The aim of this paper is to describe in more detail the manner of treating guard dogs from the balance sheet and tax point of view, ie their position on the balance sheet. Regardless of the purchase value of a guard dog, it is presented in the paper as a fixed biological asset. In addition to the theoretical part on the analysis of the ABC Company, examples of accounting records and specificities associated with guard dogs are also presented. The initial valuation of the guard dog as well as depreciation and other business events closely related to the use of the guard dog as a biological asset are also presented. In addition, the procedures for the procurement (purchase) of guard dogs from natural and legal persons from Croatia, the European Union and from third countries were discussed. All expenses that are allowed in full and incurred in relation to guard dogs are explained in greater detail.