Managing your business in the Czech Republic might be tough for you especially when you are trying to establish yourself. This is also the reason why many businesses require hiring professional accounting services in order to help them keep track of their finances.
However, a question we hear often is “How much do accounting services cost in the Czech Republic?”
This is a relevant question and the answer is that the accounting services price varies under different circumstances including the state of the business, location, types of services, experience, and reputation of the accounting firm.
In this article, we will briefly outline the pricing models and factors that affect the cost of Accounting Services In the Czech Republic.
How Do Accounting Firms Charge?
Depending on the client’s needs, companies charge different amounts. But they can charge on a per-hour basis, monthly salary basis, fixed price also a specific cut from the amount earned by the client.
- Hourly Rate: This could also be referred to as a Commitment and under this, accounting firms charge a set hourly rate as opposed to a set monthly fee. The costs might differ based on the number of has been put into spending time with the client.
- Fixed Pricing: In this, the accounting service in the Czech charges a fixed price upfront per month or per project.
- Salary: Salary means accounting companies charge a salary every month.
- Percentage of Client’s Income: In this deal, professional accountants charge businesses a fee based on a certain percentage of their client’s income.
This implies that before selecting an accounting company in the Czech Republic to manage the finances of your business, it is imperative to determine the type of service you are seeking and the amount of time you desire to spend if they are to charge on an hourly basis.
Therefore, before choosing an accounting firm in the Czech Republic to handle your business finances, it is essential to decide the type of service you want and how much time you want to spend in case of an hourly rate.
Factors Affecting the Cost of Accounting Services in the Czech Republic
The following points may also determine the pricing of accounting firms in the Czech Republic
1. Size and Complexity of The Business
How complex or large is the business of the client? The more complex and larger the client’s business, the more money an accounting firm will charge to handle its finances.
Professional accountants consider the gross receipts, number of employees, and business when deciding their fees. For example, an accounting firm will charge more to a business with 100 employees to run payroll than a business with only 5 employees.
This way, your business size in the Czech greatly matters when it comes to the cost of accounting services.
2. The Type of Service Clients Want
The type of service business owners want greatly influences the price of accounting firms. For example, an accounting firm offering tax preparation and filing, preparing financial statements, VAT reporting, and other accounting services, will charge a different amount for each service.
Businesses can seek financial assistance in business formation tax planning, consulting, auditing, payroll, and advising. The more complex service they want, the more revenue they will have to spend.
For example, FINBalance charges 33 CZK per month for 1-50 documents.
While it charges 1500 CZK/month to a VAT payer if applicable.
3. Experience and Reputation of the Accounting Service
The experience and reputation of the accounting firms also matter when it comes to accounting prices. A more experienced and reputable accounting service charges more than a newly established accounting company offering financial assistance.
Clients also pay more to companies with advanced credentials and certifications. This way, experience, and reputation act as a credibility factor and greatly influence the cost of accounting services in the Czech Republic.
4. Location
The location of the client’s business in the Czech Republic and the location of the accounting firm play a key role in the average accounting fee.
Accountants offering virtual services consider the location of their clients and set prices accordingly. Some cities and states have higher accounting pay rates than others. Accountants charge more in developed cities with large business potential than in developing cities with limited business opportunities.
Example of Accounting Prices in the Czech Republic
Let’s understand the accounting cost for accounting services in the Czech Republic with the price list of FINBalance.
- FINBalance charges 8000 CZK or more for financial statements.
- It charges 2000 CZK to an inactive company for DPPO. For an active regular company, this fee jumps to 4500 CZK.
- Similarly, it charges 500 CZK/hour for business consultation.
- 33 CZK for 1-50 documents booked in a calendar month.
- 1500 CZK/month to a VAT payer
- 1000 CZK/month to a non-VAT payer
This example illustrates that the cost of accounting firms in the Czech Republic varies based on the type of service, size, and complexity of the business, and its location. Similarly, different accounting firms have different pricing for their services.
So, before you choose an accounting firm to handle your business, it is essential to do some research to make an informed decision.
Conclusion
So, how much do accounting services cost in the Czech Republic? As mentioned, it depends on different factors like business size, its complexity, location of the accounting service and business, credibility of the service, and particular type of service businesses want.
Prices may vary from company to company. So, there is no fixed rate for accounting services in the Czech Republic.