Fund accounting software is generally used by  large non-profit organizations. These organizations have many complicated fund based accounts that need to be managed. Many non-profit organizations find fund-accounting software compatible with their requirements. These organizations depend for their funds from the external agencies. Funds in this context mean income. Funds may be in the forms of grants, charitable donations, money kept in trust etc.

It is usually large non-profit based organizations, which have complicated accounts and accounting requirements. Such organizations require fund accounting software so that they can maintain their accounts properly. Fund accounting software enables these organizations to maintain their funds. It helps in accounting for all the expenses incurred and incomes received for a particular fund account.

To maintain the record of funds, organizations such as NGOs keep  a separate balance sheet date for each particular account. The balance sheet composes of the things like the assets, fund balance and liabilities. Separate balance sheet dates for each fund is a feature, which only a fund accounting software can provide. Normal financial accounting software usually does not have this feature.

Small non-profit organizations usually do not have very complicated accounting requirements and may use a normal or less complicated accounting software and method to maintain their accounts. Examples of such software may include QuickBooks or One Write Plus software. You can get the fund accounting software from many vendors in the national and international market.

Before You purchase the fund accounting software, it is very important to ensure that the solution complies with the regulations laid down by the authorities.  The prime authority that supervises these regulations is the financial accounting standards board. This becomes more important for the non-profit organizations. The reason is that these organizations have to tabulate gifts. These organizations display their statement of finance in the form of audited statements.  

The smaller non-profit organizations go for the fund accounting software with comparatively less features. This makes them to make financial reports that are simple. The large non-profit organizations go for the advanced levels of the fund accounting software. This software has many added features. This software enables these organizations to deal with complicated accounts easily.