Choosing the Right Software Archives - Zahara Accounts Payable Automation Software https://www.zaharasoftware.com/category/choosing-the-right-software/ Accounts Payable Automation Software Thu, 18 Dec 2025 16:46:15 +0000 en-GB hourly 1 https://wordpress.org/?v=6.9 https://www.zaharasoftware.com/wp-content/uploads/2019/08/cropped-app_icon_final_512x512-32x32.png Choosing the Right Software Archives - Zahara Accounts Payable Automation Software https://www.zaharasoftware.com/category/choosing-the-right-software/ 32 32 AP Automation Solution: Find the Right Software for You https://www.zaharasoftware.com/choosing-the-right-software/ap-automation-solution-find-the-right-software-for-you/ Tue, 15 Jul 2025 13:32:21 +0000 https://www.zaharasoftware.com/?p=7531 Managing accounts payable manually can slow down your finance team and create costly errors. Choosing the right AP automation solution helps you eliminate bottlenecks, reduce manual data entry, and speed up invoice approvals. In this article, we’ll explore what an AP automation solution is, the key benefits, and how to choose the best option for … Continue reading "AP Automation Solution: Find the Right Software for You"

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Managing accounts payable manually can slow down your finance team and create costly errors. Choosing the right AP automation solution helps you eliminate bottlenecks, reduce manual data entry, and speed up invoice approvals.

In this article, we’ll explore what an AP automation solution is, the key benefits, and how to choose the best option for your business.

What is your AP Automation solution?

A great AP automation solution is provided by fully supported software that automates the accounts payable process. The features should include:

  • Capturing supplier invoices digitally
  • Matching invoices to purchase orders and goods receipts
  • Routing invoices for approval
  • Managing invoice exceptions
  • Exporting approved invoices to your finance system for payment

Solutions like Zahara’s Accounts Payable automation software help businesses streamline AP workflows and reduce the risk of manual errors.

Insights
Insights
Portrait of Martin Peirce

Martin Peirce

Founder and CEO

AI, is opening up huge opportunities. It’s not just a buzzword — it’s already helping me work smarter. From writing code to researching ideas or even figuring out the best way to plaster a wall (which is harder than it looks, by the way), I’m seeing firsthand how it can improve how we live and work. And that’s the goal: to make life better.

At Zahara, we’re building software that people genuinely enjoy using. Tools that simplify, save time, and help people focus on what matters most — whether that’s bigger business priorities or simply enjoying a bit more free time at the end of the day.

AI, in particular, is opening up huge opportunities. It’s not just a buzzword — it’s already helping me work smarter. From writing code to researching ideas or even figuring out the best way to plaster a wall (which is harder than it looks, by the way), I’m seeing firsthand how it can improve how we live and work. And that’s the goal: to make life better.

Benefits of Using an AP Automation Solution

Here’s why more businesses are turning to AP automation:

1. Faster Invoice Approvals

Manual approvals slow down payments and frustrate suppliers. An AP automation solution routes invoices to the right people automatically. With Zahara, you can set up multi-step invoice approval workflows that speed up the process.

2. Reduced Manual Data Entry

Optical Character Recognition (OCR) and intelligent data capture reduce the need for manual keying. Zahara’s OCR invoice scanning extracts key invoice data in seconds.

3. Improved Accuracy

Automation reduces human errors, from duplicate payments to incorrect supplier details. Automated three-way matching compares invoices with purchase orders and delivery receipts, helping prevent mistakes.

4. Better Visibility and Reporting

A good AP automation solution gives you real-time visibility over invoice status, approvals, and outstanding payments. Zahara’s AP Automation features include built-in reporting dashboards.

5. Lower Processing Costs

Reducing paper handling, postage, and admin time cuts your average cost per invoice. Studies show AP automation can reduce invoice processing costs by up to 80% (Source: Ardent Partners).

Features to Look for in an AP Automation Solution

When choosing an AP automation solution, focus on the following features:

– Invoice Capture Tools

Look for software with invoice capture software that uses OCR or email parsing.

– Automated Approval Workflows

Make sure the solution offers customisable, rule-based approval workflows.

– Purchase Order Matching

If you use purchase orders, select a solution with purchase order management and automated matching.

– Supplier Payment Scheduling

Some solutions, like Zahara, also handle scheduled supplier payments, giving you control over your payment run process.

