Best Fund Accounting Softwares: Features, Benefits & Selection Guide

Industries managing multiple funds and income streams need more than just spreadsheets. With rising amounts of financial data, more and more regulatory restraints, and an ever-digitizing landscape, software solutions must step in.

Today, multiple fund accounting software tools are available for managing multi-stream incomes, while ensuring transparency, and enabling accurate reporting. Making the right choice for your industry and needs can be challenging.

In this guide, we will cover the benefits of using fund accounting software, the top 20 solutions on the market, and help you find your perfect fit. We’ll also explore how comprehensive solutions like Osfin can meet, and exceed, each of your needs. Let’s get started.

What this blog covers:

• What “fund accounting software” means and how it differs from general accounting
• Key features to look for in fund accounting tools (e.g. fund modules, grant tracking, net asset management)
• Benefits of implementing fund accounting software for nonprofits, funds, or investment entities
• Challenges and limitations typically faced in fund accounting
• Comparison of leading fund accounting software and what makes each stand out
• How Osfin’s reconciliation capabilities support fund accounting workflows
• Real-world use cases and implementation tips
• Best practices for selecting and deploying fund accounting software

What is Fund Accounting Software?

Non-profit and government organizations often have multiple assets and sources of income. Monitoring and managing these funds requires a specialized bookkeeping system, which is known as fund accounting. Its ultimate purpose is enhancing transparency and appropriate fund allocation.

Fund accounting software is a specialized financial management tool. These software tools can help track funds across different tax sources, grants, programs or donors. This ensures both compliance and accurate financial reporting. Today, many options exist in the open-source market for different fund accounting tools.

Key Features in Fund Accounting Software

If you run a private fund, government, or non-profit organization, or simply have multiple streams of income, you might look for accounting software tools that can meet your particular accounting needs. Here are a few to consider, if you’re in the market for fund accounting software:

1. Core Accounting Functions

Every reliable solution must handle the basics: fund tacking, management tools, audit assistance. Many platforms also include built-in reconciliation tools for transaction matching. Keep an eye out for these.

2. Reporting & Analytics

Some basic reporting and analytical tools are present in all fund accounting software. More advanced/specialized tools can offer regulatory-framework compliant financial reporting features. In addition, insights into your overall financial activities, and fund-specific analytics, can be great to have in your toolkit.

3. Reconciliation & Transparency

Since fund accounting often involves multiple stakeholders and funding sources, reconciliation is important. The best fund accounting software possesses automated reconciliation features. These can help you keep track of your income, accurately, and enhance the transparency of your operations.

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4. User-Friendly, Supportive System

For smaller organizations, ease-of-use is key. It can be easy to get bogged down in non-specific features and complex workflows. Prioritize choosing a software that understands your fund accounting needs, communicates it in an intuitive interface, and offers plenty of support and onboarding options.

5. Integration and Management Capabilities

Lastly, the best fund accounting tools will demonstrate in-depth understanding of your requirements. These will offer built-in grant management tools, offer compliance assistance, integrations with different donor management transactions, and quick data matching. This synchronization will increase the efficiency of your operations by a large manifold.

The fund accounting software you choose will have a mix of these functionalities. The key is to prioritize based on your requirements, and make the choice accordingly. In the next section, we will look at how implementing fund accounting tools can benefit you and your organization.

Benefits of Fund Accounting Software

Fund accounting has higher stakes than regular accounting, and here’s why: managing multiple sources of income and allocating the funds for their intended purpose is critical for the operation of private funds or government and non-profit organizations.

Which is why there is no room for inaccuracies and manual errors. If you’re debating using fund accounting software for your fund management, here’s a list of benefits to dispel your doubts:

1. Improved Financial Accuracy: 

Fund accounting software uses automated reporting, reconciliation, and anomaly detection tools. Software solutions can deal with complex data sources and formats with a lot more ease. These help reduce errors and ensure that all the numbers in your books match.

2. Enhanced Transparency:

Next, these software tools come packed with compliance features and audit trails. This end-to-end tracking and transparency is critical, as it gives you the true picture of your financial status and fund allocation.

3. Efficient Resource Allocation:

When you gain complete transparency into your funds, budget management tools allow you to allocate them as needed. This results in efficient resource allocation.

4. Time Savings:

The snowball effect of automation in your reconciliation and bookkeeping workflows, combined with efficient resource allocation, is a lot of time saved for your organization, which leads directly into the next benefit.

5. Informed Decision-Making:

With saved time and freed-up resources, you’re able to dedicate more of your energy to making strategic decisions for your organizations. Budgeting and financial resource management simplifies. Fund accounting software can also furnish detailed financial reports and analytics, further strengthening your decision making.

6. Remote Accessibility:

Lastly, cloud-based access ensures your team can work with financial data from anywhere. This is very important for small to medium sized organizations that desire support for flexible operations.

