{"id":21657,"date":"2025-05-02T10:24:11","date_gmt":"2025-05-02T09:24:11","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=21657"},"modified":"2025-05-02T10:24:14","modified_gmt":"2025-05-02T09:24:14","slug":"what-is-fund-accounting","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/what-is-fund-accounting\/","title":{"rendered":"What is fund accounting? A complete guide to basics and best practices"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tWhat is fund accounting? A complete guide to basics and best practices\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2025-05-02T10:24:11+01:00\">2 May, 2025<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"What is fund accounting? A complete guide to basics and best practices\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-fund-accounting\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/yassirmalik\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2024\/03\/Yassir-Malik.jpg\" class=\"entry-author__image\" alt=\"yassir-malik-profile-picture\" \/>\t\t\t\t<span class=\"entry-author__name\">Yassir Malik<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Accounting rules vary depending on the organisation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For-profit businesses prioritise profitability, using traditional accounting methods to track financial performance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In contrast, non-profits focus on advancing their mission and must demonstrate financial accountability to donors and stakeholders.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is where fund accounting comes in, allowing financial controllers of non-profit organisations to manage and report financial resources according to their designated purposes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this complete guide, we\u2019ll explore what fund accounting is, covering the basics and best practices you and your finance team need to know.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We\u2019ll answer common questions and provide practical insights to help you understand how fund accounting works.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here&#8217;s what we cover:<\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-fund-accounting-definition\" data-level=\"2\">Fund accounting definition<\/a><ul><li><a href=\"#h-what-is-fund-accounting\" data-level=\"3\">What is fund accounting?<\/a><\/li><li><a href=\"#h-what-is-a-fund\" data-level=\"3\">What is a fund?<\/a><\/li><\/ul><\/li><li><a href=\"#h-what-types-of-organisations-need-fund-accounting\" data-level=\"2\">What types of organisations need fund accounting?<\/a><ul><li><a href=\"#h-non-profit-organisations\" data-level=\"3\">Non-profit organisations<\/a><\/li><li><a href=\"#h-government-bodies\" data-level=\"3\">Government bodies<\/a><\/li><li><a href=\"#h-educational-institutions\" data-level=\"3\">Educational institutions<\/a><\/li><li><a href=\"#h-religious-institutions\" data-level=\"3\">Religious institutions<\/a><\/li><\/ul><\/li><li><a href=\"#h-why-is-fund-accounting-important-for-non-profits\" data-level=\"2\">Why is fund accounting important for non-profits?<\/a><ul><li><a href=\"#h-proper-use-of-funds\" data-level=\"3\">Proper use of funds<\/a><\/li><li><a href=\"#h-compliance-with-non-profit-regulations\" data-level=\"3\">Compliance with non-profit regulations<\/a><\/li><li><a href=\"#h-building-trust-with-donors\" data-level=\"3\">Building trust with donors<\/a><\/li><li><a href=\"#h-financial-transparency-and-planning\" data-level=\"3\">Financial transparency and planning<\/a><\/li><li><a href=\"#h-managing-liquidity-and-resource-allocation\" data-level=\"3\">Managing liquidity and resource allocation<\/a><\/li><\/ul><\/li><li><a href=\"#h-fund-accounting-basics-5-key-principles\" data-level=\"2\">Fund accounting basics: 5 key principles<\/a><ul><li><a href=\"#h-1-accountability-and-transparency\" data-level=\"3\">1. Accountability and transparency<\/a><\/li><li><a href=\"#h-2-separation-of-funds\" data-level=\"3\">2. Separation of funds<\/a><\/li><li><a href=\"#h-3-fund-restrictions\" data-level=\"3\">3. Fund restrictions<\/a><\/li><li><a href=\"#h-4-fund-balances-and-reserves\" data-level=\"3\">4. Fund balances and reserves<\/a><\/li><li><a href=\"#h-5-reporting-requirements\" data-level=\"3\">5. Reporting requirements<\/a><\/li><\/ul><\/li><li><a href=\"#h-breaking-down-the-types-of-funds-in-fund-accounting\" data-level=\"2\">Breaking down the types of funds in fund accounting<\/a><ul><li><a href=\"#h-operating-funds\" data-level=\"3\">Operating funds<\/a><\/li><li><a href=\"#h-restricted-funds\" data-level=\"3\">Restricted funds<\/a><\/li><li><a href=\"#h-temporarily-restricted-funds\" data-level=\"3\">Temporarily restricted funds<\/a><\/li><li><a href=\"#h-endowment-funds\" data-level=\"3\">Endowment funds<\/a><\/li><li><a href=\"#h-other-special-funds\" data-level=\"3\">Other special funds<\/a><\/li><\/ul><\/li><li><a href=\"#h-the-fund-accounting-process-5-steps-to-follow\" data-level=\"2\">The fund accounting process: 5 steps to follow<\/a><\/li><li><a href=\"#h-fund-accounting-best-practices\" data-level=\"2\">Fund accounting best practices<\/a><ul><li><a href=\"#h-categorise-funds-based-on-their-purpose\" data-level=\"3\">Categorise funds based on their purpose<\/a><\/li><li><a href=\"#h-implement-strong-internal-controls\" data-level=\"3\">Implement strong internal controls<\/a><\/li><li><a href=\"#h-keep-detailed-records\" data-level=\"3\">Keep detailed records<\/a><\/li><li><a href=\"#h-follow-standard-reporting-guidelines\" data-level=\"3\">Follow standard reporting guidelines<\/a><\/li><li><a href=\"#h-use-fund-accounting-software\" data-level=\"3\">Use fund accounting software<\/a><\/li><li><a href=\"#h-consider-outsourcing-for-expert-support\" data-level=\"3\">Consider outsourcing for expert support<\/a><\/li><\/ul><\/li><li><a href=\"#h-fund-accounting-vs-traditional-accounting\" data-level=\"2\">Fund accounting vs traditional accounting<\/a><ul><li><a href=\"#h-organisational-focus\" data-level=\"3\">Organisational focus<\/a><\/li><li><a href=\"#h-resource-allocation-and-flexibility\" data-level=\"3\">Resource allocation and flexibility<\/a><\/li><li><a href=\"#h-reporting-differences\" data-level=\"3\">Reporting differences<\/a><\/li><li><a href=\"#h-emphasis-on-transparency-vs-profit\" data-level=\"3\">Emphasis on transparency vs profit<\/a><\/li><\/ul><\/li><\/ul><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-fund-accounting-definition\"><strong>Fund accounting definition<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-is-fund-accounting\"><strong>What is fund accounting?