The research problem is the coverage of financial reporting by budget users as an important source of information for analyzing and managing business. Budget Accounting shows information about spending segments of budget users. Budgetary users are public institutions whose expenditures for staff and material expenditures are financed from the budget (state and local). Budget reporting of budget payers is regulated by the Rule Book on Financial Reporting in Budget Accounting, Budget Law, Budget Accounting and Accounting Regulations, Law on Budgetary Accounting fiscal responsibility and the Law on the System of Internal Financial Controls in the Public Sector. They regulate the financial reporting the form and content of the report, and the forms to be submitted by budget users. Business book keeping is also prescribed and records of every business change. The aim of the research is to present, explain and analyze the basic financial statements of budget users on a practical example of Dugopolje Municipality. The Dugopolje Municipality, which is located in the County of Split-Dalmatia, is obliged to keep the Auxiliary Books and the following reports: PR-RAS Form, Form NT, Form RAS-Function, Form P-VRIO, Form BIL, Obligations, Form S-PR-RAS. By analyzing the revenues and expenditures of the municipality it is concluded that revenues and expenditures are, in principle, lower than planned (for 2016.), while the debt and financing account shows better results than planned.