Financial statements are one of the most important documents in business accounting, containing comprehensive information on an entity's annual financial result. This document does not serve only the organisation's internal purposes – it plays a key role in dealings with public administration, including the tax authorities and the KRS (National Court Register). It is the basis for the data reported and an essential element of companies' financial transparency.
The importance of financial statements goes far beyond a simple set of figures. They reflect the entity's real financial position, its ability to generate profit, the efficiency of its asset management and its financial stability. For owners, investors, lenders and other stakeholders, financial statements are the main source of information on the economic condition of the business.
Financial statements contain detailed information on a business entity's annual financial result. This document is required not only for internal purposes, but also in dealings with the tax authorities and the National Court Register. It is the basis for all financial data reported by the business
The obligation to prepare financial statements
The obligation to prepare financial statements does not apply to all businesses, but is strictly defined by the Accounting Act. This document must be prepared primarily by entities that are required to keep accounting books under the Accounting Act. In addition, the obligation also covers entities that have chosen full accounting books as the way to record their business activity. We prepare annual statements for businesses whose full books we keep — find out more about our accounting services.
The range of entities covered by this obligation is wide and includes various organisational forms of doing business. They include companies that are legal persons, such as limited liability companies (sp. z o.o.) and joint-stock companies, as well as foundations and associations. At the same time, the obligation may also apply to sole proprietorships and partnerships of natural persons, provided they keep full accounting.
The obligation to prepare financial statements results from keeping accounting books under the Accounting Act. This applies both to entities required by law to keep books and to those that have chosen full accounting books themselves. The obligation covers companies that are legal persons, as well as sole proprietorships and partnerships of natural persons keeping full accounting
An important aspect is the distinction between entities that must keep accounting books by law and those that have chosen to do so voluntarily. Entities required by law are primarily – regardless of revenue – capital companies, limited partnerships and limited joint-stock partnerships, state-owned enterprises, cooperatives and other legal persons (Article 2(1)(1) of the Accounting Act, consolidated text: Journal of Laws (Dz.U.) 2026, item 522). Natural persons, civil law partnerships of natural persons, general partnerships of natural persons and professional partnerships keep accounting books only when their net revenue from the sale of goods and products for the previous financial year reached at least the equivalent of EUR 2,500,000 (Article 2(1)(2)).
On the other hand, the entities that can voluntarily choose to keep accounting books below this threshold are mainly natural persons running a business and civil law partnerships (Article 2(2)). This choice may be driven by various factors, such as more precise financial management, easier access to loans or preparation for organisational changes.
Preparing financial statements requires proper preparation and knowledge of the rules. The process involves several key stages:
- Collecting all accounting documents for the financial year
- Carrying out a stocktake of assets and liabilities
- Making all adjustments and accruals
- Preparing the balance sheet and the profit and loss account
- Preparing the notes to the financial statements
- Checking that all items are correct and consistent with the books
Financial statements and the National Court Register
The National Court Register plays a fundamental role in the filing of financial statements for a large share of Polish businesses. Under Article 69(1) of the Accounting Act, the head of the entity must file a number of key documents with the relevant court register that comprehensively present the entity's financial and legal position.
The set of documents to be filed with the KRS includes the annual financial statements as the basic element. In addition, if the financial statements were subject to a mandatory audit by a statutory auditor, the audit report must be attached. Another required document is a copy of the resolution or decision of the approving body approving the annual financial statements and on the distribution of profit or coverage of loss.
Under Article 69(1) of the Accounting Act, the head of the entity must file with the KRS the annual financial statements, the audit report and a copy of the resolution approving the financial statements. All documents must be filed within 15 days of the approval of the annual financial statements
Management reports are also particularly important; they apply to the entities listed in Article 49(1) of the Accounting Act. These additional reports contain information on operations, development strategy, the main risks and threats and other aspects of the business that may be relevant to users of the financial statements.
The deadlines for filing documents with the KRS are strictly defined and must be observed precisely. All the documents listed must be filed within 15 days of the approval of the annual financial statements. When the financial year is the calendar year, the final deadline for filing statements for 2026 with the KRS is 15 July 2027. If the financial statements are not approved on time, they are filed within 15 days after the approval deadline and then again within 15 days after approval (Article 69(2)).
The approval process is also subject to specific time rules. First, the head of the entity ensures that the financial statements are prepared within 3 months of the balance sheet date (Article 52(1)) – for 2026, by 31 March 2027. Under Article 53(1) of the Accounting Act, an entity's annual financial statements must be approved by the approving body no later than six months after the balance sheet date, which is the last day of the financial year. This means that the financial statements for 2026 must be approved by 30 June 2027 at the latest.
