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As businesses expand their operations in the global landscape, one question that often arises in relation to the Czech market is whether to handle bookkeeping tasks in-house or refer to accounting outsourcing in the Czech Republic. This question is particularly crucial given the country’s unique accounting standards and regulatory environment. In this article, we explore both options in terms of their benefits, risks, and potential impact on business operations. We aim to provide a brief comparison that can guide companies in choosing the most suitable accounting practice.
One of the primary reasons companies consider accounting outsourcing in the Czech Republic is cost-effectiveness. Hiring an in-house team of accountants involves salaries, benefits, office space, and training costs. These costs can quickly add up, particularly for small to medium-sized enterprises (SMEs). On the other hand, outsourcing allows companies to convert these fixed costs into variable costs, only paying for the services they require.
Outsourcing firms specialize in accounting, and they are one step ahead of changes in legislation, accounting standards or best practices. This level of expertise can be costly and time-consuming to develop in-house, especially for foreign companies unfamiliar with the intricacies of the Czech accounting environment.
Companies that provide accounting outsourcing in the Czech Republic often use the latest accounting software and technology, providing more efficient and accurate financial management. In effect, this can bring a significant savings to the company, not to speak of the advantage of having cutting edge processes. Keeping up to date with the latest technologies and development is not only costly, but also very time-consuming, thus making this another aspect to be considered.
As companies grow, so do their accounting needs. With an in-house team, scaling up often means recruiting more staff, which can be both time-consuming and costly. However, companies providing accounting outsourcing in the Czech Republic are equipped to handle the growing needs of businesses, allowing for seamless scaling without the additional hiring stress.
With accounting outsourcing in the Czech Republic, companies can focus on their core business operations. This is particularly beneficial for SMEs and Czech start-ups, where resources can be better allocated to areas such as business development, marketing, and customer relations.
While the benefits of accounting outsourcing in the Czech Republic are clear, it’s essential to consider potential risks. The most notable one is confidentiality. Companies must ensure they partner with reputable outsourcing firms that adhere to strict confidentiality and data protection standards. However, with careful due diligence, this risk can be significantly mitigated.
In the Czech Republic, companies are required to adhere to the Czech Accounting Standards (CAS) or, in some cases, the International Financial Reporting Standards (IFRS). Navigating these standards can be challenging for in-house teams, especially those unfamiliar with the local regulatory landscape. However, companies providing accounting outsourcing in the Czech Republic specialize in maintaining compliance with these regulations, minimizing the risk of non-compliance penalties.
For large multi-national companies, it is usually cost effective and more efficient to hire a dedicated office manager or accountant, to support the local office and to take care of the daily tasks, including the accounting of routine transactions. However, it might be worth considering delegating the expert tasks as well as the final responsibility for local accounting to a company providing accounting outsourcing in the Czech Republic and thus mitigate the associated risks. Outsourcing companies can take over the responsibility for the whole local accounting, or also provide support only in the specific areas, such as year-end closing, audit support or tax and regulatory compliance.
Companies providing accounting outsourcing in the Czech Republic can assist in preparations for audits and ensuring that all financial records are accurate and complete, making the audit process smoother. Business professionals can delegate this delicate and highly complex task to professional teams with relevant experience.
Last but not least, you can hire professional teams for accounting outsourcing in the Czech Republic to help you with optimizing the compnany tax obligations. Experienced accountants can identify tax-saving opportunities and ensure that businesses take advantage of all available deductions and credits while making sure that local tax requirements are met.
In conclusion, while in-house accounting teams may seem like a logical solution, accounting outsourcing in the Czech Republic provides a range of benefits that can significantly impact a company’s efficiency and compliance. However, due diligence is required to select an outsourcing partner that best fits your company’s needs and ensures the utmost data protection. When carefully managed, accounting outsourcing in the Czech Republic can be a strategic move that propels your business forward.
Considering the raising number of legislative changes and complexity of the accounting framework, the automation of accounting processes in the Czech Republic and efficient management of data volumes is becoming increasingly important, transforming the operations from manual to automated. Automation enables Czech organizations to perform complex accounting processes faster, more accurately and more effectively. The greatest benefits of automation come from tasks related to data entry, processing, verification and generation – which streamlines numerous processes and saves resources like time and money.
In Accace we use our self-developed advanced tool for extracting the relevant data from the accounting documents (such as invoices) and subsequently importing the data directly into the accounting software. When combined with other capabilities, this allows for the complex automation of accounting processes in the Czech Republic. This way, the companies can enhance productivity and reduce the risk of errors. Additionally, the tool facilitates the creation of workflows that integrate and automate processes across different applications and services, increasing their efficiency.
