Major developments in accounting and financial reporting caused to change countries budgeting system. Implication performance budgeting Instead of traditional budgeting is most important changes. Performance budgeting emphasize to change the input to the output and of the main purpose is Improve production efficiency and optimal allocation of public resources. Accounting system for Performance budgeting is Accrual accounting based on the flow of economic resources which emphasize to Performance Measurement and financial and operational accountability. Although performance budgeting it seems easy in theory, but it implementation is difficult and it has a lot of challenges and problems. Nevertheless, many countries in order to implement this type of budgeting, Extensive reforms have done. The results show, the foundation of all reform is Fundamental changes in the structure of accounting, auditing and financial reporting. The mission of this article, investigation the importance and role of accounting in the implementation of performance budgeting and Identification Problems and challenges arise from the implementation of the performance budgeting system in Different countries and Iran.