Budgetary accounts are those accounts necessary to reflect budgetary operations and conditions, such as estimated revenues, allocations, and charges. The Budget Accounting Guide (BAG) is designed to help accounting and budgeting staff by providing guidance on the proper recording of budgetary accounting events and completing the required budget reports. It is divided into two sections, the first of which is commonly referred to as the Budget Accounting Guide. In budgetary accounting, a surplus is created when estimated revenues exceed the amount of formally approved expenses.
The modified accrued accounting base does not delay expenses until payment is made in cash.