What is full accounting?
Every company operating in the Polish market is required to maintain accounting, within which two types can be distinguished: simplified and full. Micro-entrepreneurs and small businesses manage simplified accounting.
Full accounting is aimed at the most profitable enterprises. To prevent attempts at dishonest financial operations, these companies are required to maintain complete transparency through full accounting. Full accounting is the most complicated form of settling a company's revenues.
Full accounting - which companies must maintain it?
According to the Accounting Act, the obligation to maintain full accounting, regardless of the income generated, applies to:
- Limited liability companies,
- Joint-stock companies,
- Limited joint-stock partnerships,
- Limited partnerships,
The entities listed above are required to maintain full accounting. In the article: Full accounting in a limited liability company, we detail the principles of recording economic events in a limited liability company.
Full accounting limit
Not only the entities listed above, but also entities whose revenue value in the previous year was at least equivalent to 2,000,000 euros, are obliged to maintain full accounting.
The conversion from euros to the Polish currency is made on the first working day of October of the previous year, according to the average exchange rate announced by the National Bank of Poland.
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Enterprises that have not exceeded the limit may use both simplified accounting (e.g., the Revenue and Expense Ledger) and voluntarily switch to maintaining full accounting books.
At what point must an entrepreneur conducting a sole proprietorship switch to full accounting?
An entrepreneur who has previously operated a sole proprietorship and transformed it into one of the aforementioned companies must begin maintaining accounting books. This rule also applies to individuals who, despite registering a sole proprietorship, have achieved revenue over the 2,000,000 euros limit.
Which entrepreneur can voluntarily switch to full accounting?
An entrepreneur who achieves net sales lower than the specified limit can also decide to switch to full accounting. To do this, they should inform the Tax Office in the annual statement.
Theoretically, every company can voluntarily switch to full accounting - in practice, only some of them, due to numerous obligations and higher costs, decide to take this step. However, this number is increasing - more and more enterprises are choosing this form of accounting, allowing them to continuously monitor the condition of the company.
Meanwhile, other entrepreneurs - individuals, civil partnerships of individuals, registered partnerships of individuals and professional partnerships, whose revenue from the previous year did not exceed the equivalent of 2,000,000 euros in Polish currency - apply simplified accounting.
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Full accounting - list of obligations
Maintaining accounting books obligates the entrepreneur to:
- prepare financial statements,
- create profit and loss accounts,
- list components of assets and liabilities,
- maintain main books,
- maintain auxiliary books.
Accounting office support for full accounting
In the case of full accounting, using the services of a professional accounting office seems to be almost necessary. To maintain full accounting, it is worth choosing an accounting office that specializes in managing accounting books. By clicking the link below, you will receive a list of accounting offices that specialize in managing accounting books: Full accounting - list of accounting offices.