Accounting in Poland. Why do you need an accountant in Poland?

Accounting in Poland. Why do you need an accountant in Poland?
Marek Cieślak

Marek Cieślak

CEO CGO Finance

Are you looking for information about accounting in Poland? As a company owner, navigating the intricate Polish accounting regulations can be daunting, especially if you are new to the market. By outsourcing your accounting, you can focus on growing your business and leave the financial complexities to the experts.

Accounting in Poland at CGO Finance. Scope of services

Our offer for accounting services consists of:

  • bookkeeping services for limited liability companies, joint-stock companies, limited partnerships, representative offices, funds and associations;
  • helping with procedures connected to closing the fiscal year;
  • preparing reports in accordance with IFRS, US GAAP or the client’s internal reporting standards;
  • providing accounting services for customers who keep the revenue and expense ledger, including tax services;

In terms of tax obligations of Polish entities the service of accounting in Poland at CGO Finance includes:

  • keeping registers of VAT sales and purchases in the form of SAF-T file;
  • supporting and assisting in the process of VAT registration;
  • preparing monthly settlements and tax returns (CIT, VAT, PIT);(CIT, VAT, PIT),
  • keeping VAT registers of foreign companies registered in Poland;
  • Preparing and implementing the entity’s accounting policies, including a corporate chart of accounts;
  • Preparing VAT statements and keeping VAT purchase and sales registers in accordance with the Goods and Services Tax Act;

Accounting in Poland includes also formalities such as:

  • Keeping records of fixed assets, equipment and intangible assets, as well as preparing the depreciation plan;
  • drafting annual statements, calculating income tax advances in accordance with the tax regulations;
  • preparing annual and interim financial statements according to established standards and cooperating with a chartered accountant auditing the client’s books;
  • reporting to statistical offices, the National Bank of Poland (NBP) and other financial authorities.

Are you looking for an accounting or payroll service provider in Poland?

Look no further, contact us today and get a quotation and free initial consultation.

The Landscape of Accounting in Poland

Poland’s accounting landscape can be quite intricate and counter-intuitive, with legislation and reporting rules subject to frequent changes. To successfully navigate this environment, accountants require extensive knowledge and experience, especially when it comes to understanding Polish financial regulations. Outsourcing accounting in Poland can significantly ease the burden for those new to the Polish market, offering a full range of finance, bookkeeping, and tax services from a dedicated team of certified accountants.

With the growing global trend of outsourcing accounting services, large international corporations, as well as small and mid-size companies, can benefit from reduced internal administration and lower the risk of non-compliance. But how exactly does the regulatory environment and the role of accountants play into these services? Let’s dive deeper into these aspects of the Polish accounting landscape.

Regulatory Environment of accounting in Poland

The most important legal act governing accounting in Poland is the Accounting Act of 29 September 1994. According to this act, all accounting documentation, records, and reports must be prepared in Polish and using Polish currency. Companies need to adhere to the accounting principles laid out in the Act, while those listed in an EU/EEA securities market have been following International Financial Reporting Standards (IFRS) since 2005.

Given the complexity and constant changes in Polish financial regulations, companies and accountants operating in the Polish market must possess a deep level of specialization, knowledge, and experience. This expertise is essential in ensuring compliance with the regulatory environment and maintaining accurate and up-to-date financial records and reports.

Role of Accountants in Poland

Accountants play a crucial role in the Polish business landscape by providing an array of services, such as bookkeeping, accounting advisory, tax preparation and planning, payroll management, and accounting services for companies and sole traders. They also offer strategic advice and assist with budgeting, forecasting, and cash flow management. Having a good accountant is vital to ensure that your business’ finances stay in order and comply with tax laws.

In Poland, accountants are often affiliated with top accounting firms that can provide comprehensive accounting services, expert auditors, and tax advisors to help clients navigate the complexities of the Polish tax system. By seeking the assistance of these qualified professionals, businesses can be confident that their financial matters are being handled efficiently and effectively.

Outsourcing Accounting in Poland

Outsourcing accounting services involves hiring an external company to manage some or all of the accounting functions of your business, such as bookkeeping, tax preparation, and financial reporting. This approach offers numerous benefits for small and mid-size companies, enabling them to save time and money while focusing on their core business operations.

For instance, outsourcing payroll management services can lead to better resource management, as it ensures that payroll processing is handled by experts with up-to-date knowledge of tax laws and regulations.

In the following subsections, we will explore the specific advantages of outsourcing accounting services for small and mid-size companies, as well as the impact on corporate focus.

Advantages of accounting in Poland for Small and Mid-Size Companies

Outsourcing accounting in Poland offers several advantages for small and mid-size companies, such as access to experienced professionals, cost savings, and increased efficiency. By engaging the services of expert accountants, businesses can ensure compliance with tax laws, allowing them more time to focus on growth and ultimately saving money.

Outsourcing also leads to improved efficiency, as it can help companies save both time and money, while enhancing accuracy and minimizing mistakes. Overall, outsourcing accounting in Poland can be a smart solution for small and medium-sized enterprises looking to optimize their resources and focus on their core business activities.

