Podstawowe modele prowadzenia dokumentacji (ewidencja przychodów, KPiR, księgi rachunkowe)
As an entrepreneur you are obliged to keep records of your business operations. The method of keeping records will depend on the legal form in which your company operates, and the annual income. You can choose records of revenue, simplified accounting in the form of the revenue and expense ledger (hereinafter ‘KPIR') or full accounting.
Records of revenue
Used for the lump sum tax on registered income (see the article: a lump sum on registered income tax). It is simplified accounting form. It shall be done separately for each tax year. The records of revenue shall include only revenues from an economic activity. However, there is no need for cost accounting. Taxed in this form, they are not taken into account when determining the amount of tax. Importantly, all entries in the records must be properly documented by invoices, receipts and other documents supporting the establishment of a decision. One should also collect and retain evidence of purchases of goods for inspection of the tax office. Another obligation is a physical inventory (stocktake) at the end of every tax year. Records may be carried out by yourself or with the assistance of the accountancy offices. In that case, within 7 days from signing the contract, all information related to the place of storage of records should be notified to the tax office.
For whom tax revenue and expense ledger?
Tax revenue and expense ledger is used to register for income tax purposes of revenue and expenses (expenditure) of the taxable person. It is intended for entrepreneurs who at the same time meet two conditions:
• revenue from sales for the previous year were lower than the equivalent of EUR 2 mln;
• are taxed under the general rules (18 % and 32 %) or on a linear basis (19 %).
The ledger records:
• any kind of revenues (revenue from sales and other revenue);
• purchase of commercial goods and basic materials as well as ancillary costs linked to those purchases;
• expenditure, which should be interpreted as remuneration, both in cash and in kind, and all other expenditure in connection with conducting an economic activity.
Revenue and expense ledger is a good solution for small and medium firms or sole-traders. If you decide to keep it without the assistance of an external company, it is important that it meets legal requirements regulated by the Ordinance of the Minister of Finance, where you'll find a specimen of the revenue and expense ledger and necessary instructions to its conduct.
How to conduct KPIR?
Keeping KPIR is subject to a number of conditions. The taxpayer shall brochure a ledger and consecutively number its copies. Ledger and evidence on the basis of which the entries shall be made, must be permanently kept in place of business or the place indicated by the taxable person as his registered office. If conducting the ledger was commissioned to accounting office - at the place indicated by the taxable person.
It is established on 1 January of each tax year, or at the date of commencement of activity during the tax year.
The entries in a ledger shall be made n Polish and in Polish currency in a careful, legible and indelible way, on the basis of correct and reliable evidence.
The basis for entries in the ledger is accounting evidence (read more: What is accounting evidence)
Full accounting system
It is the most complex form of records. To maintain accounts in the form of full accounting are required e.g. commercial companies (i.e. companies with share capital, such as: a limited liability company, a joint-stock company irrespective of the amount of revenue)
The obligation to keep a complete set of accounts relates also to natural persons, partnerships of natural persons, registered partnerships of natural persons and professional partnerships, if their net revenue from the sale of goods, services and financial operations for the preceding financial year has reached the Polish currency equivalent of EUR 2 million, and other legal persons, with the exception of the Treasury and the National Bank of Poland.
Full accounting means for an entrepreneur more responsibilities than in the case of simplified accounting. In addition to the bookkeeping and additional records (e.g. fixed assets, stock records), it includes a financial statement. Some operators shall draw up a cash flow statement and statement of changes in equity and are subject to financial audit by a statutory auditor.
The entity keeping books must be in possession of documentation describing in Polish adopted accounting rules (policy), and in particular relating to the financial year and reporting periods; methods for the valuation of assets and liabilities and income recognition and the bookkeeping and the description of the system for data protection and their collections.
The accounting books should be carried out diligently, faultlessly and on regular basis.