Simplified accounting – revenue and expense ledger or tan on recorded revenue – simple accounting, complete control

If you are a sole proprietorship, a civil law partnership or a company that meets the criteria of a small business, you have the option of simplified accounting. Revenue and expense ledger (KPiR) and tax on recorded revenue are two popular forms of tax accounting that allow entrepreneurs to save time and resources. EFEKTA Accounting Office provides a professional simplified accounting service, helping you to focus on running your business, without worrying about the formalities.

What is simplified accounting?

Simplified accounting is a form of tax records designed for entrepreneurs who meet certain income criteria. Its main advantages are simplicity, less formalities and lower running costs. As part of simplified accounting, entrepreneurs can choose:

1. Revenue and expense ledger (KPiR)
   A form of record keeping that allows taxes to be settled on a general basis (12% or 32%) or at a flat rate (19%). It involves recording all revenue and expenses related to the business.
2. Tax on recorded revenue
   Settlement of tax on revenue without taking into account the costs of obtaining it. It offers fixed tax rates depending on the type of activity (e.g. 3%, 8.5%, 15%).

Who can benefit from simplified accounting?

Entrepreneurs who meet the following criteria are eligible for simplified accounting:

• They run a sole proprietorship, civil law partnership or general partnership of natural persons.
• In the previous tax year, they did not exceed a revenue of the equivalent of EUR 2 million.
• They meet the criteria for opting for a tax on recorded revenue for this form of taxation.

Differences between the revenue and expense ledger and tax on recorded revenue

Features	Revenue and expense ledger	Tax on recorder revenue
Tax base	Income (revenue less expenses)	Revenue (not including expenses)
Tax rates	12%, 32% (general rules) or 19% (flat rate)	Fixed rates depending on the type of activity
Cost deductibility	Yes, all reasonable operating costs	No, expenses are not included
Documentation	Revenue and expense ledger	Revenue registry
Application	For companies with higher tax-deductible costs	For companies with low tax-deductible costs

Benefits of simplified accounting

1. Lower operating costs
   Simplified accounting is less time-consuming and more cost-effective than complete accounting.
2. Ease of use
   Fewer formalities and clear record-keeping rules.
3. Faster settlements
   With fewer accounting duties, businesses can complete their tax returns faster.
4. Flexibility in the choice of form
   The entrepreneur has the opportunity to choose the most favourable form of taxation depending on the nature of the activity and the level of costs.

How does EFEKTA support you?

1. Keeping the revenue and expense ledger and tax on recorder revenue
   We handle the recording of revenue and expenses in accordance with current legislation. For the tax on recorded revenue, we keep the revenue registry and other required records (e.g. VAT).
2. Tax consultancy
   We help you to choose the most cost-effective form of taxation (revenue and expense ledger or tax on recorded revenue), taking into account the specifics of your business.
3. Timely settlements
   We ensure that tax returns and other documents are submitted to the authorities on time.
4. Support in case of audits
   We represent you before tax authorities and the Social Insurance Institution, minimising the risk of potential problems.
5. Modern accounting tools
   We offer access to online systems that allow you to easily track your company’s finances in real time.

Why choose EFEKTA Accounting Office?

1. Individual approach
   We tailor our services to the specifics of your company and its needs.
2. Experience and precision
   Our team is experienced in handling both small and larger businesses.
3. Transparency and security
   We ensure reliable record keeping and compliance with regulations.
4. Complete accounting, complete peace of mind
   With us, you can concentrate on growing your business, confident that your accounting is in good hands.

Simplified accounting, your peace of mind

The decision to choose a form of simplified accounting is crucial to your company’s finances. EFEKTA Accounting Office will help you choose and maintain the most favourable form of tax settlement.

Contact us today to find out how we can support your activity. Make an appointment for a free consultation and find out that simplified accounting is a step towards greater efficiency and peace of mind.

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What is the difference between simplified accounting and full accounting?

Simplified accounting (often called “small accounting”) is characterized by fewer formalities, simpler record-keeping rules, and lower service costs. It is intended mainly for smaller entities, while full accounting (statutory account books) is mandatory for large capital companies and firms with very high turnover.

Who can use simplified forms of settlement?

This form can be used by sole proprietorships (JDG), civil partnerships, and registered partnerships of natural persons, provided their revenue in the previous tax year did not exceed the equivalent of EUR 2 million.

What to choose: KPiR (Revenue and Expense Ledger) or Lump Sum (Ryczałt)?

The choice depends on the specifics of your business:

• KPiR is beneficial when you incur high business-related costs (e.g., office rent, purchase of goods), as you pay tax on income (revenue minus costs).
• Lump Sum (Ryczałt) works best with low internal costs, as the tax is paid on the revenue itself at a fixed rate, without the possibility of deducting expenses.

What are the tax rates for KPiR?

Under the Tax Revenue and Expense Ledger, you can settle:

• On general principles (tax scale of 12% or 32%).
• According to a flat rate (19% regardless of income level).

When switching to a lump sum, do I still need to collect cost invoices?

With a lump sum, tax is calculated on revenue, so costs do not reduce income tax. However, as an entrepreneur, it is worth keeping purchase documents for evidentiary purposes or VAT settlements (if you are an active VAT taxpayer).

How does the EFEKTA office help in choosing a taxation form?

Our experts analyze your company’s projected revenues and costs, and then conduct a simulation that indicates which method (KPiR or Lump Sum) will be the most financially profitable for you.

Does the accounting office represent me before authorities?

Yes. As part of our cooperation, EFEKTA provides support during tax audits and represents the client before the Tax Office and ZUS, which minimizes the stress associated with formalities.

Will I have an ongoing insight into my financial results?

Yes. We offer access to modern online tools, allowing you to track your company’s finances and monitor settlements in real-time, without the need for office visits.