Accounting services in Poland
Unique Features of Accounting in Poland and Useful Recommendations
Accounting forms the foundation of financial management for any business in Poland. Regardless of a company’s size or organizational structure, accounting must comply with Polish legislation. Let’s explore the key features of accounting practices, available systems, and tips for their effective implementation.
Available Accounting Systems in Poland
Polish law provides for two main accounting systems:
- Simplified System
This option is suitable for small businesses and sole proprietors. It includes three forms of accounting:- Income and Expense Ledger (Księga przychodów i rozchodów) – a tool for tracking a company’s income and expenses.
- Flat-Rate Tax Accounting (Ryczałt ewidencjonowany) – tax is calculated based on a fixed percentage of income without considering actual expenses.
- Tax Card (Karta podatkowa) – suitable for certain types of activities, allowing the payment of a fixed tax regardless of turnover.
2. Full Accounting (Pełna księgowość)
This type of accounting is mandatory for companies with an annual turnover exceeding the equivalent of 2 million euros, as well as for legal entities such as limited liability companies and joint-stock companies. Full accounting involves detailed tracking of all financial transactions, preparation of a balance sheet, profit and loss statement, and other essential documents.
Get a free consultation
Submit your request, and we will help you navigate the complexities of legalizing your stay, employment, and business registration in Poland. Our team of experts is ready to answer your questions, assess your situation, and suggest the best course of action to achieve your goals. Fill out the form, and we will contact you at a convenient time.
Requirements for Accounting
Polish law allows business owners to manage accounting independently, making it accessible even to novice entrepreneurs. However, the responsibility for data accuracy and timely submission of reports lies entirely with the business owner.
To reduce risks and simplify the process, many companies prefer:
- Hiring professional accounting firms;
- Employing in-house accountants;
- Using specialized accounting software for record-keeping and reporting.
Electronic Systems and Innovations
Since 2024, Poland introduced the electronic invoicing system (KSeF). This innovation aims to simplify document management and enhance the transparency of financial transactions. Entrepreneurs are now required to use digital tools for generating and submitting documents to tax authorities.
To comply with KSeF, companies need to:
- Update their accounting software;
- Train staff to work with the new system;
- Regularly synchronize data with tax authorities.
Choosing Between In-House Accounting and Outsourcing
Small and medium-sized enterprises often opt for outsourcing accounting services as a more cost-effective and convenient option. Key benefits of outsourcing include:
- Lower costs compared to maintaining an in-house accountant;
- Access to experts in tax legislation;
- Reduced risks of fines for reporting errors.
Large companies usually prefer hiring in-house accountants to better control financial processes and address tasks promptly.
Get a free consultation
Submit your request, and we will help you navigate the complexities of legalizing your stay, employment, and business registration in Poland. Our team of experts is ready to answer your questions, assess your situation, and suggest the best course of action to achieve your goals. Fill out the form, and we will contact you at a convenient time.
Penalties for Violations
Failure to comply with accounting or tax legislation in Poland may result in significant fines. Common reasons for penalties include:
- Late submission of reports;
- Errors in tax calculations;
- Improper use of the KSeF system.
To avoid issues, it is important to:
- Stay updated on tax legislation changes;
- Use reliable accounting software;
- Consult professionals when needed.
Recommendations for Managing Accounting in Poland
- Choose the appropriate accounting system. If you are starting a business, a simplified system can help minimize costs. However, as your turnover grows, consider transitioning to full accounting.
- Stay informed about legislative changes. Polish tax regulations are frequently updated, so staying up-to-date is crucial.
- Leverage modern tools. Accounting software helps automate processes and prevent errors.
- Trust professionals. For complex operations or a lack of experience, it is better to seek advice from qualified professionals, such as ERA Consulting.
Accounting in Poland demands attention to detail and knowledge of local legislation. Regardless of the chosen system, ensuring data accuracy and timely report submission is essential. Modern digital tools and professional assistance can help optimize the process and minimize risks, laying the groundwork for financial stability and the successful growth of your business.