Impunity of Accountants in Poland: Causes and Protective Measures for Entrepreneurs

The impunity of accountants in Poland has become a significant concern for entrepreneurs. According to a 2023 survey by the National Statistical Office of Poland, around 40% of Polish entrepreneurs have encountered unreliable accounting services, yet only 10% have taken legal action, with over 30% of these cases being dismissed due to insufficient evidence.

In this article, we will explore why this is happening, examine real-life case studies, and provide recommendations on how entrepreneurs can protect themselves and their businesses.

Why Are Accountants in Poland Often Unpunished?

One of the main reasons for the impunity of accountants in Poland is the lack of mandatory requirements for written contracts for accounting services. In practice, many accounting firms and entrepreneurs rely on verbal agreements or service contracts that do not clearly outline the terms, responsibilities, and prices, creating significant risks for business owners.

“Judicial practice shows that cases against accountants almost never reach court because it is often difficult to quantify the damage caused by the accountant. The risk of legal costs and losing the case is very high,” commented a representative from SMAR.

To better understand how such situations unfold and their potential consequences, let’s look at a few real examples from SMAR’s experience.

Case 1: Fraudulent Actions by an Accountant

One of SMAR’s clients fell victim to fraudulent activities by an accountant with whom he had signed a contract for accounting services. During the cooperation, it became clear that the accountant was not fulfilling his duties: instead of maintaining records, he was collecting clients’ documents and passing them on to other accounting firms without performing any real work. As a result, the client’s accounting was scattered across several companies, and there was no feedback from the accountant.

When the client became concerned about the state of his records and tried to contact the accountant, it turned out that he was under investigation for financial fraud. Consequently, the entrepreneur was left without proper accounting records and had to spend considerable resources on recovering the accounts and finding documents scattered across various accounting firms.

Case 2: Errors by an Accounting Firm and Significant Fines

Another entrepreneur faced severe financial consequences due to errors by an accounting firm. The tax authority conducted an audit and found errors in the previous years’ reporting, resulting in additional taxes amounting to over 1 million PLN. The entrepreneur intended to sue the accounting firm for poor service, but it turned out that the contract was an offer, allowing the firm to unilaterally change the terms of service.

The entrepreneur had to cover the tax liabilities and resolve the issue on his own, as there was no written contract to prove the accountants’ fault.

How Can Entrepreneurs Protect Themselves and Their Businesses?

To minimize risks and protect themselves from potential fraud or errors by accounting firms, entrepreneurs are advised to:

1. Sign written contracts. A written contract with clearly defined terms, responsibilities, service costs, and penalties is the foundation for protecting your interests. In case of a dispute, you will have the necessary evidence for legal action.
2. Avoid verbal agreements and offer contracts. These forms of agreements do not provide adequate protection and create uncertainty in the relationship. An offer contract allows the accounting firm to change the terms unilaterally, reducing your chances of success in case of a conflict.
3. Check for professional liability insurance. Ensure that the accounting firm has insurance to cover potential losses in case of errors or dishonest actions. This will further protect your business from financial risks.
4. Study the practical guide on outsourcing by SMAR’s founder. In Maria Lemeza’s book “Outsourcing: The Art of Delegation,” you’ll find detailed advice on how to choose the right accounting firm, what to look for, how to calculate the efficiency of outsourcing, and how to properly draft a contract. More about the book can be found in our article here, where you will also find purchase links.
5. Get a consultation on accounting outsourcing. We offer consultations by Maria Lemeza, our company’s CEO, to help you assess whether your contract with an accounting firm is correctly drafted, how well the duties are performed, and what can be improved. During the consultation, we will discuss how to optimize your relationship with the accounting firm and minimize risks to your business.

Conclusion

These cases clearly illustrate the risks that arise when there are no clear contractual terms and how entrepreneurs can find themselves vulnerable to unscrupulous accountants. In our practice with our clients, we always insist on signing a written contract with clear terms and obligations on both sides. We meticulously outline the pricing rules, the duties of both parties, and all key agreements to minimize risks and ensure transparency in cooperation.

We also recommend that our clients pay close attention to the details when signing a contract with an accounting firm. During consultations, we explain what aspects to focus on, which terms to record, and what legal formulations can help protect their interests. In the next article, we will discuss how to properly draft a contract and which aspects are crucial to consider.

If you want to ensure that your relationship with the accounting firm is properly structured and free of hidden risks, our specialists are always ready to assist you with consultation. Contact us to receive expert help and protect your business from potential problems.