Features Of Government Accounting

Government accounting is a branch of accounting that records the revenue and expenditure of government institutions. It is used by government offices. It is different from commercial accounting which is used by other forms of organizations and business firms.

The following are the main features of government accounting.

1. Profit And Loss

Since government is a public institution, its main objective is to maintain law and order in the country. Therefore, the accounting system used by an institution is not supposed to reveal its profit and loss, but to reveal how public funds and properties have been used for that purpose.

2. Government Regulations

Government accounting is maintained according to government rules and regulations. The financial policies, rules and regulations determine the system of government accounting.

3. Double Entry System

Government accounting is based on the principles and assumptions of double entry system of book keeping. Accordingly, every government financial transactions are recorded showing their double effects. One aspect of the transaction is debited and the other aspect is credited for each government financial transaction.

4. Budget Heads

All the expenses of government offices are classified into different budget heads and expenditures are made only on approved budget heads.

5. Budgetary Control

Government accounting facilitates budgetary control. No government office can make expenditure more than the allocated budget amount.

6. Banking Transaction

Another feature of government accounting is that, all government transactions are supposed to be performed through banks.

7. Auditing

The concerned department of the government must audit the books of accounts maintained by government office so as to avoid misuse and misappropriation of public funds.

I hope this post is helpful to understand the features of government accounting system.