Governmental Accounting

Governmental accounting refers to the specialized accounting practices used by government entities to manage financial resources and report on their fiscal health. Unlike private sector accounting, which focuses on profitability, governmental accounting emphasizes accountability and transparency in how public funds are collected and spent. It involves adhering to specific standards to ensure accuracy and comparability, enabling stakeholders—like taxpayers and policymakers—to understand how funds are used and whether programs are effective. Ultimately, it helps maintain public trust and supports informed decision-making for the community.