The controlling as a business function within a company helps the company management in the process of decision-making through its three fundamental tasks which are planning, analysis and reporting. Based the conducted analysis it can be determined the current state of the company’s business and financial performance such as the information on the company’s liquidity, financial stability, indebtedness, efficiency, profitability and the causes of financial problems. During the process of pre-bankruptcy settlement, the controlling has a very important role since it provides the analysis of current problems and also the planning of future solutions. For companies that do not have the controlling as a organizational segment within their organizational structure it is much more difficult to determine the causes of problems. The ability to initiate the process of pre-bankruptcy settlement in Croatia allows the companies to restructure their business in Croatia. This final paper presents the process of pre-bankruptcy settlement of a small business in Croatia. This small company because of the poor economic situation and recession in Croatia, on the one hand, but also because of its insolvency and the lack of strategy, on other hand, ran into problems which resulted in the lack of liquidity and insolvency. The small company sees the solution of mentioned problems in the process of pre-bankruptcy settlement in which it seeks a partial debt write-off, with the repayment of the remaining debt within the next 5 years.