The Role and Importance of Budget Accounting and the Financial Reporting in the Municipalities in Republic of Macedonia

Abstract

Namely, based on the information in the financial reports a plan is generated and a strategy is formed for the development of the municipality. In this way, the mayor determines the objectives to be achieved to meet the needs of the population and to create conditions for a better life in the future.

Municipalities are responsible for ensuring they receive sufficient revenue in order to pay for their expenditures. Planning for revenues and expenditures is accomplished by various means such as the development of a five year financial plan and an annual municipal report. Today in modern economic conditions cannot perform any activity without having financial indicators, a lot of things cannot be understand or even discussed. Here, it can be underlined the operationalization on local level i.e. the Municipalities and their efforts for more quality life of the people. This is done with resolutions that should be adopted by the mayor and his associates that have certified quality and contribution to the community. But in order that to be successful, it is necessary accounting recording of the events and transactions to be conducted, as well as their presentation to the public, which will deliver accurate, precise and timely information. In fact, the quality of the received information is reflected to the quality of the decisions made by the managers.