Filing documents with the KRS also requires certain formal requirements to be met:
- The financial statements of an entity entered in the KRS register of entrepreneurs are prepared in the logical structure published by the Ministry of Finance (Article 45(1g))
- The financial statements are signed electronically (with a qualified, trusted or personal signature) by the head of the entity – where the management board has several members, by all members or by one of them after statements from the others – and by the person entrusted with keeping the accounting books (Article 45(1f), Article 52(2)–(2b))
- All attachments must be complete and legible
- The filing is signed by a person disclosed in the KRS as authorised to represent the entity (with a PESEL number (national ID number)), a commercial proxy, a liquidator or an advocate or legal adviser (Article 19e(2)–(3a) of the KRS Act)
- Documents are filed only electronically, through the IT system of the Minister of Justice (Article 19e(1) of the KRS Act)
| Type of document | Approval deadline | KRS filing deadline | Legal basis |
|---|---|---|---|
| Financial statements | Within 6 months of the balance sheet date | 15 days from approval | Articles 53 and 69 Accounting Act |
| Audit report | Together with the financial statements | 15 days from approval | Article 69 Accounting Act |
| Approval resolution | Within 6 months of the balance sheet date (for a calendar year – by 30 June) | 15 days from approval | Articles 53 and 69 Accounting Act |
Financial statements of natural persons and the tax authorities
The situation of natural persons running a business with regard to filing financial statements differs significantly from the procedures for companies registered in the National Court Register. Entities such as sole proprietorships of natural persons or civil law partnerships of natural persons are not required to register in the KRS, which leads to different procedures for filing financial statements.
For these entities, the relevant institution is CEIDG (Central Register and Information on Economic Activity), but the Accounting Act does not mention filing financial statements with this institution. This legislative gap has been filled by the PIT Act (Personal Income Tax Act), which precisely sets out the obligations in this area.
Natural persons running a business do not file financial statements with the KRS but send them electronically to the Head of KAS (National Revenue Administration). These businesses are entered in CEIDG, but the Accounting Act does not provide for filing financial statements there
The key provision on this issue is Article 45(5) of the PIT Act, which clearly states that taxpayers keeping accounting books and required to prepare financial statements must send them electronically to the Head of KAS before the deadline for filing the annual tax return. This means that the financial statements become part of the business owner's annual tax settlement.
As a consequence of this provision, natural persons running a business and not required to register in the KRS must – in addition to the tax return – send complete financial statements in the logical structure published by the Ministry of Finance. They consist of the balance sheet, the profit and loss account and the notes, which together give a full picture of the business's financial position.
The deadline for natural persons to file financial statements is closely linked to the tax settlement deadlines. The financial statements must be sent to the Head of KAS by 30 April of the year following the financial year (Article 45(1) and (5) of the PIT Act). This date results from the final deadline for filing annual PIT returns and cannot be extended.
Practical aspects of filing financial statements by natural persons include:
- Preparing the financial statements in line with the requirements of the Accounting Act
- Sending the financial statements electronically to the Head of KAS, separately from the PIT form
- Filing the PIT return with the tax office (urząd skarbowy) competent for the place of residence
- Keeping copies of all documents for your own records
- Making sure that the financial statements are complete and signed
A business owner running a sole proprietorship in the trade sector kept full accounting books for the whole of 2026. As a result, they must prepare financial statements consisting of the balance sheet, the profit and loss account and the notes. They must send the financial statements electronically to the Head of KAS and file the PIT-36 return (the annual personal income tax return) with the tax office – in both cases by 30 April 2027.
Simplified financial statements
The Accounting Act allows certain categories of entities to prepare financial statements in a simplified form, which is a significant relief for smaller businesses. This option was introduced to reduce the administrative burden on entities that, because of their size and scope of activity, do not need reporting as detailed as larger corporations.
The right to prepare simplified financial statements of a small entity for 2026 is available to entities that did not exceed two of the three specified size thresholds in 2025 and 2026 (Article 3(1)(1b) of the Accounting Act; an entity starting business assesses only its first year). This criterion is based on the principle that the entity must remain below at least two of the three limits in the year for which it prepares the financial statements and in the previous year. The decision to apply the simplifications is made by the approving body (Article 49c(1)).
Simplified financial statements may be prepared by entities that, in the financial year and in the previous year (for 2026 – in 2025 and 2026), did not exceed two of the three size criteria. The thresholds relate to average annual employment, total balance sheet assets and net revenue from the sale of goods and products. Entities must stay below two of the three limits in both years
The first criterion concerns employment and provides that average annual employment converted into full-time equivalents may not exceed 50 people. The calculation of average annual employment takes into account employees working different working hours, converted into full-time equivalents.
The second criterion concerns the value of assets and provides that total balance sheet assets at the end of the financial year may not exceed PLN 33,000,000 (up to the financial statements for 2023 – PLN 25,500,000). This value includes all assets shown in the balance sheet, both fixed and current, measured in accordance with accounting principles.
