Situation and challenge
Preparing and filing financial statements is one of the key obligations of companies entered in Poland's National Court Register (KRS). The statements must be correct in substance and prepared in the required technical format so that they can be successfully submitted through the KRS system.
An invalid financial statement XML file is a common practical problem. Even where the financial data is correct, an incorrect file structure, missing required fields, technical errors or non-compliance with the required format can prevent successful filing.
A client approached TOP Outsourcing because it could not submit its financial statements to KRS. The system rejected the XML file, and the client's team could not identify the cause. The matter was urgent: a filing delay could expose the company to formal consequences, additional stress and the need to explain the situation to the registration authorities.
TOP Outsourcing's task was to identify the problem quickly, prepare a valid financial statement XML file and guide the client through the process of submitting documents to KRS correctly.
The problem: an invalid XML file prevented the financial statements from being filed
The client had prepared the financial data but could not complete the filing process. The issue combined technical and accounting aspects, requiring knowledge of both financial reporting and XML file structure.
The main problems included:
1. An invalid financial statement XML file
The financial statement file did not meet the required technical format. The KRS system would not upload it correctly, blocking the entire filing process.
This left the client with financial statements that were substantively prepared but could not be successfully submitted because of errors in the XML structure.
2. Risk of a delay in filing the financial statements with KRS
The company is responsible for filing its financial statements on time. Any delay can create additional formal and organisational risks, particularly if a problem arises shortly before the deadline.
The client needed a prompt response to avoid further delays and complete the reporting process.
3. A lack of technical experience with XML files
The client's internal team had accounting knowledge but no experience of diagnosing technical errors in XML files. The issue involved not only the figures in the statements, but also the file structure, conformity of fields and validity of the generated document.
Without appropriate support, the client could not determine whether the problem arose from accounting data, software settings, an incorrect file structure or missing required elements.
4. Time pressure and stress for the management board
The approaching filing deadline put pressure on the management board and accounting department. The client needed both a valid file and confidence that the process would be completed correctly.
The priority was to diagnose the problem quickly and prepare a solution that would enable successful filing of the financial statements.
5. The need to avoid similar problems in future years
The client also wanted to understand why the problem had occurred and how to reduce the risk of recurrence. Generating one valid XML file would not resolve the broader organisational issue.
The process of preparing financial statements for subsequent periods also needed to be put in order.
What TOP Outsourcing did
The solution: analysing the XML error and preparing valid financial statements
TOP Outsourcing took prompt remedial action. Our objective was to identify the cause, prepare a valid XML file and support the client in successfully completing the KRS filing process.
Step 1: Analysing the XML file and identifying errors
The first stage was to analyse the XML file that the client could not submit to KRS. We checked both its technical structure and the consistency of the financial data with the required financial statement format.
Our analysis included checking:
- the validity of the XML file structure
- the completeness of required data
- whether the fields matched the scope of the financial statements
- the accuracy of numerical data
- the correctness of identifiers and formal elements
- whether the statements matched the selected presentation format
- potential errors arising from the software used to generate the file.
This enabled us to identify the cause of the problem and the corrections needed.
Step 2: Verifying financial data
Before generating a new file, we checked that the financial data in the statements was complete and consistent.
The review included:
- the main balance sheet components
- the income statement
- the notes required in the particular case
- agreement of data with the accounting records
- consistency of reporting periods
- the accuracy of the company's identification details
- the completeness of information needed to prepare the document.
This reduced the risk of a technically valid XML file containing substantive inaccuracies.
Step 3: Generating a valid XML file
After establishing the causes of the error, we prepared a new financial statement XML file. The document was generated in the required format and with the required scope of data.
We ensured:
- a valid XML file structure
- the required formal company details
- financial data drawn from the accounting records
- the appropriate components of the financial statements
- consistency between the different parts of the document
- completion of the fields required for successful filing.
The new file was then checked before being delivered to the client.
Step 4: Supporting the client in submitting documents to KRS
TOP Outsourcing provided the client with a valid XML file and helped it navigate the KRS document submission process.
The assistance included:
- explaining the sequence of steps
- checking the completeness of the document package
- discussing the required signatures
- support with uploading the file
- explaining possible system messages
- help with confirming that the process had been completed correctly.
TOP Outsourcing does not file documents with KRS on behalf of the client. However, we can join a remote session, guide the client through each step and explain exactly what needs to be done to submit the documents correctly.
Step 5: Procedures for the future
Once the problem had been resolved, we prepared guidance for subsequent reporting periods. The aim was to reduce the risk of errors recurring in the next set of financial statements.
The recommendations included:
- starting work on the financial statements earlier
- checking data before generating the XML file
- verifying that all required elements were complete
- checking the accuracy of identification details
- performing a test validation before the filing deadline
- clearly allocating responsibility for preparing, signing and submitting the documents.
Although the client's team received training, the client decided to entrust financial statement preparation to TOP Outsourcing on an ongoing basis. This was due to turnover in the internal accounting team and a need for greater confidence that the process would be completed correctly and on time in future years.
Results and summary
Results: a valid XML file and successful submission of the financial statements
With TOP Outsourcing's support, the client quickly resolved the invalid XML file problem and avoided further delays.
A valid financial statement XML file
We prepared a complete XML file in the required format that could be successfully uploaded to the KRS system.
Successful completion of the reporting process
The client could submit its documents to KRS correctly and complete the reporting process without further technical problems.
Reduced formal compliance risk
A prompt response reduced the risk of delays, additional explanations and the stress associated with failing to meet reporting obligations.
Technical and accounting support in one place
TOP Outsourcing combined accounting expertise with practical knowledge of XML file preparation, so the client did not have to identify the cause of the error alone.
Ongoing financial statement preparation in subsequent years
After the issue was resolved, the client decided to entrust financial statement preparation to TOP Outsourcing permanently. This gave it greater confidence that the process would be completed correctly despite turnover in its internal accounting team.
Summary
This case study shows that preparing financial statements in XML requires both accounting expertise and knowledge of technical requirements. An invalid XML file can prevent filing with KRS even where the financial data has been prepared correctly.
By working with TOP Outsourcing, the client benefited from:
- a prompt analysis of the invalid XML file
- identification of the cause of the problem
- verification of financial data
- preparation of a valid XML file
- guidance through the KRS document submission process
- procedures to reduce the risk of future errors
- ongoing support with financial statement preparation.
TOP Outsourcing supports companies with preparing financial statements, generating XML files, verifying accounting data and organising the entire reporting process.
