Fund accounting basics

Funds answer “what is this money for?” Accounts answer “what kind of money is it?” Every journal entry must balance in total and within each fund.

• Restricted funds (with donor restrictions) hold designated gifts. Moving value out requires a treasurer and a written reason, using Transfers → Between funds.
• Bank balances are not fund balances. One checking account can hold General, Building and Missions money. Bank transfers never change a fund.
• Corrections are made by reversing an entry, never by editing it.

Still stuck? Contact us.