Ostania aktualizacja 7 March 2023
Hello, since you are here, you are looking for information on records and full accounting. You have found the right article and it will explain to you what the obligation to record your company’s business operations is and how it works. First, let’s explain what a record is – it is a company’s turnover list, most often it appears in the form of revenue records, i.e. sales, and is conducted to calculate income tax. To sum up, the register is an assortment, valuable or quantitative list.
Here, for the first time we meet with types of accounting, namely taxpayers can use simplified (KPiR) or full accounting. Sometimes we face a situation when as an entrepreneur we are forced to switch from simplified to full accounting. Let’s assume that we want to become an entrepreneur, can we use simplified accounting? Of course, yes, but there is one basic condition, namely our revenue from the previous year did not exceed the amount of two million in Polish currency. Full accounting from small differs in that it requires the introduction of much more record details. If we run simplified accounting, we are required to record fixed assets, i.e. all tangible components related to our business. Then we need to keep equipment records, vehicle mileage records, all types of purchases or sales tax registers, expense and revenue books, and the most important, i.e. revenue records. So, if our income did not exceed two million euros (in PLN) and we meet all the above conditions, then we can choose one of three forms of taxation.
The first of these is a tax card, which is used by a small number of entrepreneurs. It consists in paying a specific amount of tax to the tax office, the amount being determined by the head of the given tax office. When calculating the amount of such tax, the scope of our activity, number of employees or even the number of inhabitants of the town in which we operate are taken into account. It is worth remembering that if we want to use such a card, we must conduct business activities listed in Article 23.1 of the Act on the flat-rate income tax on certain revenues generated by natural persons. The second option is a lump sum on recorded revenues, here we are dealing with a specific tax rate, the amount of which depends on the type of our business activity. In short, the tax that we will pay is calculated on the basis of our income. It should be added, however, that we can use this option provided that we do not exceed the limit of 250 thousand euros for the previous year. The last form of taxation is the book of revenues and expenses.
The tax is paid on earned income, with income understood as income minus costs. What’s more, if the tax does not go out for payment, we as entrepreneurs do not have to report it. Earlier I mentioned something like full accounting. Well, if we decide to transform our business into a joint-stock company, limited liability or limited partnership, we must switch to full accounting. In addition, full accounting applies to entrepreneurs whose net revenues from the sale of products and financial operations exceeded EUR 2 million (in PLN). It is possible that I have a bit of trouble for you, so in summary, if we exceed the above-mentioned amount or we run the above-mentioned company, then we have full accounting.
This is associated with greater obligations to record all business operations of our company. All business operations must be recorded in so-called accounting books, which include: dailies, general ledger, auxiliary books, statement of turnover and balances of general ledger accounts and balances of auxiliary ledger accounts, and a list of assets and liabilities, so-called inventory. In addition, we are required to prepare financial statements, which consist of a balance sheet, profit and loss account, an introduction to the report and all information and explanations. As you can see, full accounting is definitely a more complicated form of recording revenues and expenses.
Account books differ from tax books (simplified accounting) in that they are not kept to determine actual tax receivables, but to monitor the financial condition of the company. If we want to talk about the tax function here, it is only an additional element, which is not the basic function of accounting books (full accounting). Finally, I would like to thank you for your interest in my article. Remember that tax law is constantly changing, so it’s worth asking some information at the tax office. I hope that the information presented here will be useful for you when starting your own business.