What is full accounting in Poland, and who does it apply to?

Is your company ready for full accounting in Poland? Or have you just reached a threshold that obliges you to change your record-keeping system? Full accounting is a subject that can raise concerns, but at the same time it is the key to more transparent management of a company’s finances in Poland. It is worth finding out exactly what this system is and who needs to use it.

What is full accounting in Poland?

Full accounting in Poland is a record-keeping system that accurately records every financial transaction within a company. Under Polish regulations, every entrepreneur must maintain records of their business activities. This means all businesses registered as commercial companies, civil law partnerships, or legal entities are obligated to maintain records of income, expenses, and financial results.
In practice, entrepreneurs in Poland have two options:

Simplified accounting – for smaller businesses, such as sole proprietors, who have not exceeded a certain revenue threshold.
Full accounting – a more complex system requiring detailed records of all financial operations, in accordance with the Accounting Act in Poland.

For larger businesses with higher revenues, full accounting becomes mandatory.

Who is subject to full accounting in Poland?

Full accounting is obligatory for:

Limited liability companies (sp. z o.o.)
Joint-stock companies
Limited partnerships
Limited joint-stock partnerships

But that’s not all. Even if you are a sole proprietorship (JDG), you may be required to change to full accounting if your annual revenues exceed €2,000,000 (approximately PLN 8.55 million at the December 2024 exchange rate).

Additionally, transforming a sole proprietorship into a company also requires switching to full accounting. So if your business grows and exceeds the revenue threshold, full accounting becomes inevitable.

What elements are included in full accounting?

Full accounting in Poland is not just bookkeeping. It requires detailed documentation and records, including:

Journal – a record of all economic operations in chronological order.
General ledger – a register of all financial transactions.
Subsidiary ledgers – used for recording more detailed data.
Trial balances – summaries of balances from both general and subsidiary ledgers.
Inventory – a listing of the company’s assets and liabilities.

Each accounting record must include the transaction date, the identification number of the accounting entry, transaction amount, and a detailed description. These records must be permanent and unchangeable so that they can be easily verified.

Full accounting – for whom?

While full accounting is mandatory for many large businesses in Poland, any company can opt for this system, even if they do not meet the revenue thresholds. If you decide to implement full accounting in Poland, you must notify the tax office or update your entry in the Central Registration and Information on Business (CEIDG) before the start of the new financial year.

However, it is worth remembering that full accounting is complex and time-consuming. It involves a lot of responsibilities, which is why many entrepreneurs in Poland choose to work with accounting office or hire a professional accountants to avoid costly mistakes.

If you are required to maintain full accounting in Poland or plan to establish a company that will be subject to this obligation, we encourage you to contact us via the contact form. Our team will be happy to provide support, answer your questions, and present the best solutions tailored to your needs in Poland.

Summary – tips for entrepreneurs in Poland

Change to full accounting when your annual revenue exceeds €2,000,000. This is a legal requirement, failure to comply with which can result in financial sanctions.
Choose full accounting if you want detailed financial control. This system allows precise monitoring of costs, revenues, and profits, facilitating budget planning and strategic decision-making.
Use the services of a professional accounting office in Poland. An experienced accountant ensures compliance with regulations and identifies opportunities to optimize costs or improve profitability.
Use full accounting to prepare for tax audits. Thanks to detailed reports and records, you will avoid problems during verification by the authorities.
Don’t wait with the decision if your company is growing rapidly. With the increase in revenue and complexity of financial operations, full accounting becomes a key tool in maintaining business stability.

If you have any further questions or require additional information, please contact your business relationship person or use the enquiry form on the HLB Poland website.

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