Question

What is fund accounting, and why is it important to some healthcare providers?

Answer 1

Fund accounting is an accounting of recording various resources whose use has been limited by the donor.

this type of fund accounting are more qualitative rather than quantitative in nature and they will be reflecting the accountability rather than the profitability and it can be said these types of fund accounting are used by many non profit organisations and government organisations.

it is important to some health care providers because they are non profit organisations and the donors who are giving the fund to them have limited the resources so they are exposed to fund accounting and it will be important because it will be providing them with an idea about their expenditures and information and qualitative management of their business.