– Integrations

Ensure the system integrates with your finance or ERP system. Zahara offers flexible integrations with popular accounting platforms.

Choosing the Best AP Automation Solution for Your Business

Follow these steps to select the right tool:

  1. Map Your Current AP Process
    Understand where delays and inefficiencies occur.
  2. Define Your Goals
    Are you looking to reduce costs, improve visibility, or speed up approvals?
  3. Review Features and Pricing
    Compare providers on functionality and AP automation cost.
  4. Request a Demo
    See how each solution works in practice. Zahara offers free demos to help you evaluate fit.
  5. Check Support and Onboarding Options
    Look for providers with strong customer support and implementation help.

Why Zahara Could Be Your Ideal AP Automation Solution

Zahara is designed for mid-sized businesses that want flexible, easy-to-use AP automation. Key advantages include:

  • Fast implementation
  • No long-term contracts
  • User-friendly interface
  • Affordable subscription pricing

Learn more about Zahara’s Accounts Payable automation software.

🍋 AP automation
Discover the full benefits of automating your accounts payable processes.

🧾 Invoice approval software
Find out how automated approval workflows can speed up month-end.

📥 Invoice capture software
Learn how to digitise your invoices quickly and accurately.

🛠 Purchase order software
Control spend before it happens with easy-to-use PO tools.

🏗 PO system for small businesses
See how small businesses can benefit from using a PO system.

🚦 Invoice processing
Understand the full invoice processing journey from capture to payment.

📡 OCR Software
Explore how OCR technology transforms paper invoices into digital data.

FAQs About AP Automation Solutions

What is an AP automation solution?

An AP automation solution is software that automates accounts payable tasks like invoice capture, approvals, and payment scheduling.

How much does AP automation cost?

Costs vary depending on the provider and features. Zahara offers affordable pricing with no long-term contracts. See Zahara’s pricing page for details.

Can AP automation integrate with my finance system?

Yes, most AP automation solutions, including Zahara, offer integrations with popular finance and ERP platforms.

How long does it take to implement AP automation?

Implementation times range from a few days to several weeks, depending on the solution and your internal processes.

Does Zahara offer support during setup?

Yes, Zahara provides onboarding support and training to help you get started.

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Improving Employee Adoption of Software https://www.zaharasoftware.com/choosing-the-right-software/improving-employee-adoption-of-software/ Thu, 19 Jun 2025 10:37:14 +0000 https://www.zaharasoftware.com/?p=7509 What is the key to successful employee adoption of new software? The key to successful employee adoption is software that is intuitive, user-friendly, and requires minimal training. Employees adopt new tools quickly when the experience is smooth and frustration-free, reducing resistance to change. The Challenge of Adopting New Technology in Traditional Industries Change is hard, … Continue reading "Improving Employee Adoption of Software"

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What is the key to successful employee adoption of new software?

The key to successful employee adoption is software that is intuitive, user-friendly, and requires minimal training. Employees adopt new tools quickly when the experience is smooth and frustration-free, reducing resistance to change.

The Challenge of Adopting New Technology in Traditional Industries

Change is hard, especially in industries like construction and education, where processes have been built over years, sometimes decades. Whether it’s approvals on a job site or processing invoices in a school trust, people tend to stick with what they know—and that’s understandable.

Why Employee Adoption of Software Often Fails

One of the toughest challenges businesses face when introducing new systems is employee adoption. Even the most powerful software won’t succeed if it’s slow, clunky, or confusing. Employees will find workarounds, revert to old habits, or abandon the software entirely. This leads to lost time, wasted investment, and stalled progress.

Introducing Zahara: Designed for End-Users

This challenge inspired the creation of Zahara. Real change requires software that isn’t merely functional—it must also be intuitive, visually appealing, and easy to use. Zahara was developed with end-users in mind, not just finance or IT departments.

Intuitive Interface for Mobile and Desktop Users

Whether you’re a site supervisor raising a purchase order from your mobile phone or a school administrator managing invoice processing, Zahara ensures the process is simple, quick, and frustration-free.

Overcoming Resistance to Change

If your teams hesitate to adopt new software, it’s typically because they’ve experienced poorly designed tools in the past. Provide software they actually enjoy using, and you’ll see rapid adoption and meaningful progress.

