The craft is a self-employed activity in which physical entities carry out an economic activity in order to generate income or profit. It is regulated by laws, ordinances and regulations governing the conduct of business. With the entry of a craft in the trade register, its business activity begins. From accounting perspective, craftsmen are required to keep accounts that differ depending on the turnover tax system. Each individual account shall enter data to be informed by external and internal users and shall establish income or profit. In addition to the mentioned characteristics, the tax treatment of the craft should also be emphasised. The income tax on self-employed activities, as one of the most common forms is applicable at the opening of the craft until the condition of the transfer to profit tax is met. In addition to income tax, crafts can also choose flat-rate income taxation if they are not in the value added tax system. Each tax system has its characteristics, differentiated by individual values, deadlines and the calculation of the tax base. The aim of this thesis is to clarify in detail the business operations of craftsmen in the Republic of Croatia and the characteristics of each tax system.