Local self-government units represent a system where good management and proper allocation of resources enable the development of local units through daily activities in order to meet the needs and interests of citizens and ultimately social and economic growth and development. In addition to the European Charter of Local Self-Government, operations are determined by numerous laws and regulations which, among other things, determine the issue of autonomy of individual local self-government units and their ability to perform the prescribed scope of public affairs in compliance with various principles. Fiscal autonomy and decentralization as a precondition for the successful functioning of local self-government units enable the resources available to local self-government units to be allocated in accordance with needs and with the proper distribution of powers at lower levels of government. In order to ensure the proper distribution of budget funds and to set clearly defined plans for their use and distribution, local self-governments are required to set up a budget each year, which is established in several stages, respecting budgetary principles and classifications. In order to collect, allocate and manage budget funds to provide a real overview of the purpose for which the funds were spent, it is necessary to properly record the occurrence of events through the basic starting points and principles of budgetary accounting.