Fund Accounting for Nonprofits and the Benefits of Going Paperless

Paperless Fund Accounting for NonprofitsAs the popularity of having a paperless organization grows, it is important to understand just how beneficial this can be. Last week, we took a look at the cost of paper-based offices and how reducing inefficiencies using fund accounting software and other means to reduce paper ultimately reduces a variety of organizational costs. To learn more about saving money and time by going paperless, visit here. Reducing costs is only one of the many benefits of going paperless. Let’s take a closer look at the many other benefits of going paperless.

Benefits of Going Paperless

  • Improvements to processes- Going paperless offers the capability of improving processes carried out throughout the nonprofit office without significantly altering the way things must be operated. This is a very attractive feature because it increases efficiency without the need for substantial changes in operations. Having the documents you need without needing space for them and without drowning in paper files is a huge benefit for organizations.
  • Increased compliance with federal regulations– With federal regulations legislating more and more privacy and fiscal reporting all the time, being more in compliance with these regulations is another benefit of going paperless. It is easier to be more compliant because being paperless allows for immediate access to documents and for instant report creation using fund accounting software. This upholds the requirement the government has to be able to immediately access records whereas paper records may be much harder to find and locate immediately.
  • More productivity – Strong gains in productivity by not having to sort through paperwork all of the time are another benefit of going paperless. This is especially pertinent in the human resources and accounting departments that are typically the ones who rely heavily on paper files but can carry out many of the same functions through AccuFund software.
  • Less costs so more money for nonprofit initiatives– Going paperless is not just about reducing costs. It also has the potential to put that money saved back into the organization and its efforts. By spending less on expenses, more money is available to carry out and support nonprofit initiatives that align with your mission. Going paperless has a high potential to enhance success with huge savings that result in financial benefits your organization can use to further its mission.
  • Heightened security– Data security is a must for any nonprofit. Threats to your nonprofit’s integrity and the value of your most important information are serious. They can come from outside competition and identity thieves or even from within the organization from employee theft. The good news is that software solutions that help you go paperless provide multiple levels of security through password-protected access to information. This is also beneficial in terms of audits because the software can track who and when documents were accessed and what information was updated within existing documents.
  • Other reasons– With the elimination of the paper-based bottleneck and the increase in better processes being put in place, going paperless makes an organization not just more efficient but also more socially responsible and a more earth-friendly business. Paperless practices using fund accounting software for nonprofits also help ensure that strict approval processes are followed and generally add consistency to existing procedures.

As you can see, going paperless offers a variety of benefits to office process improvements, regulatory compliance, enhanced productivity, reduced costs leading to increased available funds to carry out mission-directed initiatives, heightened security and protection, and much more. Fund accounting for nonprofits software can help you in going paperless. If you lack a fund accounting software, you can learn more about AccuFund software that is a robust solution that is also meant to help your organization achieve the status of “paperless.” Contact us to learn more about the benefits of going paperless and to find a fund accounting for nonprofits solution that will help you achieve your goals.