Government Accountant has a very Crucial Role to Play in the Nation’s Economy
The term government accounting is inclusive of all the accounting systems that are used by the various public sector entities. If we take the case of USA, then there are two levels of governments that follow completely different standards of accountancy. The Federal accounting standards advisory board (FASAB) benchmarks the accounting standards that are followed at the federal level. At the various state and local levels, the Governmental Accounting Standards Board (GASB) sets the accounting standards. There is a great difference between the public sector accounting as well as the private sector accounting that needs to be understood in order to get the real idea behind the work that the government accountant does.
The private sector accounting is mainly concerned with the profits that the companies can make whereas the public sector accounting is more oriented towards betterment of the state or the nation. Another important fact that needs to be understood is that the public accounting is answerable to the people about the use or misuse of funds that are collected from the people. In the case of the governmental accounting the budgetary context has to be followed whereas in the case of the private accounting the, the budget of the organization is just a tool that is used to plan the future course of the company’s plans and actions.
The government accountant generally follows the fund accounting system. The government accountant has to measure the flow of the financial resources rather than the economic resources. The government accountant has to keep in mind that the financial statements are to be accompanied by the Required Supplementary Information (RSI). The RSI is the comparison between the original budgets that was created at the beginning of the fiscal year to the exact expenses that were made.
The government accountant has the most relevant roles to play in the entire machinery of the government. He has to keep in mind that the money that he has to manage is basically the tax payer’s money and thus he is accountable for every penny that he spends.