A Valuable Opportunity to Improve Government Accounting—and Accountability
This article from the CPA Journal talks about how governments use language to get away with continually providing unbalanced budgets and accumulating deficits year after year, while still claiming to be complaint with the law. It shows you how financial minds can break down the numbers and provide real clarity. It’s fantastic to see it in nerdy accountant lingo, and I agree whole-heartedly with their assessment that governmental reporting should utilize accrual, rather than modified-cash based accounting for financial reporting. This quote really struck a chord with me: “Financial reporting is, or at least should be, a key vehicle helping citizens secure government accountability.” Financial reporting is an extremely valuable tool to help us keep government in check, which is why it is so terribly important to have an independent accountant in charge of state finances.