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Fund accounting is a specialised method of accounting used by non-profits, charitable organisations, religious groups, and government entities to manage and track financial resources.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Funds must be used in line with their intended purpose.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Non-profits need to know how much money they have received\u00a0and\u00a0spent\u00a0and what\u2019s left over across different areas of their organisation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Fund accounting helps non-profit organisations track finances accurately, produce reliable reports, and make informed decisions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-is-a-fund\"><strong>What is a fund?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A fund is a distinct area within your non-profit organisation that needs to be tracked separately from other finances.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Think of it as a small, independent part of your organisation with its own assets, liabilities, equity, income, and expenses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Examples of funds include designated funds, restricted funds, unrestricted funds, grants, and specific campaigns.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-types-of-organisations-need-fund-accounting\"><strong>What types of organisations need fund accounting?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Key types of organisations using fund accounting include non-profits, government bodies, educational institutions, and religious institutions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-non-profit-organisations\"><strong>Non-profit organisations<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Non-profits, such as charities, foundations, and healthcare institutions, rely on multiple funding sources, including donations, grants, and scholarships.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Each of these funds comes with specific restrictions or purposes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For instance, a non-profit may need to track specific grants with deadlines or conditions,\u00a0and fund accounting helps ensure that\u00a0the money is used as intended.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-government-bodies\"><strong>Government bodies<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Government entities rely on fund accounting to manage taxpayer money and keep finances transparent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These organisations handle everything from operational funds to capital projects.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Fund accounting helps governments allocate money properly across different project initiatives, preventing overspending and ensuring compliance with strict regulatory standards.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-educational-institutions\"><strong>Educational institutions<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Schools, colleges and universities also often use fund accounting to manage a variety of income sources, such as tuition, donations, and grants.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Educational institutions often juggle complex endowments, scholarships, and operational costs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Fund accounting ensures that funds are used for their intended purposes\u2014whether that\u2019s for academic purposes, research, or student services.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-religious-institutions\"><strong>Religious institutions<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Churches and other religious organisations also use fund accounting to track donations allocated to different purposes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, one fund may be dedicated to building maintenance, while another supports outreach programmes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Fund accounting ensures each pound is used as intended, from keeping the lights on to funding philanthropic work in the community.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-is-fund-accounting-important-for-non-profits\"><strong>Why is fund accounting important for non-profits?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Fund accounting is crucial for organisations, especially non-profits, because it ensures financial accountability and transparency. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here\u2019s why it matters:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-proper-use-of-funds\"><strong>Proper use of funds<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Non-profit fund accounting helps organisations keep a tight grip on where the money is going.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For instance, if an organisation has \u00a325,000 allocated for a youth programme, \u00a315,000 for community outreach, and \u00a310,000 for a building renovation, each fund must be spent only on its designated purpose.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If a grant covers \u00a320,000 of the youth programme, the remaining \u00a35,000 can be allocated from other sources.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This level of tracking is only possible with a system such as fund accounting, which focuses on fund allocation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-compliance-with-non-profit-regulations\"><strong>Compliance with non-profit regulations<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Fund accounting helps non-profits meet legal requirements and maintain their tax-exempt status by ensuring accurate reporting.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It allows non-profits to easily provide the detailed financial information required for compliance reports.