Wood processing and furniture production are part of Croatian tradition. Their significance is remarkable for this area since ancient times. However, the question arises as to whether the resource which Croatian forestry is abundant, used ie. put in the function of development? The answer is very simple - not. Forest potential has been neglected for years, and the wood processing and furniture manufacturing industries themselves are not the perks of the Croatian economy, but should be. The reasons are numerous and among the following it is necessary to emphasize: long-term neglect of the potential of the wood sector, not the existence of a longterm strategy for the development of Croatian forestry or timber industry, outdated technology on which wood processing and furniture production is based, outflow and such insufficient vocational education workforce from the segment forestry, lack of cooperation between the education sector and the manufacturing sector, etc. Problems with which the Croatian processing sector faces are almost identical to all branches of the Croatian manufacturing industry, and it is possible to say a brake on the development of the entire sector of the processing sector as well as individual industries. From the accounting point of view, business entities operating in the wood processing and furniture production sector have an obligation to do business in accordance with the provisions of the Accounting Act, International Financial Reporting Standards, Croatian Financial Reporting Standards and other legislative regulations in the Republic of Croatia