Government vs. Private Sector Coursework Example | Topics and Well Written Essays - 250 words

Government vs. Private Sector - Coursework Example This set of practices, including double-entry accounting formula, is used in ensuring that uniformity and financial accuracy is achieved. According to Gauthier (2010), these methods can also be used in the public sector, but there is room for deviation to other methods in some cases such as during budgeting (Gauthier, 2010). The application of accrual and cash accounting and budgeting basis is a great divide between the private and the public sector, with the private sector employing accrual accounting, while the public sector employing cash accounting and budgeting (Finkler, 2010). However, there is a constant development of bridging between the two approaches by most governments, with the view of attaining better financial information. The context of public and private sector finance and accounting management also differs in such a way that the private sector has more autonomy to make any financial and accounting decisions in order to achieve what ought to be achieved (Finkler, 2010). On the other hand, the public sector financial and accounting is limited to rules and regulations that limit their reach in terms of incorporating practice to have ends meet. For instance, the Governmental Accounting Standards Board (GASB) Statement No. 20 restricts state and local governments to using private sector standards that were only issued prior to November 30, 1989, consistent with GASB guidance (Gauthier,