Accounting System as A Tool for Effective Management of Finance of Local Governments in Benue State

Abstract

Accounting is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information that reveals the profit or loss, the value and nature of assets, liabilities and owners equity to end users. To Azende (2014), accounting is the reservoir of financial information about the economic activities of a nation. The end users of accounting information can be tax authorities, shareholders, financial institutions, government agencies, public, employees and creditors. Local government councils in Benue state as an arm of government generate and expend monies for the smooth and effective administration of the system. This requires that financial records must be kept for all transactions as it is expedient and also required by law.