The third criterion concerns revenue and provides that net revenue from the sale of goods and products may not exceed PLN 66,000,000 in the financial year (up to the financial statements for 2023 – PLN 51,000,000). These thresholds have applied since the financial statements for 2024 (Act of 6 December 2024, Dz.U. 2024, item 1863, Article 14(3)).
The essence of simplified financial statements is the possibility of presenting information in less detail. Entities entitled to simplifications do not have to show the detailed information making up specific balance sheet or profit and loss account items. Instead of a detailed breakdown, they can show only the main values of the higher-level items, which greatly simplifies the preparation of the financial statements.
The main areas of simplification include:
- The option of combining similar items in the balance sheet
- Less detail in the profit and loss account
- Simplified notes
- Lower requirements for explanatory notes
- The option of omitting certain additional statements
Differences in deadlines and institutions
Understanding the differences in filing deadlines for financial statements and the competent institutions is key to meeting reporting obligations correctly. The Polish system provides for different procedures depending on the entity's legal form and registration status, which requires particular attention from business owners and their advisers.
The basic distinction is between entities registered in the National Court Register and those not subject to such registration. This fundamental difference determines not only where the financial statements are filed, but also the deadlines and formal requirements of the process.
Entities registered in the KRS, such as limited liability companies, joint-stock companies or foundations running a business, must file their financial statements with this register. The process has two stages – first the financial statements must be approved by the competent body of the entity, and then filed with the KRS within the set deadline. The accounting obligations of a family foundation, in turn, stem from a separate act, which we discuss in another article.
Entities registered in the KRS (where the financial year equals the calendar year) file their financial statements by 15 July at the latest, while natural persons running a business must send their financial statements to the Head of KAS by 30 April. The difference in deadlines results from different approval procedures and different competent institutions
For limited liability companies, the deadline for filing the financial statements for 2026 with the KRS is 15 July 2027 at the latest. This deadline is counted from the date the financial statements are approved by the shareholders' meeting, which must take place no later than 30 June 2027. This means that companies have a relatively flexible schedule, but must plan the approval process carefully.
On the other hand, natural persons running a business, including sole proprietorships and partners in civil law partnerships, who keep accounting books must send their financial statements to the Head of KAS by 30 April 2027 (for 2026). This deadline is fixed and does not depend on any additional approval procedures.
The differences in the institutions competent to receive financial statements result from the different functions of these documents. In the KRS, financial statements serve mainly to inform participants in business transactions, while in the tax administration (KAS) they are part of the tax settlement.
The practical consequences of these differences include:
- Different forms and filing procedures
- Different fees for filing documents
- Different consequences of late filing
- Different requirements for the form of documents
- Different procedures for correcting errors in financial statements
| Type of entity | Institution | Filing deadline | Approval deadline | Legal basis |
|---|---|---|---|---|
| Companies in the KRS | National Court Register | 15 July 2027 (for 2026) | By 30 June 2027 | Articles 53 and 69 Accounting Act |
| Natural persons | Head of KAS (electronically) | 30 April 2027 (for 2026) | Not applicable | Article 45(5) PIT Act |
| Civil law partnerships | Head of KAS (electronically) | 30 April 2027 (for 2026) | Not applicable | Article 45(5) PIT Act |
Consequences of late filing
Filing financial statements late can have serious legal and financial consequences, which differ depending on the type of entity and the institution with which the statements should be filed. Business owners must be aware of these consequences and take appropriate preventive action.
For entities filing financial statements with the National Court Register, late filing may result in the registry court calling on them to file the documents within an additional 7-day period under the threat of a fine, and after that period – a fine (which may be repeated) in coercive proceedings (Article 24 of the KRS Act). If, despite being called on, the entity has not filed financial statements for 2 consecutive financial years, the court initiates ex officio proceedings to dissolve the entity without liquidation (Article 25a(1)(4)). Failure to file financial statements with the register is also an offence punishable by a fine or restriction of liberty (Article 79(4) of the Accounting Act). In addition, the lack of up-to-date financial statements in the KRS can damage the entity's credibility in the eyes of business partners, financial institutions and other market participants.
For natural persons running a business, the consequences of sending financial statements to the Head of KAS late are directly linked to tax procedures. This may result in a request from the tax authority or the start of verification activities or a tax audit, and if the tax return or tax payment is also late – default interest and liability under the Fiscal Penal Code.
A limited liability company engaged in trade did not file its financial statements with the KRS by the 15 July deadline. The registry court called on it to file the documents within 7 days under the threat of a fine, and when the deadline passed without effect it imposed a fine of PLN 1,000. If the company failed to file financial statements for two consecutive years, it would face proceedings to dissolve it without liquidation. In addition, the company's business partners began to question its credibility because of the lack of up-to-date financial data in the register.
