"Parallel accounting" means that for cash receipts and expenditures included in budget management, budget accounting is performed while using financial accounting.

It is a typical feature of the accounting model that the functions of government financial accounting and budgetary accounting are moderately separated and connected with each other. Compared with the "double entry" accounting model in the current accounting system of administrative institutions, it can more comprehensively and accurately reflect administrative undertakings. Unit financial information and budget execution information.

Under normal circumstances, when there are increases or decreases in the accounts of "fiscal appropriation income", "zero balance account usage limit", "cash on hand", "bank deposits" and "other monetary funds" under financial accounting , accounting treatment should be carried out simultaneously under budget accounting.

For example, when a unit purchases fixed assets through authorized payment, under financial accounting, the "Fixed Assets" account will be debited and the "Zero Balance Account Usage Limit" account will be credited;

< p>At the same time, under budget accounting, the relevant expenditure accounts are debited and the relevant detailed accounts of "Fund Balance" are credited. Subsequent measurement of fixed assets only requires financial accounting processing. For example, when accruing depreciation, the relevant expense accounts are debited and the "accumulated depreciation" account is credited.

Extended information

The characteristics of parallel accounting include the following points.

First, in the same accounting system, financial accounting is calculated on the accrual basis, and budget accounting is calculated on the cash basis.

The second is in the same accounting system, based on two sets of accounting elements and two types of accounting identities. Financial accounting is calculated through the five elements of assets, liabilities, net assets, income, and expenses. Budget accounting is calculated through the three elements of budget revenue, budget expenditure, and budget balance.

There are two identities in financial accounting, namely "Assets - Liabilities = Net Assets" and "Income - Expenses = Current Period Surplus". There is an identity in budget accounting, that is, "budget revenue - budget expenditure = budget balance".

Third, in the same accounting system, there are two accounting vouchers and two types of account books based on the same original voucher and the same amount. For cash receipts and payments that are included in departmental budget management, financial accounting vouchers and budget accounting vouchers are prepared based on the same original voucher and the same business amount, and two types of accounts, financial accounting and budget accounting, are separately registered.

The fourth is in an accounting system, based on two carry-forward time points. In financial accounting, income and expenses are carried forward at the end of the year, and the current period's surplus, current year's surplus distribution, and free transfer of net assets are carried forward at the end of the year; in budget accounting, budget revenue, budget expenditures, and budget carryover and balance are carried forward at the end of the year. Carry forward.

Fifth, in an accounting system, the result of accounting is "double reporting." Financial accounting forms financial reports, and budget accounting forms final accounts reports. Preparing the "Reconciliation Statement for the Difference between Current Period's Surplus and Budget Balance" can reveal the relationship between financial accounting and budget accounting.