A significant means of controlling financial activities in non-profit and governmental operations is the concept of Fund Accounting.

Activities are assigned and accounted for within individual funds intended to keep those activities isolated from those of other funds. Funds are differentiated by the nature of restrictions (legislative, court-ordered or donor-imposed) placed on the use of revenues or donated assets.

Funds may also represent a distinct type of activity such as Capital Asset projects (Capital Fund). Another type of fund may be fully self supporting from its own fee or other revenue (Enterprise Fund), with excess of revenues over expenses retained, or assigned to a specific purpose or General Fund.

Legislative action can also mandate that a certain activity be conducted within its own Fund or 'Commission.'