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Why Companies Flock to the Cloud
COVID-19 pandemic-related changes have left 75% of nonprofit professionals more likely to adopt cloud-based solutions. One reason for this might be that nonprofits are moving toward a web-based workforce, and cloud-based programs will enable employees to access information from wherever they are.
But even if your organization isn’t shifting toward remote work, the cloud still provides notable benefits for nonprofits. When you adopt cloud-based software, you take advantage of increased information security, more efficient scalability, and customizable modules.
Security
Adopting a robust cloud-based software solution will make it easier for your nonprofit to keep your information secure. Some ways the cloud improves security include:
- Allowing you to manage internal access controls: Reduce the possibility of human error leading to security breaches by limiting access to only the employees who need it.
- Alerting you to potential discrepancies: Cloud accounting software, for example, might notify you of duplicate invoices or other concerns in your financial information. Once aware, you can take the necessary steps to mitigate any potential breaches.
- Helping your nonprofit stay on top of compliance demands: Quality cloud-based solutions will be aware of and integrate compliance needs every step of the way. Cloud-based accounting software for nonprofits provides total financial transparency to help you meet compliance demands when audited.
- Implementing more vigorous security solutions: Your resources are limited, and securing software against hackers can be expensive. Using a cloud service provider allows you to tap into their security protocols, which will often be more vigorous than you could supply on your own.
- Decreasing spending on security staff: Because many cloud-based solutions employ robust security solutions, you’ll no longer have to hire as many employees to keep your information secure.
- Providing off-site data storage and backups: Storing your data off-site will protect it from natural disasters that might come through your nonprofit’s location.
While evaluating potential solutions, ensure your cloud service provider follows security best practices, such as data encryption and backup, and that they have secure locations for their servers.
Scalability
Cloud-based solutions also make it easier to scale your software as your organization grows. Because you don’t have to store the software on your organization’s computers, you aren’t limited by your computing power.
Cloud storage also alleviates the cost of maintaining your own server space for the information the software manages. With this cost eased, you then have the freedom to reallocate those funds to other growth areas.
A few more ways cloud software enables your organization to scale more efficiently include:
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- Speed: As the environment you serve changes rapidly, your nonprofit also needs to adapt quickly. With cloud-based solutions, you no longer have to physically update your servers to update software, allowing you to scale as quickly as you need.
- Optimization: When you grow, so does your information, which means you’ll need software optimized to handle the additional data. Using an established cloud-based solution means your software provider will stay on top of system optimization so you can focus on your organization.
- Freedom of location: Because you’d be housing your software online, you can access it from anywhere. With the cloud, you have the freedom to hire more remote employees or manage your information from wherever in the world your work takes you.
- User access: Similarly, as you hire more employees, the right software will allow you to add new users with ease. Powerful systems will also provide access controls to keep your information secure and accessible only to those who need it.
- Adaptability: The right software solution will provide modules that adapt to your needs and grow with your organization. The more information you have, the more complex your reporting processes become. Robust software will simplify the reporting processes by helping you find and extract only the relevant information.
Modules
Choosing a package that provides the right modules for your organization is one of the most significant benefits of adopting a cloud-based solution. Because of the cloud’s increased security and storage capabilities, you’re free to choose software that provides all the complex modules you need.
As you consider software packages, carefully evaluate the modules they provide. The modules should meet your information organization and reporting needs, integrating processes seamlessly. You should also be free to add and adapt modules as your organization grows.
With nonprofit cloud accounting software, for example, you might look for the following functionality:
- Configurable modules
- Fund-tracking from multiple sources, including grants and donation dollars
- Fund-allocation and budgeting
- Purchase order management
- Seamless approval process for future purchases
- Bank reconciliation
- Assets management according to Generally Accepted Accounting Principles (GAAP)
- Nonprofit tax reporting
- Integration with HR functions, such as payroll, direct deposit, and benefits
In essence, robust cloud accounting software for nonprofits will provide all the functionality you need to manage your funds seamlessly in one place. It should be customizable for your organization’s needs and help streamline your decision-making process.
Nonprofits have unique tracking and reporting needs. Look for a software package designed with those needs in mind. Our MIP Fund Accounting® software integrates transparency throughout to prepare your organization for auditing. Because our software houses all of your organization’s financial information in one place, you can easily catch any errors before they become a larger problem, and you can meet reporting requirements with ease.
Integrated modules for human resources management should also provide seamless reporting. Our HR tools enable your nonprofit to stay ACA-compliant and prepare for tax reporting through in-software tools and the ability to print tax forms as needed.
Take Advantage of Cloud-Based Benefits Today
Our MIP Fund Accounting® software provides a secure, scalable, and customizable software solution for your nonprofit’s financial and HR management needs. Because we designed our software with nonprofits in mind, we provide specialized functionality to meet your unique needs, with over 20 configurable modules.
Are you ready to adopt a comprehensive cloud-based accounting solution for your nonprofit? Request a live demo today!
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