Accounting services in Czech Republic

Are you in search of an affordable and efficient bookkeeping solution in Prague? Benefit from the extensive services offered by Regulated United Europe, a company boasting over a decade of experience. Our all-encompassing solution addresses all accounting and bookkeeping challenges in the Czech Republic, neatly packaged in a user-friendly, modern online service. For a modest fee, you not only receive support from a dedicated specialist but from an entire team. Outsourcing your bookkeeping not only cuts costs but enhances critical business functions.

What’s included in the cost of our accounting services?

Depending on the client’s taxation system and selected tariff, the price may cover:

• Expert guidance on accounting, taxes, fees, special regimes, and Czech Republic-specific benefits.
• Legal tax optimization to minimize payments.
• Processing primary accounting documents, ensuring accuracy, submission, and general reporting adherence.
• Formulating and submitting VAT reports for enterprises under the chosen taxation system.
• Representation of client interests with government bodies.
• Datové schránky control.
• Document transfer to the Commercial Register.

Additionally, you can request report preparation for transport taxes and mandatory payments for property owners.

Five reasons to choose our bookkeeping services:

Are you seeking professionals well-versed in accounting intricacies, experienced in tackling non-standard issues, and committed to regulatory compliance and deadlines? Look no further — Regulated United Europe‘s team ticks all the boxes. We provide numerous benefits:

• Organized work through a modern online service, ensuring swift client interaction and attractive pricing.
• Transparent tariffs, offering a clear understanding of costs and delivering precisely what you need.
• A flexible approach tailored to each client’s needs, including collaboration with existing accounting teams to minimize business costs.
• A comprehensive range of services, enabling you to automate your accounting.
• Guaranteed confidentiality of all shared private information during our collaboration.

Seize the opportunity to leverage our accounting services now. Simply register on our portal and select the appropriate tariff. Feel free to ask additional questions to our on-site consultant or email us at [email protected].

Basic requirements for the organisation of accounting in Czech Republic

Navigating the complex waters of the regulatory accounting framework is critical for companies operating in the Czech Republic. This detailed research provides insight into the basic requirements for accounting organisation, ensures compliance with local standards and contributes to smoother financial operations.

Legal Framework Accounting in the Czech Republic is governed by several key pieces of legislation, including the Accounting Act, the Income Tax Act and specific laws relating to the type of business entity. Compliance with these laws not only ensures legitimate operations, but also enhances the credibility and financial transparency of the business.

Accounting Standards Accounting practices in the Czech Republic are primarily governed by Czech Generally Accepted Accounting Principles (Czech GAAP), while certain companies may opt for International Financial Reporting Standards (IFRS) if they meet certain criteria, such as being a public company or a large corporation with international operations. Choosing the right system is key to harmonising business operations with both local and international financial reporting standards.

Requirements for the organisation of accounting

1. Record keeping documentation: All Czech companies are required to keep accurate and comprehensive records of their financial transactions. This includes invoices, contracts, bank statements and other documents supporting business transactions.
2. Chart of accounts: Companies must implement a systematic chart of accounts compliant with Czech GAAP or IFRS, depending on the accounting system adopted. This plan organises financial information in a structured format, facilitating clear and accurate financial reporting.
3. Bookkeeping: Regular bookkeeping is mandatory. Companies can choose between single-sided and double-entry bookkeeping depending on the size and type of business. Small entrepreneurs can use single-sided accounting, while larger corporations are required to use a double-entry system to provide a more detailed and accurate financial overview.
4. Financial statements: Annual financial statements are mandatory and must include a balance sheet, income statement, notes to the financial statements and a cash flow statement for IFRS compliant These documents must be prepared at the end of each financial year and submitted to the relevant tax and corporate authorities.
5. Audit requirements: Statutory audits may be required depending on the size and nature of the business. Companies exceeding certain thresholds in terms of total assets, turnover or number of employees are required to have their annual accounts audited by a certified public accountant.
6. Retention of records: Financial records should be retained for a minimum of five years, as stipulated by the Czech Accounting Act, to comply with tax and corporate governance rules. This period may be extended according to the specific circumstances stipulated by law.

Tax implications Compliance with tax regulations is an integral part of accounting in the Czech Republic. Companies must adhere to tax regulations regarding VAT, corporate income tax and other relevant taxes. Proper accounting ensures accurate tax reporting and can prevent legal problems related to tax evasion or non-compliance.

