Room rentals - manage your room rentals easily with SmartRooms
December 14, 2024
Costs of hiring an employee
December 18, 2024
Accounting for small businesses
Accounting - Accounting is a key element of managing a small business in Poland. Proper recording of financial transactions ensures compliance with legal regulations and provides the necessary information for making business decisions.
Accounting forms for small businesses
Small businesses in Poland can use simplified forms of accounting, which are less complicated than full accounting. The most popular include:
- Tax Book of Income and Expenditures (KPiR): Designed for companies taxed on general principles (tax scale) or flat tax. KPiR is used to record revenues and costs, which allows determining taxable income.
- Income Records: Used by entrepreneurs who settle their income on a lump sum basis. In this form, only income is recorded, without taking into account the costs of obtaining income.
- Tax Card: The simplest form of taxation, where the tax rate is fixed and depends on the type of business and the number of employees. In this form, there is no obligation to keep accounting records, but it is necessary to keep employment records.
Accounting duties
Depending on the chosen form of taxation, the entrepreneur may be required to keep additional records, such as:
- Fixed Assets and Intangible Assets Register: It is used to record fixed assets. companies and their depreciation.
- Vehicle Mileage Record: Required when an entrepreneur wants to include expenses related to using a vehicle in tax-deductible costs.
- VAT registers: If the entrepreneur is active VAT payer, must keep VAT purchase and sales registers, which are the basis for preparing VAT returns.
Independent bookkeeping
Small businesses have the option of doing their own accounting, especially with the use of modern accounting programs. However, due to the complexity of tax and accounting regulations, many entrepreneurs decide to work with an accounting office. Accounting services are provided:
- Assurance of compliance with current legal provisions.
- Timely submission of tax returns and other mandatory documents.
- Advice on tax and financial optimization.
The choice of the appropriate form of accounting and the method of its conduct should be adapted to the specifics of the activity, the size of the company and the individual preferences of the entrepreneur. Regardless of the decision made, reliable accounting is the foundation of the stable and lawful functioning of every small enterprise.
Sources:
Entrepreneur's Guide - Accounting for small businesses
Biznes.gov.pl – Basic information about accounting and records in the company
Ifirma.pl – Accounting for a small business
Entrepreneur's Guide - Simplified accounting - forms of taxation for entrepreneurs
Choose our virtual office in Krakow and give your company a prestigious address in the heart of the city. We offer comprehensive correspondence services, professional administrative support and flexible terms of cooperation that will allow you to focus on business development. Join the group of our satisfied customers and gain more time and convenience.
English (UK) 
Polski