1. Separate Business and Personal Finances Immediately
Open a dedicated business bank account before your first transaction. Mixing personal and business money is the single most common mistake we see — and it creates enormous headaches at tax time.
2. Digitise Every Receipt
Czech law requires you to keep accounting documents for a minimum of five years. Use a mobile scanning app to photograph receipts immediately. Cloud storage means you will never lose a document.
3. Invoice Promptly and Consistently
Send invoices the same day goods or services are delivered. Every invoice must include:
- Your company name and address
- IČO (company registration number)
- DIČ (tax ID, if VAT registered)
- Invoice number in a consecutive sequence
- Payment terms and bank details
4. Understand Your Cash Flow
Many profitable startups fail due to poor cash flow management. Track not just profit, but when money actually enters and leaves your account. A simple cash flow spreadsheet updated weekly is invaluable.
5. Set Aside Money for Taxes from Day One
A common trap: spending money that belongs to the tax authority. As a rule of thumb, set aside 20–25% of net income for income tax and social/health insurance contributions.
Getting Professional Help Early
Many founders try to handle bookkeeping themselves to save money — only to spend far more later fixing errors. A professional accountant often pays for itself through tax savings alone. Talk to our team about our Startup package.