Budget accounting

Author: Chief Editor: Yang Yuanzhen
Publisher:
Publish Date: 2001-07-01
Features:
Fragment: Budget accounting has strong uniformity, forming a unified system and information system of budget accounting nationwide. As the accounting that accounts for, reflects, and supervises the implementation of the national budget, budget accounting's composition system adapts to the national budget composition system, forming a unified leadership and hierarchical management accounting system centered on budget execution. At the same time, the budget revenue and expenditure information indicators provided by budget accounting in daily operations must be consistent with the classification system of national budget revenue and expenditure subjects. Corporate accounting, on the other hand, has relatively greater independence and flexibility. Budget accounting has broad content and scope in accounting. It reflects the revenue and expenditure of the general budget of all levels of finance, the revenue and expenditure of administrative units at all levels, and the financial revenue and expenditure of various types of public institutions. Especially in public institution accounting, due to the diversity of industry types and significant differences in unit size, diversified accounting entities and funding channels, its accounting forms are relatively complex.
(II) Different accounting entities may adopt different accounting closing bases
There are two types of accounting closing bases: cash basis and accrual basis. The cash basis determines the current period's revenue and expenses based on the actual receipt and payment of funds. It is primarily applicable to non-profit entities or organizations. The accrual basis determines the current period's revenue and expenses based on receivables and payables. It is primarily applicable to profit-making entities that conduct cost accounting. The general budget accounting of financial departments and accounting of administrative units are based on the cash basis. This is because the general budget accounting of financial departments and accounting of administrative units are not profit-driven and do not require cost accounting. Their economic business accounting is based on actual income and expenditure, making the cash basis more suitable. However, the economic business activities of public institutions have their own characteristics:
1. Although public institutions are not profit-driven, they can provide paid services, and some can even achieve revenue balance.
2. The economic business activities of public institutions are divided into general revenue and expenditure business and operational revenue and expenditure business. Internal cost accounting must be implemented for operational revenue and expenditure business.
Therefore, public institutions generally adopt the cash basis, but may use the accrual basis for their operational revenue and expenditure business. It should be noted that no professional accounting closing base can be fixed or exclusive, but there should be a primary one. In fact, pure cash basis or pure accrual basis no longer exist today. Thus, it is common for some public institutions to adopt the accrual basis, or for certain businesses within cash-based institutions to use the accrual basis. However, this should be uniformly regulated by the competent authorities within the scope allowed by accounting systems, rather than left to individual institutions to decide independently.
(III) The partial nature of profit and loss calculation
Budget accounting primarily focuses on accounting for revenue and expenditure surpluses (or deficits) and generally does not conduct cost accounting. During the implementation of the general budget, the raising and allocation of budget funds are non-repayable. In the implementation of unit budgets, administrative units primarily rely on financial allocations, and their administrative services are often non-repayable. The income obtained through legal administration is usually budget revenue to be paid, so profit and loss are generally not calculated. Public institutions are different. Although they are not profit-driven, they can provide paid services. While their purpose is to achieve social benefits, they have certain operational characteristics and must conduct economic accounting. Therefore, the operational revenue and expenditure business of public institutions must calculate profit and loss based on the matching principle.
II. The tasks of budget accounting
(1) The tasks of general budget accounting
General budget accounting holds a leading and core position in the entire budget accounting system. General budget accounting can be divided into central general budget accounting and local general budget accounting based on the management system. Central general budget accounting is responsible for the accounting tasks of budget funds for central departments and the accounting tasks of national budget funds. Local general budget accounting at all levels is responsible for the accounting tasks of budget funds for the regions under its jurisdiction and the units under its administration.