Next Steps: Make Change Easier with Zahara

Ready to see how easy software adoption can be? Schedule a demo choosing from 4, full product tour, Invoice Processing, Purchase Orders only, or a very quick introduction call, and let Zahara simplify your accounts payable management workflows today.

Are you ready for a demo?

Choose from a 15 minute intro, to a full product tour 40 minutes.

Lydia

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Self-Employed Accounting Software https://www.zaharasoftware.com/choosing-the-right-software/self-employed-accounting-software-a-quick-guide/ Fri, 02 May 2025 14:02:58 +0000 https://www.zaharasoftware.com/?p=7385 While self-employment brings flexibility and independence, it also puts you in charge of your own finances. Panic not! Just because you don’t have the qualifications to work for Deloitte doesn’t mean you’re done for. There is great self-employed accounting software out there that can help you manage invoices, expenses and taxes. This guide explains what … Continue reading "Self-Employed Accounting Software"

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While self-employment brings flexibility and independence, it also puts you in charge of your own finances. Panic not! Just because you don’t have the qualifications to work for Deloitte doesn’t mean you’re done for.

There is great self-employed accounting software out there that can help you manage invoices, expenses and taxes.

This guide explains what this software does, key features to look for, and how to choose the best option for your unique business needs.

What is self-employed accounting software?

Self-employed accounting software is digital accounting software that handles accounting, but specifically for individuals who run their own businesses or work for themselves. This is as opposed to accounting software aimed at SMEs and large businesses.

It is generally targeted at people with no or few employees. The focus is on simplicity, automation, and ease of use for solo entrepreneurs who may not have formal accounting training.

At its core, this software helps users keep track of income and expenses, generate and send invoices and calculate taxes. It gives a clear financial snapshot without the need to sift through spreadsheets or hire a full-time accountant.

For the self-employed, where income can be irregular and number crunching complex, accounting software ensures rigorous accounts, all documented and accessible. This means you can stay compliant, organised, and financially informed, all while freeing up time to focus on your actual work.

Key features to look for in self-employed accounting software

What is the best accounting software for self-employed people? That depends on you. Choosing the right accounting software will make a huge difference in how efficiently you manage your finances. Here are important features to consider:

User-friendly interface – You shouldn’t need an accounting degree to navigate your finances, so look for software with a clean, intuitive dashboard. A good interface will save you time and save you a learning curve.

Expense tracking – Automated expense tracking is essential. The ability to link your bank accounts and credit cards allows the software to automatically import and categorize transactions, ensuring nothing gets missed.

Invoicing and payment integration – You should be able to create, customise, and send professional invoices easily. Ideally, this involves automated invoice processing.

Tax tools – Effective software will be able to estimate your quarterly taxes, track deductions, and even generate tax-friendly reports. Some platforms also integrate with tax-filing services.

Customer support and resources – Reliable customer service, tutorials, and help centres can be lifesavers when questions arise.

Mobile access and cloud syncing – Ensure the software includes a mobile app and real-time syncing across devices. This flexibility lets you manage your finances from anywhere.

Mileage tracking – This last one is a bit of a bonus for anyone that drives or travels for work. You can get automatic mileage tracking via a mobile app that links to your accounts to figure deductions. Maximized potential, minimal effort.

With many accounting tools available today, choosing the right one can be a process fraught with hair-pulling frustration. We’ve outlined some of the best options in the table below and expanded on each further down.

FeatureQuickBooks SEFreshBooksWaveZoho BooksFreeAgent
Price (Monthly, GBP)£10 (+20%VAT)£12.50+Free£10+£16.50*
Invoicing✅✅✅✅✅
Expense Tracking✅✅✅✅✅
Mileage Tracking✅❌❌✅✅
Tax Estimation✅❌❌✅✅ (UK only)
Time Tracking❌✅❌✅✅
Mobile App✅✅✅✅✅
Best ForFreelancersCreativesNew StartersGrowing BusinessesUK Self-Employed

Sources: Official websites for Zoho Books, Free Agent, QuickBooks, FreshBooks, Wave.

Note: Prices are approximate and may vary based on plan tiers and promotions.
 *FreeAgent is free for NatWest, RBS, and Mettle business account holders.

QuickBooks Self-Employed

  • Strengths: tax estimation, mileage tracking, strong integration with TurboTax
  • Weaknesses: limited features compared to QuickBooks Online

QuickBooks Self-Employed is accounting software designed specifically for freelancers and sole proprietors and offers lots but lacks scalability. That means if your business grows beyond freelancing, you may need to upgrade to QuickBooks Online or another more comprehensive system.

