2025 – what is the revenue limit for accounting books?
Key change for entrepreneurs: higher limit of accounting books from 2025
Under the Act of 6 December 2024 (Journal of Laws of 17 December 2024, item 1863), the net sales revenue limit requiring the keeping of accounting books has been increased by 25%, reaching the equivalent of EUR 2,500,000.
According to the regulations, the conversion of this limit into Polish zloty is carried out according to the average euro exchange rate published by the National Bank of Poland on the first working day of October of the year preceding the tax year.
In 2024, this exchange rate, announced on October 1 (NBP table no. 191/A/NBP/2024), was PLN 4.2846. Therefore, the limit for accounting books and the tax revenue and expense ledger (PKPiR) in 2025 will be PLN 10,711,500 (EUR 2,500,000 x PLN 4.2846). Let us recall that in 2024, this limit was EUR 2,000,000, which was PLN 9,218,200.
An important change introduced by the amendment to the Accounting Act is the exclusion of income from financial operations from the definition of net sales revenues.
The amendment increased the thresholds defining the obligation to audit financial statements by a statutory auditor. The obligation to conduct an audit for a given financial year will arise if at least two of the three following criteria are met:
- The total assets of the balance sheet at the end of the financial year reached the equivalent of at least EUR 3,125,000 in Polish currency (the previous value was EUR 2,500,000),
- Net revenues from the sale of goods, products and financial operations amounted to at least EUR 6,250,000 converted into Polish zloty (previously it was EUR 5,000,000),
- The average annual employment, in full-time equivalent terms, was at least 50 people (this threshold remains unchanged).
Full accounting despite lower revenue limit?
Even if an entrepreneur has not exceeded the statutory revenue limit, he or she may voluntarily decide to keep full accounting records, i.e. accounting books, in accordance with the requirements of the Accounting Act.
It is enough to notify the relevant head of the tax office before the start of the financial year. The notification of the intention to keep accounting books can be submitted via the CEIDG system, for example when registering a company or updating data in the Central Register and Information on Economic Activity (in accordance with art. 2 sec. 2 of the Accounting Act).
Read also: Accounting obligations in Poland
Full accounting vs. simplified accounting – a short comparison
Full accounting provides a comprehensive picture of the financial situation of the company but is associated with greater obligations in terms of maintaining documentation and preparing reports. In turn, the selection of the appropriate form of simplified accounting depends on many factors, such as the type of business, the amount of revenue and the entrepreneur's preferences. How do these forms of settlement differ?
What is full accounting and what obligations does it entail?
Full accounting is an advanced financial accounting system that requires the company to record and analyse all business transactions in detail. Unlike simplified forms of accounting, full accounting is characterized by extensive documentation and an extensive accounting structure. The entrepreneur is required to strictly adhere to accounting principles and tax requirements.
Full accounting responsibilities:
- Maintaining detailed documentation:
- Maintaining journals, general ledger and subsidiary ledgers to ensure accurate records of all transactions.
- Regular account statements:
- Preparation of turnover and balance statements for general ledger accounts and subsidiary ledgers, enabling ongoing monitoring of the financial situation.
- Asset inventory:
- Preparing a list of assets and liabilities, i.e. an inventory, which is crucial for controlling the company's assets.
- Preparation of financial statements:
- Regular preparation of the balance sheet, profit and loss account, introductory information to the report and additional information and explanations.
- Compliance with regulations:
- Ensuring compliance of all activities with applicable accounting regulations.
What is simplified accounting and what are its forms?
Simplified accounting is a simpler form of financial recordkeeping, less complicated than full accounting. It allows entrepreneurs to apply simplified rules for maintaining financial documentation, which is associated with fewer recording and reporting obligations. The key features of simplified accounting include the lack of the need to maintain full accounting records, journal entries and balance sheets.
Forms of simplified accounting:
- Tax Income and Expenditure Ledger (KPiR):
- This is a popular form of accounting; it involves recording revenues and costs in the KPiR. It allows for simple control of the company's finances and is often chosen by smaller companies.
- Lump sum tax on recorded revenues:
- The entrepreneur pays a fixed tax on revenues, calculated based on a set percentage. Records are limited to revenues, without the need for detailed documentation of costs.
Choosing the form of settlement is not easy, so we recommend consulting our advisor who will help you choose the optimal solutions for your company.
