Financial Management or Accounting: A Theoretical Analysis of the Benefits and Limitations of Developing a Ã¢ÂÂTrueÃ¢ÂÂ Financial Management Approach within Government Agencies in AustraliaAnne C Walters1 and Vikash Ramiah2*
- *Corresponding Author:
- Vikash Ramiah
Associate Professor in Applied Finance
School of Commerce, UniSA Business School
GPO Box 247, Adelaide
South Australia, 5001, Australia
E-mail: [email protected]
Received Date: April 26, 2017; Accepted Date: May 17, 2017; Published Date: May 27, 2017
Citation: Walters AC, Ramiah V (2017) Financial Management or Accounting: A Theoretical Analysis of the Benefits and Limitations of Developing a ‘True’ Financial Management Approach within Government Agencies in Australia. J Bus Fin Aff 6: 267. doi: 10.4172/2167-0234.1000267
Copyright: © 2017 Walters AC, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
Government financial management has long focused on accountability and transparency as a means of demonstrating the efficient and responsible use of taxpayer funds. Within Australian Government agencies, financial management practices have become increasingly efficient and effective in communicating financial information through financial statements and reports. However, there is considerable anecdotal evidence to suggest that such practices are more appropriately defined as accounting, rather than as financial management. This paper discusses the practices that are currently used by Government agencies, the limitations of this approach, and provides a theoretical look at the potential benefits that financial management approaches provide to Government agencies.