Fund accounting software is used by non-profits and government organizations to track transactions, funds, and expenses with the primary concerns being stewardship and accountability. This is entirely different from what commercial industries stand for. The principal idea behind using fund accounting software by these organizations is accountability, responsible spending, and transparency. It helps these non-profits track how grants and donations are being spent because the funding providers need to know how their contributions are being utilized. Using this software helps non-profit agencies prove to fund providers that they are reliable and accountable, thereby encouraging them to keep on providing the necessary funding. Government organizations use the software to show concerned citizens who inquire about how public funds are being spent. Another benefit of using this software is the clear and informative reports provided. Reports such as balance sheets and financial statements are essential for any organization, and the software delivers the reports quickly and without errors. Some critical features in a fund accounting software include fund class designations, accounts payable, encumbrance management, general ledger, accounts receivable, and hierarchical fund management.