1. Understand the Legal and Regulatory Framework

  • Polish Accounting Act (Ustawa o rachunkowości): Governs accounting principles and financial reporting in Poland.
  • Tax regulations: Follow regulations issued by the Ministry of Finance and local tax offices.
  • EU Directives: Since Poland is in the EU, some EU accounting directives may influence reporting standards. For more information please visit Accounting for LLCs in Poland

2. Choose the Appropriate Accounting Method

  • LLCs generally must follow the full accounting system (pełna księgowość).
  • Small LLCs might be eligible for simplified bookkeeping only under certain conditions, but usually, full accounting applies.
  • Bookkeeping involves recording all financial transactions, assets, liabilities, revenues, and expenses.

3. Set Up a Chart of Accounts (Plan kont)

  • Use the uniform chart of accounts recommended for Polish companies or customize it according to your business needs.
  • Common account groups include assets, liabilities, equity, revenues, costs, and expenses.

4. Record Transactions Properly

  • Keep detailed records of all business transactions.
  • Use invoices, receipts, bank statements, and other source documents as evidence.
  • Record transactions chronologically and systematically in accounting ledgers.

5. Maintain Required Books and Records

  • General Ledger (Księga Główna)
  • Subsidiary Ledgers (Księgi pomocnicze) for detailed tracking.
  • Journal (Dziennik) to register every transaction.
  • Payroll records if you have employees.
  • Fixed assets register and inventory records.

6. Prepare Financial Statements

According to Polish regulations, LLCs must prepare annual financial statements that include:

  • Balance Sheet (Bilans)
  • Profit and Loss Account (Rachunek zysków i strat)
  • Cash Flow Statement (Rachunek przepływów pieniężnych)
  • Statement of Changes in Equity (Zestawienie zmian w kapitale własnym)
  • Notes to the Financial Statements (Informacje dodatkowe)

7. Follow Accounting Principles

  • Use the accrual basis of accounting (revenues and expenses recognized when incurred, not when cash is received or paid).
  • Apply prudence, consistency, and going concern principles.
  • Comply with Polish Accounting Standards (Krajowe Standardy Rachunkowości – KSR) if applicable.

8. Ensure Timely Reporting and Filing

  • Annual financial statements must be prepared within 3 months after the fiscal year-end.
  • File the statements with the National Court Register (Krajowy Rejestr Sądowy – KRS) and submit corporate income tax returns (CIT).
  • For publicly traded or larger LLCs, consider audit requirements.

9. Use Accounting Software

  • Use locally compliant accounting software to facilitate bookkeeping and reporting.
  • Popular options include Symfonia, Comarch ERP, Optima, or international tools adapted for Poland.
  • Electronic bookkeeping helps reduce errors and improves efficiency.

10. Engage a Professional Accountant or Outsource

  • Consider hiring a professional accountant familiar with Polish accounting and tax law.
  • Outsourcing bookkeeping and financial reporting to specialized firms is common for accuracy and compliance.

Additional Tips

  • Keep updated with changes in Polish tax and accounting laws.
  • Separate business and personal finances clearly.
  • Maintain proper documentation for audits.
  • Regularly reconcile bank statements and ledgers.
  • Train staff responsible for bookkeeping on compliance requirements.