Since the US Constitution was introduced in 1789, the territories and the Government have been bifurcated into 50 different autonomous states. The states themselves are fragmented into multiple local governments to decentralize the daily administration.
The latest data shows that the US has 50 state governments and approximately 87,849 local governments.
Finance is a crucial component in running day-to-day administration efficiently. However, managing government accounting services is challenging for the elected representatives on their own. This complexity invites the private accountants to guide the elected guardians either to assist them in handling accounts or to do it on their behalf.
This article helps you explore how accounting can help state and local governments handle their accounting effortlessly.
Struggles in managing state and local government accounts:
- Diversity of work - Handling diverse sectors in the administration like health and sanitation, education, security, and defense is tedious. This diversity of work calls for professionals to manage financial operations.
- Elected representatives being non-technicians - Democracy gives the advantage of electing our representatives. But the other side of the coin is that it is deprived of well-versed accountants.
- Complex local governance structure - The United States has one of the most challenging local governance structures, varying intra-state and inter-state. This diversity in governance makes their accounting complex as well.
Role of accountants in State and Local Governments (SLGs)
State and local governments also require an accountant to perform the same functions as an accountant. Some of them are listed below:
- Managing Accounts Payable - A virtual accountant keeps track of your expenditures and makes sure that your payments are on time.
- Managing Accounts Receivable - A virtual accountant keeps an eye on receivables, maintains invoices, and creates reminders for invoices if necessary.
- Maintaining Payrolls – A virtual accountant ensures timely and accurate payroll.
- Taking care of Accounting Compliance Standards – Compliance plays a vital role in keeping accounts accurate and trouble-free. A virtual accountant reduces the burden of meeting compliance standards.
- Maintaining reports and financial statements – An accountant helps state and local governments complete accurate and updated accounts.
Benefits of Accounting for State and Local Government
The benefits of accounting for state and local governments are:
- Spares time for Administrative tasks - When free from the burden of managing accounts, state and local governments can focus more on the core sectors of the administration.
- Transparent well-maintained accounts increase faith in people - When a government’s accounts are accurate, updated, and transparent, it is more likely to gain citizens’ confidence.
- Reduces Jurisdiction - When accounts are accurate and meet all compliance standards, they save the governments from the hurdles of appearing before the judiciary.
Key Takeaways
Accountants take care of the everyday financial operations and help maintain any sector’s financial health. Similarly, they are essential in maintaining accurate and complete accounts for the state and local governments.
At Harshwal & Company LLP, we have an expert team of accountants and CPAs with vast experience of more than a decade in handling accounts remotely for state and local governments in the USA. We are a perfect collaboration of talent and technology.
Associate with our experts and get state and local government accounts maintained effectively, efficiently, and at an affordable cost.