The importance of accounting and reporting in the process of finance managementin a basic unit of the territorial government

Abstract

Currently units of the territorial government function in a quickly changing environment. To be able to survive and work in accordance with their mission, they must undertake a wide range of decisions concerning finance management. In order to do it accurately and minimise the risk of a badly made decision, people responsible for the management should have access to full and reliable information. The information derives from the accounting system and in particular from its last stage-reporting. The aim of the article is an attempt to find the answer whether accounting and reporting applied in basic units of the local government provides essential information to make appropriate decisions, especially the financial ones. To fulfill the goal, the analysis of literature and legal acts was conducted. In addition, empirical studies were carried out in communes of Siedlce-subregion and Ostrołęka subregion.