How we work in Accounting?

Initiating a partnership with a new accounting firm is a pivotal decision that involves careful consideration and collaboration. The efficiency of accounting and tax services is greatly influenced by the collaboration model, internal procedures, and processes employed by the accounting firm.

Discover our distinctive approach and methodology across key accounting domains crucial to the monthly book closing process. Should you choose to engage in a partnership with us, the journey begins with the implementation of our accounting service.

During this phase, we work together to establish a tailored chart of accounts, define essential service processes with deadlines and responsibilities, and determine the scope and format of reporting. Our commitment is to keep accounts in alignment with Polish regulations, with the flexibility to provide financial data according to IFRS or US GAAP standards for reporting purposes. The outcomes of our efforts are delivered in the form of tax calculations or financial reports, presented in both Polish and English.

Bank accounts

In order to post bank statements, we expect that after the end of a calendar month, or other accounting period, you will generate a statement of bank transactions for the reporting period in the form of:

• MT940 file – this file will allow us to import the data into our accounting system,
• Bank statement in PDF format – this document is a document confirming the cash balance in the bank account. It will be kept as accounting records.

The above files should be generated for all bank accounts, including foreign currency accounts, as well as the VAT account that was automatically created by the bank when the company account was set up.

If you use a foreign bank, in addition to the bank statement in PDF format, please generate bank transactions for the reporting period in csv, or excel file format. This is because in such a situation it will not be possible to generate an MT940 file.

An option you may consider is to give our employees access to your electronic banking. In such a situation, the downloading of bank statements and other files will be performed by our team.

Sales invoices

We assume that you are responsible for the invoicing process, i.e. that you have adequate subject matter expertise in the area of tax liability, that appropriate customer service and invoicing procedures have been established and implemented, and that you are using a billing system that meets Polish local requirements (in particular, providing integrations with KSeF).

Should you identify the need to analyze any of the above areas, we will be happy to provide appropriate support in this regard.

In urgent or exceptional situations, we can provide you with our invoicing system. In order to post your sales invoices, we expect you to provide us with the following for the reporting period after the end of the calendar month, or other accounting period:

• A summary of sales in excel file including, but not limited to, data to identify the purchaser, dates, subject matter and amount of the sale,
• Copies of sales invoices in PDF format – these documents will be kept as part of your accounting records.

Our accounting records provide full analytics of your buyers and their billing, which allows you to analyze outstanding receivables as of a specific date or to age them. For clients operating in the PRS/Student house/Co-living sector, the issue of how sales and accounts receivable records are posted is individually agreed with the client.

Purchase invoices

We assume that the purchase invoices that are forwarded to us for posting are approved by you in terms of merit, i.e. business.

In order to manage your purchase documents, we will provide you with access to our online system with a request to import received purchase invoices. Using this system, your purchase invoices will be transferred to us electronically in an easy and secure manner.

If necessary, we can provide you with access to the purchase invoice circulation process in our system. Then the entire invoice circulation and approval process is electronic and transparent. At the same time, the system allows you to narrow down the circle of people who have access to a certain type of documents (e.g. B2B invoices).

With the entry into force of the mandatory KSeF, the system will allow you to import your purchase invoices from the KSeF system.

In the case of expenditures for intangible services, we assume that acceptance of an invoice on its merits means that you have collected and have in your possession the relevant documents confirming the performance of the service. With the exception of trade in goods, in the case of foreign contractors, we recommend that you inform the foreign contractor at the time of contracting that you need to provide a tax residency certificate and a “beneficial owner” statement.

Our accounting records provide full analytics of your suppliers and their settlements, which allows you to analyze outstanding liabilities as of a specific date or age, in Polish and foreign currencies.

Financing costs

In the case of group (intercompany) financing, we assume that we will receive a calculation of accrued interest from you or the lender. Should we be responsible for preparing such a calculation, please contact us in advance.

For documentation purposes, we require that you provide us with a copy of the loan agreement and any addenda.

Any repayment of the loan with interest may result in withholding tax consequences. If you plan to make such repayment, please contact us in advance to determine the details and next steps.

In the case of bank financing, please provide a copy of the loan agreement, as well as monthly bank statements from the loan account.

If the lender is a foreign bank, the interest repayment may result in withholding tax consequences. Before or at the time of signing the bank loan agreement, please contact us for details and next steps. If the period of accrual of interest on a loan or bank loan is longer than a month, please inform us of the need to make a provision for interest expense.

