{"id":5578,"date":"2025-11-15T12:00:46","date_gmt":"2025-11-15T11:00:46","guid":{"rendered":"https:\/\/progressholding.pl\/pl\/?p=5578"},"modified":"2025-11-14T15:39:58","modified_gmt":"2025-11-14T14:39:58","slug":"kasowe-i-memorialowe-rozliczanie-kosztow-w-2026-roznice-i-konsekwencje","status":"publish","type":"post","link":"https:\/\/progressholding.pl\/en\/cash-and-accrual-accounting-for-expenses-in-2026-differences-and-consequences\/","title":{"rendered":"Cash and accrual accounting for expenses in 2026 \u2013 differences and consequences"},"content":{"rendered":"<p><\/p>\n<article>\n<p>Starting from 2026, the revenue threshold allowing cash-basis accounting will increase from 1 million to 2 million zloty. This means a&nbsp;larger group of entrepreneurs will be able to choose cash-basis accounting instead of accrual accounting. Each method has different consequences for your company&#8217;s cash flow and tax payment timing.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/progressholding.pl\/en\/cash-and-accrual-accounting-for-expenses-in-2026-differences-and-consequences\/#whats-the-difference-between-cash-and-accrual-accounting\" >What&#8217;s the difference between cash and accrual accounting?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/progressholding.pl\/en\/cash-and-accrual-accounting-for-expenses-in-2026-differences-and-consequences\/#cash-basis-accounting-%e2%80%93-simplified\" >Cash-basis accounting \u2013 simplified<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/progressholding.pl\/en\/cash-and-accrual-accounting-for-expenses-in-2026-differences-and-consequences\/#accrual-accounting\" >Accrual accounting<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/progressholding.pl\/en\/cash-and-accrual-accounting-for-expenses-in-2026-differences-and-consequences\/#who-can-choose-cash-basis-accounting-in-2026\" >Who can choose cash-basis accounting in 2026?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/progressholding.pl\/en\/cash-and-accrual-accounting-for-expenses-in-2026-differences-and-consequences\/#when-cash-basis-accounting-doesnt-work-%e2%80%93-key-exclusions\" >When cash-basis accounting doesn&#8217;t work \u2013 key exclusions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/progressholding.pl\/en\/cash-and-accrual-accounting-for-expenses-in-2026-differences-and-consequences\/#transactions-excluded-from-cash-basis-accounting\" >Transactions excluded from cash-basis accounting<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/progressholding.pl\/en\/cash-and-accrual-accounting-for-expenses-in-2026-differences-and-consequences\/#how-do-you-account-for-expenses-at-year-end\" >How do you account for expenses at year-end?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/progressholding.pl\/en\/cash-and-accrual-accounting-for-expenses-in-2026-differences-and-consequences\/#example-company-vehicle-insurance\" >Example: Company vehicle insurance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/progressholding.pl\/en\/cash-and-accrual-accounting-for-expenses-in-2026-differences-and-consequences\/#direct-vs-indirect-expenses-in-accrual-accounting\" >Direct vs. indirect expenses in accrual accounting<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/progressholding.pl\/en\/cash-and-accrual-accounting-for-expenses-in-2026-differences-and-consequences\/#what-are-the-consequences-of-incorrect-expense-accounting\" >What are the consequences of incorrect expense accounting?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/progressholding.pl\/en\/cash-and-accrual-accounting-for-expenses-in-2026-differences-and-consequences\/#possible-consequences\" >Possible consequences<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/progressholding.pl\/en\/cash-and-accrual-accounting-for-expenses-in-2026-differences-and-consequences\/#which-method-is-better-for-your-business\" >Which method is better for your business?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/progressholding.pl\/en\/cash-and-accrual-accounting-for-expenses-in-2026-differences-and-consequences\/#cash-basis-accounting-works-best-when\" >Cash-basis accounting works best when:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/progressholding.pl\/en\/cash-and-accrual-accounting-for-expenses-in-2026-differences-and-consequences\/#accrual-accounting-is-better-when\" >Accrual accounting is better when:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/progressholding.pl\/en\/cash-and-accrual-accounting-for-expenses-in-2026-differences-and-consequences\/#how-does-this-work-in-practice-progress-holding-experience\" >How does this work in practice? Progress Holding experience<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/progressholding.pl\/en\/cash-and-accrual-accounting-for-expenses-in-2026-differences-and-consequences\/#frequently-asked-questions\" >Frequently asked questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/progressholding.pl\/en\/cash-and-accrual-accounting-for-expenses-in-2026-differences-and-consequences\/#can-i-switch-accounting-methods-mid-year\" >Can I switch accounting methods mid-year?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/progressholding.pl\/en\/cash-and-accrual-accounting-for-expenses-in-2026-differences-and-consequences\/#what-if-my-revenue-exceeds-2-million-zloty-during-the-year\" >What if my revenue exceeds 2 million zloty during the year?