If you run a limited liability company (sp. z o.o.), joint-stock company, or limited partnership in Poland – you must use full accounting. You have no choice, regardless of revenue. Simplified accounting (KPiR or lump sum) is only available for sole proprietorships and certain partnerships. In 2026, the threshold for switching to full accounting for these entities is PLN 10,646,500 in net revenue for 2025.
Who must use full accounting in 2026?
Full accounting is mandatory for all capital companies and certain partnerships – regardless of revenue amount. The legal form of your business determines the obligation.
Entities required to use full accounting regardless of revenue
- Limited liability companies (sp. z o.o.)
- Joint-stock companies (S.A.)
- Simple joint-stock companies (P.S.A.)
- Limited partnerships (sp.k.)
- Limited joint-stock partnerships (S.K.A.)
These entities cannot use the Revenue and Expense Ledger (KPiR) or lump-sum taxation. The obligation for full accounting arises at the moment of company registration in the National Court Register (KRS). This results from Article 2(1)(1) of the Accounting Act.
Entities that switch to full accounting after exceeding the threshold
- Natural persons conducting business activity (sole proprietorship)
- Civil partnerships of natural persons
- General partnerships of natural persons
- Professional partnerships
These entities can use simplified accounting until they exceed the revenue threshold. At Progress Holding, we help clients choose the optimal legal form for their business, including accounting obligations.
What is the full accounting threshold for 2026?
The revenue threshold determining the obligation to use full accounting in 2026 is PLN 10,646,500. This equals EUR 2,500,000 converted at the NBP exchange rate from October 1, 2025.
| Year of book obligation | Threshold in EUR | NBP exchange rate | Threshold in PLN |
|---|---|---|---|
| 2025 | €2,500,000 | 4.2846 PLN (Oct 1, 2024) | PLN 10,711,500 |
| 2026 | €2,500,000 | 4.2586 PLN (Oct 1, 2025) | PLN 10,646,500 |
If your net sales revenue for 2025 reaches or exceeds PLN 10,646,500 – from January 1, 2026, you must use full accounting. Only revenue from sales of goods and products is counted, excluding VAT.
What is the difference between full and simplified accounting?
Full accounting requires recording all business transactions, preparing financial statements, and complying with the Accounting Act. KPiR is a simpler form – you only record taxable revenues and costs.
| Criterion | Full accounting | KPiR (simplified) |
|---|---|---|
| Legal basis | Accounting Act | Ministry of Finance regulation |
| Scope of records | All business transactions | Tax revenues and costs |
| Financial statements | Mandatory (balance sheet, P&L) | None |
| Complexity | High | Low |
| Monthly service cost | PLN 800–3,000+ | PLN 200–600 |
| Form from 2026 | Electronic | Electronic (mandatory) |
What does full accounting include?
- General and subsidiary ledgers
- Journal of transactions
- Trial balance
- Balance sheet and profit and loss statement
- Additional information to financial statements
- Fixed assets register with depreciation
What does KPiR include?
- Revenue records
- Tax-deductible expense records
- Fixed assets register
- Equipment register
How much does full accounting vs KPiR cost?
Full accounting is significantly more expensive. The average cost of accounting services for an LLC is PLN 800–2,000 per month. For KPiR, you’ll pay PLN 200–500 monthly.
The difference results from the workload. Full accounting requires recording every transaction in accounts, reconciling balances, and preparing statements. KPiR mainly involves entering invoices and monthly summaries.
Additional costs with full accounting
- Annual financial statement preparation: PLN 500–2,000
- Statutory audit by certified auditor (when required): PLN 5,000–20,000
- Filing statements with KRS: free electronically
At Progress Holding, we offer full accounting services for LLCs starting from PLN 990 net per month. The price depends on the number of documents and complexity of operations. Contact us for an individual quote.
What are the advantages of full accounting?
Full accounting provides a complete picture of your company’s financial situation. It facilitates obtaining loans, attracting investors, and making strategic decisions.
