What is Fund Accounting? The definition of fund accounting is a method of accounting used by a nonprofit organization that illustrates accountability, rather than profitability. In a business you want to know the basics of fund accounting - how much was spent, how much was earned, and how much was left over. With a nonprofit you want to know these things, but you also want to make sure that the money you have, receive, and spend is allocated for the proper purpose. Welcome to fund accounting.
Fund accounting can potentially get very complicated, depending on the needs of your organization. FASB117 and FIN46 are the IRS resources that outline all needs of a nonprofit accounting system. However, for this particular tutorial, we will solely be focusing on what fund accounting is and how you can implement it for your organization.
Try Aplos Fund Accounting: https://www.aplos.com
Read the full lesson at: https://www.aplos.com/academy/course/intro-to-nonprofit-accounting/what-is-fund-accounting
Interested in taking our free 5-day accounting course for nonprofits? Sign up here: https://www.aplos.com/academy/nonprofit/nonprofit-accounting/nonprofit-accounting-5-day-email-course/