Nowadays, every company should follow accounting rules set by the Securities and Exchange Commission (SEC) and following Generally Accepted Accounting Principles (GAAP). These days exist thousands of accounting companies in Poland, which provide services that every company should use not with standing size or income.
Accounting services cover:
- Commercial accounting and accountancy
- Warehouse records and stuck assets records
- Annual financial statements development
- Tax returns and social security declarations development
- HR and payroll services
- Removing tax and accounting arrears
- Direction of books kept by clients on their own
- Representation of the Principal before the public authorities
Accounting services typesin Poland depend on the company’s needs and the number of earnings. There are Simplified accounting & Full accountancy.
Simplified accounting
A natural person engaged in business activity, by civil law partnerships of natural persons, partnerships of natural persons, and partner companies can use simplified accounting. However, it is specified, net revenue from sales of goods, products, and financial operations of the company for the previous tax year should not be greater than 2 million EUR in the Polish currency.
3 different simplified accounting forms:
- Tax card: embrace paying a fixed amount each month. Its amount depends on the number of staff and the occupation.
- Registered lump sum: a sum that is paid in one single payment instead of broken up into installments. The fixed rates are much lower than normal tax rates, however, the payment is based on the volume of sales. The company’s profit is not crucial here.
- Income and expense books: the simple and most popular tax return method, which are recorded in a special book and paying the tax for the difference. When there is no profit, then you are free of tax, that is a very big plus of such a method.
Full accountancy
Now, let’s move on to a more formal and extensive accounting system for accurate analysis and control of the company’s financial position.
Full accountancy applies a double system, literally, which records every payment flowing through the company. Including cash receipts & non-cash transactions, which may affect financial results, bank transfers, loans, payments for goods/services, etc.
Companies with a profit of at least EUR 2 million, in the Polish currency, for the previous year must keep full accounting, as well as Limited Liability Companies, Joint Stock Companies, and capital societies (regardless of the form of their business).
