Xero - For NFPs and charities

Managing finances has become increasingly complex for medium to large not-for-profit organisations and charities. Many of these organisations are implementing Xero as their bookkeeping software to simplify day-to-day accounting.

In this article, I explore how Xero supports NFPs and why Accounting For Good only works in Xero.

Xero is a cloud-based platform, which means it is accessible on any device, anywhere, 24/7. This is a significant advantage for busy NFPs or charities with key stakeholders and board members in various locations. In addition, registered NFP organisations receive a 25% discount on standard plans.

While its accessibility and cost effectiveness are impressive, its functionality makes it the software we advocate for our clients.
Xero’s intuitiveness makes it ideal for volunteers and people who don’t generally work in an accounting software system.  Language like “spend money” and “bills to pay” ensures finding the correct function in the system easy.

Xero can automate routine financial tasks and syncs your banking transactions in real time. Recurring transactions, and transctions matching in the bank reconciliations module, can save significant time for NFP finance teams.

As a cloud-based package, stakeholders can collaborate simultaneously. Key personnel can access up-to-date reports and analyse transactions without chasing bookkeepers.
This level of access greatly speeds up decision-making and creates a transparent and inclusive financial platform for all key stakeholders to interact with.

The Xero reporting platform is a key feature. It generates financial reports, including customised financial reports for projects or grants, and tracks categories for various funding streams. Many NFPs and charities value this level of reporting for its visibility and accountability. Stakeholders can see precisely how funds are being used.

Xero is compliant with ATO lodgement and Single Touch Payroll. It stores everything online, and NFPs and charities can record each donation, expense, and grant in real time and share the reports with their boards and auditors when and as needed.

The dashboards and analytic tools are excellent and provide a clear view of how your organisation is tracking. Expenses can be approved, invoices can be submitted on the go, and key personnel can have the latest financial information at the press of a button. This software mitigates a great deal of administrative work, is accurate, and highly useful for busy NFPs.

Like any software system a good set up and accurate coding of data is essential to ensure the system can produce useful reports.

Accounting For Good is a specialist accounting firm for the not-for-profit and charity sector. We work with NFPs with a turnover of $1M or more and provide a range of services and financial governance oversight that ensure they can remain compliant, financially secure, and fulfill the scope of their mission. For many of our clients, Xero is a key component of their financial management system.

One key consideration for larger NFPs is scalability, and they often administer multiple programs and handle multiple grants. Xero is an essential tool as it enables tracking categories. This feature quarantines income and expenses by project or funder, making it ideal for reporting. The platform is highly integrated and can connect with literally thousands of useful apps like ApprovalMax and Dext.

Its payroll function is simple and can accommodate a staffing cluster of under ten to hundreds, with automated tax calculations and single-touch payroll reporting to the ATO. Xero links with popular payroll systems including Employment Hero.

The platform is user-friendly and highly trainable even for non-accounting people. This has a knock-on effect by engaging everyone in the organisation to be more aware of the numbers, which leads to better financial decision-making across the entire organisation.

Implementing any new system does come with challenges, and software can be a headache. Accounting For Good is an Xero Advisor Certified practice and an early adopter of Xero’s cloud software. We’ve worked with many not-for-profits and charities to implement or convert them to Xero.

Our Xero conversion service, for existing or new clients, gets your organisation up and running quickly on Xero. We offer hands-on training and continued support to ensure the staff and volunteers feel confident using Xero.

Xero is a modern bookkeeping software solution that works for you. Our help makes it an easy, cost-effective, and highly effective tool for your organisation.

At Accounting For Good, we work with NFP organisations with a turnover of $1M or more.

Contact us if your organisation needs expert financial guidance. Let us handle your accounting needs so you can focus on what matters most, serving your community and driving positive change.