 Accounting policies and procedures in Czech Republic

A clear understanding of and strict adherence to accounting policies and procedures is critical to the effective management and control of business in the Czech Republic. These policies and procedures serve as a basis for complying with legislation, ensuring financial stability and maintaining confidence among investors, creditors and other stakeholders.

Fundamentals of accounting policies in the Czech Republic. Accounting policies in the Czech Republic are governed by the Accounting Act, which establishes general accounting principles, documentation requirements, and rules for keeping and maintaining books of account. Companies must develop and formalise their accounting policies in accordance with this Act as well as with International Financial Reporting Standards (IFRS), if applicable.

Structure of accounting policies

1. Accounting Principles: Determining the methodology for accounting for assets and liabilities, revenues and expenses.
2. Valuation of assets and liabilities: Establishing valuation methods such as historical cost, depreciation, amortisation and revaluation.
3. Revenue recognition: The criteria by which revenue should be recognised for financial reporting purposes.
4. Documentation and archiving: Document retention rules, archival timelines and electronic records management.

Accounting procedures

1. Maintain journals and general ledger: Regular documentation of all business transactions in the journals and reconciliation with the general ledger.
2. Preparation of financial statements: Annual preparation of balance sheet, income statement and cash flow statement.
3. Audit: Mandatory audit for large companies and those that meet certain criteria in terms of asset size or turnover.

Roles and responsibilities

• Chief Accountant: Responsible for ensuring the accuracy of financial records and adherence to accounting policies.
• Auditors: Review of financial statements for compliance with established standards and statutory requirements.
• Company Management: Ensuring that accounting policies and procedures are implemented and adhered to at all levels of the organisation.

Conclusion. The development and adherence to strict accounting policies and procedures in the Czech Republic is a key element for maintaining financial transparency and managerial efficiency. This not only helps companies to comply with local and international regulations, but also increases trust among stakeholders and contributes to more successful company management.

 Monthly accounting services in Czech Republic

In the ever-changing economic landscape of the Czech Republic, effective financial management through monthly accounting services is becoming not just important, but a necessity for businesses. Regular bookkeeping and reporting enables companies not only to comply with legal requirements, but also to maintain financial stability and transparency.

Importance of Monthly Accounting Services. Monthly accounting services provide a systematic approach to recording and analysing the financial health of a company. This includes preparing and analysing accounting statements, tax management, and budget planning and forecasting. This approach allows company management to make informed management decisions based on up-to-date and accurate financial information.

The main components of monthly accounting services are

1. Maintaining income and expense records: Every month, an accountant processes all financial transactions of the company, including income, expenses, receivables and payables. This ensures that financial data is accurate and ready for tax audits.
2. Payroll and social contributions: Accounting services include calculating employee salaries, withholding taxes and social contributions, and ensuring timely payment of wages.
3. Tax planning and reporting: On a monthly basis, the accountant prepares tax reporting, optimises tax liabilities and ensures compliance with tax laws. This includes the preparation and filing of VAT returns, corporate taxes and other mandatory reports.
4. Cash flow management: Monitoring and analysing cash flows to optimise the company’s financial resources, preventing shortfalls and planning future investments.
5. Preparation of financial statements: Preparation of balance sheet, income statement and other financial documents that are required for internal and external use, including audits and credit enquiries.

Benefits of Outsourcing Monthly Accounting Services. Outsourcing accounting functions allows companies to focus on their core business while reducing the operational costs of maintaining their own accounting department. It also provides access to highly skilled professionals and advanced technology to ensure a high level of accuracy and reliability of financial information.

Conclusion. Monthly accounting services play a critical role in managing a company’s finances. They not only help Czech companies to comply with strict accounting and tax requirements, but also provide the necessary data for strategic planning and efficient solution of business problems. Ultimately, properly organised accounting is the basis for the successful and sustainable development of any business organisation.

 Additional accounting services in Czech Republic

In the modern economy of the Czech Republic, where every company strives to improve efficiency and optimise costs, value-added accounting services play a key role. They not only facilitate compliance with regulatory requirements, but also provide a strategic advantage through in-depth analysis of finances and optimisation of business processes.

