This graduation thesis theme is „Analysis of the influence of the tax and accounting to small and medium-sized enterprises“. Small and medium-sized enterprises make 95 percent of all business subjects in the world and 99 percent of all enterprises in Croatia. From that we can conclude that their influence in the economy is enormous. Although most people pay attention just on large enterprises, small and medium enterprises are the engine of the economy and their role in employment and making added value is essential. The best indications about the influence and position of small and medium enterprises on economy can be seen from their financial statements. From them we can see how successful those enterprises are. External users of financial statements from them obtain information about liquidity, solvency, indebtedness and profitability of enterprises, while for internal users these statements are basis for planning and controlling. The main aim is to define and classify small and medium enterprises in Croatia, define the tax framework for them and the impact of that framework and standards on their financial statements. This thesis should clarify and bring closer the influence of tax regulations on financial accounting and the financial statements of small and medium enterprises. It should point out the advantages and disadvantages of the application of different tax systems and standards for financial reporting.