Learning Materials For Accounting, Management , Finance And Economics.

Thursday, September 30, 2010

Objectives Of Government Accounting

Government accounting is a branch of accounting that collects, records, classifies, summarizes and interprets the financial transactions of government institutions. It is different from commercial accounting because it is maintained only by government offices. Objectives of government accounting are: recording of transactions, avoiding unnecessary expenditure, providing reliable data to the government, preventing misappropriation of government fund, preparing financial statement etc.

The following are the main objectives of government accounting:

* To record financial transactions of revenues and expenditures related to the government organizations.

* To avoid the excess expenditures beyond the limit of the budget approved by the government.

* To make expenditures according to the appropriate act, rules and legal provisions of the government.

* To provide reliable financial data and information about the operation of public fund.

* To prevent misappropriation of government properties by maintaining the systematic records of cash and store items.

* To facilitate for making auditing of the books of accounts.

* To help for preparing different financial statements and reports.

* To facilitate for estimating the annual budget by providing historical financial data of government revenues and expenditures.