Key value-added accounting services

1. Financial analysis and reporting
   • Develop and deliver detailed financial reports, including analyses of revenues and expenses, and assessments of the company’s financial strength.
   • Prepare management accounting reports that assist management in making informed decisions based on current economic performance.
2. Tax planning and advisory services
   • Providing tax advice, including optimisation of tax liabilities and support during tax audits.
   • Assisting in international tax planning for companies with cross-border operations.
3. Audit and internal control
   • Conducting independent audits of financial statements to ensure transparency and compliance with international standards.
   • Development and implementation of internal control and risk management systems to minimise financial risks.
4. Consulting and management consulting
   • Provide strategic advice on improving business processes and overall enterprise performance.
   • Organisation of trainings and seminars for the client’s employees on topical accounting and financial management issues.
5. Mergers and acquisitions (M&A)
   • Advising on merger or acquisition transactions, including financial analysis, asset valuation and preparation of necessary documentation.
   • Assisting in the integration of accounting systems after M&A transactions are completed.

Benefits of outsourcing additional accounting services. Outsourcing additional accounting services allows companies to focus on their core business processes by delegating specialised functions to professionals. This not only reduces operational costs, but also provides access to highly skilled professionals and advanced technology.

Conclusion. Complementary accounting services in the Czech Republic provide companies with the necessary tools to manage their finances, minimise risks and optimise operations. They contribute not only to the financial health of organisations, but also to maintaining their competitiveness in the market. Businesses seeking long-term success and sustainability should consider integrating these services into their management strategy.

 Fiscal year of the Czech company

The financial year is an important aspect of financial planning and accounting for any company, including companies operating in the Czech Republic. Understanding it enables company management to effectively manage accounting, tax reporting and financial planning.

Definition of fiscal year. In the Czech Republic, the fiscal year usually coincides with the calendar year, starting on 1 January and ending on 31 December. However, the law allows companies to set their financial year differently, if this is reflected in the foundation documents and notified to the relevant registration authorities. This may be appropriate for companies that are part of international corporate groups, where the fiscal year must be synchronised with the parent company.

Registration and change of financial year. Any changes in the definition of the financial year require official registration and publication in the Commercial Register of the Czech Republic. This ensures transparency and provides information to creditors, investors and other interested parties.

Financial planning and accounting. Setting up a financial year affects budget planning, cash flow management and tax planning. Companies can adapt their accounting and financial procedures to optimise resource management according to the chosen financial calendar.

Tax Implications. The end of the financial year determines the deadlines for filing tax returns and paying corporate taxes. Proper planning can help companies avoid delays and penalties, and optimise tax liabilities through efficient allocation of income and expenses.

Reporting and Auditing. The financial year defines the period for which annual financial statements must be prepared. These reports are required for audits and should reflect all financial transactions of the company for the period of interest. It is important that these reports are accurate and timely in order to comply with both national and international accounting standards.

Conclusion. The selection and management of the fiscal year in the Czech Republic has significant strategic and operational implications for any company. From a thorough understanding of regulatory requirements to effective tax planning and accounting, successful management of the financial year contributes to a company’s sustainability and growth. It is important to regularly review and adapt financial and accounting strategies in response to changes in legislation and the economic environment to maintain competitiveness and compliance in the marketplace.

 Audit for a Czech company

Audit is an integral part of the financial activities of any company in the Czech Republic, ensuring the accuracy of financial reporting and compliance with corporate and tax laws. This process not only builds stakeholder confidence, but also promotes transparency and sustainable business development.

Audit helps to ensure that a company’s financial statements reflect its actual financial position. It provides key stakeholders such as investors, creditors and government authorities with reliable information for decision-making. In addition, an audit identifies weaknesses in financial processes and offers recommendations for improvement.

Audit requirements in the Czech Republic According to Czech law, audits are mandatory for companies that exceed certain thresholds in two of the following three criteria for two consecutive financial years:

1. The book value of assets exceeds CZK 40 million.
2. Net turnover exceeds CZK 80 million.
3. The average number of employees exceeds 50.

An audit may also be initiated at the request of shareholders holding at least 10% of the share capital.

