Internal Service Fund Accounting

Internal Service Fund Accounting is a method used by government entities to manage resources for services provided internally, such as IT support or vehicle maintenance. Instead of charging external customers, these funds charge other departments for services, ensuring costs are covered and promoting efficiency. Revenues generated from these services are recorded in the fund, and expenditures reflect the costs of providing them. This approach allows for better tracking of expenses and funding, helping organizations manage their budgets more effectively while maintaining accountability and transparency in financial operations.