- Accounting report for Individual entrepreneurs in Poland
- Main features of accounting for PE
- What accountant is considered to be a professional?
- Advantages of cooperating with a freelance accountant
- There are 2 main accounting systems in Poland: simplified (Księgowość uproszczona) and complex (Pełna księgowość);
- From 2024 an electronic invoice system (KSeF) will be introduced in the country;
- The fine for tax offense can range from PLN1,414 to PLN40,723,200;
- Until 2014, one specialists with a certificate issued by the Ministry of Finance could provide accounting services;
- It is important to find an accounting firm that has experience in accounting and reporting in your field.
Poland represents a field of opportunities for entrepreneurs due to its dynamic economy and entrepreneurial environment, predominantly in the IT field. However, successful business conduct requires strict compliance with local legislative and regulatory acts, especially in the field of legalization and accounting. Based on our experience, we can affirm that in recent years taxpayers have found it difficult to navigate the multitude of tax innovations and rules. The year 2024 will not be an exception (more about this in the article).
Therefore, we strongly recommend using the services of an accountant who has experience working with companies in the same field as you do. The one is fluent in Polish, and is up to date with new requirements for accounting and taxation.
In this article, we will consider the key aspects of accounting, specific to IT entrepreneurs in Poland, and discuss the advantages of freelance accountants and accounting outsourcing, as well as the nuances and peculiarities that entrepreneurs face.
Accounting report for Individual entrepreneurs in Poland
There are two main accounting systems in Poland1:
- simplified (Księgowość uproszczona);
- complex (colloquially called księgi rachunkowe or pełne księgi).
The simplified system is suitable for small businesses and individual entrepreneurs, while the complex system is suitable for large and medium-sized companies. Both formats have their own features, and when choosing between them, consider the unique needs of your business, forms of activity, and annual turnover of funds.
Simplified accounting does not require keeping a full accounting book, allows the use of simple solutions for registration and submission of financial reports to tax inspections. It comes in three forms:
- Revenue and expense book (księga przychodów i rozchodów)2;
- Fixed rate (ryczałt ewidencjonowany);
- Tax card (karta podatkowa).
The main limitation of using simplified accounting is the statutory revenue threshold (including tax amount) from the sale of goods, products, and financial operations for the previous financial year, which is equivalent to 2,000,000 euros. Exceeding this threshold requires full accounting.
You can voluntarily choose complex accounting, and some entrepreneurs are required to keep it in accordance with current legislation. Full accounting is mandatory for limited liability partnerships, limited liability joint-stock partnerships, joint-stock companies and limited liability companies, as well as companies that have reached income of at least 2,000,000 euros per year. According to the Income Tax Act and the Accounting Act, the corresponding conversion of the limit of 2,000,000 euros into zlotys is based on the average exchange rate announced by the National Bank of Poland on the first working day of October of the previous year.
All entrepreneurs need to understand that their accounting must meet the requirements not only of local, but also European legislation. The annual report and balance sheet are the main components of accounting reporting, which should include data on income, expenses, and tax liabilities3.
Individual entrepreneurs and firms are obliged to submit reports in accordance with established deadlines to avoid fines and negative consequences.
Additionally, one of the key changes in 2024 will be the introduction of the e-Faktur (KSeF)4 system in the country, which will require significant changes in billing processes from companies. From this time on, billing will mainly occur through a specialized platform, requiring the adaptation of systems and internal company processes.
Main features of accounting for PE
A key point is to comply with tax obligations. Proper accounting ensures timely and accurate tax payments. Non-compliance with deadlines or errors in reporting can lead to financial audits, criminal liability, and loss of trust from administrative authorities.
Financial transparency should not be neglected, as it will be an important indicator when interacting with partners, investors, and banks that assess the financial condition of your business.
In Poland in 2024, fines for tax offenses, including both tax misdemeanors and tax crimes, vary and depend on many factors, including the minimum wage.
For tax offenses, a fine can be imposed within the range of one-tenth to twenty times the minimum wage. If the action that led to a reduction in public tax revenues does not exceed five times the minimum wage, it is considered an offense.
- Until June 30, 2024, this limit is PLN21,210;
- From July 1, 2024 – PLN21,500.
In the case of tax crimes, the court determines the number of daily tariffs and the size of one daily tariff, taking into account the offender’s income, his personal circumstances, and financial situation. The daily tariff cannot be lower than one-thirtieth of the minimum wage. In the first half of 2024, the lower limit of the daily tariff is PLN141.40, and the upper – PLN56,560. In the second half, respectively, PLN143.33 and PLN57,332. The final fine for a tax crime can range from PLN1414 to PLN40,723,200 in the first half of 2024 and from PLN1433.30 to PLN41,279,040 in the second half7 8.
What accountant is considered to be a professional?
Until 2014, one could only work in the field of accounting after receiving a certificate issued by the Ministry of Finance, and this certificate confirms that the person has sufficient qualifications and experience as an accountant and auditor.
Accountants, certified by the Ministry of Finance, and who have previously received such a certificate, confirm their qualification, suitability for the profession, and have at least 10 years of experience as an accountant and auditor in Poland.
Such a specialist is capable not only of efficiently managing your finances but also providing expert advice. This can help avoid undesirable situations and minimize risks for your business.
The language barrier can also be a problem, so it is important to ensure the presence of an interpreter or accountant with the necessary language skills. One of the important aspects is the difficulty in interpreting tax legislation, regular changes in tax policy, and limited resources to maintain up-to-date knowledge in this area. That’s why Moja Firma constantly invests in training its specialists, as well as investing in other, often digital tools, to make work easier.
Advantages of cooperating with a freelance accountant
For individual entrepreneurs and firms, an external accountant can become a reliable partner in conducting business. They will be responsible for the correct conduct of accounting, communication with the tax inspection and ZUS, and be responsible for tax audits. And here we are talking not only about fines, but also about precious time that the entrepreneur will save.
However, when choosing an outsourcing partner, it is important to pay special attention to their reputation and experience working with individual entrepreneurs in different IT spheres.
Both entrepreneurs and accountants without a focus on a particular industry are not efficient and often make mistakes that can be costly in the future. Our recommendation is as follows: if you manage a restaurant, turn to an accountant who works specifically with restaurants. If you are engaged in the field of international and multivalued IT, choose an accountant who deals only with this – for example, Polish specialists from Moja Firma.
We have the necessary knowledge and experience to ensure accurate and timely accounting, as well as quick consultation on any issues. We have implemented a customer support system helpdesk, which the client can use to ask questions, and our employees from the customer department provide detailed answers. All communication is conducted within the system, through tickets.
The choice of a company that will assist you in accounting in Poland should, first of all, be based on the needs of your business, as well as on the competence of the accounting firm in a particular field. In any case, the key factor remains strict compliance with legislation and work with qualified specialists. It is here that the Moja Firma company can become a reliable partner, as over more than 12 years of practice we have accumulated valuable experience, as well as developed a comfortable and easy-to-learn product for managing accounting for you and your company. Contact us using the form below, and we will provide prompt consultation for your business in Poland.