--- title: FAQ - What are Funds & Cost Centers? description: This article reviews the description, functionality, and use cases of Funds and Cost Centers in Smartwebs --- [Skip to content](https://solutions.smartwebs.com/en-us/smartwebs-solutions/what-are-funds-cost-centers#main-content) English - United States Show submenu for translations ![Logo-FullColor HOA management Platform-1](https://solutions.smartwebs.com/hubfs/Logo-FullColor%20HOA%20management%20Platform-1.svg) - [Smartwebs Solutions Home](https://solutions.smartwebs.com/) - [Contact Us](https://share.hsforms.com/2VBrljHAiSeCkcUy_-IEe_Aq0yoc) - [Manage Tickets](https://support.smartwebs.com/tickets-view) Open main navigation Close main navigation - [Smartwebs Solutions Home](https://solutions.smartwebs.com/) - [Contact Us](https://share.hsforms.com/2VBrljHAiSeCkcUy_-IEe_Aq0yoc) - [Manage Tickets](https://support.smartwebs.com/tickets-view) - English - United States Show submenu for translations - [Contact Us](https://share.hsforms.com/2VBrljHAiSeCkcUy_-IEe_Aq0yoc) [Contact Us](https://share.hsforms.com/2VBrljHAiSeCkcUy_-IEe_Aq0yoc) How can we help you? - There are no suggestions because the search field is empty. 1. [Smartwebs Solutions](https://solutions.smartwebs.com/en-us/smartwebs-solutions?hsLang=en-us) 2. [Accounting](https://solutions.smartwebs.com/en-us/smartwebs-solutions/accounting?hsLang=en-us) 3. [General](https://solutions.smartwebs.com/en-us/smartwebs-solutions/accounting?hsLang=en-us#general) October 15, 2025 # FAQ - What are Funds & Cost Centers? ## This article reviews the description, functionality, and use cases of Funds and Cost Centers in Smartwebs ### **Funds** Typically "Operating" and "Reserve" but there could be more... Funds define what each GL Account is intended to be used for, or how it should be recognized. Think of Operating vs Reserve funds as if they were respectively Checking and Savings accounts. Operating fund accounts take care of the "day-to-day" operations and expenses, while Reserve funds are savings for large capital projects or forecasted maintenance for amenities or common areas in the Association. Accountants will frequently transfer funds from Operating to Reserve bank accounts or vice versa based on the Association's budget and governing documents.  Every GL Account in Smartwebs requires a Fund, so every posting knows what it's assigned to. The Fund Balance Sheet shows Assets, Liabilities and Equity broken out by fund. ### **Cost Centers** In traditional Accounting: Cost Centers track activity only in non-revenue-generating departments like HR or IT. In Smartwebs Accounting, Cost Centers track what EVERY activity is intended for regardless of GL Account, Owner, Vendor, etc. Think of Cost Centers as "Departments" where every transaction has an assigned Cost Center. 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