platform that meets your requirements. Salespeople are needed and valuable but, in this case, are the second best people to tell you about the product. I’m part of a few different organizations for donors (ie Philanthropy Roundtable, Florida Philanthropic Network and Palm Beach County Funders Group). This type of software was literally a conversation during a recent group virtual check-in. We enjoyed sharing user experiences and asking questions about features for a variety of software vendors in our field. This was not only a fun conversation, it was highly informative!

For researching the market and trends in nonprofit accounting software, consider leveraging industry reports and expert analyses. This approach provides an in-depth understanding of the latest innovations, best practices, and common challenges in the sector. Compare these insights with your organization's specific context to identify software options that not only align with current trends but also address your unique needs. Staying informed through expert resources ensures you find the most advanced and suitable accounting software tailored to the nonprofit sector's evolving demands.

A key tip for comparing and testing different nonprofit accounting software options is to implement a pilot program. Select a shortlist of promising software options and test them in a controlled environment within your organization. Focus on real-world scenarios and daily accounting tasks. This hands-on approach allows you to assess the software's practicality, efficiency, and compatibility with your organization's workflow. A pilot program provides concrete insights into how each software option performs, helping you make a well-informed decision.

For the final decision-making process, consider organizing a comprehensive stakeholder consultation workshop. This workshop would include representatives from your staff, board, donors, partners, and beneficiaries. Utilize this platform to present potential accounting software options, gather their feedback, address concerns, and discuss the benefits and transition strategies. This inclusive approach ensures all perspectives are considered, leading to a decision that aligns with the broader interests and needs of your organization's stakeholders.