Any charities out there using Xero accounting software?
I installed QuickBooks online for a charity last year, and was reasonably happy with that, but it had a few frustrating quirks.
I'm about to install a system for another charity of a similar size (c. 3m income), and I've been reading very positive reports of Xero accounts; I'd just be interested to hear from existing charity users how it copes with restricted funds. Does it have an analysis field that can be utilised for that, or some form of project accounting facility that enables fund reporting?
Replies (7)
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Xero's Tracking feature
Hi
I thought I'd jump in before the charities get back to you and let you know that lots of charities use Xero's Tracking feature to separate restricted from non-restricted funds etc. Two Tracking Categories (anything you want eg. Type or Source etc.) can be set up and an unlimited number of options added under each category. When entering transactions / manual journals etc. each line item can be associated with a single option under each category. This way the analysis or type of funding eg. restricted or non-restricted is separate from the chart of account coding on a per line item basis. Reporting can then be performed filtering or comparing on Tracking.
Hope this helps.
Nathan Travers
Training Manager, Xero
@ntravs
Xero Development Schedule
Hi Donna
We are looking into whether there are some changes we might be able to make to cater more to the needs of charities and not-for-profit organisations. We are however in the early stages of this process and I don't have any details I can provide. As such I wouldn't recommend you base any decision on what might arrive in the future.
If you do have any questions around Tracking or other features I'd be happy to try and help or at least point you in the right direction.
Nathan
Xero and Charities
Something is definitely happening in the area of Charities and Xero. I am about to carry out my fourth engagement (either training or implementation) with a Charity, with more enquiries following . This is within just the last twelve months. I think there are a number of reasons. First the tracking feature as discussed in this thread. Also in many cases they have a number of Trustees, so the ability to view the information remotely from any location is seen as highly attractive. Lastly the flexibility of the budgeting feature means that they can budget by any division/fund of the Charity as required.
Maree Maxfield
Maxama Ltd
Xero Training Partner
I introduced Xero to the charity where I am trustee, with the ability to report both Restricted vs Unrestricted transactions as well as per project or per donor transactions.
I provided the charity with quite a detailed guide - aimed at non-accountants - for using Xero and have now published this as an online guide at:
https://xero4charities.co.uk/
My firm do the bkpg & mgmts for 3 charities, all on Xero. They and we are happy with it and wouldn’t move away.