Reinforcing Public Sector Accountability through Accrual-Based Accounting Reform

Abstract

This study examines the application of accrual-based accounting in the public sector as a mechanism to improve transparency, accountability, and the quality of government financial reporting. Through a comprehensive literature review of various scientific publications in the last five years, this study integrates various national and international findings on the role of accrual accounting in strengthening good governance. The results of the analysis show that the implementation of accrual-based accounting significantly improves the reliability, relevance, and comparability of financial information, strengthens fiscal discipline, and encourages data- and evidence-based decision-making. However, this study also identifies a number of challenges, such as institutional readiness, professional competence of the apparatus, limited human resources, and inadequate technological infrastructure, which can hinder the effectiveness of the implementation of this system. The success of accrual reform is highly dependent on the synergy between regulatory policies, human resource capacity building, and digital transformation in public financial management. Overall, accrual-based accounting reform is not just a technical change, but a fundamental strategy to build sustainable public trust and strengthen modern public sector accountability.