Bookkeeping, especially in the case of entities with complex structures, comes with a lot of responsibility. The consequences of even seemingly minor irregularities, often turn out to be very far-reaching. The high frequency of changes and amendments to the already complex regulations does not make the situation easier. Agile and efficient manoeuvring in the maze of their peculiarities constitutes quite a challenge, even for the most experienced accountants. Taking into consideration the importance of proper bookkeeping, the so-called National Accounting Standards have been introduced in Poland in addition to numerous legal provisions. From the article below, you will find out what the National Accounting Standards are and what their purpose is.
What are the National Accounting Standards (NAS) and what is their purpose?
The main goal of the National Accounting Standards is to establish the principles applicable to the correct recognition of business operations. Using the National Accounting Standards is not obligatory. Nevertheless, it ensures that the accounting of a given entity is conducted fairly and in accordance with the regulations.
It is worth mentioning that there are both national and international accounting standards.
International Accounting Standard (IAS) or International Financial Reporting Standards (IFRS) have been established in response to the need of unifying reporting standards on an international scale. They are a consequence of the development of the international capital market and the increasing number of international transactions. This became particularly important after the rise of the European Union and the OECD (Organization for Economic Cooperation and Development).
National Accounting Standards (NAS) are the standards and interpretations concerning accounting in Poland. They can be used as an aid to the correct record of economic operations in Poland in the areas that are not specified in the Accounting Act. The National Accounting Standards are developed by the Accounting Standards Committee of the Ministry of Finance.
Basic legal acts governing accounting in Poland
The accounting principles in Poland are regulated mainly by the Accounting Act of 29th September 1994.
Provisions of the Accounting Act apply to the entities specified therein, including those with their registered office or place of management in the territory of the Republic of Poland:
- commercial companies and partnerships (including those in the process of formation);
- other legal entities, with the exception of the State Treasury and the National Bank of Poland;
- natural persons, civil-law partnerships formed by natural persons, civil-law partnerships formed by natural persons and inherited enterprises, general partnerships formed by natural persons, limited liability partnerships and inherited enterprises operating pursuant to the Act of 5 July 2018 on Succession Administration of a Natural Person’s Enterprise and Other Facilitators Related to the Succession of Enterprises (Dziennik Ustaw 2018, item 1629), if their net revenue from the sale of goods, products, and financial operations for the previous financial year amounted at least to the equivalent of EUR 2,000,000 in PLN;
- inherited enterprises operating pursuant to the Act of 5 July 2018 on Succession Administration of a Natural Person’s Enterprise and Other Facilitators Related to the Succession of Enterprises, provided that accounting books were kept as at the day preceding the day of opening the estate;
- organisational units operating on the basis of Banking Law, provisions on trading in securities, provisions on investment funds and management of alternative investment funds, provisions on insurance and reinsurance activity, provisions on credit and saving unions, or provisions on organising and operating pension funds, regardless of the revenue amount;
- gminas, poviats, voivodships, and their associations, as well as: a) budgetary units of the state, gminas, poviats, and voivodships, b) budgetary establishments of the state, gminas, poviats, and voivodships;
- unincorporated organisational units, with the exception of the companies and partnerships referred to in subparagraphs 1 and 2;
- branches and representative offices of foreign entrepreneurs within the meaning of the provisions of the Act on the Rules for the Participation of Foreign Entrepreneurs and Other Foreign Persons in Business Transactions Within the Territory of the Republic of Poland, of 6 March 2018;
- entities not listed above if their assigned tasks are financed with grants or subsidies from the state budget, budgets of local government units, or special-purpose funds – from the beginning of the financial year in which a grant or subsidy was obtained.
Additionally, there are several dozen regulations of the Council of Ministers and the Minister of Finance in the field of specific accounting principles, and several executive regulations to the Accounting Act itself.
For cases not regulated by the provisions of the Accounting Act, every entity may apply the National Accounting Standards, issued by the Accounting Standards Committee.
National Accounting Standards and the Accounting Act
As it was mentioned above, National Accounting Standards may be applied when a given matter has not been regulated in the Accounting Act or has been insufficiently explained.
Depending on the adopted accounting principles, an entity may apply all or only selected National Accounting Standards.
When informing in the financial statements about the adopted accounting principles, the economic entity also reports on the application of National Accounting Standards. Using only certain standards selectively is not appropriate. However, this does not apply when an entity notifies that only selected National Accounting Standards have been included in its accounting policies. In that case, the entity may apply only those standards indicated by itself.
What areas are covered by the National Accounting Standards?
The National Accounting Standards govern proper accounting activities in the following areas:
- Statement of cash flows;
- Income tax;
- Construction services in progress;
- Asset impairment;
- Leasing, hiring and rental;
- Provisions, accruals of costs, contingent liabilities;
- Changes in accounting principles (policy), estimated values, correction of errors, events after the balance sheet date;
- Development activity;
- Statement of the economic activity;
- Public-private partnership agreements and concession agreements for construction works or services;
- tangible assets;
- Agricultural activity;
- Production costs as a basis for products’ pricing;
- Continuation of business activity and accounting of entities in the absence of further operations.
- Revenues on sales of goods, semi-finished products, commodities and materials.
The Standards can be found on the official website of the Ministry of Finance. It always contains an up-to-date list of standards currently in force.