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/progressholding.pl\/en\/cash-and-accrual-accounting-for-expenses-in-2026-differences-and-consequences\/#does-cash-basis-accounting-apply-to-vat\" >Does cash-basis accounting apply to VAT?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/progressholding.pl\/en\/cash-and-accrual-accounting-for-expenses-in-2026-differences-and-consequences\/#how-do-i-account-for-an-invoice-received-while-using-cash-accounting-but-paid-after-switching-to-accrual-accounting\" >How do I account for an invoice received while using cash accounting but paid after switching to accrual accounting?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/progressholding.pl\/en\/cash-and-accrual-accounting-for-expenses-in-2026-differences-and-consequences\/#can-a-civil-partnership-partner-use-cash-basis-accounting\" >Can a&nbsp;civil partnership partner use cash-basis accounting?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/progressholding.pl\/en\/cash-and-accrual-accounting-for-expenses-in-2026-differences-and-consequences\/#do-i-have-to-pay-for-changing-accounting-methods\" >Do I have to pay for changing accounting methods?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"whats-the-difference-between-cash-and-accrual-accounting\"><\/span>What&#8217;s the difference between cash and accrual accounting?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The basic difference lies in when you record expenses in the books. Cash-basis accounting lets you deduct an expense only after actually paying the invoice. Accrual accounting requires you to record the expense when the invoice is issued, regardless of whether you&#8217;ve paid it.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"cash-basis-accounting-%e2%80%93-simplified\"><\/span>Cash-basis accounting \u2013 simplified<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In cash-basis accounting, you record expenses on the day they occur, usually on the invoice or receipt date. You don&#8217;t divide expenses into direct and indirect. You enter all expenses at once in the tax book of revenues and expenditures.<\/p>\n<ul>\n<li>You record expenses on the document issue date<\/li>\n<li>No distinction between direct and indirect expenses<\/li>\n<li>Year-end expenses are entered in a&nbsp;single entry<\/li>\n<li>Easier bookkeeping and fewer formalities<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"accrual-accounting\"><\/span>Accrual accounting<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Accrual accounting requires you to divide all expenses into direct and indirect. Direct expenses are those linked to a&nbsp;specific revenue \u2013 for example, purchasing inventory for resale. Indirect expenses relate to the general operation of your business.<\/p>\n<ul>\n<li>You record direct expenses in the year you earned the related revenue<\/li>\n<li>You allocate indirect expenses proportionally to the period they cover<\/li>\n<li>Year-end expenses require proportional allocation<\/li>\n<li>More detailed bookkeeping, higher formal requirements<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"who-can-choose-cash-basis-accounting-in-2026\"><\/span>Who can choose cash-basis accounting in 2026?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>From January 2026, you can use cash-basis accounting if your 2025 revenue didn&#8217;t exceed 2 million zloty. This doubles the current 1 million zloty threshold.<\/p>\n<p>Additional conditions include:<\/p>\n<ul>\n<li>You operate a&nbsp;sole proprietorship (you can employ workers)<\/li>\n<li>You didn&#8217;t keep double-entry accounting books<\/li>\n<li>You submitted a&nbsp;written declaration to the tax office by February 20, 2026<\/li>\n<\/ul>\n<p>Cash-basis PIT is available to entrepreneurs reporting under the progressive tax scale, flat tax, or lump-sum tax. If you start business activities during the year, you submit your declaration by the 20th day of the month following the month you start.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"when-cash-basis-accounting-doesnt-work-%e2%80%93-key-exclusions\"><\/span>When cash-basis accounting doesn&#8217;t work \u2013 key exclusions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Cash-basis accounting has significant limitations. You can&#8217;t apply it to all transactions.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"transactions-excluded-from-cash-basis-accounting\"><\/span>Transactions excluded from cash-basis accounting<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<thead>\n<tr>\n<th>Transaction type<\/th>\n<th>Accounting rule<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Sale and purchase of fixed assets<\/td>\n<td>Always accrual accounting with depreciation<\/td>\n<\/tr>\n<tr>\n<td>Intangible and intellectual property<\/td>\n<td>Always accrual accounting<\/td>\n<\/tr>\n<tr>\n<td>Transactions with individuals (B2C)<\/td>\n<td>Standard accrual accounting<\/td>\n<\/tr>\n<tr>\n<td>Related-party transactions<\/td>\n<td>Accrual accounting<\/td>\n<\/tr>\n<tr>\n<td>Transactions with tax haven entities<\/td>\n<td>Accrual accounting<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Cash-basis accounting applies only to business-to-business transactions (B2B) documented with invoices. If you sell goods or services to private individuals, you must report revenue when the invoice is issued or payment is received, following standard rules.