Accounting and bookkeeping regulations in Poland

Accounting is vital to every company, regardless of its field of activity, size, or plans for the future. Keeping accounting books in order is not only necessary to have a proper overview of company operations, costs, and profits, but is above all a legal obligation.

In Poland, accountancy and bookkeeping is regulated by Accounting act of 29 September 1994. The chief rule behind all bookkeeping is that it should present a true a fair image of the entity’s financial position and result.

Any entity doing business in Poland, whether it is a small business or a big bank, shall apply to the same general accounting rules and regulations. What is important to note is that the company’s president bears the responsibility to comply with accounting obligations. They may designate the task of keeping accounting books and other related duties to someone else, for example company accountant or an external accounting office, but in the end, they are the ones responsible for any transgressions of law.

The information in the accounting books regarding different financial years needs to be comparable. That is why bookkeeping operations need to be recorded in the way that allows for that. Each company should have accounting policy or principles in the form of a written document governing bookkeeping.

The chief assumption for accounting in Poland is that the entity will continue as a going concern. In other words, the business is operating normally and will continue to do so in the foreseeable future. It is not likeable that it will go into bankruptcy or be liquidated or that it will have the intention of curtailing its operations. The “foreseeable future” is usually meant to be the next twelve months, i.e. the upcoming financial year.

It should be noted that the Accountancy Act is not the only legal regulation governing the accounting rules in Poland. Accountants must apply to various regulations of the Ministry of Finance. They also need to be familiar with National and International Accounting Standards.