Methods of Recording Economic Activity

This bachelor's thesis explores the options available to self-employed individuals when choosing the method of recording their business activities. It focuses on comparing four regimes: double-entry bookkeeping, tax records (single-entry bookkeeping), expenses claimed as a percentage of income, and the flat-rate tax scheme. The aim of the thesis is to present these alternatives in a way that allows the reader to understand their main differences, advantages, and disadvantages, and to select an appropriate option based on specific circumstances. The theoretical part is grounded in current legislation and business practice in the Czech Republic, while the practical part uses a model example to illustrate the consequences of both suitable and unsuitable choices of record-keeping method. The thesis provides a general decision-making framework and highlights situations in which a particular regime may be either beneficial or risky. As such, it serves as a practical guide for small entrepreneurs when starting or optimizing their tax regime.