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What can we talk about?

Re-invoicing - what exactly is it?

Re-invoicing consists of reselling goods or services to another company at the same price, without charging any commission or margin. Usually, all costs are then transferred to the company that actually uses the service or good to which the re-invoice relates. It is much more common to re-invoice a service than to purchase goods.

What about ZUS when a company goes bankrupt?

When a company is declared bankrupt, the employer, i.e. the payer of contributions, is obliged to deregister all employees from social insurance and health insurance with the Social Insurance Institution (ZUS ZWUA form is used for this purpose). This must be done within 7 days from the date of termination of their employment relationship.

How long does the process of declaring a company bankrupt take?

The whole process of declaring bankruptcy of a company is counted from the moment of the decision on filing the petition to declare bankruptcy until the moment of concluding the agreement and lasts about 6 months. The condition for the bankruptcy process is the positive consideration of the petition by the court and the consent of 2/3 of the creditors.

When does a company need to be declared bankrupt?

The bankruptcy law states that a debtor is insolvent if he has been unable to pay his debts for at least 3 months. From the moment the debtor is insolvent, he has 30 days to declare bankruptcy by filing a special petition.

What is internal audit?

An internal audit is an inspection carried out by a specialist employed internally, usually in the audit department. The internal auditor carries out checks to verify whether company processes are carried out in accordance with current regulations and standards.

How often should an external audit be carried out?

In most companies, an external audit is carried out once a year. However, for public interest entities, the audit takes place twice a year - these are institutions that require more scrutiny.

How much does an external audit cost?

The price of an audit depends on many factors - the size of the company, the number of employees, the profits made, as well as the qualifications of the external auditor. An audit conducted by a qualified external auditor may cost from several hundred to several thousand PLN. However, it should be remembered that such a service may bring measurable benefits, so it is not worth saving.

Do I need a company stamp?

No, no entrepreneur is obliged to have a company stamp. However, it is extremely convenient as a company stamp can come in handy in all sorts of situations - for example, when asking for an invoice, you need to enter your company details so you don't have to dictate them each time. Remember also that the purchase of a company stamp can be accounted for in company costs.

Do I have to open a company bank account when I set up my business?

The establishment of a company is not synonymous with the obligation to establish a company bank account. It is true that in the CEIDG-1 form the bank account number must be entered, but it can be the entrepreneur's private account number. It is simply important that it is reported to the CEIDG. However, if you decide to take such a step, you should bear in mind that the officials carrying out the inspection will have access not only to your business expenses, but also to your private ones. Remember that even if you initially entered a private account number in CEIDG, you can change it at any time

Independent bookkeeping versus a professional accountant. Which to choose?

Doing your own bookkeeping for a sole trader is possible. However, this type of activity requires expertise in tax regulations and keeping track of payment deadlines, plus it takes up valuable time. Using the services of a professional accountant allows you to focus on your business without worrying about the correct settlement of your finances. On the other hand, running a company requires full bookkeeping and, consequently, cooperation with a competent accounting office.

Who must keep a revenue and expenditure ledger?

It is obligatory to keep a revenue and expense ledger for sole traders who chose general or flat tax as their taxation method. The revenue and expense ledger must also be kept by civil law partnerships, general partnerships and partnerships owned by natural persons - then the revenue and expense ledger is a part of a complete ledger.

Is it possible to pay less Social Security when setting up my own business?

Yes, because when you set up your own business, you can take advantage of the so-called "relief for start-up". Thanks to this relief, for the first 6 months of running your own business you do not pay social insurance premiums. However, you are still obliged to pay the health insurance premium.

Do I have to submit a PIT-11?

Every entrepreneur who hired employees in the previous tax year, regardless of whether it was an employment contract, contract for specific work or a contract of mandate, is obliged to submit PIT-11.

What does "double taxation" mean?

Double taxation occurs in companies and refers to a situation where corporate income tax (CIT) is paid on income generated in the company, and then shareholders of the company, who receive dividends, are obliged to pay personal income tax (PIT).

Do I have to file a PIT-11?

The obligation to file a PIT-11 applies to any entrepreneur who employed employees in the previous tax year, regardless of whether it was an employment contract, a contract to perform a specific task or a contract of mandate.

What does "double taxation" mean?

Double taxation occurs in companies and refers to a situation where corporate income tax (CIT) is paid on the income generated in the company, and then the company's shareholders who receive dividends are required to pay personal income tax (PIT).

Who will help you?

Anna Nowakowska-Madany

Anna Nowakowska-Madany

Anna is a graduate of the University of Finance and Management in Warsaw on the specialization on finance and accounting. Since 2008 she possess the Certificate of Accountant granted by the Polish Ministry of Finance. Anna has extensive experience in the fields of accounting, treasury management and reporting. Since 2003 Anna is continuously involved in the accounting services for TCL Operations Polska Sp. z o.o. where she holds the position of Chief Accountant. Anna is also Chief Accountant and CFO Deputy in the ID Finance Poland Sp. z o.o. (financial services company), where she manages the accounting and finance Team.

Tomasz Zapała

Tomasz Zapała

Tomasz is a graduate of the Warsaw School of Economics (SGH). Since 2014 Tomasz possess the License of Statutory Auditor and since 2019 the Certificate of Restructuring Advisor. Since 2016 he was overseeing the financial and accounting departments of Paged S.A. (consolidated group of Companies on Polish Stock Exchange) and since 2017 was leading the Finance Department at ID Finance Poland Sp. z o.o. (financial industries). As auditor and CFO Tomasz was involved in numerous projects including audits and reviews of financial statements, budgeting and forecasting projects as well as due diligence engagement (including energy industry, telecommunication, real estate industry. etc). He also participated in business advisory projects (including mergers and acquisitions and loan reengineering).

Contact

At FA Partners we've been serving the accounting needs of companies for years. If you need help managing any aspect of your business's finances, we want to hear from you. Please fill out the form and let us know how we can be of service. We will happily offer you a FREE initial consultation to determine how we can best serve you. Thank you for visiting. We look forward to working together!

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