Importance of Revenue Collection

Revenue estimates often drive expenditures in a local government’s budget. We recognize these revenues using different bases of accounting depending on the type of transaction. Some revenues are recorded when cash is received (cash basis). Other revenues are billed to a customer or taxpayer and should be recorded as accounts (or taxes) receivable in the local government’s accounting records and are accounted for using the accrual or modified accrual basis of accounting. Accounts and...