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-building-trust-with-donors\"><strong>Building trust with donors<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">When people donate to a cause, they want to know that&nbsp;their contributions are making a difference.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Fund accounting allows non-profits to honour any restrictions placed on donations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For instance, if a donor gives \u00a35,000 specifically for a scholarship programme, fund accounting ensures that money is used only for scholarships.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This transparency helps build and maintain trust with donors, encouraging ongoing support.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-financial-transparency-and-planning\"><strong>Financial transparency and planning<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Fund accounting gives organisations a clear view of how much money is spent on different areas, such as programme services, fundraising, or administrative costs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This helps non-profits make more accurate budgets and financial plans to ensure they have enough resources to continue operating effectively.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Knowing the financial status of each fund also allows organisations to set aside reserves and prepare for unexpected expenses.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-managing-liquidity-and-resource-allocation\"><strong>Managing liquidity and resource allocation<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Organisations often have different levels of liquidity across funds.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, restricted funds, grants, or endowments may not be readily available for immediate use, whereas unrestricted operating funds can cover urgent needs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Fund accounting helps non-profits identify which funds are accessible and which are less liquid, allowing them to plan accordingly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-fund-accounting-basics-5-key-principles\"><strong>Fund accounting basics: 5 key principles<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Fund accounting has many moving parts, but by keeping these five key principles in mind, you\u2019ll have a solid foundation to manage your organisation\u2019s finances effectively and ensure compliance with legal requirements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here are the basics of fund accounting:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-accountability-and-transparency\"><strong>1. Accountability and transparency<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Fund accounting is built on the principle of accountability. It\u2019s designed to ensure that non-profit organisations use donations and grants precisely as directed by\u00a0donors, foundations, or government agencies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It also promotes transparency by clearly tracking how every pound is received and spent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This helps non-profits comply with legal and donor requirements, building trust with stakeholders like donors and regulatory bodies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When you use <a href=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/intacct\/industries\/non-profit\/\">non-profit accounting software<\/a> to track your funds, you demonstrate that your organisation is a responsible steward of the financial resources entrusted to you.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-separation-of-funds\"><strong>2. Separation of funds<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">In fund accounting, it\u2019s important to keep each fund separate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This means tracking the money coming in, what\u2019s being spent, and the remaining balance individually.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, if your non-profit raises money for a new community centre, that money stays separate from your operating budget.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Keeping funds apart ensures they\u2019re used as intended.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Common fund types include operating funds for day-to-day expenses, capital project funds for major initiatives, and restricted funds for specific purposes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-fund-restrictions\"><strong>3. Fund restrictions<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">In fund accounting, one of the main principles is distinguishing between restricted and unrestricted funds.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There are three types to bear in mind:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Unrestricted funds:<\/strong> these are donations or financial resources that can be used however the organisation sees fit. The flexibility allows non-profits to cover everyday expenses such as salaries, rent, utilities, and other operating costs. The fund allows the non-profit to respond to unexpected needs, invest in growth opportunities, and support areas lacking funding.<\/li>\n\n\n\n<li><strong>Temporarily restricted funds:<\/strong> these are donations or grants that can only be used for a specific purpose or after certain conditions are met, such as using the funds for a particular project or after a set time. Once restrictions are fulfilled, the funds become \u201cunrestricted\u201d and can be spent more freely.<\/li>\n\n\n\n<li><strong>Permanently restricted funds:<\/strong> the organisation can\u2019t spend these donations. Instead, the money is invested, and only the income (such as interest or investment returns) can be used to support the organisation. The original donation stays untouched, usually to provide long-term financial support, like an endowment.<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-fund-balances-and-reserves\"><strong>4. Fund balances and reserves<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Non-profits need to know what money they have left in a fund account that can be used in the future.