Objectives of Governmental Accounting
1. Transparency and Accountability: Governmental accounting aims to promote transparency by providing clear and comprehensive financial information about government entities’ financial position, performance, and cash flows.
2. Compliance with Legal and Regulatory Requirements: Governmental accounting ensures compliance with legal and regulatory requirements governing the financial management and reporting of public funds.
3. Resource Allocation and Decision-Making: Governmental accounting supports effective resource allocation and decision-making by providing accurate and reliable financial information to government officials, policymakers, and managers.
4. Financial Planning and Management: Governmental accounting facilitates financial planning and management by assisting government entities in budgeting, forecasting, and monitoring financial performance.
5. Stewardship of Public Funds: Governmental accounting promotes the responsible stewardship of public funds by ensuring that financial resources are managed prudently, ethically, and in the public interest.