The term governmental accountant pertains to accountants who work for city, county and state government. Their job is similar to the not-for-profit accountant in that they deal with budgets. These budgets are important because they serve as the primary tool in allocating governmental cash sources to urban, suburban and rural parts of the communities served.

The cash in will come from sources such as ad valorem (property) taxes, funding from the federal government such as for schools, streets and roads, interdepartment governmental transfers, fines and forfeitures, sales and use tax, licenses and permits and municipal bond issuance.

Then funds are appropriated to cover costs. The appropriations are either approved or disapproved during the setting of the budget. Then disbursements are made throughout the fiscal year for approved budget items.

Governmental accountants also prepare financial statements that are open to the general public. The financial statements must show accountability to citizens while pursing the goals of efficiency and effectiveness.

The financial statements are also used by external users to decide whether or not to invest in the municipality's bond issuances.

Income on municipal bonds is tax exempt so it is considered by some investors to be a hot vehicle for income investing.

The regulatory authority for Governmental Accountants is the Governmental Accounting Standards Board (GASB).