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Lesson 174, Topic 1

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✏️+🎥Introduction to Governmental Accounting🟢

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Introduction-to-governmental-accounting Download

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Brandon Hutchins 23 December 2024

In the video it says that internal reporting is used for managerial accounting and external reporting is used for financial accounting. In the video it says that governmental accounting doesn’t deal with financial or managerial accounting. Is this because governmental accounting doesn’t have the distinction in reporting to external / internal users? Governmental accounting reports to everybody to show everyone how their tax dollars are being used. So is this why governmental accounting doesn’t make the distinction between external and internal reporting because the government reports to everybody and is accountable to everybody?

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1. Maroun, CPA 27 December 2024
  
  Hello Brandon,
  
  Governmental accounting doesn’t emphasize internal vs. external reporting because:
  – The primary goal is accountability rather than profitability.
  – The reports are prepared for everyone (e.g., the public, legislators, oversight boards), not just a specific audience like shareholders or management.
  
  Governmental accounting is designed to provide transparency and accountability to all stakeholders—not just internal managers or external investors, as in the private sector. Since governments manage public resources (e.g., tax dollars), they must demonstrate how those resources are allocated and used to serve the public. This includes reporting to citizens, oversight bodies, and other stakeholders.
  
  I hope this helps!
  
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