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Comparison Table –  Fund Accounting Software Tools

20 Best Fund Accounting Software for 2025

1. Osfin

Osfin is an automation-first solution for fund accounting and reconciliation. Nonprofits, government organizations, and fund management enterprises alike will find Osfin best-suited for reconciling multiple funds with accuracy and transparency.

Its feature set, which spans automated reconciliation, seamless integration options, and a comprehensive audit trail for each and every action tracked – make Osfin ideal for all organizations dealing with multiple incomes and resources.

Key Features:

• Real-time fund reconciliation
• 170+ prebuilt connectors for ERPs, banking, and APIs
• No-code workflows
• Compliance-ready with SOC 2, PCI DSS, ISO 27001, and GDPR

Pros:

• Automation reduces manual fund tracking
• Quick anomaly and duplicate detection
• Smart exception handling
• Supports multi-source reconciliation (donations, grants, settlements)
• Strong audit trails and compliance features

2. Sage Intacct

Sage Intacct is one of the most popular cloud-based finance software solutions. Its functionalities span multiple domains and industries, although its key user base is small to medium enterprises. Sage Intacct provides automation across different accounting needs; nonprofits can particularly benefit from its wide range of fund accounting tools.

The latest AI-powered features have also been integrated in Sage Intacct.

Key Features:

• Cloud-based platform
• Advanced financial reporting

Pros:

• Grant management features
• Integrations with donor management systems
• Handles both restricted and unrestricted funds

Cons:

• Steep-learning curve

3. Xero

Xero is another popular, highly-rated accounting software designed for businesses and entrepreneurs. It has a wide suite of features that meets multiple core accounting requirements. Xero provides industry-specific solutions, customization abilities, and automation tools that make it a great fit for fund accounting requirements.

Key Features:

• Cloud-based platform
• User-friendly interface

Pros:

• Flexible payment plans and pricing options
• Real-time financial dashboard
• Task automation

Cons:

• Fewer advanced features
• Difficulty in handling complex financial reporting

4. NetSuite

Oracle’s NetSuite is a market-leading enterprise resource planning system. One of its endeavours is a host of features geared towards non-profits and government organizations dealing with complex, multi-source finances.

Key Features:

• Cloud-based solution
• Highly scalable

Pros:

• Handles complex use cases
• Advanced budget, fund, and grant management solutions

Cons:

• Steep learning curve
• Higher cost

5. QuickBooks

QuickBooks is a household name for small businesses and organizations. It offers basic management and accounting solutions, considered ideal for newer users. However, QuickBooks has limited scaling abilities.

Key Features:

• Best for small organizations with fund accounting needs

Pros:

• Affordable accounting solution
• Quick to implement, easy to use

Cons:

• Less robust
• Lack of industry-specific features

6. MIP Fund Accounting

MIP Fund Accounting software is a well-rated and widely used fund accounting solution. It is used by non-profits, healthcare organizations, government agencies, and more. There are a host of features to choose from, all backed by strong accounting functionalities.

Key Features:

• Cloud-based solution
• Core accounting functionalities

Pros:

• Highly scalable
• Unlimited fund tracking
• FASB and GASB compliant reporting

Cons:

• Complex user interface
• Fewer advanced tools

7. Blackbaud FInancial Edge NXT

Designed with the needs of nonprofit fund accounting in mind, Blackbaud Financial Edge NXT is a state of the art platform with industry-specific functionalities. It provides automated workflows, budget and report creations, document storage and organization abilities that add up to a strong software suite.

Key Features:

• Cloud-based platform
• Audit trailing
• Unified platform with dashboards and records

Pros:

• Grant tracking tools
• Robust financial management and reporting functionalities

Cons:

• Complicated for smaller organizations
• Higher pricing points
• Complicated integration with donor management platforms

8. IconCMO Fund Accounting

Designed with the needs of church fund accounting at its core, IconCMO is a fund-accounting software package ideal for all non profit organizations.

Key Features:

• FASB compliant reporting
• Budgeting and fun management tools

Pros:

• Comprehensive onboarding and user support
• Easy to use

Cons:

• Lacks advanced features
• Low scalability

9. Ramp

Ramp is an automated accounting and spend management tool. It can be a valuable solution for fund accounting because of highly flexible accounting rules and the scale of automation within the platform.

Key Features:

• Customizable accounting settings
• AI-powered tools
• Compliance solutions

Pros:

• Flexible accounting rules
• Automated approval routing
• Built-in policy enforcement

Cons:

• Limited advanced features

10. eFront

Built for alternative investment managers, the fund accounting features of eFront are not very diversified. eFront allows portfolio management, which is supplemented by different risk management tools and various integrations.

