From the April 2020 reviews of nonprofit accounting systems.
QuickBooks Online allows users to choose ‘nonprofit’ as the business type when setting up the application, but aside from some slight differences in the account names, there is no difference in software functionality from a for-profit setup.
Although QuickBooks Online for Nonprofits is not a fund accounting application, users are able to create custom accounts to track funds or grants if desired by adding a sub-account number, which is the same process used if tracking department expenses.
QuickBooks Online does a good job of tracking a variety of financial transactions offering automatic bank connectivity, as well as the ability to handle sales transactions. The customer option is available to track donors and donations can be tracked as cash receipts or accounts receivable. There is no real way to handle campaigns or other fundraising options within QuickBooks Online, though the product does integrate with a variety of nonprofit apps, enabling users to import transactions into QuickBooks Online if desired.
Budgeting features are only available in QuickBooks Online Plus and Advanced versions, with budgets able to be created based on location, class, or customer, but multiple budgets cannot be combined. Users do have the option to export budgets to Microsoft Excel for further customization if necessary. Tracking of funds, programs, and grants is limited in QuickBooks Online, although the sub-account method is available if tracking is necessary.
QuickBooks Online does offer good reporting options and includes nonprofit specific reports including Statement of Financial Position, Statement of Cash Flows, and Statement of Activities. All reports are easily customized and can be viewed on screen, emailed to the recipient, exported to Microsoft Excel for further customization, or saved as a PDF.
QuickBooks Online is a good option for smaller nonprofits and currently offers four plans: Simple Start (1-user), which is available for $12.00 a month; Essentials, which is $20.00 per month for up to 3 users; Plus, which runs $35.00 per month for up to 5 users; and Advanced, which is $75.00 per month and supports up to 25 users. QuickBooks Online also offers a free 30-day trial for those that wish to try out the application prior to purchasing. Several add-on payroll systems are also available.