Following are the main differences between government accounting and commercial accounting:
1. Meaning
The accounting system maintained by the government offices is known as government accounting. The accounting system maintained by business organizations is known as commercial accounting.
2. Objective
Government accounting is maintained by the government offices to know the position of public fund. Commercial accounting is maintained by business organizations to know the profit or loss and the financial position of the business.
3. Budget
Government accounting strictly follows the government budgeting system. commercial accounting does not follow the government budgeting system.
4. Basis
Government accounting is prepared on cash basis. Commercial accounting is prepared on cash as well as accrual basis.
5. Level Of Accounting
Government accounting has the system of central level and operating level accounting. Commercial accounting has no provision of central level and operating level accounting.
6. Rules And Provisions
Government accounting is strictly maintained by following the financial rules and provisions of government. Commercial accounting is maintained by following the rules and principles of 'Generally Accepted Accounting Principles'.
7. Information
Government accounting provides information to the government about the receipts, transfer and deposition of public funds. Commercial accounting provides information to the concerned parties about the operating result and financial position of the business.
8. Auditing
An Auditor General Office audits the book of accounts kept under government accounting. A professional auditor can audit the books of accounts kept under commercial accounting.
1. Meaning
The accounting system maintained by the government offices is known as government accounting. The accounting system maintained by business organizations is known as commercial accounting.
2. Objective
Government accounting is maintained by the government offices to know the position of public fund. Commercial accounting is maintained by business organizations to know the profit or loss and the financial position of the business.
3. Budget
Government accounting strictly follows the government budgeting system. commercial accounting does not follow the government budgeting system.
4. Basis
Government accounting is prepared on cash basis. Commercial accounting is prepared on cash as well as accrual basis.
5. Level Of Accounting
Government accounting has the system of central level and operating level accounting. Commercial accounting has no provision of central level and operating level accounting.
6. Rules And Provisions
Government accounting is strictly maintained by following the financial rules and provisions of government. Commercial accounting is maintained by following the rules and principles of 'Generally Accepted Accounting Principles'.
7. Information
Government accounting provides information to the government about the receipts, transfer and deposition of public funds. Commercial accounting provides information to the concerned parties about the operating result and financial position of the business.
8. Auditing
An Auditor General Office audits the book of accounts kept under government accounting. A professional auditor can audit the books of accounts kept under commercial accounting.
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