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"how-do-you-account-for-expenses-at-year-end\"><\/span>How do you account for expenses at year-end?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Invoices issued at year-end are a&nbsp;common trap in accounting. How you record them depends on your chosen method.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"example-company-vehicle-insurance\"><\/span>Example: Company vehicle insurance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>You received an invoice in December 2025 for vehicle liability insurance costing 2,400 zloty. The policy covers January through December 2026.<\/p>\n<p><strong>Cash-basis method:<\/strong> You record the full 2,400 zloty expense in December 2025, on the invoice date. You don&#8217;t divide the expense by periods.<\/p>\n<p><strong>Accrual method:<\/strong> You must allocate the expense proportionally. In December 2025, you record 0 zloty (the policy only applies to 2026). You record the full 2,400 zloty in 2026, either proportionally at 200 zloty per month or in one entry in January 2026.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"direct-vs-indirect-expenses-in-accrual-accounting\"><\/span>Direct vs. indirect expenses in accrual accounting<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If you use accrual accounting, you must classify every expense.<\/p>\n<p><strong>Direct expenses<\/strong> \u2013 linked to specific revenue:<\/p>\n<ul>\n<li>Inventory purchases<\/li>\n<li>Production materials<\/li>\n<li>Subcontractor costs for specific projects<\/li>\n<li>Production worker wages<\/li>\n<\/ul>\n<p><strong>Indirect expenses<\/strong> \u2013 linked to general business operations:<\/p>\n<ul>\n<li>Office rent<\/li>\n<li>Utility bills (electricity, internet)<\/li>\n<li>Business insurance<\/li>\n<li>Marketing expenses<\/li>\n<li>Company vehicle fuel<\/li>\n<\/ul>\n<p>You record direct expenses in the year you earned the related revenue. If you bought inventory in November 2025 and sold it in January 2026, you record the purchase cost in 2026.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"what-are-the-consequences-of-incorrect-expense-accounting\"><\/span>What are the consequences of incorrect expense accounting?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Incorrect expense accounting can result in tax audits and financial penalties.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"possible-consequences\"><\/span>Possible consequences<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Additional income tax on incorrectly deducted expenses<\/li>\n<li>Interest on tax arrears calculated from the due date<\/li>\n<li>Tax penalty from 175 to 3,500 zloty for minor amounts<\/li>\n<li>Fine for tax violations exceeding 8,750 zloty for serious breaches<\/li>\n<li>Criminal tax proceedings for intentional tax evasion<\/li>\n<\/ul>\n<p>The most common errors found during audits are:<\/p>\n<ul>\n<li>Missing proper invoices and supporting documents<\/li>\n<li>Incorrect classification of direct and indirect expenses<\/li>\n<li>Incorrect year-end expense allocation<\/li>\n<li>Disproportionate division of multi-period expenses<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"which-method-is-better-for-your-business\"><\/span>Which method is better for your business?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The choice of method depends on your business type and payment structure with clients.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"cash-basis-accounting-works-best-when\"><\/span>Cash-basis accounting works best when:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Your clients pay late (30-90 days)<\/li>\n<li>You run a&nbsp;small business with revenue up to 2 million zloty annually<\/li>\n<li>You value accounting simplicity<\/li>\n<li>You want to improve cash flow and avoid paying tax before receiving payment<\/li>\n<li>Most transactions are B2B with other businesses<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"accrual-accounting-is-better-when\"><\/span>Accrual accounting is better when:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Your revenue exceeds 2 million zloty annually<\/li>\n<li>You have access to capital and stable financing<\/li>\n<li>You generate thousands of transactions monthly<\/li>\n<li>You need accurate financial analysis and reporting<\/li>\n<li>You primarily sell to consumers (B2C)<\/li>\n<\/ul>\n<p>Remember that once you choose a&nbsp;method, you must apply it throughout the tax year. You can switch to a&nbsp;different method only in the next year after notifying the tax office by February 20.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"how-does-this-work-in-practice-progress-holding-experience\"><\/span>How does this work in practice? Progress Holding experience<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Based on analysis of over 800 companies served by Progress Holding from 2023-2025, we&#8217;ve noticed clear trends in expense accounting method choices.<\/p>\n<p>Our data shows:<\/p>\n<ul>\n<li>Only 12% of entrepreneurs eligible for cash-basis accounting chose it in 2025<\/li>\n<li>The main reason for rejection was concern about complex B2C transaction accounting<\/li>\n<li>47% of firms with revenue between 1 and 2 million zloty plan to switch to cash PIT in 2026 after the limit increase<\/li>\n<li>The most common error (68% of audits) was incorrect indirect expense allocation at year-end using accrual accounting<\/li>\n<\/ul>\n<p>In practice, we observe that service providers with long payment terms (60+ days) benefit most from cash-basis accounting. A company with 1.5 million zloty in revenue and an average payment term of 45 days saved approximately 18,000 zloty annually by deferring tax installment payments.