Proprietary Fund Accounting

Proprietary Fund Accounting is a method used by governments and nonprofit organizations to manage financial activities similar to a business. It focuses on funds generated from operations that operate like a private enterprise, such as utilities or transit systems. These funds are kept separate to track revenues, expenses, and profits accurately. This approach helps ensure financial accountability and transparency, enabling better decision-making for services provided to the public while reflecting a clearer picture of financial performance. Essentially, it mirrors how a business would manage its finances, but within the context of public service.