This paper deals with the importance of information technology and accounting information in modern business, functioning of the treasury as a financial management information system, especially in business environment of local and regional administration (counties, cities and municipalities). The important part of the paper refers to the definition of local administration system and the importance of its management and information technology. Local treasury, as the inseparable part of information technology, shows where is the correlation between the application of modern information technology and management of local communities. Conducted analysis show that Croatia is strongly centralized country in which local governments participate with just over 10 percent of the revenues and expenditures of the consolidated state or with just over 6 percent of GDP, which is insufficient for the quality of public services in the JLP (R) S, so in those circumstances the local management gets the crucial significance. At this time, the accounting system of the local units does not provide sufficient accounting information to the local management for their quality decision-making and fiscal responsibility. The subject of research are accounting information as an instrument for monitoring the rationalization of of the financial system of local government units, control of the cash flow, public consumption, rationalization of costs, savings and objective identifying priorities of funding. The accounting information system of the local units opens up new possibilities in terms of raising the quality of local management decision-making and thus contributes to effectively, efficiently and economically resolving problems of local development. There is no doubt that it is in the interest of local management to ensure high-quality accounting executive and operating information system monitoring the transactions, process control and automatization of bookkeeping (accounting) of business. Scientific studies have shown that the implementation of an integrated information system of local treasury or elimination of the separate accounts of budget beneficiaries allow county management making quality strategic decisions and achieving organizational objectives in the long term, but also achieving significant cost savings, and finally more economic and efficient business operations. Although the Treasury information systems already hold a significant role in practice, there is still significant and sufficient space for upgrades, process improvements and further research, both in terms of management, as well as practical, operational terms.