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They need to maintain reserves in key funds to ensure long-term stability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Think of reserves as a rainy-day fund that can help the organisation stay steady during uncertain times or cover unexpected costs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s worth regularly checking your fund balances and reserves\u00a0and having a reserve policy in place so your non-profit can stay financially healthy and keep delivering on its mission, even when things get unpredictable.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-5-reporting-requirements\"><strong>5. Reporting requirements<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Tracking where fund money goes and what\u2019s left is important, but non-profits also need specific reports to demonstrate their fund accounting and show accountability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One essential report is the statement of activities, which shows income and expenses for each fund.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Other reports, like the statement of financial position,\u00a0show the organisation\u2019s overall health by listing assets, liabilities, and fund balances.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Compiling these complex reports manually can be a headache\u2014that\u2019s where automated tools come in.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With accounting software, you can streamline fund reporting, automatically generate required financial statements, and more, ensuring compliance and transparency.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-breaking-down-the-types-of-funds-in-fund-accounting\"><strong>Breaking down the types of funds in fund accounting<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In fund accounting, organisations divide their money into funds to ensure it\u2019s used for the right purpose.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Non-profits, educational institutions, and other mission-driven organisations use three main fund types:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-operating-funds\"><strong>Operating funds<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Operating funds cover everyday expenses, such as staff salaries, rent, and utilities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They\u2019re typically funded by unrestricted donations or general revenue. While they can be used freely, they still need to be tracked.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-restricted-funds\"><strong>Restricted funds<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Restricted funds are donations or grants given for specific purposes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, a donor might give money for a new building. These funds must be used exactly as the donor intended.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-temporarily-restricted-funds\"><strong>Temporarily restricted funds<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">These are like restricted funds but have a time limit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, a grant might need to be used within a year. Once the time limit is up, the money can be used for other purposes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-endowment-funds\"><strong>Endowment funds<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Endowment funds are meant to last long term. The original donation (called the principal) is invested, and the organisation can only spend its income. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This ensures that the money will continue supporting the organisation for years.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-other-special-funds\"><strong>Other special funds<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Depending on the organisation, additional fund types might be used:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Capital project funds<\/strong> for large-scale projects like construction<\/li>\n\n\n\n<li><strong>Debt service funds<\/strong> to pay off loans or bonds<\/li>\n\n\n\n<li><strong>Special revenue funds <\/strong>for specific projects or services, often funded by grants or user fees<\/li>\n\n\n\n<li><strong>Permanent funds<\/strong> that support a cause indefinitely, using only the income from investments.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-fund-accounting-process-5-steps-to-follow\"><strong>The fund accounting process: 5 steps to follow<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Fund accounting for non-profits typically follows a structured process. Here are the key steps involved:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Step 1: Budgeting and planning<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Before recording anything, organise funds and set clear budgets to ensure resources are allocated correctly for upcoming projects or needs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Step 2: Recording transactions<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Track all income and expenses, making sure each transaction is assigned to the right fund for accuracy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Step 3: Tracking fund usage<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Regularly review fund balances to see what\u2019s left, ensure money is being spent as intended, and keep spending within budget.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Step 4: Generating financial reports<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Regularly create reports, like the statement of activities, to keep track of each fund\u2019s performance and ensure you\u2019re meeting legal and donor requirements.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Step 5: Reviewing and auditing<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Double-check all transactions and balances for accuracy at the end of each accounting cycle.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This step often includes a review by stakeholders or auditors to ensure everything is in order.