Posted: May 25th, 2022

Management Accounting in the Public Sector

Management accounting is an important factor that helps organizations to map their future directions through providing managers with necessary information for the establishment of strategies that ensures all inputs, processes, and outputs are in line with the organizational goals. Through the information provided by management accounting, managers access information that is critical in formulating policy, making comparison between alternative situations, and evaluate and examine performance. While management accounting has similar roles across organizations, the accounting procedures and techniques tend o differ significantly in the private and public sector.

Management Accounting in the Public Sector:

Don't use plagiarized sources. Get Your Custom Essay on
Management Accounting in the Public Sector
Just from $13/Page
Order Essay

Management accounting in the public sector is usually conducted by the government with the main aim of protecting public treasury through preventing and identifying corruption and graft. Therefore, this process is normally geared towards facilitating and promoting sound financial management and public accountability. In an efficiently managed process, management accounting involves planning and budgeting for financial management activities like collecting revenues and taxes, borrowing, paying bills, and repaying debts. Public accountability through this process is promoted through the accountability of the chief executive’s bureaucracy, legislature, and government to the people.

In the public sector, information obtained from management accounting is also used for external communication to users interested in the direction and effectiveness of a governmental entity (Hoque & Adams, 2008). The recipients of this information can be classified into three categories i.e. providers of resources, recipients of products and services, and parties conducting a supervisory function. While resource providers include lenders, suppliers, and employees; recipients of products and services include taxpayers and ratepayers and oversight parties include parliament, labor unions, employer groups, analysts, and regulatory bodies.

In addition to accounting in the service of managers only, management accounting in the public sector also incorporates budgeting and control. Generally, these initiatives can be considered as instruments of financial policy on revenue and expenditure to accomplish macroeconomic objectives. Consequently, management accounting in the public sector is not only an expression of public policy but it’s also a demonstration of political preferences.

Management Accounting in the Private Sector:

Management accounting in the private sector is normally for the purpose of preparing accounting information to meet the needs of users who are internal to the organization or business. In most cases, this financial information is prepared frequently and likely to include non-financial information and forecasts of the organization’s future. Since management accounting in the private sector is largely non-regulated, managers are at liberty to generate the kind of information they need. Consequently, managers use a format that they consider to be helpful to them based on the available technology and financial information.

Notably, profit-oriented financial managers in the private sector usually have some flexibility to accomplish what they need to do to maintain the bottom line during the process of management accounting. This flexibility basically originates from the fact that this process is not regulated in the private sector. Furthermore, the need to maintain the bottom line drives these managers into using such means when conducting management accounting. Due to the hierarchical structure of organizations in the private sector, financial management decisions and accounting are made at the top and passed down to the bottom of the company. In some cases, financial managers are not accountable to the employees at the bottom of the organization.

Public Sector vs. Private Sector Management Accounting:

As previously mentioned, the use or practice of management accounting in the public and private sector differs significantly. These differences in the process can largely be attributed to the variations that exist in financial management practices between the public and private sector. The financial management processes and practices between these sectors vary in context, profit, and decision-making processes. Some of the major ways with which management accounting varies between the public and private sectors include & #8230;


Unlike the private sector that has been associated with management accounting for a long period of time, the public sector identified the benefits of management information systems recently (Funnell & Cooper, 1998, p. 244). Management accounting could have had a minimal presence in the overall public sector where there were few concerns in performance appraisals and marginal evaluated outputs. However, since its introduction in the public sector, management accounting has been expanded to measure additional aspects or dimensions of performance. In contrast, it’s mainly used for presentation of financial information by managers in the private sector.


Management accounting in the public and private sectors differ significantly in their objectives and intended purposes. In the private sector, it’s used as a means of informing an entity’s stakeholders about the business’ performance, helping in decision-making, and to provide information to investors and regulators. On the contrary, it’s used to provide financial summary, the foundation for the next budget, identify assets and liabilities, and promote democratic transparency in the public sector.

Accounting Methods:

Financial managers and accountants in the public and private sectors use different accounting methods since they are bound by different accounting principles. In the private sector, management accounting processes are directed by the general methodology of accounting. In this case, the process incorporates a series of practices like double-entry accounting procedures that are used to facilitate financial accuracy and uniformity. These methods may not be used in the public sector because financial managers are not generally bound by these methods. Since management accounting in the public sector involves performance appraisal, the methods used differ, especially in areas like budgeting.


Managers of entities in the private sector have certain flexibility when conducting their accounting process since these organizations are not regulated. This has enabled them to use different format for management accounting depending on the kind of information and technology available to them. The process is quite different in the public sector because of the broad range of user of this information and its objectives. As a result, the preparation of public sector information is relatively more complex as compared to the procedures used in the private sector (Barrett, 2004). The models and policies that are used in this sector are different to an extent that it can easily result in wrong expectation and conclusions of financial results by users.


Management accounting has emerged as an important financial aspect across many organizations in both the public and private sectors. This process is used to accomplish similar goals in these sectors though the objectives may vary slightly. Nonetheless, there is a relatively great difference in management accounting between the private and public sectors.


Barrett, P. (2004), Address to the Challenge of Change: Driving Governance and Accountability

CPA Forum 2004, Australian National Audit Office, viewed 13 July 2012,
Funnell, W. & Cooper, K (1998), Public sector accounting and accountability in Australia,

South China Printing, Hong Kong.

Hoque, Z. & Adams, C (2008), Measuring Public Sector Performance: A Study of Government

Departments in Australia, CPA Australia, viewed 13 July 2012,

Get Professional Assignment Help Cheaply

Buy Custom Essay

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently

Online Academic Help With Different Subjects


Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.


Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!


While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.


Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.


In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.


Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.


We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!


We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.


Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

  • When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
  • We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

  • The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
  • We will have a different writer write the paper from scratch.
  • Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment  Help Service Works

1.      Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2.      Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3.      Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4.      Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

smile and order essaysmile and order essay PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!

order custom essay paper

Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
Open chat
Need assignment help? You can contact our live agent via WhatsApp using +1 718 717 2861

Feel free to ask questions, clarifications, or discounts available when placing an order.