Public sector accounting is a technical mechanism along with accounting analysis applied in the management of public funds. The application of the management of public funds is implemented in high state institutions and their ministries. If you need a Bookkeeper, you can contact us here Irena’s Bookkeeping.
In an element of public sector accounting, there are several parts needed in public sector financial management. Therefore, the following are elements present in public sector accounting.
1. Public Budgeting
A budget is a tool for accountability, management, and economic policy. The purpose of the budget is to realize economic growth and stability as well as income distribution to achieve state goals. The budget provides a plan for the income and expenditure of the organization so that expenditure can be accountable to the public.
2. Public Planning
The aspects contained in planning are the formulation of objectives and how to achieve these goals. Its application is carried out by utilizing existing resources because the nature and purpose of the public is public welfare. Then the purpose of public planning is planning the achievement of public welfare gradually and systematically.
3. Procurement of Public Goods and Services
The procurement of public goods and services is a series of processes, ways, and actions in providing goods and services for the community. The goods and services provided are certainly a form of service in meeting the needs of the community. The purpose of procuring public goods and services is to achieve public welfare.
4. Realization of Public Budget
In theory, the realization of public budgets is the implementation of public budgets that have been planned and determined in the form of real programs and activities. Budget realization refers to the direction or systematic control of processes that convert inputs into goods and services. In this case, the process is closely related to the quality of the output.
5. Public Sector Financial Reporting
Financial statements are the result of the accounting process. In a financial statement, it must present information that is useful for making decisions by interested parties. Because the financial statements describe all processes starting from the achievement of program and activity performance to the realization of financing.
6. Public Sector Audit
Examination or auditing is an independent investigation of some special activities. The mechanism is to position and mobilizes the meaning of accountability in the management of the government sector and other agencies.