QFix Software LLC  Providing Big Results for Small Organizations

Fund Accounting Made Simple

QFix Software LLC  Fund Accounting Software
For use with QuickBooks®

What is Fund Accounting?

Fund Accounting is a method of segregating financial records into categories to identify both the source and the use of financial resources. Funds are established to control and monitor resources to insure compliance with legal or organizational requirements. Non-Profit, church and governmental organizations use funds to track grants and other directed resources. Expenses are normally recorded in accounts by purpose: salaries, postage, office expenses, program fees, etc. Fund accounting provides an alternate view by responsibility: grants, departments, locations, projects, etc.

Restricted Funds

Restricted Funds are grants or donations that are required to be used for a specific purpose. An endowment fund is an example - generally only the earnings may be used from such funds. Restricted Funds are often divided into Permanently Restricted and Temporarily Restricted Funds. The difference is that temporarily restricted funds are expected to satisfy their restrictions within one year.

Funds that are not restricted are called unrestricted or general funds. Accounting standards generally require segregating permanently restricted, temporarily restricted, and general funds. The segregation may be physical as in different bank accounts or just within the books. Having a “sub-funds” feature facilitates the separation. The top level funds can be "Permanently Restricted,” "Temporarily Restricted,” and "Unrestricted.” Sub-funds are used to track specific grants or funding sources.

Departmental Tracking

In addition to fund tracking, many organizations need to track activities by department. When both fund and departmental tracking is desired, there are two basic approaches: by sub-account or by sub-fund.

To use the first approach, each major expense and income account needs sub-accounts for each department. Departmental P&L statements can be generated by selecting the department's sub-accounts.

For the second approach, sub-funds are created for each department (or the departments can be the top level). Departmental P&L statements can be created by selecting the department's class. A departmental balance sheet can be created in FundsFix by using the Total by Level feature to allow totaling across sub-funds.

QuickBooks Fund Accounting

Many fund accounting packages are overkill and too expensive for smaller organizations. QuickBooks is a popular accounting package for small businesses, however, it does not directly support fund accounting. FundsFix is an adjunct program for QuickBooks which provides fund accounting support. By using classes, QuickBooks provides fund based profit and loss statements and budgets. FundsFix supplements QuickBooks by adding fund based balance sheet reports and other supporting features. FundsFix vs QuickBooks Balance Sheet By Class for Fund Accounting


Creates Balance Sheet by Fund Report and Prior Period Comparison Report

Uses standard QuickBooks financial data - no need to learn a new system

Maintains all data in QuickBooks file so backups are easy

Preserves class data after a QuickBooks Clean Up Company Data - normally QuickBooks deletes class data

Supports multiple levels of sub-funds allowing groupings like Restricted Funds, General Funds, etc

Allows accounts to be allocated by class to funds or dedicated to a single fund for maximum flexibility

Allows periodic fund distributions to avoid doing the math and entering manual transactions.

Provides an Auto Balance feature to create transactions to establish initial fund balances and to re-establish fund balances

Try a free trial of FundsFix

FundsFix Requirements

U.S. QuickBooks Pro/Premier 2006 or Enterprise 6.0 or later versions (multi-currency requires 2009/9.0 or later)(Vista/Windows 7 requires 2007/7.0 or later). Or, Canadian QuickBooks Pro/Premier 2008 or later versions (multi-currency requires 2010 or later).

Windows XP, Vista, or Windows 7/8/10

Additional 10MB free disk space

Microsoft .NET 3.5 (Automatically installed if needed - requires 150MB disk space)

Reports may be run in QuickBooks multi-user mode. Setup, Edit Budget, and Cleanup require single user.

Optional Internet connection.