The accounting ledger of revenues and expenses is a compilation of various operations that have been carried out by a given enterprise. Of course, these are all kinds of profits for the company, i.e. sales of goods or services, as well as various types of expenses, i.e. purchases. Both goods and services can be purchased. However, it is important that all transactions, regardless of their nature, are properly recorded and properly documented in the books kept.
The first thing to consider is what expenses can be included in the costs of your business. What could it be? Not every cost incurred can be included in your records, because the expenses incurred on the company must be justified by the company’s needs.
According to the regulations, expenses of a company can include those that must be incurred directly in order to obtain income or those that must be incurred in order to secure or maintain a source of income. Thus, the relationship between the costs incurred and the income obtained is very clearly emphasized here.
And yes, the costs can certainly include costs related to the maintenance of the office, stationery, promotional materials, related to the maintenance of the website or traveling. However, you need to be aware that these costs must be clearly related to your business. In the event of an inspection, if doubts arise with the inspectors regarding certain expenses, the entrepreneur is obliged to justify their significance and reasonableness.
If the expenditure is actually related to the nature of the business and is important for the entrepreneur’s income, it should be properly documented. Expenditure for which there is no relevant document, i.e. confirmation, cannot be entered into the register. The provisions of the accounting regulation clearly specify the documents that can be treated as accounting vouchers. Only these will be recognized by the tax office in the event of an audit. Recognized accounting documents include, first of all, invoices, VAT invoices, bills or customs documents. It can also be a daily income statement that is issued at the end of the day as a collective sales statement for booking. Different types of accounting notes for different reasons as well as with different content. The condition is, however, that each such note is prepared in accordance with the guidelines. Evidence of transfers, postage or bank charges and internal evidence are also accepted.
It is very important to maintain their correctness not only from the point of view of the content of the document itself, but also from the formal point of view. Formal errors may be the basis for rejection of a given invoice.
After the accounting documents have been verified, they should be properly recorded. All entries in the book should be kept carefully and legibly. Please note in Polish and the amounts must be entered in PLN. Only those expenses that are properly and correctly documented can be recorded.
The entry itself should consist of several elements, including the ordinal number of the expense, the date of the economic event, the number of the accounting voucher and the contractor’s data. Of course, the economic event itself should also be described to make it easier to identify.
In the KPiR, all columns are precisely described and when registering expenses, you simply need to fill in each of them. The exception are columns 10 to 16, which are used to properly classify the expenditure incurred. Part of it is the purchase of goods, other expenses are the purchase of raw materials, others are payments for employees. The amount of the expenditure must therefore be entered in the column to which the given expenditure corresponds.
Correct accounting of expenses is extremely important and requires great care and precision. All information in the book must be reflected in correctly drawn up accounting documents.