Responsibilities for Accounting for Companies in Poland: A Comprehensive Overview

Entering a foreign market requires careful study of local legislation. In Poland, special attention should be paid to accounting, which directly affects the financial condition of a company. This includes payroll, tax reporting, and the registration of turnover (quarterly and annual). Professional accounting in Poland requires knowledge of the Polish language and legislation, as well as the use of specialized licensed software.

Main Types of Accounting in Poland

In Poland, there are three main types of accounting:

• Financial Accounting: Reflects the results of a company’s activities. It is a collection of information about the financial status of a company. It is conducted to verify the results with current legislation and compliance with established national standards. The data obtained is public.
• Tax Accounting: Used to account for all objects/subjects (both individuals and legal entities) that fall under the category of “taxable.” This is done in accordance with Polish tax law, which differs from the legislation of other countries. Simply put, tax accounting forms the tax base of a subject.
• Management Accounting: Used to study the overall financial situation of a company or individual. It only includes data that truly reflects the current situation, such as incurred losses. Based on the results, a strategy is developed to adjust indicators if necessary.

What is Included in Accounting in Poland

In Poland, both individual entrepreneurs and limited liability companies (sp. z o.o.) are required to maintain accounting records. For individual entrepreneurs, a simple income and expense book is sufficient, while sp. z o.o. must maintain full accounting records and submit corresponding reports. This includes:

• Choosing a taxation system: general tax, linear tax, lump-sum tax, or tax card.
• Preparing and maintaining income and expense books.
• Preparing tax declarations.
• Making contributions to relevant funds (e.g., ZUS).
• Preparing VAT, PIT, and CIT reports.
• Preparing income tax declarations.

Accounting in Poland is regulated by strict laws and rules. Non-compliance can lead to significant fines and other sanctions. Below is a comprehensive overview of the main responsibilities for accounting for companies operating in Poland.

1. Choosing the Accounting Form

The first step is to determine the accounting form suitable for your company. The choice depends on the size and type of business, as well as turnover. There are three main forms:

• Księga Przychodów i Rozchodów (KPiR) – Book of Income and Expenses: A simplified accounting form suitable for small companies with turnover not exceeding a certain limit (in 2025, this limit is PLN 2,000,000). This method requires less documentation but provides limited analysis capabilities.
• Podatkowa Księga Przychodów i Rozchodów (PKPiR) – Tax Book of Income and Expenses: A more detailed version of KPiR, which also has a turnover limit.
• Pełna księgowość (Full Accounting): Required for companies whose turnover exceeds the legal limit (in 2025, this limit is PLN 2,000,000). Full accounting involves a more complex system, including the creation of balance sheets, profit and loss statements, and other financial reports.

2. Documentation

Regardless of the chosen accounting form, companies are required to maintain thorough documentation of all financial transactions. This includes:

• Invoices (faktury) – issued and received for all goods and services.
• Receipts (paragon) – for small amounts where an invoice is not required.
• Bank statements – confirming all bank transactions.
• Cash reports – reflecting all cash transactions.
• Other documents – such as contracts, work completion certificates, etc.

IMPORTANT! All documents must be stored for the legally required period (usually 5 years).

3. Reporting Deadlines

Reporting deadlines depend on the chosen accounting form and tax period. The main deadlines include:

• Monthly reporting (for some taxes) – e.g., VAT is usually submitted monthly.
• Quarterly reporting – for some taxes, e.g., CIT (corporate income tax) for companies using a simplified tax system.
• Annual reporting – includes annual financial statements, tax declarations (PIT, CIT, VAT, etc.), and other required documents. Annual reporting deadlines are set by law.

4. Tax Obligations

Companies are required to pay various taxes, including:

• Income tax (CIT or PIT) – depends on the legal form of the company.
• Value-added tax (VAT) – levied on most goods and services.
• Property tax – for companies owning real estate.
• Other taxes – may apply depending on the type of business.

5. Accounting Management

A company can manage its accounting independently or hire an accountant or accounting firm. Regardless of the choice, the responsibility for the accuracy of the accounting lies with the company itself. Regular audits are recommended to prevent errors and issues with the tax office.

Accounting in Poland is a complex process that requires knowledge of legislation and relevant experience. Non-compliance with the rules can lead to serious consequences. It is recommended to consult a qualified accountant or accounting firm for professional assistance and to ensure compliance with all legal requirements.

If you have any questions, please write to us at office@progressholding.pl.