PROJECT-BASED ACCOUNTING AS A STRATEGIC INSTRUMENT IN CONTEMPORARY FINANCIAL MANAGEMENT

Abstract: In the context of the growing transition toward a project-based organizational model, both in the private sector and within public institutions, project-based accounting emerges as a key component in the modern architecture of financial management. This paper examines how accounting practices structured around individual projects contribute to improved financial efficiency, support strategic decision-making, and ensure responsible resource management. The study is grounded in the premise that, in a complex and dynamic economic environment, detailed monitoring of costs and revenues per project is not merely advantageous but essential for financial sustainability. Using a qualitative methodology based on documentary analysis and case studies of best practices, the research explores both the advantages of project-based accounting—such as increased transparency, traceability, and resource allocation optimization—and the challenges it poses, including the need to adapt existing IT systems and enhance the professional skills of financial-accounting staff. The paper also highlights the integration of project accounting with modern management tools (such as ERP systems and project management software) as a critical requirement for generating relevant, real-time data. The findings support the idea that projects can no longer be treated as simple budgetary subunits; instead, they must be viewed as responsibility centers that directly reflect organizational performance. In this regard, project-based accounting asserts itself as a strategic vector of financial modernization, providing genuine support to managerial decision-making and contributing to the strengthening of internal control mechanisms in project-oriented organizations.

Keywords: project-based accounting, financial management, financial control, projects, organizational performance

JEL Classification:G32, H43, O22