The safest cloud-based accountancy systems for churches

Cloud-based accountancy operates on remote servers and is accessed online. Unlike traditional accounting software installed on desktop computers or local networks, cloud-based accounting stores your data and provides applications on protected remote servers maintained by the software provider.

The benefits of cloud-based accounting include:

·       Online accessibility

·       Data security

·       Cost-effectiveness

·       Automated processes and updates

·       Integration

·       Collaboration capabilities for multiple users

With 82% of small businesses and 58% of enterprises now using cloud-based accounting, the shift to cloud-based accounting has become widely adopted. 

Regarding churches, Fellowship One reported that churches that accept tithing online increase overall donations by 32%. Therefore, it’s never been more crucial for churches to provide giving opportunities online where cloud-based accounting can easily manage these types of donations.

To get the ball rolling, here are five cloud-based accounting providers providing secure software solutions to churches and non-profit organisations:

1.     QuickBooks Online

QuickBooks Online offers accounting capabilities with specific solutions for churches and faith organisations. With real-time collaboration and secure access to finances, QuickBooks is a reliable option for your church accounting needs.

Advantages:

·       Bank-grade encryption for data security.

·       Integration with church management systems.

·       Simple expense tracking and financial reporting.

·       Donation tracking and Gift Aid management.

·       Automatic backups and secure payment processing.

Disadvantages:

·       Can lack direct professional support.

·       Limitations of reports outside of accounting.

·       Temperamental stability/system crashes.

·       Limitations on transaction volumes, number of users and file-size issues.

Pricing

·       £10-£70 monthly fee (depending on the package).

2.     Xero

Over 200,000 accountants and bookkeepers use Xero cloud-based accounting. (And for a reason too.) With a strong emphasis on data protection and overall financial security, it’s a reliable option for churches.

Advantages:

·       Industry-standard encryption for data transmission and storage.

·       Two-factor authentication (2FA) for additional authentication security.

·       User permission and access controls for authorised access to specific financial data.

·       Back up to financial data on secure servers.

·       Enhanced transparency and accountability with audit trails that log all activities.

Disadvantages:

·       Limited project management and delivery properties.

·       Lacking in requisition, purchase, and inventory management capabilities.

·       Performance issues linked to high volumes of PayPal sales.

·       Delays or complications in customer service response times.

Pricing:

·       £14-£49 per month.

3.     Sage

600,000 UK customers make Sage a firm favourite for small business cloud-based accounting with a 50% price reduction for all UK registered charities.

Advantages:

·       Robust security measures include data encryption and role-based access control.

·       A unified dashboard allows users to switch between multiple organisations.

·       Automatic payroll and updates of customer records.

·       Customisable features for budgeting and cash flow forecasting.

·       Extensive reports for multiple financial aspects.

·       Collaboration features allow users to share sensitive financial information on one platform.

Disadvantages:    

·       In-depth functionality and features make Sage challenging to navigate.

·       Users will require training from a Sage specialist to operate the system effectively.

·       Starting price does not include the set-up fee.

·       Complaints concerning bank transaction reconciliations.

Pricing:

·       £14-£36 per month (50% discount available for non-profit organisations).

4.     NetSuite

Supporting over 36,000 customers across 217 countries, NetSuite allows UK churches to simplify their accounting processes across transaction recording with managing donations and accurate reporting.

Advantages:

·       Automatically imports transactions and schedules financial reports.

·       Produced accurate financial reports for churches to comply with regulations.

·       Advanced encryption and access control for enhanced data security.

·       A real-time dashboard can enhance financial decision-making.

·       Customisable features and bi-annual updates are guaranteed.

Disadvantages:

·       Subscription pricing can change over time.

·       Lacking in requisition, purchase, and inventory management capabilities.

·       Customising reports can prove challenging.

·       More suited to business accounting compared to non-profit organisations.

Pricing:

·       Request a quote for precise monthly costs per month.

5.     MyFundAccounting.Online

MyFundAccounting.Online is a cloud-based accounting software designed with specific support for churches and other non-profit faith organisations/charities.

Managing finances and reports with ease, MyFundAccounting.Online ensures compliance with the Charity Commission and OSCR requirements.

Advantages:

·       Providing unlimited fund reports and nominal accounts across income, expenditure, and current assets.

·       Robust audit systems and PCI DSS compliance across all servers.

·       Tested by independent specialist security companies and monitored by support staff 24/7.

·       Compatible with all devices.

·       Imports transactions directly from bank statements with reverse transaction capabilities.

Pricing:

·       £15 per month (£4 per additional licence)

MyFundAccounting.Online (Cloud) vs Finance Coordinator v4 (Desktop)

Desktop applications are still suitable accounting software solutions. But protecting your church finances and data is reliant on your desktop security. On the other hand, cloud-based accounting offers further convenience benefits across access, collaboration and user experience.

MyFundAccounting.Online (Cloud)

·       Cost-effective pay-per-month service.

·       Online accessibility with any device.

·       Real-time financial reporting.

·       Automatic updates and data security.

Finance Coordinator v4 (Desktop)

·       Local storage on a single device.

·       Upfront one-off costs.

·       Control over updates, backups, and security.

·       Offline operation.

Cloud-based accounting gives churches greater accessibility across multiple devices with automated updates and enhanced collaboration features. In comparison, desktop accounting gives users greater control over updates and potentially lower longer-term costs.

Speak to specialists in cloud-based accounting solutions 

For the past 35 years, Data Developments has provided custom accounting software specific to supporting charities and faith organisations.

With 24/7 support and rigorous data protection across encryption, authenticity and testing, we make sure your finances remain protected.

All our software solutions are approved by Dioceses in the Church of England, Church of Ireland, Church of Scotland, Dioceses in the Roman Catholic Church in England and more.

For more details about how our cloud-based accounting software can protect your church finances, get in touch with Data Developments today.