Chief accounting principles in Poland

Proper accounting and bookkeeping are fundamental to any company. They present financial information in the way that is to allow company managers make decisions concerning the future of the enterprise. It is extremely important to have accounting books maintained by professionals. Companies need to conduct proper bookkeeping and comply with certain legal obligations related to bookkeeping.

Bookkeeping records need to be verifiable and reliable. In order to assure that, one needs to adhere to certain universal accounting principles. They lay the foundations for the more detailed provisions stipulated in the Accounting Act and other legal acts and regulations governing financial record-keeping in Poland.

The key accounting principles are the following:

• The accrual rule – it states that costs and revenue shall be recorded on the accrual basis, i.e. as they happen, and not when the payments are actually made;

• The matching rule – related to the accrual rule; it states that the books should include all revenues in a given period together with relevant expenses;

• The prudence rule – it states that one should not overestimate the revenues and underestimate the costs; in other words, you should always be a pessimist;

• The going concern rule – it states that in the foreseeable future the entity will continue functioning as usual and has no intention to go into liquidation or curb its activity;

• The consistency rule – it states an entity should stick to the adopted accounting solutions so that financial data in different periods are comparable;

• The substance over form rule – it states that operations should be recorded in accordance with the impact they have (their substance) and not their form;

• The materiality rule – it states that financial information should be presented in such a way it gives accurate image of an entity’s financial situation; simplifications are allowed only if they do not distort the information’s clarity and reliability.

Any accounting books and any financial statement regarding companies registered and operating in Poland should be reliable, understandable and comparable.

Business Implications for Poland

Economic and regulatory developments in Poland have broad implications for businesses operating in the country. Poland’s economy, the largest in Central and Eastern Europe, continues to attract international investors and entrepreneurs seeking EU market access, competitive costs, and a skilled workforce of over 17 million workers.

For foreign companies and entrepreneurs doing business in Poland, staying informed about economic trends, regulatory changes, and market dynamics is essential for strategic decision-making. Whether you are considering entering the Polish market, expanding existing operations, or optimizing your corporate structure, professional advisory support can help navigate the complexities of the Polish business environment.

Poland offers a comprehensive business infrastructure including special economic zones with tax incentives, a well-developed banking system, modern office space in major cities, and a legal framework aligned with EU standards. These factors, combined with Poland’s strategic geographic position between Western and Eastern Europe, make it an attractive hub for businesses targeting the broader European market.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our company formation in Poland, or contact us for a free consultation.