Financial management becomes more complex as nonprofits get larger. Spreadsheets and inaccurate accounting systems can be hard to manage with more programs, more grants, more vendors, and more employees and reports. It’s here that nonprofit ERP software can make a difference. An ERP integrates financial and operational processes to allow the organization to deal with information in an organized way. Microsoft Dynamics 365 Business Central offers a suite of features that can help grow nonprofits to manage their finances, budgets, reporting, purchasing, workflows, and operational visibility.
Why Do Growing Nonprofits Need ERP Software?
Basic nonprofit accounting software may work when an organization’s financial operations are relatively simple. With growth comes the demand for more in-depth answers to financial questions, which may be the experience of finance teams as the organization expands:
- What is the total spending of each program?
- Are there budgeted expenditures?
- What are the restricted funds used for?
- What grants are required to be reported?
- Is all financial information available to leadership?
If there are multiple spreadsheets and systems that need to be connected to these answers, the reporting process slows down and is more difficult to manage.
These processes can be brought together in a unified financial landscape with an ERP for nonprofits.
1. Improve Financial Visibility
Business Central helps organizations analyze financial information using financial dimensions, budgets, account schedules, and ledger information.
Programs, departments, funding sources, locations, projects, and expense categories are example ways to group financial information for nonprofits.
This can give a clearer picture to finance teams on where resources are being spent and how they can better identify spending patterns.
This is one of the factors that organizations will consider when comparing nonprofit financial management software.
2. Strengthen Budget Management
Complicated budgets are more likely to be used in growing programs. Finance departments must track and review their budgeted spending versus actual spending and determine the differences.
Budgeting and financial reporting features of Business Central could help nonprofits keep track of financial performance and explore transactions behind reported numbers.
This helps with greater financial management visibility without having to create all the reports by hand.
3. Improve Grant and Funding Visibility
Nonprofits can have multiple grants that have various budgets, requirements, timeframes, and reporting requirements. Business Central can enable financial visibility of funding sources, budgets, and program costs. Other nonprofit solutions, apps, or extensions may also be suitable for organizations that have more specialized grant management needs.
This makes ERP software for nonprofits particularly relevant for organizations that need financial information connected to broader operational processes.
4.Minimize paperwork and manual financial tasks.
Manual invoice processing, approval, reconciliation, reporting and data entry can waste a lot of time for the finance team as nonprofits grow. Business Central can be integrated with Microsoft applications like Excel, Outlook, and Teams, and can be used to carry out workflows. The goal isn’t to automate all the processes. Instead, automation can be used to eliminate repetitive administrative tasks and still retain the involvement of individuals in making judgment based decisions.
How Veelead can assist Nonprofits assess Business Central
Before selecting a nonprofit ERP software solution, it’s essential to consider the real needs of the organization, not the bells and whistles of the software.
Veelead can analyze current financial and operational procedures and determine opportunities for implementing Microsoft Dynamics 365 Business Central throughout budgeting, reporting, procurement, workflow and financial management.
This process can involve assessing existing systems, identifying any manual workflows, comprehending reporting needs, and pinpointing the potential locations of configuration, integrations, automation, and extensions.
This allows nonprofits to assess Business Central for nonprofits against their needs and plans for the future.
Is Business Central Right for Every Nonprofit?
Not necessarily. It’s essential to evaluate the size of your organization, its financial complexity, funding sources, reporting needs, current applications and integrations, budget and growth plans to determine the right nonprofit ERP. A smaller non-profit with simple accounting needs might not necessarily need a complete ERP.
But those with multiple programs, funding sources, departments, locations and growing transaction volumes may want to consider a connected ERP solution.
Conclusion
Business Central for nonprofits can serve as a unified base for financial management, budgeting and reporting, funding visibility, purchasing and workflow. The aim is not merely to switch out an accounting system for growing nonprofit organizations. To build a more integrated financial world, minimizing repetitive work, increasing visibility, and supporting informed decision making between finance and programming teams.
FAQs
1. What is nonprofit ERP software?
Nonprofit ERP software connects accounting, budgeting, reporting, purchasing, and other operational processes in one system.
2. Is Business Central suitable for nonprofits?
Yes. Business Central for nonprofits can support financial management, budgeting, reporting, funding visibility, workflows, and related business processes.
3. Can Business Central manage nonprofit budgets?
Yes. Business Central supports budgeting and budget-versus-actual financial analysis.
4. Can Business Central support nonprofit grant management?
Business Central can support financial tracking related to funding and grants. Organizations with specialized requirements may use additional nonprofit solutions or extensions.
5. How can Veelead help with Business Central for nonprofits?
Veelead can help nonprofits assess requirements and plan Dynamics 365 Business Central for nonprofits around financial management, reporting, budgeting, workflows, and related business processes.
