Annual inventory — obligations, deadlines and methods
Annual inventory is a mandatory element of full bookkeeping in Poland. Every entity must verify the actual state of its assets and reconcile it against the accounting books. Learn the deadlines, methods and 2026 requirements.
What is annual inventory?
Annual inventory (also called the year-end stock-take) is the process of verifying the actual state of an entity's assets (property, cash) and liabilities (obligations) at the end of the financial year and comparing it to the values shown in the accounting books.
Purpose of inventory: to confirm the actual state of the entity's assets, reveal any differences between the book and actual values, and ensure the reliability of the financial statements.
Inventory is the foundation of reliable financial statements and is required by the Polish Accounting Act for every entity keeping full books of account.
Who is required to run inventory?
Annual inventory is mandatory for:
- Limited liability companies (Sp. z o.o.)
- Joint-stock companies (S.A.)
- Cooperatives and labour cooperatives
- Foundations and associations (those keeping full books)
- Non-governmental and local-government organisations
- Sole traders (when they keep full books instead of KPiR)
Not required to run inventory: entities keeping KPiR (revenue and expense ledger) — the exception being securities and fixed assets, which may still need verification.
Annual inventory deadlines — 2026
The deadline for inventory in the 2026 financial year is strictly defined:
| Stage | Deadline | Description |
|---|---|---|
| Balance sheet date (final) | 31 December 2026 | The day to which inventory relates (financial year = calendar year) |
| Earliest start | 1 October 2026 | Earliest possible inventory start (3 months before year-end) |
| Final close | 15 January 2027 | Last day to close inventory (15 days into the new year) |
| Asset valuation | By 29 January 2027 | Maximum 14 days to value asset components (mandatory before preparing the statements) |
Important note: for most manufacturing and trading entities, the practical deadline is to run inventory in the last days of December, so that the data is ready quickly for the financial statements.
Inventory methods
The Polish Accounting Act defines three inventory methods. The entity may decide which accounts are verified by which method:
1. Physical stock count (direct verification)
The most common and oldest method. It involves directly counting every asset component (materials, machinery, equipment, cash).
- Counting tangible items (goods, equipment, machinery)
- Verifying cash on hand in the till
- Checking stock on shelves and in warehouses
- On-site verification (e.g. vehicles, real estate)
2. Balance confirmation (third-party verification)
A method involving third parties to confirm account balances. The entity contacts a bank, supplier or customer asking them to confirm the balance.
- Bank accounts — balance confirmation from the bank
- Liabilities to suppliers — confirmation from the counterparty
- Receivables from customers — confirmation from the recipient
- Loans from shareholders — confirmation from the interested party
3. Document review (audit of records)
Reviewing documents that support business operations (invoices, receipts, shipping documents) without direct verification with a third party.
- Verifying documents as of year-end (invoices, receipts)
- Checking revenue/expense transactions in the final days of the year
- Verifying correctness of shipment-transaction bookings
Inventory schedule — a practical plan
Here is the recommended inventory schedule for an Sp. z o.o. in 2026:
Practical Sp. z o.o. inventory schedule — 2026
Asset valuation after inventory
Once inventory is closed, all asset components must be valued no later than 14 days afterwards. Valuation is performed as of 31 December 2026.
Main valuation methods:
- Acquisition cost (historical cost) — the most common method, uses the cost of acquiring the goods (for inventories)
- Market price — when the value of the item has changed (for securities)
- Fair value — for fixed assets, based on expert appraisal
- FIFO or LIFO — for material stock (relatively rare in Poland)
Discrepancies revealed during inventory
If the actual state differs from the book state, the difference must be explained and documented:
| Type of discrepancy | Cause | Action |
|---|---|---|
| Positive (surplus) | Item found, registration error | Correcting entry, recognise income or reclassify |
| Negative (shortage) | Theft, destruction, samples given out | Recognise loss, hold staff member responsible (return agreement), or expense it |
| Material discrepancy | Booking error | Correcting entry (if accounting error) or business control review |
Inventory documentation — what to keep?
Every inventory must be documented. Keep:
- Inventory cards — completed by the team (state physically counted)
- Inventory protocol — approved by the management board, including date, team, results
- Bank and counterparty confirmations — for the balance-confirmation method
- Discrepancy schedule — listing shortages or surpluses
- Explanatory notes — justifying each discrepancy (why the shortage occurred, etc.)
- Management board decisions — how the discrepancies were settled (who pays, how it was booked)
Common annual inventory mistakes
The most frequent problems I see:
- Running inventory too early — if you start on 1 October, the numbers may shift over the next 3 months and complicate analysis
- Not explaining discrepancies — if you find a difference, you must explain it. Ignoring it is an audit failure
- Valuation without documentation — every valuation must be supported (market cost, board decision)
- No inventory procedure — the entity should have approved rules: who counts, how, who is responsible for what
- Late valuation — if valuation lands on 20 February, it is already too late for the statements
Inventory and the financial statements
Annual inventory must be carried out before preparing the financial statements. The state of assets and liabilities shown in the balance sheet should match exactly the inventory state, with valuation taken into account.
If inventory is not ready, the statements will be inaccurate and the statutory auditor may refuse to approve them. That is why the inventory schedule should be ready in October.
Inventory and the chart of accounts
A company's chart of accounts should be designed to make inventory easy. If goods, machinery and cash are mixed on a single account, inventory becomes chaos. A good chart of accounts is half the battle.
Tomasz Dąbrowski
Age: 52
Position: Statutory auditor
Education: Master's, Warsaw School of Economics (SGH)
Experience: 22 years in audit, accounting and tax advisory for limited liability companies and large enterprises
Tomasz specialises in inventory procedures and asset audits. He has run inventory for trading, manufacturing and service companies. He knows the procedural detail, valuation methods and documentation requirements from hands-on practice.
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