• Registered: 07/15/2016
  • Posts: 4

Topic: Fund Accounting

I'm researching Open Source systems that provide "fund accounting" capabilities for price-sensitive organizations with less complicated functionality requirements. Respectfully, I'm NOT looking for well-known systems like Intuit QuickBooks, Blackbaud FE or Sage/MIP, for example.

Are any fund accounting compliant customers - nonprofits, private schools, churches, etc - using FrontAccounting? If not, any recommendations?

TIA

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Keith German
Independent Consultant

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: Fund Accounting

For those who need to know what Fund Accounting Compliance is, these links would prove useful.

Job Description of a Fund Accountant

Fund Accounting manual - 90 pages, 592 Kb

EU Fund Administration

Just disable Manufacturing in FA (and possibly remove the related tables) to simplify for use in Fund Accounting (FA pun) smile

apmuthu's Website

  • Registered: 07/15/2016
  • Posts: 4

Re: Fund Accounting

The job description link is not applicable (managing mutual funds is NOT fund accounting), but the other two links are.

I really like the definition - "Fund accounting is a method of recording financial information that groups resources into funds based on their source and the use of those resources." - but I would add the following very important note that is critical for a compliant software system...

"A fund is a self-balancing set of books."

Thanks. I welcome verification regarding FrontAccounting as my research is nearing a conclusive stage. FrontAccounting looks like a viable accounting system but I need to confirm that it has the functionality to comply with fund accounting principles - or that someone in the open-source marketplace is interested in moving it in that direction in the near future.

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: Fund Accounting

FA is self balanced as all transactions have their contra.
The gl_trans table is generally balanced.

apmuthu's Website

  • Registered: 07/15/2016
  • Posts: 4

Re: Fund Accounting

Having a "contra" account, and even providing double-entry journal entry capability, isn't enough. Does FA provide the ability to create a GL Account code structure (table-drive would be awesome, but not use linear) that allows users to set certain components of that structure - i.e. a Fund code - to require balancing by Fund? Does the system check for this and require it before allowing an entry to post to the GL?

Hypothetically, what if I post an 30 line journal entry to multiple account codes, with multiple fund codes - will the system verify that each fund code in the account structure to balance in order to post the entry to the GL?

Does the system provide the capability to user-define GL account code "distributions" to save journal entry time while minimizing user entry erro?

Does the system provider GAAP-compliant nonprofit/governmental reports? (not the basic Balance Sheet and Income Statement, but instead a Statement of Financial Position, Statement of Revenues and Expenses/Expenditures, etc.)

Thanks

  • Registered: 07/15/2016
  • Posts: 4

Re: Fund Accounting

Typo Correction - "table-driven would be awesome, but most systems use linear"

  • From: Philippines, Calabarzon
  • Registered: 07/30/2020
  • Posts: 33

Re: Fund Accounting

This is interesting. Hopefully someone can spark this topic again, and answer bkgernan. If what he describes can work in FA, the application will be useful for non-profits, associations, schools, charities, and many others.

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: Fund Accounting

If each Fund Code is present as a separate Account Code, then it will need to be chosen correctly, otherwise, the GL will not post to an unavailable account code. Anyone experiencing GL Posting of unavailable account codes, do let us know.

apmuthu's Website