FreshBooks

  • Strengths: time tracking, strong invoicing, intuitive design
  • Weaknesses: better suited for service-based freelancers

FreshBooks is known for its intuitive design and robust invoicing features. Ideal for service-based professionals like designers or consultants, it includes time tracking, project management tools, and online payment capabilities. While it’s feature-rich, it may be more than necessary for very simple financial setups.

Wave Accounting

  • Strengths: free plan, robust for basic needs
  • Weaknesses: no built-in tax estimation, limited customer support

Wave stands out as a powerful free solution. It offers invoicing, expense tracking, and basic financial reporting at no cost. It’s great for new or part-time freelancers. However, it lacks advanced features like tax estimation and doesn’t offer dedicated customer support unless you pay for add-ons.

Zoho Books

  • Strengths: affordable, feature-rich, great for tech-savvy users
  • Weaknesses: slight learning curve

Zoho Books is a budget-friendly, scalable tool packed with features. It’ll do inventory tracking, project billing, and customizable workflows. It does automation but that comes with a steeper learning curve. In our opinion Zoho Books is best for tech-savvy users or those with big plans to expand.

FreeAgent

  • Strengths: strong UK market presence, all-in-one solution
  • Weaknesses: pricing may not suit all freelancers

Popular in the UK, FreeAgent offers all-in-one accounting features, including time tracking, tax estimation, and bank reconciliation. It’s user-friendly but priced slightly higher, which may be something to think about if you’re just starting out.

How to choose the right software

Selecting the right accounting software as a self-employed professional starts with understanding your specific needs. Not all tools are created equal, and what works for one freelancer may be too complex – or too limited – for another.

Define Your Needs

  • Are you a writer, consultant, Uber driver, etc.? What does your role require of your accounts?

Begin by evaluating the nature of your work. If you’re a creative freelancer who bills clients by the hour, features like time tracking and project-based invoicing are essential. If you’re a rideshare driver or delivery contractor, mileage tracking and automatic expense categorization will be more valuable.

Budget Considerations 

  • Free vs. paid solutions? How much money do you have to spend?

Budget is another critical factor. Free options like Wave may suit those with simple needs and tight margins, while more robust tools like FreshBooks or QuickBooks Self-Employed come with monthly fees but offer greater automation and tax support.

Scalability

  • Will the software grow with your business?

Even if you’re just starting out, think long-term. As your business grows, you may take on more clients, hire subcontractors, or expand services. Choose software that can grow with you. Some tools, like QuickBooks Online or Zoho Books, offer scalable solutions that evolve with your business, saving you the hassle of switching platforms down the line.

Ease of use

  • Time-saving tools matter when you’re solo. Are you a tech wizard or a technophobe?

Consider ease of use. If you’re not financially savvy, choose software with a simple, clean interface and strong customer support. It should save you time, not create more work. Be sure to check if it has a mobile app, especially if you work on the go.

Compatibility

  • Will the software work with you?

Look into whether or not the software is compatible with your bank, other software you use, or (if you employ one) your accountant’s tools.

Trial periods

  • Use free trials to test software before committing

Finally, take advantage of free trials and demos. Most platforms offer a risk-free period so you can test the software in real-world conditions.

Common mistakes to avoid with self-employed accounting software

Setting up incorrectly – Failing to properly configure your software can lead to inaccurate records. Take time to link the right bank account or pick the correct tax settings. A little review never hurts and tutorials are there if needed.

Not using automation features – Many users overlook time-saving features like recurring invoices, or bank feeds. These tools exist to reduce manual input and human error, so take advantage of them.

Forgetting to reconcile accounts – Even with bank feeds, it’s essential to reconcile your records with actual transactions. Skipping this step can lead to discrepancies that are hard to catch later.

Neglecting updates and maintenance – Failing to keep your software up to date, or ignoring regular data reviews, can result in outdated reports and potential tax issues.

Relying solely on the software for tax accuracy – Accounting software helps with tax estimates, but it’s not infallible. You should still consult a tax professional annually. They can ensure that everything is ship-shape and ensure you’re maximizing deductions.

A word from Zahara

If you’ve made it this far, perhaps you’d hear a word about what we do. We’re in the accounting software business, automating accounts payable through software that integrates with all major business programmes.

