The topic of this thesis is the fundamental characteristics of budgetary and non-profit accounting in the Republic of Croatia. This paper examines the fundamental characteristics, legal frameworks, historical development, and practical application of budgetary and non-profit accounting in the Republic of Croatia, with an analysis of practical examples. The aim of this thesis is to provide a deeper understanding of the key characteristics and specific features of budgetary and non-profit accounting through a combination of theory and the analysis of concrete examples. The state is one of the most complex and important organizations that plays a key role in ensuring the provision of public goods. The public sector is a key component of every national economy, whose goal is to ensure equal opportunities for everyone to meet public needs. The budget is the fundamental instrument established by law to finance public expenditures of general interest with the aim of meeting public needs. Budgetary accounting plays a key role in managing state finances and public goods. Budgetary accounting in the Republic of Croatia was introduced with the adoption of the Budget Act, aiming to achieve a modern system of public finances while increasing transparency and international comparability. Non-profit organizations operate not for profit, but rather in service of public or general interests. These organizations, serving a public purpose, perform activities and provide services that often represent a continuation or substitute for government policies and programs. Their sources of funding include various types of donations, membership fees, and similar funding streams. These organizations play a key role in society, contributing to the common good and supporting social and cultural goals that are important to the community.