Government accounting is responsible for recording the accounting operations of the public administration.
Before proceeding to determine the meaning of the term government accounting , it is necessary that we make clear its etymological origin. In this sense, we have to state that the two words that make it up come from Latin:
• Accounting is the result of the sum of several Latin components: the prefix «con-«; the verb "putare", which means "to calculate"; the particle "-bile", which is equivalent to "that can"; and the suffix "-dad", which is used to indicate "quality."
• Governmental, on the other hand, is the result of the union of three Latin elements: the vergo “gubernare”, which means “to govern”; the suffix "-al", which is used as a synonym for "relative to"; and the suffix "-mento", which indicates "instrument".
Analyzing the concept
Accounting is the technique and science that provides useful information for making financial decisions. The accountant or bookkeeper is in charge of studying the assets of an entity and records their results in an accounting or financial statement that is a summary of the economic situation.
Governmental , on the other hand, is that which belongs to or relates to the government of the State . It can be said that the government is linked to political leadership, while the State is a form of sovereign and coercive social organization.
Government accounting provides tools for budgeting.
What is government accounting
Government accounting , therefore, is the type of accounting that records the financial operations of public administration entities and agencies . All quantifiable economic events that affect the State are part of the interest of government accounting.
Through government accounting, the leaders in charge of running the State must be accountable to the competent bodies to show how they manage public money .
Specifically, we can establish that there are several users of government accounting. Thus, among them are the legislative power, investors, economic analysts, creditors, resource providers, financial analysts or international agencies, for example.
Structure and features
Likewise, it must be taken into account that when talking about this type of accounting it is essential to determine that its structure is delimited by three elements, which are the principle of legality, the basic principles of government accounting and the particular rules based on the criteria prudential.
Among the fundamental characteristics that government accounting must possess are the following:
• Completeness of the registry and its coverage.
• Uniformity.
• Regulatory centralization.
• Doctrinal framework.
• Operational decentralization.
• Accounting control of assets.
• Operation in an integrated manner with other systems.
• Structuring based, among other things, on data flow.
Government accounting and budgeting
Likewise, government accounting is an essential tool for budget preparation. Although it depends on each constitution , the most common thing is that the budget is submitted to parliamentary debate. The information that allows the budget to be defended or criticized comes from the balance sheets offered by government accounting.
It is important to note that government accounting is governed by various laws and regulated by various institutions. The intention is that the government in power does not take advantage of its position to use state funds according to its convenience and interests, but rather that financial management is transparent.