Accounting services, accountant in Poland, accounting for companies and entrepreneurs
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Bookkeeping and accountant in Poland
Accounting in Poland is progressive and modern, taking into account the constant changes in public relations and new technologies.
Accounting in Poland is regulated by the Commercial Code of 1934. New informational achievements for documentation are being implemented remotely. The second legal source is the Accounting Law of 1994, which regulates the procedure and conditions for reporting and auditing. The law determines: the content of accounting, inventory procedures, valuation of assets and liabilities, determination of financial results, compilation of company reports, specifics of reporting by corporate structures, audit of reporting, conditions for publication of reports, organization of archives of accounting documents, liability for violation of the law, and more. The main taxes in Poland: corporate income tax (CIT) and individuals (PIT), value added tax (VAT). The Accounting Law gives each organization the right to have a personal chart of accounts. Organizations may apply standard plans of accounts, which are developed by the Securities Commission for companies listed on the stock exchange and the Ministry of Finance for other organizations.
Simplified financial statements can be applied in companies for which indicators are not exceeded:
- the average number is 50;
- the value of the company’s net assets at the end of the reporting year is 1 000 000 euros;
- net proceeds from the sale of products and other business operations for the year – 2 000 000 euros.
The company’s financial statements consist of a balance sheet, a profit and loss report and additional information. Also, firms (with the exception of small ones) are required to prepare a cash flow statement. The board of directors of any firm should prepare an annual report on the activities of the enterprise.
Assets of enterprises out of circulation:
- tangible assets: buildings, structures, mechanisms and equipment, vehicles and others. The expected period of their use should be more than one year. These assets are used by the firm or under contracts by other firms. This group also includes property that is not the property of the organization (financial lease).
- intangible assets: rights of an enterprise to property purchased and used for profit. Includes joint ownership of real estate rights, copyrights, inventions, patents, trademarks and other rights with a useful period of validity of more than one year, which are used by companies for the right of use or under contracts. Intangible assets include: organizational costs associated with the establishment or further development of the company; goodwill; costs of development and modernization of the company.
When drawing up a report on profits and losses, it is possible to use alternative formats for calculating profit and loss: profit from sales; cost of goods sold; gross income; implementation and management costs; profit from sales; other income and expenses; profit and profit from production activities; other income and expenses from financial activities; gross profit or loss from economic activity; unexpected gains and losses; obligatory payments. The cash flow statement includes cash flow information from operating activities, investment and financial activities; changes in the value of monetary assets; their size at the beginning and end of the fiscal year. In addition to traditional accounting reporting forms, the board of firms of all forms of ownership is required to submit an administrative report on the results of the company’s activities for the financial year. The report consists of four sections: major events, including actual capital investments that have a significant impact on the performance of the company in the reporting fiscal year or expected in the next; the planned reconstruction and modernization of the company; major advances in science and technology; current and projected financial condition of the company. Annual accounting statements and decisions on its approval made at the general meeting of shareholders, the procedure for distributing net profit and writing off losses, the annual report of the company’s administration, and the audit report (if the company is subject to mandatory audit) are subject to judicial or commercial registration. Small private firms are exempt from reporting. Consolidated financial statements are required to form financial groups, including the main company, subsidiaries and affiliates.
The activity of auditors in Poland has been regulated by the Law since 1991, which establishes, among other things, the National Chamber of Auditors-experts. To register you must have a higher education; continuous professional practice over the past two years, a document on training under the guidance of an expert auditor and being tested).