Public administration in the European Union has undergone a significant digital transformation over the past two decades, profoundly altering the manner in which citizens and businesses interact with government services. Poland is a prime example of this change, especially with its adoption of electronic financial reporting systems that highlight the wider trend of digitalisation in public services across EU member states.
Poland’s Digital Government Journey
Poland initiated its transition to electronic financial reporting on October 1, 2018 when it became mandatory to prepare digital financial statements, shifting from the previous paper-based systems. This change affected all entities maintaining accounting books, implementing European Parliament and Council Directive 2017/1132 to modernise financial reporting processes. This transition is noteworthy as one of the most extensive mandatory digitalisation efforts in corporate financial reporting across Europe. The new rules stipulate, that financial statements must be created in XML format, following the logical structures laid out by the Polish Ministry of Finance. To ensure the authenticity and legal validity of these electronic documents, they must be signed with qualified electronic signatures and submitted through designated platforms.
How to Implement Electronic Financial Reporting in Poland
Step-by-Step Implementation Guide
- Preparation Phase
To initiate this process, companies are required to prepare their financial statements in an electronic XML format, adhering to the logical structure established by the Polish Ministry of Finance. They can utilise specialised software or services to transform their traditional financial statements into the required XML format. - Electronic Signature Acquisition
It is imperative that all required signatories obtain the appropriate electronic signatures prior to the filing deadline. There are several options to consider:
- Qualified electronic signatures from certified providers
- Trusted ePUAP profiles for Polish residents with PESEL numbers
- Personal signatures from electronic ID cards for Polish citizens
- Document Signing Process
The electronic financial statement must be signed by the individual responsible for the accounting records, in addition to all members of the management board. In instances where there are collective boards with foreign members, there are exceptions that allow for paper declarations to confirm compliance with accounting laws, as long as at least one board member signs electronically.
- Approval by the Shareholders
Following the completion of the requisite signatures on the financial statements, the documents must be approved by the company’s shareholders. The Annual General Meeting adopts, among others, a resolution approving the financial statements and resolution on the distribution of profits (or coverage of losses). The resolution is signed in standard written form, in accordance with commercial law and the company’s articles of association.
- Submission Process
Make sure to use the right platform — the Repository of Financial Documents (RDF) — to submit your completed and signed financial statements and resolutions for free using PESEL-linked signatures.
- Compliance Verification
The system automatically verifies the XML structure and electronic signatures. It is imperative for companies to ensure the receipt of confirmation for their submissions and maintain comprehensive records of the electronic filing process.
Common Implementation Challenges and Solutions
Small and medium enterprises often encounter specific hurdles when it comes to adapting to electronic financial reporting requirements, such as:
- system integration issues – companies may experience difficulties integrating electronic reporting with existing accounting systems,
- technical challenges – many organizations face difficulties converting traditional accounting systems to XML format requirements,
- Electronic Signature complexity – foreign board members often struggle with obtaining appropriate electronic signatures.
Public Access to Polish Company Financial Statements
The transition to digital financial reporting in Poland has introduced a new dimension of public access to corporate financial data, significantly enhancing transparency in the business sector. The Polish National Court Register (KRS) provides convenient online access to company information. The Financial Documents Viewer provides users with access to comprehensive financial statements by simply entering a company’s KRS number. This innovative system diminishes the barriers to accessing financial information, excluding the need for in-person court visits.
Economic Impact and Business Benefits
The XML-structured financial reporting data presents the variety of opportunities for advanced analytics and business intelligence applications. Researchers, investors, and analysts can create automated tools for extracting data, calculating financial ratios, analysing trends and benchmarking against competitors. This capability represents a significant improvement from traditional paper-based reporting methods, which relied heavily on manual data entry and processing.
Access to competitor financial information is crucial for strategic planning, conducting due diligence for mergers and acquisitions and making informed market entry decisions. Private equity and venture capital firms use the financial statement database to identify potential targets, navigate due diligence and monitor their portfolio companies. Financial institutions and credit rating agencies utilize Polish financial statement data for critical processes, including credit analysis, risk assessment and portfolio management.
Poland’s experience demonstrates that digital transformation encompasses more than just upgrading technology; it involves fundamentally enhancing the relationship between government, businesses, and citizens. The success of Poland’s electronic financial reporting system offers valuable insights for other EU countries intending on commencing similar digitalisation efforts.
For further information on this matter, we kindly direct you to ETL GLOBAL Member in Poland SWGK‘s dedicated guide.