Audit process

1. Preparation: In the preparation phase, auditors evaluate the company’s financial records and plan the audit based on the risk assessment.
2. Fieldwork: Auditors examine financial transactions, records and internal controls. They may also interview staff to obtain additional information.
3. Reporting: Upon completion of the audits, an audit report is prepared which includes the auditor’s opinion on the reliability of the financial statements and compliance with applicable standards.
4. Discussion of results: The results of the audit are discussed with management and may also be presented to the board of directors or shareholders.

 Bookkeeping in Czech Republic

Accounting plays a crucial role in the financial management of any company. In the Czech Republic, accounting is governed by strict legal regulations designed to ensure transparency, accuracy and reliability of financial information. This is particularly important to maintain the confidence of investors, creditors and regulators.

Basic principles of accounting in the Czech Republic. Accounting in the Czech Republic must comply with Czech Generally Accepted Accounting Principles (Czech GAAP) and, in the case of international companies, may be adapted to International Financial Reporting Standards (IFRS). Basic accounting requirements include accurate and timely documentation of all financial transactions, maintenance of complete records and preparation of regular reports.

Legislative framework. The Accounting Act is the main statutory act regulating accounting in the Czech Republic. It defines criteria for the classification of companies, accounting obligations, audit requirements and rules for the storage of accounting documents.

Maintenance of books of account. Companies must maintain the following basic books:

• General Ledger (General Ledger), where all business transactions are recorded.
• Journal of Orders, to record order transactions.
• Fixed Assets Register, which records the purchase, use and disposal of fixed assets.
• Inventory Book (Inventory Book), which is maintained to control inventory.

Financial statements. Every company is obliged to prepare annual financial statements including balance sheet, statement of financial results, cash flow statement and notes to the financial statements. These documents must be prepared in accordance with the requirements of Czech law and submitted to the relevant public authorities, such as the tax inspectorate and statistical services.

Tax accounting. In the Czech Republic, accounting is closely related to tax accounting, and many accounting decisions affect taxation. Companies must file regular tax returns, including VAT, income tax and payroll taxes.

Conclusion. Bookkeeping in the Czech Republic requires in-depth knowledge of local legislation and accuracy in the execution of all financial transactions. Effective accounting management not only ensures compliance with regulatory requirements, but also contributes to the stable development and growth of a company. It is important for management and accountants to regularly update their knowledge and skills to meet changing requirements and optimise their financial performance.

 Accounting consultations in Czech Republic

In the modern economy of the Czech Republic, where every company faces increasing competition and constantly changing regulatory requirements, professional accounting consultancy becomes a key element of successful business management. These services provide not only compliance support, but also contribute to a deeper understanding of the company’s financial processes.

Importance of accounting consultancy. Accounting consultancy services help organisations to optimise their financial operations, improve tax management and enhance the transparency of financial reporting. These services include analysing current accounting procedures, identifying possible risks and offering recommendations to improve a company’s financial strategy.

Key aspects of accounting advice

1. Legal compliance: Consultants help companies comply with Czech accounting legislation, including tax laws and financial reporting standards. This is particularly important to prevent legal violations and minimise fines.
2. Financial Analysis: Professional accountants conduct a thorough analysis of financial statements, identify inefficient aspects of operations and suggest ways to optimise costs and increase revenues.
3. Tax planning: Advice helps companies to develop tax optimisation strategies using legal ways to reduce tax liabilities, which has a direct impact on increasing net profit.
4. Implementation of accounting systems: Specialists advise on the selection and configuration of accounting software, which allows you to automate many operations and improve the accuracy of accounting.
5. Personnel training and development: Accounting consultants conduct trainings for the company’s accountants and financial managers, improving their qualifications and competences in the field of modern accounting and financial analysis.

Advantages of outsourcing accounting advice

1. Resource savings: The use of external consulting services reduces the cost of maintaining an internal accounting department.
2. Access to expertise: Small and medium-sized enterprises have access to highly skilled professionals who can offer solutions at the level of large corporations.
3. Flexibility: Advisory services can be scaled according to a company’s current needs, providing support during periods of business growth or contraction.

Conclusion. Accounting consultancy in the Czech Republic is a valuable resource for any business seeking to improve its financial operations and financial stability. Not only do they facilitate compliance with numerous regulatory requirements, but they also contribute to a better understanding of financial activities, which is key to the successful and sustainable development of a company.