DIGITALIZATION OF ACCOUNTING IN BUDGETARY INSTITUTIONS: PRACTICAL ASPECTS OF USING THE ISPRO ERP SYSTEM

Abstract

In the context of large-scale transformations in the public sector and Ukraine’s aspiration for digital maturity, the digitalization of accounting and analytical processes in budgetary institutions has become a strategic priority. Accounting in public sector entities has long gone beyond the simple recording of business transactions; today, it serves as the foundation for managerial decision-making, monitoring the targeted use of public funds, and ensuring transparency for society and international partners. The ongoing reform of public financial management requires not only changes in the regulatory framework but also comprehensive technological modernization of accounting systems. Modern requirements for the speed, accuracy, and reliability of data processing have rendered traditional manual and fragmented automation approaches obsolete. Digitalization acts as a catalyst for institutional transformation, enabling budget managers to improve accountability, operational efficiency, and the quality of financial management. Furthermore, the integration of advanced information systems facilitates the harmonization of national accounting practices with international standards, which is an essential prerequisite for Ukraine’s European integration and the country's post-war recovery. The implementation of the ISpro ERP system in budgetary institutions enables the transition from fragmented automation to an integrated digital management environment, ensuring greater efficiency, transparency, and reliability in accounting and financial management processes. The system supports comprehensive automation of accounting operations while complying with the current legislative requirements governing public sector accounting in Ukraine. The article examines the practical aspects of using specific ERP modules for human resource management, payroll accounting, fixed asset accounting, and financial reporting. Through centralized data processing, the system significantly reduces administrative costs and minimizes the risk of human error in financial documentation. The transition to a unified ERP platform also enables real-time monitoring of budget execution and provides managers with advanced analytical tools for strategic planning and decision-making. The study concludes that the implementation of the ISpro software environment represents an important step toward building a resilient, transparent, and digitally driven public administration system capable of addressing contemporary challenges while ensuring the efficient and accountable use of public financial resources.