Government accounting system
Government accounting system refers to the accounting system that is implemented and followed by a government office to record and maintain financial transactions conducted by a government itself.
According to Oshisami and Dean “Government accounting is the process of recording, analyzing, classifying, summarizing, communicating, and interpreting financial information about the government in aggregate and details, reflecting all transactions involving the receipt, transfer, and disposition of government and property”.
Features of Government Accounting System
It is most scientific and systematic accounting system as it is based on double entry system.
It is maintain under the rules and regulation of the government itself.
It does not reveal the profit and loss but how public fund has been used on various sectors.
Separate account is open for every government office to conduct financial transactions as government accounting provides emphasizes in banking transactions.
All expenses incurred by the government office in an accounting period are recorded into different budget heads.
Provision of Auditing of government account to avoid misuse and misappropriation of government expenditure and revenue.
Government accounting system does not allow government expenditures to exceeds allotted amount.
Objectives/ importance/ Needs of government accounting system
To record and maintain government expenditure and revenue incurred in an accounting period.
To control government expenditures within the limit determined by the Budget.
To make necessary expenditure according to appropriate act, rules, and laws of the government.
To provide relevant financial information about the use and allocation of public fund.
To prevent misuse and misappropriation of government expenditure and revenue by maintaining record of such financial transactions.
To assist in making annual budget by proving information about government expenditure and revenue.
To help in preparing different financial statements and reports.
To facilitate auditing simple and economical.
To safeguard government assets or property.
To gain public trust towards the government by showing transparency and financial discipline.
Government is a large organization of the country which works on the development of the country. For this course of action, it needs to conduct various financial transactions and such transactions are maintained by government accounting system to show the transparency on public fund.
