If you run a nonprofit organisation, you have to work hard to further your social cause. The more that your nonprofit can focus on its mission, the better it will be perceived by the public and consequently, the more money it will raise.
Therefore, it’s best to invest in invoicing software that will help you to handle your organisation’s finances with ease and allow you to concentrate your efforts on achieving your social goals. Here, we take a look at how invoicing software can support your social enterprise and simplify your accounting.
Use invoicing software to keep track of your NPO’s financial position
If you run an NPO, you have to keep a close eye on your accounting. This is because tracking your financial status is an excellent way to assess how well your mission is performing. You need to see how much profit you have generated and how much you can further reinvest in the organisation’s projects. Also, if you run an NPO, you’re required to be able to describe the financial position of the organisation at any point with reasonable accuracy and explain all of the NPO’s transactions.
Therefore, you need to retain the accounting records of the nonprofit organisation. This includes any invoices you have sent, receipts for expenses and the organisation’s cash books. This information should be available on request and it’s important for public accountability. Using invoicing software to retain this information will make it easy for you to get an overview of the organisation’s finances.
By definition, an NPO doesn’t need to fill out a profit and loss report, as all of the surplus income is directed back into the business. Rather, a statement of its financial activities should be submitted every year.
Nevertheless, it can still make good managerial sense to use Debitoor’s profit and loss feature (available on the S, M, and L plans) if you run an NPO, as it provides you with an immediate calculation of your organisation’s finances and would show you how much you could afford to reinvest in the cause.
Tracking your NPO’s expenses with invoicing software
When all of your efforts are focused on a social goal, it’s easy to lose track of how much things cost and then become overwhelmed when trying to remember all of the different transactions. Using Debitoor invoicing software will help you to avoid these issues.
You can record a new expense in a matter of seconds. If you log in from the web app, you just need to select the ‘Expenses’ tab and then tap ‘New Expense’. Then you can fill in the name and price, as well as upload any additional documentation. It’s possible to select a category for your expense as well, so you can compare your various costs and see where money may be saved. When you’re then ready, just hit ‘Save’.
Collaborate with your colleagues
Within nonprofit organisations, lots of different people may be needed to ensure a mission succeeds. Therefore, Debitoor provides multi-user collaboration so different team members can all access the invoicing software and record financial transactions. This will improve the NPO’s performance: invoices, expenses and other transactions can be recorded instantly, minimising the risk of mistakes and lessening the workflow
Don’t want to relinquish complete control? When you invite your teammates or employees to Debitoor, you can restrict their access to particular functions. For example
Customise your invoices to highlight your work
Any documents you send out should always reflect your brand. This includes your invoices. Invoicing software will allow you to customise your invoices, meaning that any customer you invoice will automatically be reminded of your social cause and the work you’re doing.
You can add your logo, change your colour scheme, and include a banner across the top of your invoice to help demonstrate your work. With Debitoor invoicing software, you can customise your invoices in a matter of minutes and take your NPO to the next level.
Is your NPO ready to take advantage of all that invoicing software has to offer? Sign up and try Debitoor for free now.
