Fund accountants handle specific accounts related to the funds of a particular institution. The work that these accountants do is necessary for administrators to make appropriate financial decisions regarding a company. Fund accounting can be difficult for some because multiple accounts need to be managed and difficult information must be conveyed to others.
Fund accounting is the separating of resources into groups. Fund accountants identify the origin of funds and the ways in which funds are used, sorting out whether or not these funds were used correctly and documenting these discoveries. Fund accountants help account holders determine what can be done with the current funds, the value of all current assets and the monetary effects that holding or getting rid of assets will have. The fund accountant checks to see if goals are being met through the use of funds and if these goals are being accomplished efficiently. The fund accountant must determine cash flow. Fund accountants also determine who needs to receive what information and whether or not the information is relevant.
Fund accountants oversee six kinds of funds. Current funds are the expendable funds used for general administrative purposes. Plant funds are used for acquiring assets, replacing assets and paying off debt. Endowment funds involve donations made to the institution. Loan funds are available to be lent by the institution. Finally, there are annuity and life income funds that fund accountants are responsible for. Fund accountants also work with four different types of fund transfers. Mandatory transfers are imposed on the institution by an outside source. Non-mandatory fund transfers are decided by the administrators. Temporary transfers only occur during a particular year. Permanent transfers move money to a particular location permanently.
Fund accountants usually spend their time in office environments. However, there are some fund accountants that travel from client to client. Accountants usually work 40 hours a week, though accountants with more than one client can work longer hours. Accountants usually work the hardest during tax season.
Most jobs require fund accountants to have a bachelor’s degree in accounting, though some jobs require a master’s degree. However, there are some occasions where accountants are taken on as junior accountants and are then trained to become fund accountants. Accountants become fund accountants by assuming fund accountant duties at a particular institution.
The need for accountants is expected to grow by 22 per cent between 2008 and 2018. Those who worked as fund accountants can easily move into another form of accounting at any time. Fund accountants earned between £30,175 and £54,600 in 2010.