Government Accounting System in Nepal

Government Accounting System:

The accounting system followed by government offices to keep the record of all the financial transaction is known as government accounting system. It is basically related to record the revenue (incomes) and expenditures of ministries, departments, operating level offices and other legal bodies of the government.

Difference between Government Accounting and Commercial Accounting:

S.No	Government Accounting	Commercial Accounting
1	It is used by government offices.	It is used by private or public business organizations.
2	It is based on the government rules and regulations.	It is fully based on the generally accepted accounting principles (GAAP).
3	It is control by budget.	It is not control by budget.
4	It is audited by the office of auditor general.	It is audited by the professional auditors.
5	Accounts are maintained under budget head numbers.	No budget heads are classified under this accounting.

New Accounting System:

The accounting system which has been used in the government offices of Nepal since the fiscal year 2019/20 is called New Accounting System.

Features of New Accounting System:

The following are the features of new accounting system:

a)     Based on double entry system.

b)    Banking transactions.

c)     Features of central and operating level.

d)    Provision of budget heads.

e)     Uniform and simple.

f)      Features of budget transfer.

g)     Features of auditing and reporting.

Objectives of New Accounting System:

       i.            To keep systematic record.

     ii.            To provide financial data for preparing budget.

  iii.            To safeguard properties.

  iv.            To provide periodical report.

     v.            To make expenditure within the limit of budget.

  vi.            To make auditing task convenient and easier.