Accounting is an effective tool for financial administration. It helps to achieve the goal of the financial administration. The Account Committee 2017, which recommended the new accounting system has the following objectives:
- To keep systematic record
Under new accounting system, all the financial transaction are recorded systematically & scientifically. All the transaction may be related to cash and store items. It helps to control the misuse of government fund. It also provides the financial information whenever required.
- To supply financial data & information
The historical financial data and information are helpful for estimating budget. The new accounting system provides various financial data & information for various purposes. It requires such data & information for preparation of financial statements.
- To provide information about funds
The government needs to be informed about the position of different public funds. It requires detailed information regarding sources and utilization of various government funds on administrative and developmental works and their position on a given point of time. Hence, the new accounting system supplies up-to-date information about such public funds.
- To safeguard the physical properties
The government offices use various physical properties to perform the regular and incidental jobs. New accounting system aims to maintain the systematic recording to such public properties. It uses various forms for their proper recording.
- To maintain effective control over budget
The government prepares a budget for making expenditures into different heads & subheads. According to the objective of the new accounting system, every government office should make expenditure within the budgetary limit. To fulfill this objective, every operating level government office should prepare budget sheet under AGF No. 8.
- To make audit easier
Many accounting forms are used by new accounting system to record the revenue and expenditures. Such forms are designed and prescribed by the office of auditor general. Under this system, auditing is compulsory in all government offices. Data & information provided by new accounting system helps to make an audit easier and simpler.
- To provide financial information for periodical reporting
Government offices need to prepare various types of financial statements and reports at the end of every month as well as at the end of the fiscal year. The new accounting system provides necessary financial data and information for the preparation of different types of financial statements and reports.
- To provide reliable financial information for planning and decision-making
The government has to prepare different plans and policies. It has to make important financial decisions. The new accounting system provides reliable financial data and information for making plans, policies, and decisions.