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Government Accounting

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Government accounting is the type of accounting that records financial transactions of entities and agencies of government. All quantifiable economic events that affect the State are part of the interest of government accounting.

Through government accounting, the leaders in charge of state management must report to the competent agencies to show how they manage public money.

Specifically, we can establish that there are several users of government accounting. Thus, among those are the legislative power, investors, economic analysts, creditors, resource providers, financial analysts or international agencies, for example.

It should also be borne in mind that when talking about this type of accounting it's 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 have are the following:

- Integrality of the registry and its coverage.
- Uniformity.
- Normative centralization.
- Doctrinal framework.
- Operational decentralization.
- Accounting control of assets.
- Operation in an integrated manner with other systems.
- Structuring based, among other things, on the flow of data.

Similarly, government accounting is an essential tool for budgeting. Although it depends on each constitution, the most common is that the budget be submitted to parliamentary debate. The information that allows to defend or criticize the budget comes from the balances offered by government accounting.

Importantly, government accounting is governed by various laws and regulated by several institutions. The intention is that the government of the day doesn't take advantage of its position to use state funds at its convenience and interests, but that the financial management is transparent.


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