The Most Important ERP Features for Nonprofits

Financial and procurement features include cash management, financial analysis, purchasing, cash management, expense claims, accounts payable, accounts receivable, budget management, accounting, general ledger, and requisition management.

Fremont, CA: Nonprofits require an Enterprise Resource Planning (ERP) solution to adapt to their changing needs and manage their finances, processes, and workforces. They must meet stringent compliance requirements and are constantly under pressure to provide accurate results for industry-specific challenges while operating with often limited budgets.

Since ERP solutions can differ dramatically depending on the industries, they're tailored for, finding the right software for your nonprofit can be difficult.

Listed below are the most important ERP features for nonprofits

Finance and Procurement

Every organization's success depends on its financial management. Yet, nonprofits face unique challenges such as managing budgets, tracking manual processes, and serving their communities with often limited resources. Nonprofits should prioritize platforms that provide a single, accurate, accessible, and secure source of financial data when choosing an ERP solution.

Financial and procurement features include cash management, financial analysis, purchasing, cash management, expense claims, accounts payable, accounts receivable, budget management, accounting, general ledger, and requisition management. Nonprofits can use these tools to provide staff with the data they need to make informed decisions and reduce mistakes, duplications, and delays that can lead to financial risks.

HR Management

The inefficiency of human resources can be a significant challenge for nonprofits. HR processes are time-consuming, and the reliance on manual record-keeping and error-prone paperwork over time can lead to disconnected processes that frustrate managers, confuse employees, and increase compliance risks. In this sense, ERP solutions can be a valuable investment, as they provide organizations with the integrated, cloud-based tools they need to centralize staff management processes and provide employees with self-service capabilities.

Payroll Administration

In terms of payroll administration, nonprofit organizations need a solution that can automate payroll processes, simplify complex calculations to ensure everyone is paid correctly, and simplify job-sharing allocations. An ERP software solution can help nonprofits integrate their finance, HR, and scheduling data to identify potential errors and streamline payroll processes so they can focus on serving their communities.

Scheduling and Time Entry

Nonprofits should be able to manage complex, distributed workforces with dynamic, shifting schedules in the human services and education sectors. Any company would find this challenging, but nonprofits with limited resources and sometimes outdated technology may find it more difficult. A cloud-based ERP SaaS solution improves transparency, automates complex workflows, eliminates guesswork, tracks labor costs, and streamlines processes to get the right employees on-site when needed, and accurately tracks time spent on the job.