Any charity or non-profit organisation is required to complete fund accounting. The process is designed to track how cash coming into the organisation is used, to determine whether any profit is being generated (as this is not what the organisation is intended for) and to make sure that it is being spent according to the intentions of the person who donated it.
It is different from traditional accounting in the sense that it focuses on accountability rather than profitability, and it plays a critical role in the reputation of a charity by ensuring that all activity is above board and the trust of the public is maintained.
Fund accounting is centred around three categories of finances. These are:
Find out more from our fund accounting insights webinar.
Fund accounting software is designed to simplify and streamline fund accounting, by automating many of the more complicated aspects of the process. For organisations required to complete fund accounting on a regular basis, it can be a transformative addition to your existing accounting software package.
It helps to ensure compliance with fund accounting regulations and improves accountability across all departments in the organisation.
Fund accounting software will often give you many of the same benefits as cloud accounting software - but it also has features which are uniquely useful to non-profit and charitable organisations which are required to carry out fund accounting. These include:
At AccountsIQ our accounting software covers every type of business, from charity accounting to private equity and venture capital accounting software. Find out more today about how we can help your organisation to move forward in the digital accounting age.