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.
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.