- Financial transparency – you see assets, liabilities, receivables, and payables
- Bank credibility – financial statements are standard loan documentation
- Easier investor acquisition – investors require balance sheet data
- Liquidity control – you analyze cash flows
- Tax optimization possibilities – more tools (provisions, accruals)
Can you voluntarily choose full accounting?
Yes. Any entrepreneur can voluntarily switch to full accounting, even without exceeding the revenue threshold. You only need to notify the tax office.
Voluntary full accounting makes sense when you plan rapid company growth, seek investors, or plan to transform into a capital company. The decision must be made before the start of a new fiscal year.
What changes in accounting from 2026?
From January 1, 2026, KPiR must be kept exclusively in electronic form. This is a mandatory requirement under the new Ministry of Finance regulation. Paper books are history.
Key changes from 2026
- Mandatory electronic form for KPiR
- New JPK files for CIT and PIT taxpayers
- Extended data in accounting books with KSeF tags
- Digitization of communication with authorities (e-Delivery)
Companies using full accounting must additionally include invoice numbers from the National e-Invoice System (KSeF) in their accounting records.
What does it look like in practice? Progress Holding experience
Based on an analysis of over 400 companies we serve at Progress Holding, we identified typical problems when choosing an accounting form.
Most common mistakes our clients make
- Establishing an LLC without awareness of accounting costs – 40% of foreign clients don’t know that an LLC requires full accounting. They expect costs like those for sole proprietorship.
- Not monitoring the revenue threshold – entrepreneurs using KPiR don’t track approaching the EUR 2.5 million threshold. They learn about the change obligation too late.
- Confusing legal forms – some clients establish a general partnership with a company as partner, thinking they’ll avoid full accounting. Such a structure requires accounting books.
- Underestimating transition time – switching from KPiR to full books requires opening a balance sheet, asset valuation, and system configuration. You need at least 2-3 months of preparation.
Our recommendations
If your revenues exceed PLN 5 million annually – consider voluntarily switching to full accounting. Prepare your company for the inevitable change. If you run a simple service business with revenues under PLN 2 million – stay with KPiR and consider lump-sum taxation if you have low costs.
At Progress Holding, we help clients plan the transition timing and manage the entire process. We handle opening the balance sheet, data migration, and training on the new system.
Frequently asked questions
Can an LLC use KPiR?
No. A limited liability company must use full accounting from the first day of operation. The legal form excludes simplified accounting, regardless of revenue.
When must I switch to full accounting?
The switch occurs from January 1 of the year following the year you exceeded the threshold. If your revenues exceed PLN 10,646,500 in 2025 – from January 1, 2026, you must keep full books.
Which revenues count toward the threshold?
You count net revenues from sales of goods and products (excluding VAT). Financial operation revenues, subsidies, and other operating revenues are not included.
Can I return from full accounting to KPiR?
Yes, if your revenues fall below the threshold. You can return to KPiR from the new fiscal year. However, you must close the accounting books and prepare liquidation statements.
How long does the transition to full accounting take?
The transition process takes 2-3 months. It includes opening the balance sheet, asset valuation, chart of accounts configuration, and data migration. Start preparations no later than October of the year before the change.
Can I keep full accounting for an LLC myself?
Theoretically yes, but we don’t recommend it. Full accounting requires specialized knowledge of accounting and tax law. Errors can result in high penalties. It’s safer to entrust accounting to professionals.
Which form is better for your company?
The choice of accounting form depends on your business’s legal form, revenue scale, and growth plans. Capital companies have no choice – they must use full accounting. Sole proprietorships and partnerships should stay with KPiR as long as possible – it’s cheaper and simpler.
Need help choosing a legal form or managing accounting? Contact Progress Holding. We serve LLCs, sole proprietorships, and partnerships. We specialize in serving foreigners doing business in Poland. Call +48 603 232 418 or email office@progressholding.pl.
