Enterprise Fund Accounting

Enterprise Fund Accounting is a method used by government entities to track the financial activities of operations that function like private businesses. This includes services like water, electricity, or public transit. Under this system, revenues from these services are used to cover costs, ensuring the operations are self-sustaining. It separates these funds from the general budget, providing clear visibility into their financial health, efficiency, and long-term viability. This approach helps ensure that taxpayer funds are used appropriately while allowing these enterprises to operate effectively and sustainably.