Perhaps you’re not a big enough operation to need any of that yet, but we are sharing our knowledge through our blog and our podcast to help people like you make more informed decisions in a tough-to-navigate world. 

Our AP automation software is aimed at systems like Xero, Sage and QuickBooks, but these systems with a Zahara integration could still be useful for you – especially if you’ve got big plans for expansion.

If you’re interested, give one of our specialists a call, or book yourself in for a demo. We’d love to hear from you.

Frequently Asked Questions (FAQs)

1. What is the difference between accounting software for self-employed users and small businesses?
 Self-employed accounting software is simplified for solo users – typically without payroll, inventory, or complex reporting features. Small business software supports teams, employees, and larger-scale operations.

2. Do I really need accounting software if I only earn a small freelance income?
 Yes. Even with modest income, accounting software helps track expenses, manage invoices, and prepare for taxes, saving time and reducing errors.

3. Can I use free accounting software and still be HMRC compliant?
 Yes, tools like Wave or Zoho Books  can support compliance, but always check they handle VAT and are compatible with Making Tax Digital (MTD) if you’re VAT registered.

4. Is QuickBooks Self-Employed enough for UK tax filing?
 It works well for basic needs, but it’s not MTD-compliant for VAT returns. QuickBooks Online or FreeAgent may be better for full UK tax functionality.

5. Can I switch software later if my business grows?
 Absolutely. Most platforms offer export options or upgrade paths. It’s wise to choose a scalable tool from the start to avoid future data migration issues.

6. Do these tools replace an accountant?
 Not necessarily. While they simplify day-to-day finances, an accountant is still useful for tax advice, compliance, and year-end filing.

Are you ready for a demo?

Choose from a 15 minute intro, to a full product tour 40 minutes.

Lydia

😊 You might also like to read:

 

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How Free Accounting Software Helps Small Businesses https://www.zaharasoftware.com/choosing-the-right-software/how-free-accounting-software-helps-small-businesses/ Wed, 30 Apr 2025 15:39:04 +0000 https://www.zaharasoftware.com/?p=7374 The cost of subscription accounting software can often be prohibitive for small businesses. Running the main-brand software won’t be cheap in the long run, and if you run a small business you probably don’t want to swamp the books with large overheads. Don’t sweat it though. There is some free accounting software for a small … Continue reading "How Free Accounting Software Helps Small Businesses"

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The cost of subscription accounting software can often be prohibitive for small businesses. Running the main-brand software won’t be cheap in the long run, and if you run a small business you probably don’t want to swamp the books with large overheads.

Don’t sweat it though. There is some free accounting software for a small business just like yours. Obviously you won’t be getting the Ferrari of balanced books – we’ll get on to the drawbacks later – but you will secure yourself a program with some basic features that’ll tide you over until your business is booming enough to upgrade.  

Here’s what you need to know:

Free accounting software features and benefits

Obviously the main benefit of free accounting software is that it’s free, but there are other benefits. Chief among these is user-friendliness. Free software is usually easiest because it’s used by people without complex accounting needs.

It is also scalable. Scalability is something we talk a lot about at Zahara. It will allow your software a longer lifespan. Certain types of free accounting software will offer this, usually through paid add-ons or small subscriptions. Using these can be a good way to smoothly adapt to a growing business’ growing needs.

Overall, free accounting software empowers users to maintain accurate financial records, meet compliance requirements, and make informed business decisions without a significant financial investment.

Free accounting software is also usually cloud-based. This allows users to manage their accounts from anywhere, ensuring greater flexibility and real-time collaboration. This is something you should really look for.

There are some other features you should look for in free accounting software too. These are:

  • Invoice processing
  • Expense tracking
  • Bank reconciliation
  • Basic financial reporting
  • Tax preparation tools

Without the above your software won’t be of much use to you, so make sure you’re looking for these features when choosing free online accounting software. Some platforms may also provide inventory management, payroll processing, and integration with third-party apps which can also be useful, but not imperative.

So what are the free accounting systems to consider?

Accounting Software for Small Businesses

Wave Accounting

Who is Wave Accounting Best for? Freelancers, service-based small businesses.

Wave Accounting Features:

  • Invoicing, accounting, and receipt scanning.
  • Unlimited bank and credit card connections.
  • Basic financial reports.

