A not-for-profit organization’s nature is to spend its income to further its mission rather than pursue profit. However, just because a non-profit organization is not making a profit does not mean it is less concerned with its finances. Instead, like the other organizations, they also need to take care of everything to ensure everything is running smoothly.
Fortunately, ERP Software for NGO/NPO is here to the rescue. With their help, Non-profit organizations can finally stop wasting time on laborious and time-consuming operations.
In this latest blog, let’s get an overview of the necessity of ERP software for NGOs or NPO.
8 Benefits of using ERP Software for NGO/NPO
Enterprise Resource Planning (ERP) Software integrates numerous departmental procedures into a single package.
Although it is most frequently used in for-profit corporations, more and more non-profits are beginning to implement ERP software in their organizations.
Here is a list of the top 8 aspects that an NGO/NPO firm will be benefitted from utilizing the ERP software:
- Accountability
Every kind of NGO needs to justify its spending plans and budgets. Grantors and other stakeholders are always interested in knowing how and where the money is spent. And when you can answer them properly on time with documents, it will, in return, help you to create a good image of yourself.
As a result, they will think of your organization as a reliable and trustworthy one to put their money into. So, this strategy can help you gain more support and finances from them. This is where an ERP solution can help.
From enhancing your real-time financial reporting to helping you to satisfy the stakeholders’ demand for accountability—they can play quite a big role. No wonder why they are considered an ideal tool for tracking grant expenditure or centralizing records into a single archive.
- Transparency
When viewing your financials, having a single version of the truth will give your organization reliable facts for better reporting and informed decision-making. Manual reporting is no longer adequate due to the strict requirements for internal and external reporting.
However, with an ERP solution, you can stay assured that transparency will always be accomplished. All credit goes to its ability to generate reports accurately, promptly, and automatically.
- Enhanced Security
Data entered into your ERP software is completely safe and protected. And in case of any server or hard drive crashes, you can make and keep backups of your data as often as you want to without facing any issues.
Since your program allows for tracking all transactions, there is always a clear record of what has taken place. Besides, to keep your data reliable, consistent, and safe, you can even impose constraints on it.
- Increase your efficiency and gain more for less money
Due to the sector’s uniqueness and the limited financial resources at your NGO, you also have greater management requirements.
Such as, even if you have a very tight budget, you can still get through these obstacles by selecting a less expensive course of action or perhaps obtaining funding from a grant.
It is where implementing the right ERP solution comes in handy. As with them, you will have more control over your finances and resources. From reducing administrative procedures to automating workflows and allowing personnel to concentrate on the important things, your ERP system will take care of all your financial functions. As a result, you will be able to operate more profitably and invest in assisting your community.
- Cost-Effective
Since you can run it in the cloud rather than on-premises, you can avoid spending money on hardware purchases and hiring specialized IT staff, ultimately reducing the overall expenses. But make sure to go for a scalable solution that can meet your needs whenever needed.
- Expanded Reach
Non-profit organizations typically strive to reach and assist as many individuals as possible. The ERP software for Non-profits enables the organization to access a wider audience by increasing their reach all around the world. Thanks to its functionality, multiple businesses, affiliates, and locations can be rolled up globally and integrated into one system.
- Monitor the project lifecycle
From conception to closing and follow-up phases from countless angles— non-profits firms feel the urge to create as many reports as they need to track the development of their projects.
ERP’s workflow and strong document archiving system make it much simpler to carry the budget over the following year and manage all the deliverables in a paperless environment.
- Accessibility
Most ERP solution is continuously improved to keep up with evolving business needs and accounting rules. And with every update comes new features and capabilities enabling NGO/NPO firms to access their data from any location and device—making things super accessible and within reach.
To Wrap Up
Implementing the ideal ERP solution for NGOs/NPO is of utmost importance. They can make things much easier and simpler to streamline and handle various operations around the organization.
From increasing your organization’s productivity to maintaining donor records, conducting audits, producing reports, and focusing more on your mission to do good for the public, the right ERP software can just do wonders for NGO/NPO.