Once the data from the accounting documents are extracted, these need to be posted into accounting books. Creating and maintaining bookkeeping records can be a time-consuming task unless these are conducted by skilled and experience professionals who have developed automated posting rules. This allows to skip the routine manual entries, prevent possible errors and speed up the whole process. As the final result, the companies gain significant savings on time spent on the accounting tasks as well as eventual corrections of erroneous records.
The key to effective automation of accounting processes in the Czech Republic is understanding how to transform data to meet ERP system requirements while ensuring compliance with legal regulations. To achieve this, it is advantageous to partner with a company experienced in various financial and accounting systems, adept at adapting complex data to fulfil specific organizational, tax, and legal requirements.
At Accace Czech Republic, we offer a range of solutions, including the comprehensive automation of accounting processes. Our services focus on developing solutions that streamline payroll and accounting operations for international organizations utilizing ERP systems such as SAP, Microsoft Business Central 365, or Oracle (NetSuite). This thorough service ensures that all data is fully compliant and ready for posting in the client’s financial accounting system.
The automation of accounting processes in the Czech Republic allows organizations to significantly accelerate operations, reducing the time spent on tedious data transformation and consolidation. By eliminating repetitive tasks, employees can focus on key activities, thereby boosting their productivity. Automation also enhances data accuracy, leading to higher quality work and a decreased risk of errors.
With our international market presence and the expertise of our Czech specialists, we offer a wide array of solutions tailored to various business needs. We provide comprehensive support, utilizing the latest technologies and industry best practices. Looking to streamline the financial and accounting processes in your company? Contact our experts to discover how we can collaborate to secure your organization’s future.
Business trip according to the Czech Labor Code means a limited period for which the employer instructs his employee to work away from his agreed place of work performance. By law, an employer should provide the following travel reimbursement in the Czech Republic to his employee on a business trip:
Basic compensation for the purpose of travel reimbursement in the Czech Republic is determined by the Ministry of Labor and Social Affairs of the Czech Republic.
Rates valid from 1 January 2024:
Employees who are sent by the employer:
are entitled to travel reimbursement in the Czech Republic from their employer. The amount of travel allowances is announced every year by a decree of the Ministry of Labour and Social Affairs.
The 2024 Decree increases the per diems rates for the non-business sector as follows:
The following minimum amounts are set for the business sector:
These amounts are minimal, i.e. the employer can reimburse the employee any higher amount, but on the employee’s side, in that case, it will be taxable income subject to income tax and social security and health insurance premiums.
In the event that an employee is provided with free food on a business trip, the amount of the per diems is reduced by:
And the right to per diems ceases completely if the employee receives two free meals during a business trip of up to 12 hours, and three free meals between 12 and 18 hours.
The right to per diems during foreign business trips is further described in the Labor Code. Travel allowance rates change annually to ensure that posted workers are adequately compensated financially, taking into account price differences in each country.
For the year 2024, the basic rates of per diems for foreign business trips are determined by Decree No. 341/2023 Coll. The rates are increasing in 22 countries, below are the per diems rates for the selected states for 2024:
| Country | Currency | 2024 | 2023 |
| Croatia | EUR | 45 | 40 |
| Cyprus | EUR | 45 | 40 |
| Hungary | EUR | 45 | 40 |
| Latvia | EUR | 45 | 40 |
| Norway | EUR | 65 | 60 |
| Spain | EUR | 50 | 45 |
| Sweden | EUR | 65 | 60 |
An employee is entitled to the full amount of per diems if he spends more than 18 hours outside the territory of the Czech Republic within a calendar day. If he spends 12-18 hours outside the territory of the Czech Republic, he is entitled to 2/3 of the foreign meal allowance. If he spends 12 hours or less, but at least 1 hour, outside the territory of the Czech Republic, he is entitled to 1/3 of the foreign meal allowance.
These amounts are reduced if the employee is provided with free meals during a foreign business trip, by the value of:
The Decree for the year 2024 further increases compensation for the use of one’s own vehicle. The basic compensation for 1 km of travel amounts to:
The employee is also entitled to fuel reimbursement, either according to the price actually paid or according to the average price determined by the Decree:
If you have any questions regarding travel reimbursement in the Czech Republic, please do not hesitate to contact us. We will be pleased to help you.
About Accace
Accace is a proactive consultancy and outsourcing partner who bridges the gap between needs and solutions. Combining smart and streamlined technology with a holistic approach, we provide an all-round care to clients and consider their matters as our own. With over 800 experts and more than 2,000 customers, we have vast experience with facilitating the smooth operation and growth of small to large-scale, global businesses.
About Accace Circle
Accace operates internationally as Accace Circle, a co-created business community of like-minded BPO providers and advisors who deliver outstanding services with elevated customer experience and erase the borders of service delivery. Covering over 50 jurisdictions with nearly 2,500 professionals, we support more than 15,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and process at least 200,000 pay slips globally.