Wave Accounting Pros: Completely free for core functions; intuitive design.

Wave Accounting Cons: No built-in inventory management; paid add-ons like payroll.

ZipBooks

Who is ZipBooks Best for? Solopreneurs and very small teams.

ZipBooks Features:

  • Invoicing, basic accounting, and expense tracking.
  • Business health scores and basic reporting.

ZipBooks Pros: Clean interface; easy to use.

ZipBooks Cons: More advanced features (like smart tagging) require paid plans.

GnuCash

Who is GnuCash Best for? Small businesses needing detailed records.

GnuCash Features:

  • Double-entry accounting system.
  • Track bank accounts, expenses, income, and investments.

GnuCash Pros: Highly customizable; open-source and completely free.

GnuCash Cons: Outdated user interface; steeper learning curve.

Zoho Books (free plan)

Who is Zoho Books Best for? Microbusinesses with very limited revenue (e.g., under $50K/year).

Zoho Books Features:

  • Invoicing, expense tracking, client management.
  • Integrated with Zoho ecosystem for CRM, inventory, and other features

Zoho Books Pros: Professional templates and workflows.

Zoho Books Cons: Free plan only available to very small businesses (must apply).

Akaunting

Who is Akaunting Best for? Businesses wanting an open-source cloud-based tool.

Akaunting Features:

  • Invoicing, accounting, and client/vendor management.
  • Multiple user roles and permissions.

Akaunting Pros: Cloud-based; multilingual and multi-currency support.

Akaunting Cons: Some features like payroll require paid apps.

Odoo (community version)

Who is Odoo Best for? Growing businesses needing modular flexibility.

Odoo Features:

  • Invoicing, payments, financial reporting.
  • Connects with CRM, project management, and more.

Odoo Pros: Highly customizable and expandable.

Odoo Cons: Setup and maintenance can be complex without IT help.

Sunrise by Lendio (free version)

Who is Sunrise Best for? Service providers and freelancers.

Sunrise Features:

  • Invoicing, income and expense tracking.
  • Basic reporting and cash flow management.

Sunrise Pros: Simple setup; offers bookkeeping services for a fee if needed.

Sunrise Cons: Limited integrations with third-party apps.

That might be a lot of information to digest. Here it is in brief:

SoftwareBest forKey limitations
WaveFreelancers, small servicesNo inventory, limited support
ZipBooksSolopreneursLimited free features
GnuCashDetail-oriented small firmsOutdated interface
Zoho Books FreeMicrobusinessesRevenue cap applies
AkauntingOpen-source fansPaid features for extras
Odoo CommunityModular businessesRequires technical setup
SunriseFreelancersFewer integrations

Limitations

While free accounting software can be a lifesaver for small businesses, it does come with limitations. One of the biggest drawbacks is the lack of advanced features. These often include things that are very useful such as payroll management, inventory tracking, or multi-currency support.

Another issue is that customer support for free plans is often limited or slower, leaving you to troubleshoot issues on your own.

Additionally, some free software may impose restrictions on use. This might be on the number of users, transactions, or something like connected bank accounts but it can get in the way of smooth operations.

Scalability can be an issue. As a business grows, it may outgrow the basic capabilities of free tools and be forced to migrate to a more sophisticated (and costly) system. This can be time-consuming and complicated. While some free accounting software will scale better than others (Odoo, for example) it’s unlikely it will be able to support your needs all the way.

Perhaps most importantly, security can also be a concern. You should make sure the software you choose has robust data protection measures.

Choosing the right software

Choosing the right free accounting software starts with understanding your business needs. Look for a platform that covers essential tasks like invoicing, expense tracking, and basic reporting.

Consider the software’s ease of use, especially if you don’t have a financial background. Scalability is important too. If you’ve got big ambitions for your business, choose a tool that can grow with it. Check if the software integrates with other tools you already use, like payment processors or CRM systems.

Finally, review security features to protect sensitive financial data. Testing a few options with free trials can help you find the best fit before fully committing.

A word from Zahara

We’ve been in the accounting software business a while. In that time we’ve learnt a thing or two. We’re sharing our knowledge through our blog and our podcast to help people like you make more informed decisions in a world that can be tough to navigate.

While our accounts payable automation software is aimed at the bigger accounting programs (Xero, QuickBooks, Sage etc.) we’re here to discuss why choosing one of those and integrating with us could also be a good option for you.

