Most Philippine SMEs and for-profit startups already know the benefits of upgrading their accounting systems. On the other hand, Filipino nonprofits and coops are getting left behind.
In discussions of the benefits of upgrading an accounting system in the Philippines, these types of organizations are often completely left out of the conversation, even if they are, perhaps the types of businesses that stand to benefit the most from adopting new systems.
Here are just some of the areas an updated accounting system can improve for local nonprofits and coops:
1.) More accurate funds management
Ad hoc fund management tools such as MS Excel are woefully inadequate when it comes time to scale up operations. Using an improved purpose-built accounting system can significantly improve the accuracy of tracking pledges, budgets, grants, and other fiscal matters.
2.) Better Philippine BIR compliance
Accurate tracking can also make it easier to comply with different BIR regulations. It also makes audits less of a problem and makes it easier to maintain a nonprofit or coop status.
3.) Accurate member, donor, and volunteer tracking
Nonprofits and coops are faced with issues identical to traditional for-profit organizations when it comes to tracking both sides of the ledger. Income and expenses still have to be traced and payrolls still need to be paid on time. Rosters also need to be easily tracked so the organization has a better idea of available manpower. Newer accounting systems have features to help keep better tabs on employees and volunteers, which makes it simpler to allocate resources once a nonprofit needs to scale.
4.) Simplified marketing
Even nonprofits have to perform marketing some of the time. Having an accounting system that has integrated marketing functionality can make this simpler. With most systems, you can even use the data to make running automated email and social media campaigns easier.
5.) Better project management
These days, “accounting software” is now an inaccurate term to describe current systems. New software suites are more accurately referred to as “enterprise resource planning” or ERP software thanks to their greatly expanded capabilities. One major upgrade in the capabilities of most current accounting solutions is a project management features that can help track funds, project status, labor availability, and more.
6.) Fast and accurate reporting
Reporting influences how an organization sees and interprets data. It is also ultimately one of the most crucial tools for influencing potential donors and investors. Current accounting software also has features that allow for different types of reports to be generated, allowing users fresh perspectives on the same date.
7.) Reduce time and labor requirements
The most compelling reason for nonprofits and coops to adopt upgraded accounting systems is the simple fact that they let an organization do more with less. The right accounting or ERP software can help an organization reduce multiple points of inefficiency throughout its operations, helping to reduce the amount of money needed to produce different outputs. In real terms, this usually means that a nonprofit or coop can achieve higher levels of productivity with fewer people. This usually allows an organization to recoup its investment in new accounting software technology in a relatively short period.
With the easy availability of many different free or low-cost accounting and ERP solutions, any organization can enjoy the force multiplier effects these modern software packages offer. Many Filipino nonprofits and cooperatives certainly have a lot to gain by investing in the right systems. Ultimately, newer accounting or ERP software can help them reduce spending, scale their operations, and serve more people.