Are you looking for an experienced accountant who could deal with the accounting of a company with your business profile? Do you have any doubts concerning the application of the Accounting Act or the National and International Accounting Regulations? Contact us. For many years we have been outsourcing accounting and payroll services for international and local companies. Our experience, which is unique on a national scale, allows us to provide the highest level of services. Do not hesitate to contact us.
Conducting a business activity, both in Poland and abroad, is connected with many formalities. There is no doubt that some of the most important ones are related to accounting. Having in mind the significant number of provisions, regulations, and requirements concerning accounting, entrepreneurs more and more often decide to outsource accounting services to qualified accounting offices. What is the cost of such services? What are the responsibilities of the accounting office? How much does accounting for a company in Poland cost? The answers to these questions can be found in this article.
What does it mean to provide accounting services?
Before we move to discuss the costs of accounting services for a company in Poland, it should first be established what such services include. It is worth mentioning that the nature of an accountant’s work has experienced a complete change over the last several years. Today’s accounting offices are very often highly specialized units, covering within their activity not only bookkeeping in the strict sense but also tax consulting, operational and financial controlling and payroll services. What does each of these services consist of?
Accounting services for companies
Accounting services for companies constitute the most popular business profile of accounting offices. At the same time, it is the closest to the standard, typical understanding of the accountant’s work. As part of their services, accounting offices most often deal with:
- preparing financial statements,
- keeping record of fixed assets,
- Preparing monthly settlements and income statements (CIT, VAT, PIT).
Tax consulting is a service particularly sought-after by entrepreneurs. It results from the complexity of tax regulations and from the surprising (especially in recent times) frequency of their changes. The best example of this is the relatively recently adopted Polish Deal that has already been amended many times. It is very difficult for entrepreneurs to keep up with these changes, therefore, the demand for professional tax consulting services is constantly growing.
Operational and financial controlling
Financial controlling offers entrepreneurs greater possibilities for optimising their costs. It is based on a constant and comprehensive analysis of the company’s financial results. Its goal is to increase the effectiveness and competitiveness of the enterprise. It is also one of the most sought-after types of services, even though it appeared on the accounting services market quite recently. Having in mind its specific nature, particularly including the proficient knowledge of accounting regulations and processes as well as the quick analysis of the company’s functioning in the context of constant changes, the interest in this type of service exceeds its availability at the moment.
As part of their payroll services, accounting offices most often offer:
- calculating remuneration and preparing payrolls for employees,
- preparation and settlement of contracts of mandate and contracts for specific work,
- keeping records of employees’ remuneration,
- keeping employees’ personnel files,
- Registration of employees in the Social Insurance institution [Polish: ZUS],
- preparing and submitting ZUS and PIT declarations for reporting and settlement purposes, and many more.
What determines the costs of accounting services for a company?
Being aware of the scope of activities that can be conducted as part of the services provided by accounting offices, it is easier to understand what the rates of their remuneration are based on. At the same time, it should be remembered that their range does not only depend on the scope of the provided services. They are also influenced by factors such as:
- the location both of the company and the accounting office because, as a rule, the smaller the city, the lower the pay rates;
- the reputation of the accounting office and experience of its employees,
- the legal form of the conducted business – sole proprietorship, company or branch of a foreign company,
- the type of accounting – revenue and expense ledger, fixed amount tax, accounting ledgers, registered lump sum,
- the number of documents,
- the number of employees and contracts,
- the scope of conducted activity – e.g. whether the company buys or sells goods (services) abroad.
As you can see, there are quite a few factors that influence the cost of accounting services.
How much does accounting for a company in Poland cost?
As there are many factors affecting the cost of accounting services, it is extremely difficult to answer unequivocally the question about their cost. Nevertheless, while analysing individual offers in various cities, one can reach a certain conclusion. Below, we present exemplary rates for the three most popular types of services.
Cost of accounting for a company in Poland in the case of keeping revenue and expense ledger
In this case, the cost depends mainly on the number of documents submitted to the accounting office. If their number does not exceed 10 documents, the cost (depending on the voivodeship) ranges from 250 PLN to 380 PLN gross. However, when the number of documents is between 90 and 100, the cost ranges from 880 gross to 1.300 PLN gross.
Cost of accounting for a company in Poland in the case of accounting ledgers
Similarly to the previously described keeping of the revenue and expense ledger, also, in this case, the cost depends mainly on the number of documents. If their number is up to 10 documents, the cost (depending on the voivodeship) ranges from 900 PLN to 1.300 PLN gross. On the other hand, if the number of documents ranges from 90 to 100, the costs range respectively from 2.500 PLN to 3.600 PLN gross.
As an example of the range in the costs, let us also indicate one of the most popular services of accounting offices, i.e. payroll services. A popular factor affecting the cost of such service is the number of employees hired by a given employee. Therefore, the cost of payroll service for one employee can range from 83 PLN to 110 PLN gross.
In the end, it is worth mentioning that the costs indicated above constitute only an average. Thus, depending on the circumstances, the costs may be lower or, in justified cases, even several times higher. Therefore, only a thorough analysis of the client’s individual needs conducted by the office allows for preparing a fair valuation of the services.
Are you looking for a reliable, trusted and experienced accounting office? For many years we have been outsourcing accounting and payroll services for international and local companies. With us, you can be sure that your company’s accounting is in good hands. Do not hesitate to contact our specialists.