Non-profit organizations and governments use fund accounting. The main purpose of capital accounting is to allocate responsibilities. This practice is to ensure that the fund is used according to the purpose set by the organization. The fund was established in accordance with laws, treaties and articles of association.

Fund accounting came into being in Britain in the18th century. Subsequently, the United States transplanted the government budget system and fund accounting from Britain, and gradually expanded from government accounting to public non-profit organizations organized by the government. A relatively perfect fund system and fund accounting have been formed.