Revenue and expense statement

The KPiR is used by natural persons who run a sole proprietorship, but also by civil law, general and professional partnerships whose shareholders are solely natural persons. This statement is used to record expenses and revenues related to conducting business activities.

What is a KPiR?

The revenue and expense statement is the financial documentation constituting the basis for keeping accounts in companies and enterprises. It records all financial operations, such as income, expenses, revenues and costs. Due to the revenue and expense statement, it is possible to control the company’s finances and correctly settle taxes. It is an important tool for any entrepreneur who wants to conduct their business activities in a transparent and reliable manner. The revenue and expense statement is also one of the required documents for individuals conducting business activities.

Revenue and expense statement – basic information and principles of keeping it

The revenue and expense statement is a document in which all financial transactions related to business activities conducted are recorded. The statement should include all sources of revenues, such as sales and investments, as well as all expenses, such as rent, utilities and remuneration.

The rules for keeping the revenue and expense statement differ depending on the country in which the company operates. In Poland, for example, entrepreneurs must keep the KPiR for five years. The KPiR must be kept in chronological order and must be written in Polish.
It is important to keep accurate records of all financial transactions to ensure that the company complies with the tax laws and regulations. Failure to keep accurate records may result in fines and penalties from the tax authorities.

What are the benefits of having the revenue and expense statement kept by an accounting office?

Keeping the revenue and expense statement can be time-consuming and complicated. Many companies choose to outsource their bookkeeping to an accounting company. There are several benefits of having an accounting company that keeps the revenue and expense statement.

First, an accounting company has the experience and expertise to ensure that the statement is accurate and compliant with the tax laws and regulations. It can also give advice on how to optimise finances and reduce tax liabilities.

Second, outsourcing the bookkeeping to an accounting company can save time and money. Due to outsourcing, you can focus on running your business and leave the accounting to the professionals. This can save time and reduce the risk of errors in the statement.
Finally, an accounting company can provide you with regular financial reports that can help you make informed business decisions. These reports can help you identify areas where you can cut costs and increase revenues.

The KPiR and lump sums

When it comes to calculating taxes in Poland, companies have two options: using the revenue and expense statement or using a lump sum rate. The lump sum is a simplified tax system designed to make compliance with tax laws easier for small businesses. However, using the lump sum rate may have disadvantages.

One disadvantage of using the lump sum is that it may not accurately reflect your company’s financial performance. The lump sum rate is based on the type of business activities conducted and does not take into account your company’s specific financial performance. This means that you could end up paying more or less taxes than you should.

On the other hand, using the revenue and expense statement ensures a more accurate reflection of your company’s financial performance. You can track all your expenses and revenues, which will help you understand the cash flows and make better business decisions. Additionally, using the revenue and expense statement can help you identify ways to reduce your tax liabilities.

Is the KPiR kept in the case of a lump sum?

One of the questions asked by many business owners is whether they can keep the revenue and expense statement in the case of a lump sum.

If you choose the lump sum route, it means a change in the way you keep records. Instead of a tax book, you have to keep records of the revenues and you cannot deduct expenses in it. This change must be taken seriously and requires meticulousness to ensure accuracy.

Summary of the KPiR

In conclusion, keeping the expense and revenue statement is necessary to understand your company’s financial performance. This is a document that keeps track of all your expenses and revenues, and should be updated regularly to ensure accuracy. While you can do the bookkeeping yourself, outsourcing it to an accounting company can have several benefits.

In addition, the use of the revenue and expense statement is a more accurate reflection of the company’s financial performance than the use of the lump sum statement. Keeping a statement with individual transactions is recommended as it ensures a greater level of details and accuracy. By following these rules, you can ensure that your financial documentation is accurate and up-to-date, which is crucial for compliance with the tax regulations.

If you need help in keeping the revenue and expense statement, contact our accounting office today. We have the experience and expertise to ensure that your statement remains accurate and compliant with the tax laws and regulations.