The study assessed the effect of financial reporting on service delivery in Kakumiro Municipal Council, Uganda. Using a cross-sectional research design, data were collected from 156 respondents comprising council staff, service providers, and community representatives through structured questionnaires and document analysis. Multiple regression analysis was employed to examine the relationship between financial reporting dimensions and service delivery outcomes. The findings revealed that financial reporting significantly affected service delivery in Kakumiro Municipal Council (F = 47.382, p < 0.001, R² = 0.612). Specifically, timeliness of financial reports positively influenced service delivery (β = 0.318, p < 0.001), accuracy of financial information demonstrated a significant positive effect (β = 0.287, p < 0.001), and transparency in financial reporting showed a strong positive relationship with service delivery (β = 0.341, p < 0.001). The model explained 61.2% of the variance in service delivery, indicating that financial reporting practices were critical determinants of service delivery effectiveness in the municipal council. Financial reporting served as a fundamental mechanism for enhancing service delivery in local government contexts. Timely, accurate, and transparent financial reporting enabled better resource allocation, improved accountability, enhanced monitoring and evaluation, and strengthened stakeholder confidence. The significant effects across all dimensions of financial reporting underscored the need for local governments to prioritize financial management systems and reporting capacities as essential prerequisites for effective service delivery. Kakumiro Municipal Council should invest in financial management information systems, conduct regular training for finance personnel, strengthen internal audit functions, and establish public financial reporting mechanisms. The central government should provide technical support and resources to enhance financial reporting capacities in local governments, while development partners should consider financial management strengthening as a key component of service delivery improvement programs.