In the Czech republic there are laws establishing, who is obliged to keep accounts and who can only keep tax records. Those, who are obliged to keep accounts are all legal entities. Natural persons registered in the Commercial Register and natural persons whose turnover exceeded 25 million crowns for the previous accounting period are also obliged to keep accounts. If they did not meet the requirements, they can keep accounts willingly. Who else has the obligation to keep accounts is specified in Act No. 563/1991 Coll. The Accounting Act, which is also the main regulation regulating the scope and method how it is supposed to be done. In other cases, it is sufficient to keep tax records.
Accounting provides details about the operation of companies that keeping tax records alone cannot provide. On the other hand, it is more difficult to process and therefore also more expensive.
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