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Digital transformation of accounting in Poland – automation and digitalization of accounting processes

January 29, 2024
Accace - Digital transformation of accounting in Poland

In recent years, accounting has undergone revolutionary changes, adapting to technological advancements, increasing complexity of financial regulations, and business requirements. Digital transformation of accounting in Poland has not only redefined the role of accountants, but also altered the very nature of accounting itself. In the current era, automation has become a driving force behind the digital revolution. Technologies such as artificial intelligence (AI), robotic process automation (RPA), and cloud computing are revolutionizing the work of accountants by enabling the automation of routine tasks, leading to time savings and error elimination.

This transformation signifies more than just technological modernization; it represents a profound shift in how accounting services are delivered in today’s business world. In this article, we analyze these changes, focusing on key trends shaping current accounting practices. We examine these changes, focusing on the development of the accounting profession and considering how technological changes shape the roles and skills required of accounting professionals, and also exploring their impact on the business world.

Transforming accounting with digitalization in Poland

Traditional accounting often grapples with various challenges that hamper efficiency and accuracy. These include unstructured collection and handling of data, reliance on physical document submission, and paper-based archiving. Traditional accounting without full digitalization is not only time-consuming but also prone to errors, leading to inefficiencies in bookkeeping and financial management.

Digitalization in accounting represents more than the mere transition from paper-based to digital records. It encapsulates a broader move towards automation, real-time processing, and data-driven decision-making. The introduction of cloud computing and AI has been pivotal in this transition, offering tools that significantly enhance the speed, accuracy, and efficiency of accounting tasks.

Digitalization in accounting addresses these challenges head-on. By converting all accounting documents into electronic forms, digitalization streamlines the entire accounting process. It facilitates faster and more accurate handling of financial data, from document collection and processing to reporting and archiving.

Steps to digitize Polish accounting:

Data collection

The first step involves establishing a system that allows for easy and quick collection as well as transmission of data. Cloud-based models used for this purpose enable secure storage of financial documents. These documents can be transmitted from any location, making the process flexible and convenient.

Document processing and data extraction

With the help of AI, the content of documents is extracted and prepared for further processing. AI dramatically reduces the manual workload by automatically reading information from invoices and other financial documents, thus minimizing the risk of errors occurring.

Approval and booking

Digitalization streamlines the approval process, making it more structured and efficient. Approved electronic documents are automatically posted to the synchronized accounting system.

Archiving

The final step involves storing the processed documents for long-term archiving. Digital archiving not only saves physical space but also makes retrieval and auditing of documents much more straightforward.

Data security in the age of digitalization

In the era of the digital revolution in accounting processes, data security has become a critical issue. Transitioning to cloud computing requires rigorous security measures to protect sensitive financial information. Companies are currently increasing investments in advanced data encryption, multi-factor authentication, and comprehensive security protocols to safeguard customer data. The responsibility for maintaining the integrity and confidentiality of data is crucial in gaining and retaining customer trust as well as meeting regulatory standards.

Benefits of digital transformation

Digitization in the field of accounting services brings numerous benefits. The automation of repetitive tasks increases efficiency and accuracy. The implementation of cloud-based software transforms the way data is managed in businesses, providing real-time access, and facilitating smooth collaboration with clients. Digital technologies streamline internal processes, reduce operational costs, and enhance overall efficiency. Utilizing advanced data analytics enables companies to gain in-depth insights into performance indicators and identify key trends and areas requiring development.

The future outlook of digitalization in Polish accounting

Looking ahead, we anticipate further evolution in accounting, adapting to the ongoing development of technology. In the coming years, we will witness a continued reduction in the role of manual work, replaced by more advanced tools. The future of accounting not only involves the adoption of new technologies but also requires adaptation to changing business needs. In the new reality, flexibility, predictive ability, and strategic planning become key assets.

We are entering a period where AI will be more deeply integrated into decision-making processes, and analytical tools will become more advanced. These advancements may enable accountants to provide even greater value to businesses, moving beyond traditional accounting roles to become advisors, leveraging comprehensive data to support business decisions.

