Introduction And Meaning Of Government Accounting
Government accounting is a process of collecting, classifying, summarizing, recording and interpreting the financial transactions (revenue and expenditure) of government offices or organizations. It is different from commercial accounting because it follows single system and accounts are maintained in cash basis system. It provides information and data about the revenue and expenditure that shows the position of public funds and properties.
Objectives Of Government Accounting
The main objectives of government accounting can be highlighted as follows:
1. Recording Of Financial Affairs
Government accounting is used to record financial affairs of government agencies. It identifies, collects, classifies, and records the government's revenue and expenditure systematically and scientifically.
2. To Provide Data And Information
It provides important financial data and information about the public fund that helps the government to prepare budget. Financial data are useful to prepare different financial statements and accounting reports.
3. To Facilitate Auditing
Systematically recorded data helps to conduct the audit of books of accounts. It helps to locate errors and mistakes and discourages the misappropriation of public fund.
4. To Protect Government Property
Another objective of government accounting is to discover the misuse of government properties. It helps to avoid excess expenditure by maintaining systematic recording of public fund and properties.
Also Read
Difference Between Government And Commercial Accounting
Objectives of financial accounting
Objectives of management accounting
5. Effective Use Of Resources
It promotes optimum use of available resources to improve the the operational efficiency in the government agencies.
6. To Assist Decision Making And Future Planning
Financial statements and audit report prepared on the basis of government accounting helps the government to make sound decisions. It also helps to make future financial plans and policies of the country.
