A study was conducted on the regional GDP of Oromiya national regional state based on 10 years data, to analyze the contribution of forest production and challenges in forestry accounting. The result shows that market value of forest production and its contribution to GDP of Oromia showed continuous increment.  Forest products are used as a source of fuel, production of timber and source of construction materials. On an average, forest production contributed about 6.10% to GDP and became the second least contributor to the GDP of Oromia. Reduction of forest coverage due to deforestation, underestimation of value of forestry products and existence of missing attributes of forestry in the SNA are the main challenges in forestry contribution to GDP of Oromia. Thus, Bureau of finance and economic development of Oromia should re-examine how economic growth can be achieved through contribution of forest production, taking awareness of existing capacity to increase growth and alleviate poverty.  Resources should be directed into areas where there is adequate evidence of potential growth. This will be achieved through enhancement of conservation and wise use of forest resources, so that it can contribute more to the domestic income directly and indirectly through its contribution to other sectors. It is also recommended that the concerned body need to incorporate the real value of forest resources in SNA and give due attention to forest, and increase awareness to the society, so as to make a proper use of forest resources and boost its contribution to GDP of Oromia.