Key Features:

• Performance analytics
• Compliance monitoring

Pros:

• Investor reporting
• Risk management options

Cons:

• Complicated setup procedure
• Highly specialised feature set

11. Adagio

This accounting software is provided by Softrak Systems Inc. It is an entry-level fund accounting solution at part with QuickBooks – hence comes with simplicity, but limited scalability. It puts the needs of nonprofits at its core, with features and functionalities designed to meet their needs.

Key Features:

• Financial statement generator
• Audit trail functionality
• Restricted and unrestricted fund management

Pros:

• Complex fund management
• Extensive financial reporting tools

Cons:

• Complex initial setup
• Limited scalability

12. CenterPoint Fund Accounting

Another software built for the fund accounting needs of nonprofits, CenterPoint is a great solution particularly for organizations with complicated reporting needs. Working as both a cloud-based and locally operating tool, it is well-suited for SMEs.

Key Features:

• Customizable financial reports and information
• Multiple fund tracking
• Audit trailing

Pros:

• Budgeting tools
• Diverse reporting capabilities

Cons:

• Steep learning curve

13. Aplos

Aplos covers and delivers on the accounting, tracking, and reporting needs of nonprofits. Aplos manages fund allocation, donation tracking, and customizable reporting. In addition, Aplos is strongly rated for its ease of use and simple approach to multi-asset management.

Key Features:

• Cloud based platform
• Budgeting module
• Communication module

Pros:

• Strong budgeting features
• Customizable reporting features

Cons:

• Sparse advanced accounting features

14. LemonEdge

LemonEdge is a fund accounting software that sets itself apart in the private equity and venture capital domains. Think the same fund management, budgeting, and reporting capabilities, all while handling the complexities of the investment space.

Key Features:

• Flexible reporting
• Multi-currency transactions

Pros:

• Handles complex calculations
• Customizable reporting and workflows

Cons:

• High training requirements

15. Springly

Springly is another player in the SME fund accounting space. Springly is a community-supported, communication-first accounting platform for managing finances

Key Features:

• Budgeting modules
• Fund management

Pros:

• Affordable accounting solution
• CRM and accounting in a single platform
• Easy setup process

Cons:

• Low scalability

16. Fund EZ

Fund EZ specializes in fund accounting for nonprofits and government organizations. It provides strong budgeting, grant tracking, and compliance tools, with options for both on-premise and cloud.

Key Features:

• Budget management
• Comprehensive integrations
• Grant management features

Pros:

• Financial reporting
• Grant tracking
• Budget management

Cons:

• Low advanced capabilities
• Steep learning curve

17. Dynamo

Dynamo is a general ledger based, fund accounting platform built to automate reconciliations and reporting. It reduces manual bookkeeping by syncing data across ledgers, banks, and ERPs.

Key Features:

• Portfolio management module
• Equity-tailored features

Pros:

• AI-powered automation and workflows
• Granular performance metrics

Cons:

• Complex setup
• Premium pricing

18. DualEntry

DualEntry is an AI-driven accounting platform. DualEntry automates reconciliations, manages multiple transaction entries, unifies data across numerous integrations, and offers compliance-ready frameworks.

Key Features:

• Investment-oriented fund accounting
• Data syncing and integration capabilities
• AI-first solution

Pros:

• Strong onboarding and support features
• AI-powered automation

Cons:

• Premium pricing

19. Allvue

Allvue is designed for hedge funds, private equity, and credit managers. It delivers accounting, investor reporting, and portfolio monitoring in one integrated platform.

Key Features:

• Suited for hedge funds and private equity funds
• AI-powered solutions
• Cloud-based scalability

Pros:

• Strong investor reporting
• High scalability
• Multiple integrated modules

Cons:

• Expensive, compared to contemporaries

20. Xceptor

Xceptor automates data flows, reconciliations, and reporting for financial services. While not pure fund accounting, it’s used by large institutions for data transformation and automation tasks. These supplement smooth accounting processes.

Key Features:

• Tailored towards larger financial institutions

Pros:

• Powerful automation
• Strong reconciliation

Cons:

• Enterprise, profit-focused

How Osfin Enhances Fund Accounting?

Despite operations on a smaller scale, the demands of fund accounting are precise and expansive. The tools discussed here can cover the basics, but if you wish to go further, Osfin delivers on each of your requirements. Here’s how Osfin helps:

1. Smart Transaction Matching & Reconciliation

Managing reconciliations across multiple funds and accounts can be time-consuming. Osfin automates matching from ledgers, bank statements, ERPs, and more. With built-in duplicate detection, anomaly spotting, and exception tagging, it delivers clean, reliable records for every fund. 

2. Data Integration & Format Support

Funds often rely on diverse systems and reporting formats. Osfin supports ingestion from multiple file formats, including MT940, ISO 20022, CSV, JSON, XML, and more, along with 170+ connectors (ERPs, banks, etc.). This reduces reconciliation delays.

