Accounting consists in recording in monetary terms, and sometimes in quantitative terms, of properly documented economic events that cause changes in the assets of the managing entity and its sources of origin. In the article we will see the concept of books of accounts are kept on the basis of accounting vouchers, they record records of events in a chronological and systematic order. They include sets of accounting entries, turnover and balances, which constitute: a journal, general ledger, subsidiary ledgers, lists of: turnover and balances of general ledger accounts and balances of subsidiary ledger accounts, as well as a list of assets and liabilities Entrepreneurs are required to maintain an appropriate form of accounting in accordance with the type of activity conducted.
Simplified accounting means personal responsibility, no separate legal personality and equity.
Full accounting is a more developed and complicated way of keeping records of our company.
Such records include the company’s revenues and costs, the condition and property of the entire enterprise, including equipment, goods, account balance and cash.
As I mentioned above, it is a complicated accounting system, but it is also accurate and thus reflects the company’s financial situation in the most authentic way. The regulations do not impose the type of accounting and settlement methods with the tax office.
From my own experience, I will add that some forms should be used in your company, although most can only be done. It is important to define our enterprise at the beginning, because to a certain degree of development some forms of accounting are possible, others are not. The basis is the fact that natural persons, civil partnerships of natural persons, general partnerships of natural persons and partnerships are required for this type of settlements, provided that their income for the previous year amounts to a minimum of EUR 1.5 million.
This means that if the revenues have not reached this value, full accounting is not required and another form of settlement can be used. When calculating the amount of such a tax, the scope of our activity, the number of employees or even the number of inhabitants of the city are taken into account, in which we operate. It is worth remembering that if we want to use such a card, we must run a business listed in article 23.1 of the Act on flat-rate income tax on certain income earned 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. Briefly speaking, the tax we have to pay is calculated based on our income. However, it should be added that we can use this option provided that we do not exceed the limit of EUR 250,000 for the previous year.
The last form of taxation is the revenue and expense ledger. The tax is paid on the earned income, with the income understood as income less costs. What’s more, if the tax does not come 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. Moreover, full accounting is required for entrepreneurs whose net income from the sale of products and financial operations exceeded EUR 2 million (converted into PLN). In summary, if we exceed the above-mentioned amount or we run the above-mentioned company, then we are fully accountable.
Accounting is not only about unpleasant taxes, but also pleasant tax returns and the like. The world of finance is great, so I always encourage everyone I talk to to learn more about it. Let me just mention that if you run your own business, if you felt lost while reading this article, you should definitely ask an accountant for help, because the fact is that the tax office is not worth messing with and it is better to meet all the standards as they are imposed.