<\/p>\n<p>Conversely, trading companies with fast inventory turnover (7-14 day payments) see little difference between methods. For them, bookkeeping simplification matters more than cash flow optimization.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"frequently-asked-questions\"><\/span>Frequently asked questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"can-i-switch-accounting-methods-mid-year\"><\/span>Can I switch accounting methods mid-year?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>No. You must apply your chosen method throughout the tax year. You can change methods only in the next year by submitting written notice to the tax office by February 20.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"what-if-my-revenue-exceeds-2-million-zloty-during-the-year\"><\/span>What if my revenue exceeds 2 million zloty during the year?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>You can continue using cash-basis accounting through year-end. Starting next year, you lose the right to cash accounting and automatically switch to accrual accounting. You don&#8217;t need to submit any change notice.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"does-cash-basis-accounting-apply-to-vat\"><\/span>Does cash-basis accounting apply to VAT?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>No. These are separate systems. Cash-basis PIT applies only to income tax accounting. VAT is reported under separate rules per the VAT Act. You can use cash-basis VAT accounting (for small taxpayers) independently of your PIT accounting method.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"how-do-i-account-for-an-invoice-received-while-using-cash-accounting-but-paid-after-switching-to-accrual-accounting\"><\/span>How do I account for an invoice received while using cash accounting but paid after switching to accrual accounting?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>You deduct the expense in the year you pay the invoice \u2013 already using accrual accounting. If you received an invoice in December 2026 using cash PIT and paid it in January 2027 after switching to accrual, you record the expense in 2027.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"can-a-civil-partnership-partner-use-cash-basis-accounting\"><\/span>Can a&nbsp;civil partnership partner use cash-basis accounting?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>No. Cash-basis accounting is available only to individuals operating sole proprietorships. Partners in partnerships (civil, general, or professional) cannot use it. This also applies to businesses in succession.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"do-i-have-to-pay-for-changing-accounting-methods\"><\/span>Do I have to pay for changing accounting methods?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>No. Submitting a&nbsp;cash-basis election or notice of resignation is free. It&#8217;s a&nbsp;standard administrative procedure without tax fees.<\/p>\n<p>Choosing the right expense accounting method directly affects your company&#8217;s cash flow and tax installment amounts. The 2026 limit increase to 2 million zloty opens this option to a&nbsp;significantly larger group of entrepreneurs. Before deciding, analyze your revenue structure, client payment terms, and business type.<\/p>\n<p>Need professional support in choosing the best accounting method for your business? Contact us at Progress Holding: +48 603 232 418 or <a href=\"mailto:office@progressholding.pl\">office@progressholding.pl<\/a>. We&#8217;ll help you make the optimal choice and provide full accounting services starting from 599 zloty net monthly. We serve over 800 companies, including foreigners running businesses in Poland.<\/p>\n<\/article>\n<p><\/p>","protected":false},"excerpt":{"rendered":"<p>Starting from 2026, the revenue threshold allowing cash-basis accounting will increase from 1 million to 2 million zloty. This means a&nbsp;larger group of entrepreneurs will be able to choose cash-basis accounting instead of accrual accounting. Each method has different consequences for your company&#8217;s cash flow and tax payment timing. What&#8217;s the difference between cash and [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":5581,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5578","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-kategorii"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/posts\/5578","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/comments?post=5578"}],"version-history":[{"count":2,"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/posts\/5578\/revisions"}],"predecessor-version":[{"id":5606,"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/posts\/5578\/revisions\/5606"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/media\/5581"}],"wp:attachment":[{"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/media?parent=5578"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/categories?post=5578"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/progressholding.pl\/en\/wp-json\/wp\/v2\/tags?post=5578"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}