Craft as one of the oldest forms of economic activity still strongly contributes to the development of the economy today, as craftsmen have been passing on their knowledge, skills, and expertise to younger generations for centuries, thus preserving culture and artistic values. Crafts originated as an association of people who worked on various objects in their free time at home. Throughout Croatia's long history, crafts remained very popular and evolved into a modern form of entrepreneurship. Within crafts and artisanal activities, a large number of workers earn their salaries, thus ensuring income for themselves and their families. Additionally, taxes and contributions paid into the state budget contribute to the economy as a whole. The accounting of craftsmen and the management of their business books greatly depend on the tax system of crafts. The most common crafts are those in the income tax system, popularly known as "income tax payers", who maintain simple accounting and use the cash principle, which allows for cheaper and easier operations due to reduced administrative costs. Craftsmen in the profit tax system, the so-called "profit tax payers", maintain business books using double-entry accounting, and the management of their business books is a strictly regulated process. It is also defined when a craftsman is in the VAT system, and on the other hand, the possibility of lump-sum taxation if the craftsman is not in the VAT system.