The purpose of this master thesis is to point out the importance of planning and budgeting in small businesses that are also affected by modern ways of working in the market, and which consider plans and budgets unnecessary. From the title of this paper and the topic, it is already clear how the paper presents the methods of planning and budgeting with an emphasis on the method of making a master budget on the example of a small family farm. Each period has its own peculiarities, and today's time dictates an accelerated pace of lifestyle and work, and this certainly brings some consequences. Very large companies have a constant intention to expand and grow, which requires quality management teams and great efforts in developing a plan and budget, and the same unfortunately cannot be said for smaller companies. Within this paper, we wanted to show that the development of the plan and budget can be applied to smaller companies and that a quality approach to management of companies can set clear goals, all in order to improve the work of the company. We have shown by the example of the operational and financial budget that we can monitor the necessary resources for production, and the amount of money needed to procure them. Through the clear laws of management accounting and with the help of simple mathematical operations, we have also shown how to “forge” a plan very easily. Control gives a sense of security, so controlling the business itself ensures peace of mind for the business owner, and this control takes place through a promptly plan, budget and control of cash inflows and outflows. In the end, it is necessary to emphasize that some plan is better than no plan and that without a plan there is no clear goal, and the methods of planning and budgeting within the master budget on the example of the family farm Hrgović showed that.