How to Conduct Full Accounting in Poland: A Practical Step-by-Step Guide

What is full accounting in Poland and who is obligated to conduct it?

Full accounting is the most comprehensive form of financial record-keeping, conducted in the form of accounting books in accordance with the Accounting Act. It includes, among others, entries in the journal, general ledger, auxiliary books, inventory, and statements of balances and turnovers.

Mandatory full accounting: Full accounting threshold

The full accounting threshold applies to entrepreneurs who achieved net revenues exceeding 2.5 million EUR in the previous financial year (in 2025, this equals 10,711,500 PLN for the year 2024). After exceeding this threshold, an entrepreneur is required to maintain full accounting books regardless of the form of business. Full accounting is also mandatory for financial institutions, budgetary units, and organizations receiving grants.

Mandatory full accounting in Poland: type of business activity

Separate regulations cover the accounting books of companies that must be maintained in full scope regardless of the revenues achieved. This applies to all commercial companies, such as limited liability companies, joint-stock companies, or limited partnerships. This ensures financial transparency and full control over settlements, which is particularly important in relationships with contractors, investors, and supervisory institutions.

If you want to learn more about full accounting, differences with simplified accounting, or elements that make up accounting books, we encourage you to read our article: Full accounting in Poland - What is it and who does it apply to?

Transitioning to full accounting in Poland

Transitioning to full accounting is mandatory after exceeding the revenue limit or changing the form of business and includes several stages: closing the current records (e.g., Revenue and Expense Ledger), preparing a physical inventory and inventory list, opening accounting books within 15 days from the beginning of the year, preparing an accounting policy and opening balance, as well as updating data in the National Court Register or Central Register and Information on Business Activity.

Accounting policy and full accounting in Poland

An accounting policy is an internal document in which an entrepreneur defines the principles of maintaining accounting books in accordance with the Accounting Act. It should include, among others, the adopted chart of accounts, methods of valuing assets and liabilities, method of determining financial results, as well as procedures for inventory and document archiving.

Every company subject to full accounting must develop and apply its own accounting policy. This document not only organizes accounting processes but also ensures consistency of records and facilitates the preparation of financial statements. In practice, it forms the foundation of proper bookkeeping, so it should be prepared carefully, preferably with the support of an experienced accountant or accounting office.

Principles of full accounting, accounting documentation, and mandatory elements of accounting books in Poland

Full accounting means recording all business operations of a company in accordance with the Accounting Act. In practice, full accounting with a double-entry system includes maintaining a general and auxiliary ledger, fixed assets records, VAT settlements, as well as preparing financial statements (balance sheet, profit and loss account). Starting full books requires the need for reliable archiving of accounting documentation and ensuring compliance with tax and balance sheet law requirements, which allows an entrepreneur to obtain a complete picture of the financial and property situation of the company.

Principles of full accounting

According to the regulations, full accounting must be conducted according to the principles derived from the Accounting Act, which specify how to technically maintain full accounting books. Among them, the following can be distinguished:

1. Obligation to maintain accounting books;
2. Maintaining a journal, general ledger, auxiliary books, inventory of assets and liabilities, and statement of balances and turnovers;
3. Chronological, complete, reliable, and consistent with accounting evidence entries;
4. Applying established procedures, including accounting policy and chart of accounts.

Journal

A journal in full accounting with a double-entry system is a chronological statement of all business operations in a given reporting period. Each entry must be sequentially numbered, and the sums of entries must be continuous and uninterrupted. Starting full books requires proper numbering in the journal, as it ensures an unambiguous connection with accounting documents that form the basis of the entered records.

General ledger

Maintaining accounting in full accounting also includes the general ledger, which is the central register of all business events of the company. It follows the principle of double-entry - each event is recorded on the appropriate account in the general ledger, and then transferred to an account in the auxiliary book. All entries are made chronologically, according to the basic accounting principle of “debit-credit,” which ensures transparency and compliance with legal requirements.

Auxiliary accounts and balance statements

Full accounting requires maintaining auxiliary book accounts, which contain detailed records specifying and supplementing information from the general ledger accounts. They are mainly maintained for categories such as:

• Fixed assets and intangible assets;
• Settlements with contractors and employees;
• Sales and purchase operations;
• Costs and key asset components.

At the end of each reporting period - at least once a month - a statement of balances and turnovers is prepared, including symbols or account names, opening balances, turnovers for the given period, and closing balances. According to the requirements, a statement of all auxiliary book accounts must be prepared at least on the closing date of the accounting books.