Corporate Focus

By outsourcing accounting in Poland, companies can concentrate on their core business activities, as the accounting process becomes more efficient and timely. This approach offers cost savings, access to accounting expertise, and more efficient and timely accounting processes, ultimately enabling businesses to dedicate more time and resources to their primary operations.

In summary, outsourcing accounting services enhances corporate focus by allowing companies to delegate complex financial tasks to experts, leaving them free to concentrate on growth and development. This approach provides a valuable advantage for businesses looking to optimize their operations and remain competitive in today’s fast-paced market.

Accounting in Poland – Expert Advice for Foreign Investors

Communication and support are essential for foreign investors to make sense of the Polish tax system, which can be complex and challenging to navigate. In the following subsections, we will discuss the importance of communication and support for foreign investors, as well as the challenges they face when navigating tax regulations in Poland.

Communication and Support

Effective communication and support are vital for foreign investors to feel secure and confident when investing in Poland. The government supports foreign investors by backing high-tech investments, increasing productivity and foreign trade, and providing incentives for foreign companies. Poland’s strategic location in Europe, integration with both the European Union and Eastern Europe markets, and cost-effective freight prices are all attractive factors for foreign investors.

Overall, communication and support are essential for foreign investors to grasp the complexities of the Polish tax system and make well-informed decisions when investing in the country.

Accounting in Poland – Navigating Tax Regulations

Navigating tax regulations in Poland can be challenging for foreign investors, who may be unfamiliar with the local tax laws and requirements. The primary Corporate Income Tax (CIT) rate in Poland is 19%, with a lower rate of 9% for small taxpayers. Moreover, foreign investors may be eligible for a withholding tax exemption, with dividends paid out by a Polish company to foreign investors typically taxed at a lower rate, usually ranging between 5% and 10%.

Seeking expert advice, such as that provided by CGO Finance, can be invaluable for foreign investors when navigating the complexities of the Polish tax system, ensuring compliance with local regulations and minimizing potential risks.

Currency and Taxation in Poland

When it comes to currency and taxation in Poland, businesses must adhere to specific requirements. All accounting documentation, records, and reports must be prepared in Polish and using the Polish zloty (PLN). Moreover, Corporate Income Tax (CIT) advances are due by the 20th day of each month, making it crucial for businesses to stay on top of their tax obligations.

In the following subsections, we will delve deeper into the currency requirements and corporate income tax deadlines in Poland, providing valuable insights for businesses operating in the country.

Currency Requirements

The official currency of Poland is the Polish zloty (PLN). There are no currency restrictions impacting trade in goods, making it relatively easy for businesses to conduct transactions with international partners. When it comes to payment methods, using an ATM or a prepaid card is recommended, although credit cards are also widely accepted.

As a result, businesses operating in Poland must ensure that their ledgers and accounting records are kept in Polish zloty, in compliance with the country’s currency requirements.

Corporate Income Tax Deadlines

In Poland, the deadline for filing and paying corporate income tax has been extended until June 30, 2023. CIT advances are due on the 20th day of each month, with payments on March 20, June 20, and November 20 equal to 30% of the CIT of the previous year.

By staying aware of these deadlines and ensuring timely payment of CIT advances, businesses can maintain compliance with Polish tax regulations and avoid potential penalties or fines.

Accounting in Poland. Bookkeeping and Financial Statements

Basic accounting in Poland includes bookkeeping and the preparation of financial statements. Bookkeeping involves recording all financial transactions of a business, including income and expenses. Financial statements, such as balance sheets and income statements, provide a snapshot of a business’s financial position and performance.

Tax Preparation and Planning

Another important service offered by accountants in Poland is tax preparation and planning. This includes ensuring compliance with local tax laws, filing tax returns, and helping businesses to minimize their tax liability through effective tax planning.

Payroll and Personnel Management in Poland

Some accounting firms in Poland also offer payroll and personnel management services. This includes calculating and distributing employee salaries, handling employee benefits, and maintaining accurate records of personnel information.

How can we help you with accounting in Poland?

We provide tax settlements to entrepreneurs with various business profiles and our services are adjusted individually to the needs of even the most demanding customers. We provide comprehensive accounting in Poland that enable you to fully focus on the development of your company. Thanks to the knowledge, experience and involvement of our specialists we are able to cooperate with both small and large enterprises. We constantly broaden our knowledge to – apart from standard services – also implement nonobvious and novel solutions that aim at improving the financial conditions of our customers. CGO Finance – your accountant in Poland.

Full accounting in Poland

We know that not every entrepreneur has an affection for accounting. Therefore, meeting the expectations of our customers, we also offer consulting services during which we indicate what solutions will be the most favourable to you in the field of taxation.

CGO Finance – your accountant in Poland

For many years we have been providing outsourcing services for small and medium-sized enterprises and international corporations. We provide comprehensive accounting and bookkeeping services in Poland required under the applicable law, tax law and in accordance with domestic and international standards. In everyday work, we use the latest software adapted to current regulations.

Are you looking for an accountant in Poland or a payroll services provider in Poland? Specialists from our accounting firm in Poland, Warsaw will be happy to help. If you are interested in company formation in Poland visit our dedicated landing page.

Featured expert

Marek Cieślak

CEO CGO Finance