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-fund-accounting-best-practices\"><strong>Fund accounting best practices<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When it comes to fund accounting for non-profits, it\u2019s crucial to ensure accuracy, transparency, and compliance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By following a set of best practices, your organisation can effectively manage its financial resources, maintain donor accountability, and meet legal requirements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Below are some actionable strategies to help you implement strong fund accounting practices and ensure long-term financial health.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-categorise-funds-based-on-their-purpose\"><strong>Categorise funds based on their purpose<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">When separating funds, ensure each one is designated clearly, such as operating, restricted, or capital project funds.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, donations for a specific capital campaign shouldn\u2019t be mixed with general operating funds.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Choose fund accounting software to automate this process and generate reports to track balances.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-implement-strong-internal-controls\"><strong>Implement strong internal controls<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Establishing strong internal controls protects your organisation from errors and fraud.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This involves setting up procedures for approvals, separating duties (for example, the person recording transactions shouldn\u2019t be the same one approving expenses), and conducting regular audits.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Internal controls also ensure compliance with regulations for non-profit organisations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-keep-detailed-records\"><strong>Keep detailed records<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Accurate records are crucial for compliance and transparency.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Each donation, grant, or revenue source should be recorded and allocated to the appropriate fund.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This means keeping detailed records of income, expenses, and fund balances.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Use your chart of accounts to ensure every transaction is tracked properly.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-follow-standard-reporting-guidelines\"><strong>Follow standard reporting guidelines<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Use consistent reporting standards to create clear and comparable reports.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Reports like the statement of activities and the statement of cash flows provide insights into how funds are managed while meeting regulatory requirements.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-use-fund-accounting-software\"><strong>Use fund accounting software<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Accounting software for non-profits can help you automate tasks like tracking multiple funds, generating specific reports, and ensuring compliance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, tools such as Sage Intacct offer reporting templates that will save time and reduce human error.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-consider-outsourcing-for-expert-support\"><strong>Consider outsourcing for expert support<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If your team doesn\u2019t have the expertise or capacity to manage fund accounting, outsourcing to professionals can help.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Dedicated fund accounting firms ensure your financial records meet all compliance and regulatory standards for non-profit tax-exempt organisations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-fund-accounting-vs-traditional-accounting\"><strong>Fund accounting vs traditional accounting<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Fund accounting and traditional accounting both aim to provide accurate records of financial information.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, because they serve different types of organisations or businesses, which mean there are nuances to their purpose and goals.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here are the key differences:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-organisational-focus\"><strong>Organisational focus<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Fund accounting is designed for organisations that need to track resources with specific purposes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It emphasises accountability and transparency by separating funds, such as grants and donations, to ensure compliance with donor restrictions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the other hand, traditional accounting is used by for-profit businesses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It focuses on measuring the commercial organisation\u2019s overall financial performance and profitability.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-resource-allocation-and-flexibility\"><strong>Resource allocation and flexibility<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">In fund accounting, resources are divided into distinct funds, each within its own restrictions and requirements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, a non-profit must manage restricted donations separately from operating funds.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Comparatively, traditional accounting allows for more flexibility in reallocating resources as financial resources aren\u2019t typically restricted.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-reporting-differences\"><strong>Reporting differences<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Fund accounting dictates that non-profits need to produce specialised reports like the statement of activities,\u00a0which shows fund-based financial information.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This approach provides detailed insights into individual funds and ensures that money is used according to its designated purpose.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Traditional accounting focuses on consolidated financial reports, such as the <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/profit-and-loss-account-financial-statement\/\">profit and loss account<\/a> (also known as the income statement), to present the company\u2019s overall financial status.