Efforts are underway in Uzbekistan to elevate the higher education system to a new level. Key priorities include training specialists who meet modern demands, improving education based on state standards, and implementing reforms outlined in the "Concept for the Development of the Higher Education System of the Republic of Uzbekistan until 2030." This article examines the accounting of extra-budgetary funds in state higher education institutions, focusing on payment-contract education funds, cost recognition, and reporting processes. Given that payment-contract funds form the bulk of extra-budgetary revenues, achieving financial stability requires accurate cost formation. The study draws on legal, scientific, and practical data from higher education institutions to offer analytical insights.