Excel or accounting software? When a small NGO should switch
The short answer: do not switch because someone called Excel "unprofessional". Switch when errors and repeated work in spreadsheets cost more than learning a new system. Even then, try the free options before you pay.
A caution: the product facts below come from official pages as read on 2 November 2026. They do not reflect hands-on use. Prices and terms change, so check them before you decide.
When Excel is enough
Excel is often enough when all of these hold:
- One or two projects, each with a clear bank account.
- Few enough monthly transactions for one person to follow comfortably.
- One currency, or two with a rate set by the agreement.
- One person records, and another reviews and signs.
- The donor does not ask for reports from an accounting system.
In that case, the budget-versus-actuals template and a tidy cash book may serve you better than software nobody on the team has mastered.
Signs it may be time to switch
These signs are our rule of thumb, not a professional standard.
- Several donors. You split one expense across projects and recalculate by hand.
- Slow closing. Last month's figures are barely done before the next month is nearly over.
- Conflicting numbers. Two files show different balances, and time goes on working out which is right.
- Several users. More than one person or office needs to enter data at once.
- No edit trail. You cannot tell who changed a figure, or when. That can be a hard question in any review.
- An outside request. A funder or auditor asks for reports your sheets cannot easily produce. Ask exactly what they need first.
One mild sign does not call for a change. Three that persist for several months are a good reason to try a system.
Start with free options
| Option | What its official page says | Check on the vendor's page |
|---|---|---|
| GnuCash | Double-entry small-business accounting, licensed under the GNU GPL, for Windows, Linux and macOS, with accounts in different currencies. Menus are translated into 61 languages, and the page calls SQL database storage "experimental" (home, features; 2 Nov 2026) | Whether Arabic and right-to-left display are supported, reporting by project or donor, and shared use by several people: the pages do not say |
| Manager | The cloud edition page lists USD 59 a month for unlimited users and businesses, with a 14-day free trial (2 Nov 2026) | Whether a desktop edition is free and what its limits are, Arabic support, and project reporting: we could not confirm these from the official pages |
| Zoho Books | Free plan: one user plus one accountant, up to 1,000 invoices a year, while annual revenue stays within USD 50K (2 Nov 2026) | The pricing page also lists a limit of 1,000 expenses a year on the free plan, and associates project profitability with the Professional plan and above. It offers Arabic in some regional editions (including Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain and Oman) but does not say which countries get the free plan. Check availability in your country, and how grant income counts toward the USD 50K threshold (2 Nov 2026) |
| Odoo | One App Free: one app, unlimited users, at EUR 0 (2 Nov 2026) | The page lets you choose one app and lists Accounting among its apps, but does not say outright that Accounting is included in the free plan; adding a second app moves you to a paid plan. Check eligibility, and whether it suits grant reporting (2 Nov 2026) |
| Wave | Starter plan at USD 0; Pro at USD 19 a month or USD 190 a year (2 Nov 2026) | The page lists no countries and prices in USD and CAD. Check on Wave's page whether it is available where you work |
When not to pay
- When the problem is procedure. If vouchers are disorganised and approvals unclear, software moves the mess somewhere more expensive.
- When nobody can run it. Without a trained person and set-aside time, the team drifts back to Excel.
- When a free option does the job. Skip features you will not use.
- When the budget does not allow it. Check whether the donor accepts this cost under your lines, and whether the subscription continues after the grant ends.
- When the offer comes with financing. If a platform offers interest-based loans or advances, ignore them. We do not recommend interest-based products.
Try before you decide
Try one or two options on a closed month's data, not live accounts:
- Enter one full month of transactions.
- Pull a report for one project by budget line. This is the key question, since much software is built for companies rather than grants.
- Try your local currency and the donor's currency together.
- Export the data to Excel. Do not rely on a system you cannot get your data out of.
- Check permissions. Can a reviewer view without editing? Does the system log changes?
- Check backups, where the data is stored, and how you would pay if you needed a paid plan.
If you decide to switch
Start at a new financial year or a new project if you can. Run both systems side by side for a month or two and compare the figures. Consult your accountant or auditor on the chart of accounts before you begin. Changing software does not by itself mean passing an audit or being accepted by a donor.
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Next guide →Track a donor-funded project budget with one free templateNeed donor-ready policies? The Policy Studio prepares them for NGOs in Arabic and English, starting with a fixed-price gap review. See the service