What Is Fund Accounting?

Non-profit organizations and governments use foundation accounting. The main purpose of fund accounting is to assign responsibilities. This is done to ensure that the fund is used for the purpose established by the organization. The fund is established in compliance with laws, treaties and constitutions.

Fund Accounting

Right!
Non-profit organizations and governments use foundation accounting. The main purpose of fund accounting is to assign responsibilities. This is done to ensure that the fund is used for the purpose established by the organization. The fund is established in compliance with laws, treaties and constitutions.
Chinese name
Fund Accounting
Purpose
Assign responsibility
Generation time
18th century
Country of origin
Fund accounting originated in Britain in the 18th century. Later, the United States transplanted from Britain.
Fund is a
1. Fund accounting confirmation
U.S. government accounting standards require fund accounting to use an accrual accounting basis or a revised
fund
1. Establishing fund accounting is a requirement of budget accounting goals
Securities investment funds have become a channel for investors to convert their savings into investments. Correspondingly, some new accounting problems have emerged and urgently need to be guided by corresponding accounting theories. Moreover, with the implementation of the new accounting standards, we have become more international in terms of business methods and rules. On the other hand, the fund has entered a scale expansion to the entire structure, including the gradual improvement of one of its core competitiveness. During the development of the fund industry, it has always adopted a large and comprehensive development model and developed from the international fund industry. With the development of the international custody banking industry, the outsourcing business handled is becoming more and more specialized.
"Accounting link" outsourcing has been supported by some fund companies. For example, Penghua Fund has been discussing outsourcing business, such as fund accounting, for the past few years. However, from the perspective of the market, no agency has been able to fully commission, and some of them are partially commissioned. If there is such an opportunity, they are very willing to commission such a business. For them, for investors, there will be more energy to do their core business, which also reflects the professional division of labor in society.
In fact, fund companies can entrust fund sales promotion projects to banks, professional financial and public relations companies, and I remember that a vice president of SDIC UBS once told me that professional financial and public relations companies can be more professional. In recent years, some reporters from securities and financial media have switched to the marketing department of fund companies. Want to be a non-core department of fund companies?
By analogy, if the fund specializes in labor and tedious work in the future, and the cost of external professional institutions is lower, the fund will not need to support so many people. If the fund accounting is outsourced to a professional Fund Admin agency, the problem is that if this behavior is voluntary, costs and benefits need to be accounted for. Different fund companies may have different considerations. Small companies may barely survive, and they can't talk about better professional development. Therefore, "outsourcing" fund accounting also has related operations in this area, which should be an important research subject in the new situation. [1]

IN OTHER LANGUAGES

Was this article helpful? Thanks for the feedback Thanks for the feedback

How can we help? How can we help?