Why Use Excel for Financial Reporting Instead of Financial Software?

Microsoft Excel is one of the most commonly used tools for analyzing and reporting financial data, particularly among nonprofit organizations. But why is this the case when so many of the same organizations rely on advanced financial and accounting software? Our nonprofit accounting software consulting company is exploring why organizations choose Excel, and we’re also sharing how you can bridge the gap between Excel and Blackbaud’s Financial Edge accounting software.

Benefits of Using Excel for Financial Reporting

First, let’s look at why so many nonprofit organizations choose Excel for their reporting and analysis.

Formatting Options

Excel allows you to format your reports in a way that makes them easy to read and parse information. This is especially important when you’re sharing data with a board of directors who want both overviews and to drill down specific information. Excel allows you to highlight, change colors, and add bold fonts to improve how readers can find the data they’re looking for.

Improved Visual Aids

For comprehensive overviews as well as showing in-depth breakdowns, Excel gives you the ability to combine charts and graphs into your reports easily.

Familiarity

Excel is a familiar medium and most people, particularly those who aren’t financial or accounting professionals, can read the information more easily and comfortably. You can easily deliver information in a variety of formats depending on who you are presenting data to.

Simplifying and Streamlining Reports

Excel allows you to combine and simplify your reporting. This allows you to create comprehensive reports for the IRS and board of directors as well as simple data that shows the state of your nonprofit for donors seeking information.

Create Presentations

Accounting software doesn’t allow you to create charts and presentations that you may need to provide to the board of directors, nor does it meet grantor and funder required formatting. Excel meets all the requirements and allows you to create the presentations you need.

Bridging Reporting Between Excel and Financial Edge

If you’re using Financial Edge NXT, you are most likely relying on Excel for the above-listed reasons, but that also takes time to carry over data from one platform to the other. Capital Business Solutions has created Power Cloud Reporting to integrate Financial Edge NXT and Excel so you can get the reporting features you need without adding multiple steps.

By combining the Excel interface with Financial Edge NXT through Power Cloud Reporting, you’ll get the following benefits:

• Achieve greater insight into your nonprofit’s finances;
• Generate advanced reporting for the board of directors;
• Create accurate budgets and forecasts based on real-time data;
• Consolidate multiple Financial Edge databases;
• Generate income statements for multiple funds, departments, and projects across separate spreadsheets;

It’s a user-friendly platform that offers the functionality you need to expand your reporting while eliminating multiple steps between Financial Edge and Excel, saving you time and hassle.

Learn More About Power Cloud Reporting

To learn how Power Cloud Reporting can improve reporting, reduce costs, and save time, call us at  (888) 249-6008 or fill out the form below.