Small entrepreneurs play a key role in the economy of the Republic of Croatia as drivers of growth and employment. Despite their importance, small entrepreneurs often face various challenges, one of which is the compilation of financial statements. For small entrepreneurs, the correct preparation of financial statements is not only a legal obligation, but also an important source of information about the financial position, financial performance and cash flows of the entrepreneur. Information from financial statements is crucial for the entrepreneurs, their customers, suppliers, partners, and financial institutions. Based on this information, entrepreneurs can better manage their company, therefore investing in adequate resources and education in the field of accounting is essential for the success of small entrepreneurs. The aim of this research is to provide a comprehensive overview of the process of preparing financial statements for small entrepreneurs in the Republic of Croatia. The specific objectives include: analysis the legislative framework for financial reporting of small entrepreneurs in the Republic of Croatia, the conceptual framework of financial reporting according to Croatian Financial Reporting Standards, the structure and content of financial statements for small entrepreneurs in the Republic of Croatia, and an example of preparing financial statements for small entrepreneurs.