Fund Accounting Software

Written by Nicholas Kamuda
Bookmark and Share

Fund accounting software is used by many large business and government organizations to aid them in financial organization. Only recently has it come to be used by small businesses and private individuals, as well. There are many kinds of fund accounting software available, many for different, highly specialized functions.

Large businesses and government bodies began using accounting software as early as the late 1960s. However, use was relatively limited until after the mid-1970s, when software companies were producing a large enough variety of programs to suit many different business needs. In late 1980s and 1990s, computers became affordable enough that even small business could use them with simple fund accounting software.

Modern Fund Accounting Software

The main purpose of many accounting programs is to ensure that accounting records are properly kept, and that producing reports, if desired, is straightforward and quick. Like manual accounting systems, fund accounting software generally includes a chart of accounts, a ledger, and a system of books of original entry. In software accounting systems, the books of original entry, or journals, and the ledger are often connected so that users only need to enter information once.

Because there are many different kinds of businesses, there are many different kinds of accounting software. Some software, such as the kind for municipal governments, also includes payroll functions and other Human Resources management tools, and may also include purchase orders. Many current software manufacturers also produce auxiliary software components that can be added for increased functionality and capacity.

Bookmark and Share