Our accounting records allow accounting for transactions in an additional currency, which makes it possible to record and analyze liabilities in the currency of the loan or credit taken (EUR, USD).

Provisions for costs

As part of our monthly closing of accounts, we create provisions for fixed operating costs such as office rent, accounting services, financing costs, which are then released when an invoice is received, or a payment is made.

If you consider it appropriate to create provisions for other costs, please inform us accordingly at the beginning of our cooperation.

If you are the owner of the property, we assume that we receive information on the need to create reserves from you or the property manager with whom you cooperate. Then we create appropriate provisions for service charges, fit-out and other owner’s costs. If required, the accounting records of reserves can also be kept in foreign currency (EUR, USD).

Investment property

If you are operating in the real estate sector and are acquiring a property for investment purposes, we assume that the purchase price agreed with the seller will be appropriately broken down into individual assets (cost segregation). We will use this breakdown as the basis for allocating additional costs associated with the purchase of real estate (notary costs, legal costs, financing costs, etc.). The result of our work will be the determination of the final initial value of individual assets for accounting and tax purposes, while assigning the appropriate tax depreciation rates.

For the purpose of accounting for real estate tax, we draw attention to the need for separate separation in cost segregation of the purchase price of the so-called structures (parking lots, roads, plazas, barriers, etc.), whose tax base is their value.

The method of valuation of real estate (cost model, fair value model) should result from the accounting policy adopted by your company. In the absence thereof, we will recommend you to prepare it immediately.

If we adopt the fair value model, we assume that a valuation of the property by a professional entity specializing in valuations will be made available to us at least once a year. We will recognize the difference in valuation in the income statement accordingly.

We will provide you with records of the net value of the property as of a certain date for both accounting and tax purposes.

Fixed assets

Due to possible simplifications, in the adopted accounting policy you should establish rules and criteria for activating expenses on fixed assets, such as machinery and equipment, means of transport, furniture.

In companies in the technology sector, we keep detailed records of fixed assets, which most often include expenses for the purchase of furniture, computers, monitors, telephones, etc.

Upon receipt of the relevant information, the invoice documenting the expense will be credited to the fixed asset account with simultaneous entry of the asset in the fixed asset register. The rules for depreciation of such assets should be specified in the adopted accounting policy. In the absence of such a policy, we will recommend you to prepare one immediately.

Year-end closing

Before the end of the fiscal year, you will receive from us information on the various stages of the accounting closing of the year. At the same time, we will point out to you the elements that will require your involvement.

Once we have prepared the annual tax calculation and financial statements, they will be made available to you for review and approval.

If required, in addition to visualizing the XML logical structure of the financial statements, we can prepare for you the full financial statements in pdf file format in Polish and/or English.

As part of the year-end closing, you will receive information on related party transactions, indicating your obligation to prepare appropriate transfer pricing documentation.

Bank transfers

If you are handling the introduction and execution of bank transfers in-house, we assume that the person responsible for this process is familiar with the relevant tax regulations, particularly with regard to the split payment mechanism (split payment) and the white list of taxpayers.

As part of the start of our cooperation, you will receive from us a guide indicating the most relevant tax and accounting issues related to the execution of bank transfers in Poland.

If the process of entering and executing bank transfers has been entrusted to our team, then the transfers will be prepared in certain agreed cycles. In order to reduce tax risks, to the extent possible, the transfers prepared by us will be made using the split payment mechanism

Power of Attorney

All current tax returns and other required reports and statements are signed by us and sent to the relevant authorities on the basis of a power of attorney granted to us. Based on it, we are the contact person for the tax authorities.

Tax returns are signed by us after their prior approval on your part.

With regard to real estate tax, in case our tax team was not involved in the process of separating individual assets (cost segregation), the relevant declaration can be signed by us after prior agreement on the area of land, building and value of structures with the property manager and management of the company.

If you receive a summons, letter, or other information from the tax authorities, a copy of the document will be provided to you with a brief description of the case and information on the need to provide certain documents or take other actions. We use the power of attorney in the scope of our services. If you use other advisors (e.g., for transfer pricing reporting obligations), a separate power of attorney is required.

Our support

If you are interested in our accounting services, please contact us. Making business easier.