Inventory of assets and liabilities

The obligation to maintain financial records in the form of accounting books also includes preparing an inventory of assets and liabilities. This is a detailed list of the company’s assets and liabilities, which is prepared, among others, when transitioning to accounting books. This document is created based on a physical inventory and accounting data and serves as the starting point for opening accounting books.

The inventory should include, among others:

• Fixed assets and intangible assets;
• Inventories (goods, materials, semi-finished products, finished products);
• Receivables and liabilities;
• Cash;
• Equity and provisions.

Each component must be described, valued, and recognized in accordance with accounting principles. The inventory plays a key role because it serves as the basis for preparing the opening balance, which begins the maintenance of accounting books in the new period.

Financial statements and profit and loss account

Full accounting includes not only the recording of all business operations but also the obligation to prepare annual financial statements. For an entrepreneur, this also means the obligation to maintain accounting books in accordance with the principles specified in the regulations. Such a statement consists of three key elements:

• Balance sheet - documenting the states of assets and liabilities;
• Profit and loss account - presenting revenues, costs, and financial results;
• Additional information - describing the adopted accounting principles.

The profit and loss account can be prepared in two variants:

1. Comparative - costs by type, e.g., depreciation, salaries;
2. Calculation - costs by function, e.g., sales, management.

According to the Accounting Act, the annual financial statement must be approved within 6 months from the balance sheet date (in Poland, this is usually June 30, when the financial year is the same as the calendar year), and since 2018, all these documents are prepared exclusively in electronic form.

Benefits and challenges related to full accounting in Poland

Full accounting gives an entrepreneur financial transparency and full control over business operations, but it also involves greater complexity and costs. In practice, books maintained in accordance with the principles contained in the Accounting Act provide accurate data needed for analysis and planning. At the same time, the obligation to maintain accounting books requires knowledge of these regulations, which are often complex and require expert knowledge.

For this reason, many business owners decide to cooperate with an accounting office, which may (but doesn’t have to) increase costs but guarantees security and compliance with the law.

Advantages of full accounting: transparency and financial control

Maintaining accounting in a full form gives an entrepreneur transparency and full control over the financial situation of the company. Detailed recording of each operation enables effective planning of investments, managing cash flows, and building credibility towards contractors or financial institutions. Importantly, the obligation to maintain accounting books in accordance with legal regulations increases the transparency of the company in the eyes of investors and is often a key element in the process of applying for external financing or raising capital for development.

Disadvantages of full accounting: complexity and costs

Although maintaining accounting in a full form gives an entrepreneur broad financial control, it also involves great complexity and higher costs than simplified accounting.

The obligation to maintain records in the form of accounting books requires knowledge of detailed regulations and systematic recording of all operations. As a result, entrepreneurs often decide to cooperate with an accounting office or employ specialists, because for most, maintaining books independently is problematic. This generates additional expenses, which start from 1000 PLN per month, and their exact amount depends on several factors, including:

1. Company size;
2. Number of documents processed;
3. Business model;
4. Industry specifics;
5. Foreign operations.

When is it worth using an accounting office?

Maintaining financial records as part of full accounting involves great responsibility and the need to strictly comply with regulations. Although full accounting is available to entrepreneurs in various forms of business, in practice, it requires specialized knowledge, systematicity, and familiarity with changing regulations. Therefore, in many cases, cooperation with a professional accounting office becomes the most beneficial solution - it relieves the entrepreneur, minimizes the risk of errors, and ensures accounting security.

If you’re looking for support in maintaining accounting records in the form of accounting books, the Evotax team is happy to provide it! Contact us, and our specialists will take care of the rest!

Conducting full accounting in Poland - Summary

How to conduct full accounting, in practice, requires several key steps: maintaining a journal and general ledger with the double-entry principle, supplementing them with auxiliary books, preparing inventory, and periodic statements of balances and turnovers.

Obligations also include developing an accounting policy, maintaining records of fixed assets and VAT, and preparing annual financial statements. Each entry must be reliable, complete, and consistent with accounting evidence. Due to the complexity and rigorous requirements, most entrepreneurs decide to seek support from an accounting office, which ensures compliance with regulations and settlement security.

If you need support with accounting, especially accounting for limited liability companies or accounting in transport, we are happy to help! Contact us and let our specialists help you!