In the era of the digital revolution, the future of accounting is heading towards technological innovation, deeper analysis, and increased interaction. Accountants are tasked with adapting to new technologies such as AI, RPA, and Big Data while ensuring compliance with legal and ethical standards.

Shaping the accounting profession

The digital revolution in accounting is not merely a technological upgrade; it’s a fundamental shift in the role of accounting professionals. Accountants are increasingly taking on advisory roles, aided by digital tools that provide deeper insights. The skill set required for modern accountants is expanding, encompassing not only technical accounting expertise but also proficiency in digital tools, data analysis, and strategic thinking.

Moreover, the digital era offers opportunities for accountants to engage more meaningfully with their clients. Enhanced accessibility and real-time communication facilitated by digital platforms are fostering stronger client-accountant relationships. This shift is not just transforming how accountants work; it’s redefining the value they bring to businesses. Digital tools free up accountants to focus more on offering advisory services, where human expertise is invaluable.

Changes in the competency requirements for accountants

Rapid technological advancements necessitate a new approach to the skill profile of accounting professionals. As technology continues to evolve and automate routine tasks, there is an increasing emphasis on digital skills in accounting. It is these changes that influence the evolution of the roles of accountants towards analytical and advisory functions.

National e-Invoice System (KSeF)

One of the key upcoming changes is the widespread adoption of electronic invoicing. On August 7, 2023, the President of Poland signed a law dated June 16, 2023, amending the Value Added Tax Act and some other laws. This amendment changes the Polish VAT Act and various other laws, officially establishing the previously specified date for the introduction of the new electronic invoicing format. In connection with the National e-Invoice System, the use of electronic invoices compliant with the KSeF requirements will become mandatory for taxpayers.

The approval of the electronic invoicing law emphasizes the need for businesses to urgently prepare for the new invoicing system. The implementation of electronic invoicing within an organization is a complex and comprehensive process. It requires various actions, including proper data mapping on invoices to ensure compliance with legal requirements, adjusting processes within the company, testing the implemented solutions, and providing comprehensive training for employees responsible for the entire process. Support from experienced experts is invaluable in managing this complex transformation process.

The obligation to use e-invoicing was supposed to come into effect on July 1, 2024. However, in January 2024, the Ministry of Finance announced that the system would not be implemented this year. The new date for the introduction of the KSeF will be announced after an external IT audit is conducted.

WISH TO FIND OUT MORE ABOUT The National System of e-Invoices in Poland?

Learn more about the key information, from when KSeF will be mandatory, who may use KSeF, benefits of using KSeF and penalties in our dedicated eBook.

What’s next for Polish accounting?

Digitalization, Robotic Process Automation, and Artificial Intelligence are not just reshaping the accounting industry; they are enhancing it. These technologies are augmenting the role of accountants, enabling them to provide superior services, ensure customer satisfaction, and drive business efficiency. As the industry continues to evolve, these technologies will become integral to the modern accounting practice.

The digital transformation in accounting is an ongoing journey, marked by continuous learning, adaptation, and advancement. As the industry embraces AI, the role of accountants is being reimagined, paving the way for a future where accountants are not merely as experts in accounting and taxes but as key business supporters.

How can we help?

Our presence in international markets and our know-how enable us to offer you a wide range of technological solutions. With the support of Accace, you gain access to the knowledge and practical experience of top experts, as well as innovative tools that allow us to tailor optimal solutions to the individual needs of your business. Our goal is to provide automated and compliant solutions that ensure transparency, accuracy, and data security while guaranteeing the fulfillment of all business requirements in the most efficient and comfortable manner.

If you are interested in the optimization and automation of processes, as well as the digitization of accounting, we warmly invite you to contact our experts who will gladly provide you with comprehensive support.

Thinking about opening business in Poland?

Take a look at our comprehensive eBook on the Polish market, legislation and specifics, to see what investors need to consider when starting a business in Poland.

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