Abstract: With the continuous progress of social economy and civilization, China attaches great importance to the construction of ecological civilization, and in the process of building an ecological civilization system, forestry institutions play a pivotal role, and they are committed to the protection of forests and wetlands and other valuable natural resources, thus laying a solid and stable foundation for the development of ecological civilization. In the development process of forestry, financial accounting plays an indispensable role, which can effectively implement the supervision and control of the funds of forestry institutions, and provide impetus for the sound and sustainable development of forestry institutions. We use a variety of research methods to comprehensively understand the theoretical basis, evolutionary trends and common challenges of forestry accounting. On the one hand, we analyzed academic papers and literatures in the fields of forestry accounting and financial management to clarify their fundamentals. On the other hand, we collected a large number of real cases from forestry enterprises, forest management agencies and other organizations to study the application of forestry accounting and its problems from a practical point of view, which gave us a comprehensive and in-depth understanding of forestry accounting. The purpose of this study is to discuss the importance of forestry accounting work from the continuous optimization and progress of the accounting work of forestry institutions, to analyze the problems existing in the current forestry accounting work, and put forward corresponding improvement strategies and suggestions accordingly.