Micro enterprises are dominating in the total number of enterprises in a large number of countries and their importance for employment and the entire economy is unquestionable. Like everything, micro enterprises have certain advantages, such as flexibility and innovation, but also disadvantages, such as instability and responsibility. Micro enterprises are characterized by certain specifics that affect their accounting. First of all, micro enterprises are excepted from the obligation of compilation the entire set of annual financial statements, but also from the audit obligation. Also, they do not apply International Financial Reporting Standards, but national or International Financial Reporting Standards for small and medium sized enterprises. Micro entrepreneurs - physical persons have a large share in the total number of business subjects in the Republic of Croatia, but also in the Republic of Slovenia and Bosnia and Herzegovina. In the Republic of Croatia and the Federation of Bosnia and Herzegovina, were analyzed the specifics of the business of craftsmen, and in the Republic of Slovenia and the Republic of Srpska, the specifics of the business of independent entrepreneurs. Due to their size, micro-enterprises bear a large regulatory and administrative burden, and simplification of financial reporting requirements is necessary. Directive 2013/34/EU plays an important role in the accounting of micro enterprises. The directive foresees certain simplifications and exemptions for micro enterprises, which aim to reduce the administrative burden on micro enterprises and increase the quality of financial reporting.