The client of our office did not submit the financial report to the KRS on time because they forgot, even though we sent them a reminder. Now they claim that it was the responsibility of the accounting office. Is this true?
The scope of services provided by the accounting office is determined by the agreement on the provision of accounting services concluded with the client. According to Article 76a, Section 1 of the Accounting Act, the provision of accounting services is a business activity that involves providing services in the scope of activities specified in Article 4, Section 3, Points 2-6 of the Accounting Act.
These include:
- keeping accounting books based on accounting documents,
- periodically determining or verifying the state of assets and liabilities through inventory,
- valuation of assets, liabilities, and determining the financial result,
- preparing financial reports,
- collecting and storing accounting documents and other documentation required by law.
The agreement should specify in detail which auxiliary books are maintained by the office and which by the entity (e.g., who manages warehouse records, payroll records, sales registers, and prepares cash reports), as well as which inventory activities are performed by the office and which by the entity.
The submission of annual financial reports to the KRS is not included in the scope of accounting services. According to Article 69, Section 1 of the Accounting Act, the head of the entity is responsible for submitting the financial report to the KRS within 15 days of its approval. Failure to comply with this obligation results in criminal liability, as stated in Article 79, Point 4 of the Accounting Act.
However, the agreement on accounting services may contain additional provisions. If the agreement specifies that the office is responsible for submitting the client’s annual financial reports to the KRS, then the head of the entity remains responsible for the submission. However, if the accounting office fails to fulfill this contractual obligation and the client suffers damages as a result, the office may be held liable for compensation.
If the agreement only states that the accounting office is responsible for preparing the financial reports, it bears no responsibility for the reports not being submitted to the KRS on time.