Government accounting refers to the process of recording and the management of all financial transactions incurred by the government which includes its income and expenditures. Show Various governmental accounting systems are used by various public sector entities. In the United States, for instance, there are two levels of government which follow different accounting standards set forth by independent, private sector boards. At the federal level, the Federal Accounting Standards Advisory Board (FASAB) sets forth the accounting standards to follow. Similarly, there is the Governmental Accounting Standards Board (GASB) for state and local level government. Public vs. private accounting[edit]Objectives[edit]The unique objectives of government accounting do not preclude the use of the double entry accounting system. There can, however, be other significant differences with private sector accounting practices, especially those that are intended to arrive at a net income result. The objectives for which government entities apply accountancy that can be organized in two main categories: - The accounting of activities for accountability purposes. In other words, the representatives of the public, and officials appointed by them, must be accountable to the public for powers and tasks delegated. The public, who have no other choice but to delegate, are in a position that differs significantly from that of shareholders and therefore need financial information, to be supplied by accounting systems, that is applicable and relevant to them and their purposes. - Decision-making purposes. The relevant role-players, especially officials and representatives, need financial information that is accounted, organized and presented for the objectives of their decision-making. These objectives bear, in many instances, no relation to net income results but are rather about service delivery and efficiency. The taxpayer, a very significant group, simply wants to pay as little as possible taxes for the essential services for which money is being coerced by law.
1. Conradie, J.M. The applicability of Generally Accepted Accounting Practice in the Central Government of South Africa (English summary of a thesis written in another language) University of Pretoria, 1993. 2. Conradie, J.M. Die toepaslikheid van Algemeen Aanvaarde Rekeningkundige Praktyk in die Sentrale Owerheid van Suid-Afrika. Universiteit van Pretoria, 1993. (Original full text of the summary.) See also[edit]
Government accounting involves using the traditional skills of the accountant to manage public funds and adhere to legislation and regulations. Accountants in this role also investigate white-collar crime, prepare annual Budget papers, perform financial statement audits for government agencies, and conduct research on emerging accounting issues at all levels of government. Government accountants are required to adapt to changing legislation along with general accounting standards and ensure financial activities balance the needs of the government with the needs of the communities they serve. "Working as a CA in the public sector has given me a wealth of opportunities. I have worked in financial analysis, accounting, budgeting, consolidations and eliminations, financial audit, and stakeholder and people management – and that's just my first seven years! I have built a strong network of professional contacts that I draw upon for information, advice and friendship. I value being part of something greater and using my skills to serve the public." Why government accounting could be the right fit for you While government accountants are responsible for reviewing and recording the financial activities of the government, they can also contribute to the development of tax, budget funding, commercial and other financial policy. Government accountants’ familiarity with government structures, functions and financial policies means they have the ability to understand and translate financial data into meaningful reports that can be used, for example, as evidence in court hearings regarding white-collar crime and financial malpractice investigations. Working as a government accountant can open the door to a vast range of career opportunities and a wide and valuable network of colleagues across the public sector. If you have an interest in governance and government structures, and are comfortable asking tough questions, investigating sensitive issues and uncovering hidden accounting problems, a career as a government accountant could be for you. Who can you work for? Government accountants work in the public sector at Commonwealth, state and local levels. Key skills:
What are the government accounting system?Government accounting is a scientific procedure of collecting, classifying, recording, summarizing, and interpreting all the financial transactions including revenues and expenditures of all the government offices. It keeps the record of public funds.
What type of accounting does the federal government use?Fiscal Accounting at the Bureau of the Fiscal Service gathers and reports on the U.S. government's finances.
Is government accounting a type of accounting?Government accounting refers to the process of recording and the management of all financial transactions incurred by the government which includes its income and expenditures.
Do governments use GAAP?Governments and the accounting industry recognize the GASB as the official source of generally accepted accounting principles (GAAP) for state and local governments. (About GASB). GASB standards are GAAP for state and local governmental entities only.
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