Each enterprise, regardless of its size, scope of activity, number of employees and the industry in which it operates, is required to register business operations. The only difference that can be noticed in this practice is that there are several ways to fulfill this obligation. Some companies can keep records of economic transactions using a book of instruments and expenses, the so-called KPiR, or a lump sum. However, most companies in Poland keep full accounting. Full accounting is a liability up to the value of limited liability sums or assets of a legal person, legal personality is separate, and share capital.
Who is subject to the full accounting obligation?
First of all, it concerns companies in which net revenues from the sale of goods and services exceed the equivalent of EUR 2 million. If the entrepreneur has so far accounted for operations based on the revenue and expense ledger, and has exceeded the permitted minimum amount for this form, he will have to switch to full accounting from the new year. Also entrepreneurs who operate in limited partnerships, limited liability companies, and joint-stock companies, additionally organizational units operating on the basis of the Banking Law or the provisions on trading in securities. Communes and poviats, voivodeship budgetary establishments, and all economic entities acting on their behalf, such as schools, kindergartens, training centers.Foreign companies and companies with branches and branches operating in our country on the basis of economic freedom.
What is it about
Full accounting is associated primarily with a greater number of obligations related to the recording of economic operations. Keeping such accounting is associated with the record of revenues and costs, records of property and sources of their financing, inventory of assets and liabilities and the preparation of financial statements. In addition, an entrepreneur who decides to keep full accounting is obliged to create accounting policies in Polish, which should include the definition of the financial year, the method of valuation of assets and liabilities and the characteristics of keeping the books of accounts. This is not the end of the obligations, when deciding on this method of accounting, you have to take into account the establishment of accounting books that must be kept according to strict guidelines. They are, among others, assigning numbers of an accounting document,describe economic events in a concise and understandable manner, ensure a coherent and uniform entry in the books, guarantee the durability of entries. Which means that if all accounting is carried out with the use of computer programs, a server will be needed that will collect all the documents that are part of the company’s accounting circulation.
What can you gain from this?
Full accounting is a very meticulous and accurate recording of every economic operation taking place in the enterprise. So you can have a detailed insight into the company’s financial situation at any time of the year. An invaluable source of information is the revenue and expense ledger, in which you can find all incomes and expenses in a given period that took place. Keeping an inventory of assets allows you to notice the pace of changes in time and make the necessary analysis of the profitability of certain processes and activities. Employee payroll cards allow you to quickly and accurately determine the expenses incurred for employing employees in a given period. All these documents allow for a reliable assessment of the company’s condition, provide a lot of necessary information,which have a real impact on the quality of the activities carried out and offer the possibility of their improvement in the future.
How to prepare
Ideally, such a decision should not be made overnight, but gradually moving slowly from the simplified method to full accounting, you can do it accurately and without causing chaos in the enterprise. You have to ask yourself: maybe you will not need an additional position for an accountant, what program to choose to record operations, how to import libraries. All these activities are extremely important and only their methodical introduction will give a measurable effect and order. Sometimes ayo entrust the whole process to specialists who know their stuff and help to optimize the whole process to the maximum.
Looking at the whole process from the side and the final effect of such a decision, you can come to the conclusion that the devil is not as scary as he is painted. This method of accounting is clear, transparent and accurate. Full accounting gives a lot of room for action, and in addition, you can rest easy when it comes to order in financial documents. The whole complex is extremely important, so it is good to have an experienced and skilful accountant in your company, he will not only help you organize your documents, but also advise you on how to improve certain processes in order to save some money.
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