Piotr Klimowicz
Business Development Manager
Accounting policy is a set of principles and guidelines that a company follows when maintaining accounting records and preparing financial statements. All companies that keep full accounts are obliged to have one and to keep it up to date. The company’s accounting policy forms the foundation for the proper functioning of the finance department. A properly prepared accounting policy helps to avoid misunderstandings during audits and facilitates the day-to-day work of the finance team.
Accounting policy – who does it apply to?
The obligation to prepare an accounting policy applies to companies with their registered office in Poland – regardless of their size, revenues or the simplifications applied. Every entity referred to in the Accounting Act, including commercial companies (partnerships and capital companies, including those in formation) and civil partnerships (with certain exceptions), as well as other legal persons, should have documentation describing in Polish the accounting principles (policy) it has adopted. It is important to note that the obligation to have a set of principles lies with the company and the persons keeping the accounts. The company’s accounting policy must be a document updated in line with changes in regulations and within the organisation itself.
It is therefore worth emphasising that a company’s accounting policy applies to both small limited liability companies and large corporations. Every entity keeping full accounts must have such a document. Our tax and accounting group supports companies at every stage of creating and implementing accounting principles. This gives the company confidence that the accounting procedures applied comply with applicable regulations – based on Polish Accounting Standards (PAS) or International Accounting Standards (IAS) – and are tailored to the specifics of the business.
Company accounting policy at KR Group
The accounting policy describes the financial principles according to which the accounting records of the company will be maintained. This document forms the basis for the correct recording of all business transactions.
A company’s accounting policy requires regular reviews – particularly in the face of amendments to tax regulations. Companies using accounting outsourcing services can count on professional support in the creation and updating of documentation. KR Group specialists have excellent knowledge of the specifics of various industries and can adapt solutions to the individual needs of each client. Working with our team enables companies to organise their accounting processes and focus on further business development, without concern about the compliance of documentation with current regulations.
Company accounting policy – KR Group offer
- Review of the accounting policy, in which KR Group experts carry out a detailed analysis of each Client’s situation. During the audit, all variables relating to the company are taken into account, such as: size, revenue and adaptation to the industry.
- Preparation of the accounting policy, which not only meets the requirements of the Accounting Act but also supports the development of your business.
- Conduction of training, during which KR Group experts share the necessary knowledge about the procedures being introduced and the accounting policy developed.
- Update of the accounting policy, so that it is adapted to changing regulations and the challenges of the industry.
FAQ
What is a company’s accounting policy?
An accounting policy is a document defining the principles of maintaining accounting records and preparing financial statements. Every company keeping full accounts must have one. This document describes, among other things, methods of valuing assets and liabilities, the manner of recording business events and the principles of financial document circulation. A properly developed accounting policy ensures consistency in accounting entries and provides transparency of the company’s financial data. For accounting to function efficiently in a company, the principles developed should not only comply with regulations but also be tailored to the specifics of the company and the industry in which it operates. Responsibility for the written and adopted accounting policy rests with the head of the entity or a designated responsible person – most often, however, it is the management board.
What should an accounting policy contain?
A properly developed company accounting policy should contain the following elements:
- definition of the company’s financial year,
- definition of reporting periods,
- principles of asset valuation and depreciation,
- the manner of maintaining accounting records,
- the manner of document circulation and storage,
- principles of documentation security.
The document should also designate the person responsible for compliance with all the provisions contained in the adopted accounting policy. Any changes should be included in an annex, which must be signed by authorised persons.
Why entrust the preparation of the accounting policy to KR Group?
At KR Group we offer comprehensive services related to the development and implementation of a company’s accounting policy. Our team of experts carries out a detailed analysis of each client’s situation, taking into account the size of the company, the revenue structure and the specifics of the industry. Accounting policy – the price is determined individually – and depends on the complexity of the organisational structure and the scope of the work required. As part of the cooperation we offer the preparation of complete documentation that meets the requirements of the Accounting Act and at the same time supports business development. We also conduct training sessions during which we share the necessary knowledge about the procedures introduced.
KR Group also assists in updating the accounting policy so that it is adapted to changing regulations. Our specialists also provide tax advisory services, which are a natural complement to accounting-related activities. The breadth of our offer and our partnership approach make us a partner that understands the realities of business.
How much does the preparation of documentation cost?
Accounting policy – the price depends on many factors: the size of the company, the industry and the complexity of the organisational structure. We encourage you to contact us for an individual quotation. The price of an accounting policy also depends on the scope of the required procedures and the degree of adaptation of the documentation to the specifics of the business. The cost of preparing the documentation may also depend on the need to analyse existing accounting procedures and to adapt them to current legal regulations.
How often should a company’s accounting policy be updated?
Updates should take place each time there is a change in regulations or significant changes in the company’s operations. Regular review of documentation enables the rapid identification of areas requiring adaptation to new legal or organisational conditions. This allows the company to maintain compliance with applicable regulations and significantly minimises the risk of errors in maintaining accounting records.
Who is obliged to have an accounting policy?
An accounting policy must be held by all entities that maintain accounting records. This obligation applies to, among others: capital companies, limited partnerships and limited joint-stock partnerships, foundations and associations. The mandatory accounting policy also applies to general partnerships and sole traders who, after exceeding the statutory revenue limit, are required to keep full accounts.
What are Polish Accounting Standards and International Accounting Standards?
Polish Accounting Standards (PAS) are principles for the valuation and preparation of financial statements that arise from national regulations, primarily the Accounting Act, and from the guidelines published by the Accounting Standards Committee. Their aim is to ensure the reliable and transparent presentation of financial data by entities operating in Poland, taking into account local legal conditions and the specifics of the Polish economic market.
International Accounting Standards (IAS), also referred to as International Financial Reporting Standards (IFRS), are developed by the International Accounting Standards Board (IASB) and applied in many countries, including the CEE region. Their implementation enables the harmonisation of financial statement preparation principles and increases their comparability on international markets.
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