Objectives Of Government Accounting

The prime objective of government accounting is to provide an accurate picture of government revenue and expenditure thereon to the public.However, the following are the subsidiary objectives of government accounting.

1. To maintain records of financial transactions.
2. To control expenditure to cross the budgeted limit.
3. To provide the true picture of various funds.
4. To safeguard as well as control the government properties.
5. To make availability of necessary data promptly.
6. To help to prepare the coming year budget.
7. To help to prepare the annual reports.
8. To make auditing work easy and less expensive.

1.  To maintain records of financial transactions: The prime object of accounting system is to maintain records of financial transaction of the concerned business undertakings.Similarly, the objectives of the government account is also to maintain the records of financial transaction of government offices.
2. To prevent expenditure to exceed the budgeted limit: Budgets is the estimation of government revenue and expenditure proposed for a specified period,normally for a year.It is prepared to achieve a specified objective.Therefore,available funds are allocated on various heads of expenditures.The government is supposed to spend the allocated amount in an appropriate way.Both over expenditure or under expenditure are not good and are taken as an inefficiency of the government.Thus,the accounting helps government to analyze the case and indicates the signal for correct action in future.
3. To provide the true picture of various funds: Government creates various types of fund for different purposes.Government wants to know whether the allocated funds are used for the purpose for which they are created.Government also wants to know the position of funds at different intervals.This picture can be presented accurately if there is accounting system.Thus to provide the true picture of various funds is the objectives of government accounting.
4. To safeguard as well as control the government properties: Government invests a substantial amount of fund to purchase consumable and non-consumable items.There is frequent chance of misuse of these items by the dishonest staff.Thus by keeping the records of these items,government wants to prevent and safeguard the government properties from their misuse.
5. To make availability of necessary data promptly: Government needs various information,data and statistics.By analyzing these data and information,government sketches the future plan,formulates the future policies to achieve the above plans and objectives.These information and data could be availed if government maintains its books of accounts.These books of accounts help to provide necessary data and statistical information quickly and promptly.
6. To help to prepare coming year budget: Government needs various data to prepare next year budgets.Accounting is the main source of these data and statics.Thus government accounting helps to prepare next year budgets by providing data and statistical information as and when required.
7. To help to prepare the annual report: Government needs various progress report to ensure whether the development works are progressing smoothly.These reports provide information about release of budgets,report of monthly expenditures,stocks of various types of inventories, positions of funds etc.
8. To make auditing work easy and less expensive: Auditing is the examination of the authenticity of books of account prepared by an accountant as well as by an independent authorized person called auditor.The object of auditing is to prevent the errors and frauds.By preparing the books of accounts in systematic manner,government accounting makes the auditing work easy and less expensive.

   

   Government Accounting System 

   
   

   Ref: A Basic Course in ACCOUNTANCY by Ratna Man Dangol  
   For more details about the Government Accounting Software you can visit http://www.ezone.com.np/product/government-accounting-system-in-nepal .