Governmental Accounting

Learning Governmental Accounting

AccountingGovernmental accounting is quite different from other types of accounting because it is fund based. In most cases, only those working for government agencies will be involved with the books of those agencies. They tend to have their own internal government accounting departments, although they may hire independent auditors on a seasonal basis to make sure everything is in proper order. Since this field is so specialized, you may want to obtain a job with a government agency and then study governmental accounting in order to advance your career rather than taking it with the hope of obtaining a government job.

Some of the different funds that may be involved in governmental accounting include the following:

  • General Fund
  • Special Revenue Funds
  • Capital Projects Fund
  • Debt Service funds
  • Permanent Funds
  • Proprietary Funds
  • Enterprise Funds
  • Internal Service Funds
  • Fiduciary Funds
  • Pension Trust Funds
  • Agency Funds
  • Private Purpose Trust Funds
Based upon the agency with which you secure employment, the governmental accounting funds as listed may vary. However, to obtain your degree in governmental accounting, you will need to understand how all of them are applied, which is easier to do when you are on the inside.

Governmental accounting can sometimes be confusing in comparison to private sector accounting because of the various types of funds that are involved. This is one reason why you should first obtain a position with a government agency before you attempt to study governmental accounting. By working on the inside, you will develop a better understanding of how each system works and why it is necessary to account for revenue in the way they do. If you work for the Internal Revenue Service, the governmental accounting procedures are likely to include more funds than those listed here.