If you’re interested, give one of our specialists a call, or book yourself in for a demo. We’d love to hear from you.

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Accounting Software for Non-profits: Choosing the Best Software  https://www.zaharasoftware.com/choosing-the-right-software/accounting-software-for-non-profits-choosing-the-best-software/ Wed, 19 Mar 2025 15:24:15 +0000 https://www.zaharasoftware.com/?p=7251 Effective financial management is crucial for all organizations. However, non-profits face unique challenges: They must ensure their funds are allocated appropriately while maintaining compliance with legal requirements. The right accounting software will streamline operations, ensure transparency, and simplify tax reporting. Here, we explore the best accounting software for non-profits and why it meets the industry’s … Continue reading "Accounting Software for Non-profits: Choosing the Best Software "

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Effective financial management is crucial for all organizations. However, non-profits face unique challenges: They must ensure their funds are allocated appropriately while maintaining compliance with legal requirements.

The right accounting software will streamline operations, ensure transparency, and simplify tax reporting. Here, we explore the best accounting software for non-profits and why it meets the industry’s unique demands.

What to look for in your accounting software

Fund accounting capabilities

You manage restricted and unrestricted funds, so you need software that can:

  1. Track grants, donations, and program funds separately
  2. Ensure restricted funds are used for their intended purpose
  3. Generate fund-specific financial reports
  4. Software that aids accountability

Donation and grant tracking

Since you rely on donations and grants, your accounting software should:

  1. Track donors, pledges, and recurring donations
  2. Generate donation receipts for tax reporting
  3. Integrate with fundraising platforms (like Donorbox or PayPal Giving Fund)

To do this, enhancing your accounting software with integrations that allow for automated accounts payable would be wise.

Financial reporting and compliance

To maintain transparency and compliance, you need:

  1. Highly accurate, often granular reporting capabilities
  2. Compliance with national or international non-profit accounting standards
  3. Robust payment run features

Implementing automated invoice processing could be a way to ensure all of the above. The built-in financial tracking and error reduction benefits will bring you up to scratch with industry standards.

Budgeting and expense management

Non-profits must carefully plan spending and track expenses so you’ll need to be able to:

  1. Create budgets for different programs and grants
  2. Compare actual vs. budgeted expenses
  3. Manage operating costs, salaries, and overhead
  4. Maintaining accountability through a robust PO system

User-friendliness and accessibility

As a non-profit, you might not have the cash to pay for top accounting talent. Therefore your software should be:

  1. Easy to use for non-accountants
  2. Cloud-based for remote access
  3. Provide role-based permissions for team members and board members

Integration with non-profit tools

Non-profits often use fundraising, CRM, and payroll software, so accounting software should:

  1. Integrate with software that aids financial management (Donorbox, Bloomerang, Zahara)
  2. Sync with fundraising and payment systems (PayPal, Stripe)
  3. Work with payroll and expense tracking tools

Zahara helps to complete all key aspects of the AP process.

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The best accounting software for charities

So what’s your best choice? The world is not short of charity accounting software. Which one you choose should depend on the size and ambition of your non-profit. Here’s what we’d recommend:

  • QuickBooks – Offers donor management, expense tracking, and tax reporting. It provides built-in templates for non-profit financial statements and integrates with fundraising tools.
  • Sage Intacct – Great for a larger charity, Sage Intacct can handle more complex financial reporting and grant tracking. It also offers real-time dashboards to monitor financial performance.
  • Xero – A famed bit of cloud-based software, Xero allows multi-user access, donation tracking, and financial reporting. Xero also supports multi-currency transactions, making it useful for international charities.
  • Aplos – Great accounting software for small non-profits, Aplos was designed specifically for charities and churches. It features donation tracking, automated reporting, and integrated email communication. There are, however, some drawbacks: the software doesn’t handle advanced accounting well, making it effective only for smaller organisations. It has limited growth potential and doesn’t offer many choices for integrations.

It’s worth remembering that Sage, Xero, and QuickBooks all integrate well with add-ons like Zahara, expanding their functionality beyond the basic versions.

Cloud accounting software for non-profits

These days the best accounting software is cloud-based, and it’s a feature you should be looking for when choosing accounting software. It will make accounts payable automation much easier, but the main benefit of cloud-based software is that it enhances security by providing automatic backups. You’ll also like the way cloud-based platforms enable you to handle your accounts remotely from decentralised points. Real-time accounting is another major perk, and not one to be overlooked.

