When should full accounting be carried out?
For business
11 June 2025
Recording revenue and other business operations is the responsibility of the entrepreneur. However, every business owner would like record-keeping to take little time and not be complicated - but we cannot always afford simplified accounting. The method of recording depends primarily on the legal form of the company and also on the annual revenue. Would you like to know more about this? Wondering when full bookkeeping is appropriate?
Full accounting - what does it involve?
The success of a company certainly depends on various factors. It is influenced not only by management, marketing and sales professionals, but also by those involved in accounting. Reliably kept company records will not only allow the company to correctly settle accounts with the tax authorities, but will also help to make the right business decisions. When everything is in order, we can rest assured that our business is operating at full speed.
Full bookkeeping seems to be the bane of business owners as it is the most elaborate and complicated form of accounting for earned income. Almost every business event must be properly recorded - the more details that need to be provided, the easier it is to make a mistake, which often causes unnecessary turmoil. Where does the need for such meticulousness come from? It is worth pointing out that full accounting is mainly intended for large and most profitable enterprises - they are dealing with really impressive incomes. They definitely exceed the sums earned by sole traders. When dealing with very large sums of money, it is much easier for fraudulent transactions to take place, which is why the state requires transparency from entrepreneurs. Full accounting guarantees a transparent, as well as accurate, picture of the financial situation.
Full accounting - when should it be done?
The obligation to create full accounting does not only depend on the company's turnover - it also applies to certain specific forms of activity. In addition, the company must be registered in the territory of Poland. Full accounting must therefore be carried out:
- commercial companies;
- local authorities: municipalities, districts, provinces and their associations;
- entities operating under banking law, investment fund law, insurance and reinsurance law, law on cooperative savings and credit unions or law on the organisation and operation of pension funds - the size of the revenue is not relevant;
- budgetary establishments including special purpose funds;
- branches and representative offices of foreign business owners - within the meaning of the law on freedom of economic activity;
- entities able to operate thanks to grants or subsidies received.
Full accounting - from what turnover does it apply?
Although full accounting applies to the above-mentioned forms of business, it may also become a necessity for individuals, as determined by the amount of turnover. If an entrepreneur has a total revenue of more than PLN 8,746,800 in the 2019 financial year, he or she will have to switch to full accounting.
Full accounting obligation - what does it mean in practice?
Full bookkeeping is based on keeping commercial books - it is these that allow us to properly calculate tax liabilities and give us a full picture of the company's finances. In them, we make records on the basis of the Accounting Act, and we use a double entry to book each transaction. Full accounting means:
- the day-to-day completion of the accounts;
- assessment of the condition and calculation of assets and liabilities;
- production of financial statements;
- collection of accounting evidence;
- estimating the financial result.
In simplified accounting, we do not have to concern ourselves with creating such detailed records as in the case of full accounting, which makes the whole process much easier. The entrepreneur then only keeps:
- list of fixed assets;
- vehicle mileage records;
- VAT register of sales and purchases - as far as active VAT payers are concerned;
- a revenue and expense ledger - in the case of flat-rate or flat-rate taxation;
- records of income in the case of flat-rate taxation on registered income.
When to keep full accounts - summary
Reliable and meticulous record-keeping is the basis for the smooth operation of any company - regardless of its size. The unquestionable advantage of full bookkeeping is a complete financial picture that influences all business decisions. Unfortunately, such a solution also has disadvantages - it is not one of the cheapest options and forces us to use a complicated accounting system. Fortunately, full accounting usually has to be done only by large companies and institutions. Other entrepreneurs, as long as they fall within the revenue total of PLN 8,746,800, benefit from simplified accounting.
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