Accounting
In-House Accountant or External Accounting Firm?
· 3 min read
An in-house accountant offers direct daily availability, while an external accounting firm provides guaranteed cover and insured liability. The decisive factors are document volume and reporting needs.
Quick take
- The cost of an in-house accountant equals gross salary + 33.8 % social and health contributions + software and training.
- An external firm is billed as a flat monthly retainer based on document volume.
- An external firm carries professional indemnity insurance and provides continuous cover during illness.
- An internal position typically becomes cost-effective starting from hundreds of documents per month.
Comparison Table
A comparison based on the practical criteria that matter most to business owners.
| Criterion | In-House Accountant | External Firm |
|---|---|---|
| Cost | salary + 33.8 % + software + training | monthly retainer based on scope |
| Cover / Substitution | risk of downtime during sick leave | team-backed; cover is part of the service |
| Liability | limited under the Labour Code | contractual, typically fully insured |
| Industry Knowledge | deep focus on a single company | broad experience from dozens of businesses |
| Availability | on-site daily | agreed communication channels and SLAs |
| Scalability | requires recruitment | scope can be adjusted contractually |
When an In-House Accountant Pays Off
With high document volume, requirements for daily management reporting, manufacturing businesses with stock management, and situations where the accountant also manages billing, debt collection, and day-to-day administration.
When an External Accounting Firm Pays Off
For sole traders (OSVČ) and smaller s.r.o. companies, seasonal businesses, growth phases without predictable transaction volume, and anywhere you need combined access to tax advice, payroll, and bookkeeping under one roof. The external model also provides better cost control: you only pay for the actual volume processed.
The Hybrid Model
A popular and effective setup: the company employs an in-house administrator for basic document collection and billing, while an external firm takes responsibility for statutory accounting, payroll, and tax returns. This combination keeps costs low while ensuring complete backup and professional oversight.
What to do now
- 1Calculate the total annual cost of an internal position, including statutory levies and software licences.
- 2Compare it with a quote from an external firm for the equivalent scope of work.
- 3Verify whether you have cover in place during holiday and sick leave periods.
When to call an accountant
Before recruiting an accountant, during rapid growth in document volume, or if you identify errors and deficiencies in your bookkeeping.
Frequently asked questions
- Who bears liability for accounting errors?
- The accounting entity (the company or entrepreneur) is always legally liable before the authorities. An external firm is contractually liable to the client for its work and mistakes.
- Can you switch to an external accounting firm mid-year?
- Yes. The key requirement is a complete handover of data, open customer/supplier balances (saldokonto), and filing authorisations.
- How many documents can a single in-house accountant process?
- Depending on complexity, usually several hundred per month; for payroll, capacity is measured by the number of employee headcount.
Sources
Author: FinTaxo expert team
Operated by: Zaklipso s.r.o.
Information valid as of: 17 August 2026
Czech original: read this article in Czech
This article is general information and does not replace individual tax, accounting or legal advice. Czech legislation changes frequently — verify the current wording or discuss your situation with us before acting on it.
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