Government Accounting
Government accounting is a branch of accounting that is dedicated to recording, controlling and demonstrating the budgetary and financial execution of government entities. These entities can be public administration bodies, such as ministries, secretariats, municipalities and state-owned companies, or non-profit entities, such as non-governmental organizations (NGOs).
Its main objective is to provide information for the management and control of public resources, ensuring transparency and accountability to society. Government accounting is intrinsically linked to the public budget, as it records forecasted and executed revenues and expenses, as well as public assets.
To meet the specificities of government accounting, specific accounting principles and standards are used, such as Law No. 4,320/1964 in Brazil. This legislation establishes the accounting procedures to be followed by public bodies, such as the preparation of the balance sheet, the statement of equity variations and the financial statement.
In addition, government accounting must also observe the principles of legality, impersonality, morality, publicity and efficiency, which govern public administration. This means that accounting records must be made in accordance with legal standards, without personal favoritism, in an ethical and transparent manner.
Among the main activities of government accounting, the following stand out:
- Elaboration and execution of the public budget;
- Registration and control of public revenues and expenditures;
- Control of public assets;
- Preparation of financial statements;
- Accountability to external control bodies;
- Audit of accounting records.
Government accounting plays a key role in the management of public resources, assisting in planning, decision-making and control of public finances. In addition, it contributes to the transparency and accountability of the public sector, allowing society to monitor and evaluate the use of funds raised.
In summary, government accounting is a specialized area of accounting that aims to record, control and demonstrate the budgetary and financial execution of government entities. Through specific accounting principles and standards, it provides information for the management and control of public resources, ensuring transparency and accountability to society.
