In the final paper, the accounting coverage of inventory of small inventory in the hotel business system is addressed. When considering small inventory, there is often a doubt as to which classification criterion is considered relevant. Specifically, if only the time of use is taken into account, all assets used for more than one year or longer than the normal duration of the business process would be included in fixed assets. On this basis, small inventory, such as telephones, certain types of furniture, etc. would be classified as fixed assets. However, there is also a value criterion prescribed by the Income Tax Act, according to which small individual value assets (currently up to HRK 3,500.00) are considered current assets. The topic was recognized as interesting because the small inventory, although small in value, is a significant item in the current assets of each hotel. For this reason, accounting regulation of this position is particularly important, which in the paper is further broken down from both theoretical and practical aspects. A case study of the hotel business system "Lero", which presents accounting records and methods of handling small inventory, is considered as a practical example.