Managers, banks, and other internal and external users must study and obtain a lot of information about the business of an entrepreneur to be able to draw conclusions about his business and make their decisions based on that. To facilitate the process of displaying all the data, financial statements have been designed. They display all the necessary data simply so that they can be easily understood and compared. The paper presents more detailed explanations of each financial report. After that, in order to understand the business of an entrepreneur, it is necessary to observe and understand the vertical and horizontal analysis. Through vertical analysis, the paper presents the structure of the balance sheet and profit and loss account of the company Calegra Hortikultura d.o.o., and through horizontal analysis, the movement of data, i.e. the operations of the company Calegra Hortikultura d.o.o., is shown. in the period from 2019 to 2021. Calegra Hortikultura d.o.o. is a micro-entrepreneur from Zagreb who designs, arranges, and maintains green areas. The aim of the work is to show, in addition to the importance of properly compiling financial statements, the importance of implementing the analysis of financial statements. In today's frequently changing environment, it is important to immediately react to changes, especially those that reflect badly on the business results. Using regular and accurate analysis, managers and entrepreneurs immediately notice deviations and can react in time.