Most of the main accounting platforms – Xero, Sage, QuickBooks – are cloud-based. It’s the way the game works these days and it’s a very good thing. The security benefits alone make cloud-based accounting software a strong choice, but the other perks seal the deal.

Free non-profit accounting software

As a non-profit you might be operating on a tight budget. If that’s the case there are a few free options out there. The free software will probably lack advanced features, but they still offer essential accounting functions like expense tracking, invoicing, and basic reporting.

Free software is a good starting point for non-profits with limited funds or ones that are in the early stages of business life. In the long term, though, you’ll need to figure out whether these systems are going to meet your long-term needs.

If you want our humble opinion, you’re probably better off paying a bit of money for an advanced system. Making the jump to new accounting software can be a costly and complex job – especially if your staff have settled routines with the old software.

If you want to charge on into the world of free accounting software, here are a few to consider:

  • Wave Accounting
  • GnuCash
  • ZipBooks
  • Manager.io

Financial accounting software for NGOs

NGOs require robust financial accounting software to handle multiple funding sources, grants, and donor contributions. Most standard accounting software won’t be able to handle this for you without some very complex rejigging. This is where integration comes in.

By integrating add-ons to your software you can handle much more complex workflows, enhance reporting functions, up accountability – you’re basically getting more bang for your buck.

Fund accounting software for non-profits

Fund accounting software is a financial management tool designed for non-profits, charities, government agencies, and religious organisations. It helps track and manage funds separately, ensuring that money is used for its intended purpose and maintaining standards are met.

It’s important that your software provides this kind of accountability, and again, you’re likely to find it in the form of an ERP integration.

We’ll talk here about Zahara, because that’s what we know best. Add-ons like Zahara will give you the kind of fund allocation tech and detailed audit trails that will help prevent fraud and keep your non-profit in compliance with the law.

Accounting software for small charities

Small charities require cost-effective, easy-to-use accounting software to manage donations, expenses, and financial reports efficiently.

We’ll give Wave Accounting a nod here again, but with the reminder that it may not be able to handle the scaling of your charity when you start to grow.

Because of that, the question comes down to choosing a software that gives you flexibility. We’d recommend Xero or QuickBooks in this case. Both are great for small organisations and start-ups. Both come with great potential for growth.

Xero integrates well with third-party fundraising platforms. QuickBooks offers an affordable plan with essential non-profit accounting features. It includes donor management and budget tracking. Both bits of accounting software offer wide integration capabilities with add-ons like Zahara that’ll boost your charity’s compliance and staff accountability.

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Accounting Software for Non-profits Conclusion

Selecting the right accounting software is crucial. Whether your organization is a small charity or a large NGO, there are software solutions tailored to your needs, but remember, you should be looking for:

  1. Cloud-based software
  2. Scalability (you want your charity to grow)
  3. Good integration capabilities – these will give your software legs
  4. Strong reporting functions, compliance benefits and audit trails – these can come from integrations, it’ll be hard to find them robust enough in vanilla accounting software

Obviously, budget is likely to be a concern for a non-profit… more so than for a non-charitable business. On this point, consider your ambitions. That free software might be tempting, but it won’t serve you well in the long run.

We know we’re biased here, being in the business of cloud-based accounting integrations, but take the rest of this as honest, well-intentioned advice – we are also in the business of curating useful information, too, of course…

If you want the best of the best, you’re going to want a system like Xero, Sage or QuickBooks, and you’re going to want to boost them with integrations. This will give you the highest-quality software, handle all the unique demands of the non-profit sector and give you better scalability.

A word from Zahara

If you’ve found this useful, maybe you’ll like some of the other info we’ve got on our blog. We also run the Totally Balanced Podcast, which covers aspects of accounting from the point of view of our CFO. Watch and listen on Spotify and Youtube.

Here comes the pitch: we’ve been in the world of accounts payable for a long time. Our customers would say we’re experts… We’d say that our software has been built with them in mind.

It’s also said that it works excellently for organisations that don’t keep stock on the shelves. That would be you, and you won’t be the first non-profit to put their trust in Zahara.

We’ve got plenty to say about how our software is the right fit for you. Give us a call, or schedule a demo. We’d love to hear from you.

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