Good financial governance in municipalities, as one of the fundamental pillars of urban management, requires the establishment of efficient systems of planning, budgeting, control, performance evaluation and accountability. In the meantime, management accounting, by providing relevant, timely and reliable financial and non-financial information, plays an important role in improving the quality of decision-making of urban managers, optimal allocation of resources, increasing financial transparency and improving public accountability. The purpose of this research is to systematically review the role of management accounting in the financial governance of municipalities based on library studies and to examine the most important dimensions, functions, challenges and consequences of using management accounting tools in the urban financial management system. This research is applied in terms of purpose and descriptive-review in terms of method with a library approach. Data have been collected and analyzed through a systematic study and review of books, scientific articles, reports of international organizations and authoritative research documents published in the fields of management accounting, financial governance, public sector financial management and urban management. The findings of the literature review show that the establishment of modern management accounting systems, including performance-based budgeting, activity-based costing, balanced scorecard, strategic cost management, performance measurement, and management reporting, improves the efficiency and effectiveness of municipal financial management, improves resource allocation, strengthens financial discipline, increases transparency, reduces information asymmetry, enhances managers' accountability, and increases citizens' trust. Studies also show that the use of information from management accounting provides the basis for evidence-based decision-making, financial risk management, cost control, increases the efficiency of municipal services, and implements good governance principles. However, the research review indicates that limitations such as weak information infrastructure, lack of integrated financial management systems, lack of specialized human resources, organizational resistance to change, legal restrictions, and a weak culture of accountability are among the most important obstacles to the effective establishment of management accounting in municipalities. Overall, the results of this study show that the development and institutionalization of new management accounting tools and approaches can be considered by managers and policymakers as one of the key factors in promoting financial governance, increasing transparency, improving accountability, optimal management of public resources, and achieving sustainable urban development.