WASUNIRE CHARLES2025-10-082025-10-082025-08-22https://hdl.handle.net/20.500.12311/2988This research report was undertaken investigate accounting practices and financial reporting in local government. This study examined the effect of different accounting methods accrual accounting, modified accrual accounting, and cash accounting on the financial reporting of Butebo District Local Government. The research adopted a descriptive survey design using quantitative approaches. Data were collected through closed mended questionnaires. The findings revealed that accrual accounting moderately enhances financial reporting, with 66% of respondents (44% strongly agreed, 22% agreed) confirming its role in improving accuracy and accountability. Modified accrual accounting was found to have the strongest influence, with 72% of respondents acknowledging its effectiveness in improving the comparability and reliability of financial statements. Regression analysis confirmed this with a strong positive relationship (Beta = 0.521, p = 0.000). In contrast, cash accounting showed a weak positive impact (Beta = 0.042, p = 0.032), with only 36% of respondents finding it helpful for accurate reporting. The study concludes that while modified accrual accounting is the most effective method for enhancing financial reporting in the public sector, accrual accounting also contributes positively. Cash accounting, though still in use, lacks the depth needed for transparent and comprehensive financial reporting. The study recommends a shift towards modified accrual practices for improved accountability, reliability, and decision-making in public financial management.enThesis