3. User-Friendly Workflows

Osfin offers a no-code rule builder for custom tolerances and workflows. It offers real-time dashboards to track exceptions, exposures, and match status. These help you keep fund reporting accurate, and fast.

4. Security, Compliance & Auditability

Osfin’s workflows provide full transaction traceability and align with SOC 2, PCI DSS, ISO 27001, and GDPR. Security features like end-to-end encryption and role based accesses protect your financial data across all funds.

5. Expert Support

Last, Osfin’s specialists in reconciliation and fund accounting operations assist with setup and ongoing audit readiness. This minimizes IT dependence and strengthens confidence during fund audits.

With these features, Osfin creates a solid foundation for your accounting workflows, keeping all your funds in check. Next, we’ll look at some evaluation criteria for making your final fund accounting tool choice.

How to Choose the Right Fund Accounting Software?

To simplify the process of picking a fund accounting software, here are the key factors to prioritize:

1. Scalability

Expect your organization’s needs to grow over time. The right fund accounting software should handle increasing transaction volumes and additional fund management.

2. Seamless Integrations

The best fund accounting solution ought to connect with the tools you already use, such as ERP, CRM, or payroll systems. This will speed up your reconciliation, bookkeeping, and reporting.

3. Comprehensive Toolkit

Fund accounting requires specific features and tools that go beyond basic accounting. Check whether your chosen software supports advanced, compliant financial reporting, tools for tracking and managing grants, as well as fund tracking capabilities.

4. User Experience

A clean, intuitive interface helps you and your teams adopt the software into your workflows faster. Another question to ask is if the customer support and training resources are sufficient to support your operations and onboarding.

5. Cost & Value

Pricing plans can vary a lot. Pick a software that fits well within your budget, while still delivering on the essentials.

6. Security, Compliance, & Reconciliation

Last, but not the least, choose software with encryption, access controls, and automated compliance features. Built-in reconciliation tools are especially valuable for staying on top of your financial status.

These checkboxes will guide you to choose the right fund accounting tool for your specific needs. With these in mind, let’s take a look at the latest and upcoming developments in the accounting software space.

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Trends in Fund Accounting Software for 2025

In this section, we will cover the latest developments in fund accounting software, and see what changes can be expected in the future. 

1. Smarter Compliance Tools

For those seeking fund accounting solutions, compliance is a critical aspect of operations. With regulations constantly changing, modern financial platforms are adding built-in compliance support. Automated reconciliations, audit trails, and real-time reporting are some of the features that help users stay compliant. Look out for smarter compliance tools when picking a fund accounting software in 2025.

2. Cloud-First Accessibility

The shift to cloud-based platforms has quickly become the norm. Local storage cannot keep up with the speed and storage demands of modern financial data.

By hosting systems online, on a “cloud” organizations give their teams instant access to financial data from anywhere.

3. AI-Powered Insights

Every other financial software in the market positions itself as AI-first today – and for good reason! Advanced analytics that are supported by AI enable different organizations to make better financial decisions. They can help to identify patterns, forecast outcomes, and gain predictive insights. Ai-driven solutions are not to be missed in 2025 and beyond.

Manage Your Fund Accounting With Osfin

Today, fund accounting tools have evolved far beyond basic bookkeeping. Leaving manual spreadsheet-based data matching behind, these software solutions now cover compliance, reconciliation, reporting, and a lot more.

Tools like Osfin are leading the way. From automated reconciliations and real-time reporting to built-in compliance checks and secure integrations, it covers all your requirements and more. When managing multiple resources and income streams, Osfin is a reliable technology partner to have by your side.

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Frequently Asked Questions

1. What organizations use fund accounting?

Organizations with multiple sources of funds and resources typically utilize fund accounting. These include nonprofit organizations(charities and foundations), government entities such as local governments and state-run programs, educational and religious institutions, and more.

2. Can Microsoft Excel perform fund accounting?

Excel can handle basic tracking, and be used for fund accounting. In fact, many organizations still use spreadsheet-based applications for their accounting processes. However, these tools lack automation, are often error-prone, and time consuming. For efficient fund accounting, consider using software solutions instead.

3. What fund accounting software is best for small organizations?

Many fund accounting tools are designed to meet the needs of smaller organizations. Software tools like QuickBooks, IconCMO, and Osfin are user-friendly, cost-effective, and ideal choices for smaller nonprofits and organizations.

4. How is fund accounting different from regular accounting?

In a nutshell, regular accounting practices focus on profitability. The ultimate objective of fund accounting is to increase accountability, track funds and resources by purpose, and obtain a clear picture of actual financials.

5. Is cloud-based fund accounting secure?

Yes, most modern platforms use encryption, role-based access controls, and regular backups. These features add to a secure fund accounting experience.

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