Govacc
Govacc
As a process, it puts together all activities, pertaining to the gathering of data which are to be
used as the bases for management decisions. It includes:
1. bookkeeping
2. posting or grouping or classifying of similar terms
3. preparation of periodic, financial reports
4. analysis of reports to determine their accuracy and adequacy and effectiveness of
agency operations.
Like commercial accounting, government accounting is an art and are based on fundamental
concepts regarding accounting functions and the rules governing accounting practices. These
rules which are derived from experience and reason are flexible and in a constant process of
evolution.
Primary purpose of Government Business
To render service to the public as distinguished from the usual profit business
Peculiarities of Government Business
As to Purpose
The primary purpose of the government business is to render service to the public at the lowest
cost possible as distinguished from the usual profit motive of the private business.
As to ownership
There are no defined individual ownership interests in the government business, that can be
acquired, sold, transferred re redeemed in the commercial sense. Although every citizen is said
to have a share in the assets of the government, no one may dispose of his share and realize
from it.
As to Management
Managers of private businesses have relatively few internal limitations unlike the officers and
administrators of the government business who are governed by specific laws and regulations.
As to Income
Private business derives from charges made to services rendered or commodities sold while the
government derives most of its income from the collection of taxes and fees.