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-emphasis-on-transparency-vs-profit\"><strong>Emphasis on transparency vs profit<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Fund accounting prioritises the accountability and reporting of restricted and unrestricted funds, ensuring donors and stakeholders can see exactly how resources are utilised.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, traditional accounting focuses more on profitability metrics and shareholder value than tracking funds for specific purposes.<\/p>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div 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srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/bookkeeping\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tBookkeeping\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/business-finances\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tBusiness finances\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/midsized-business\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tMidsized business\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-30318 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-bookkeeping tag-payments business_type-small-business business_type-medium-sized-business card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1215\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1128201585-1215x810.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1128201585-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1128201585-768x512.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1128201585-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-02T16:58:53+01:00\">2 June, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">11 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-ap-automation\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tAccounts payable automation: How it works, key benefits, and why your business needs it\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tLearn how AI-powered accounts payable automation works and how your invoices flow seamlessly from capture to payment, giving you real-time visibility and faster decision-making.\n\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-30315 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-bookkeeping tag-e-invoicing business_type-small-business business_type-medium-sized-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-an-electronic-invoice\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-875247398-684x384.jpg\" class=\"card-post__image\" alt=\"Dealing with payroll tasks for the business\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-875247398-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-875247398-768x513.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-875247398-1214x810.jpg 1214w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-02T16:16:14+01:00\">2 June, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">9 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is e-invoicing? Advantages and disadvantages of electronic invoicing\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-30313 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-bookkeeping tag-payments business_type-small-business business_type-medium-sized-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-an-automated-billing-system\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-580503469-1-684x384.jpg\" class=\"card-post__image\" alt=\"Running a business\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-580503469-1-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-580503469-1-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-580503469-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-02T15:54:42+01:00\">2 June, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is an automated billing system?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-15795 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accountant-accounting tag-accountant-automation tag-brexit-business tag-business-finances business_type-small-business business_type-medium-sized-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-account-reconciliation\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-684x384.jpg\" class=\"card-post__image\" alt=\"man in office\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-02T15:28:18+01:00\">2 June, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tAccount reconciliation: What it is and best practices\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-30307 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-bookkeeping tag-make-receive-payments business_type-small-business business_type-medium-sized-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/what-are-the-most-important-accounts-receivable-metrics-to-track\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1464824741-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1464824741-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1464824741-768x512.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1464824741-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-02T14:26:09+01:00\">2 June, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat are the most important accounts receivable KPIs to track?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Get to grips with fund accounting basics and discover why it\u2019s essential for managing finances for non-profit organisations.<\/p>\n","protected":false},"author":1774,"featured_media":19941,"menu_order":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[6],"tags":[23,135,159],"business_type":[3],"lilypad":[],"context":[],"industry":[],"persona":[68,71],"imagine_tag":[77,96,99,336],"coauthors":[355],"class_list":["post-21657","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-bookkeeping","tag-business-finances","tag-midsized-business","business_type-medium-sized-business"],"sage_meta":{"region":"en-gb","author_name":"Yassir Malik","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0229.jpg","imagine_tags":{"77":"Accounting software","96":"Medium businesses","99":"Non-profit","336":"Nonprofits"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice 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