Every organization needs accounting. But what about a government agency, what kind of accounting does it require? According to AccountingEdu.org, “The goals of federal, state or municipal government agencies when applying the principals of accounting are different from the private sector’s main business objective of earning profit…government agencies and other recipients of government money are fiscally accountable to tax payers and must demonstrate compliance with the intended uses of…resources.”
We compiled this list of Top 5 Software Features for Government Accounting to help you determine what is most important for your agency.
Fund accounting is a method of accounting that allows you to keep the programs within your organization separated by fund numbers. Each fund, labeled as restricted, temporarily restricted, or unrestricted, contains its own chart of accounts. The biggest difference between fund accounting and regular accounting is fund accounting emphasizes accountability rather than profitability.
Let’s dig a little more into how fund accounting works.