Bookkeeping is a method for business owners to keep track of their income and expenses. Explore further tips for ensuring accurate bookkeeping and access templates that can support you.
According to the Danish bookkeeping law, it is mandatory for all businesses to maintain records, which is why it's a good idea to familiarize yourself with the regulations from the very beginning.
Bookkeeping Consists of an Income Statement and a Balance Sheet:
- The income statement shows revenues versus expenses.
- The balance sheet shows assets versus liabilities.
Both of the above key figures are essential for accurate bookkeeping; however, several additional factors need to be considered to prevent penalties for incorrect bookkeeping.
The Purpose of Bookkeeping
The purpose of bookkeeping is to maintain an accurate and reliable overview of the company's financial position. This allows you, as a business owner, to prepare financial reports, including income statements and balance sheets, which can be used to assess the company's performance and make informed decisions.
Bookkeeping can involve various income and expense accounts, as well as assets and liabilities. To simplify the process, many businesses typically use accounting software or hire accountants to manage these tasks.
Accurate bookkeeping is essential for complying with tax regulations, financial reporting standards, and other legal requirements. It can also help businesses identify areas where they can cut costs, increase revenue, or improve their overall financial health.
Et godt tip er, at holde styr på dine bilag. Det gør du ved at give dine bilag fortløbende numre, således at de er nemme at finde. Vær opmærksom på, at det er et krav, at du gemmer dine bilag i minimum fem år efter regnskabsårets udløb.
The Bookkeeping Procedure
Starting in 2023, the bookkeeping law requires businesses to maintain digital records and to prepare a description of their bookkeeping procedure.
Find the template for the bookkeeping procedure here.
Most bookkeeping systems provide a template that makes it easy to complete.
Our partner, Dinero, has created a variety of accounting templates that you can use for your bookkeeping needs.
You can download them for free here: https://dinero.dk/skabeloner/
This way, you can ensure that you don't miss anything.
Main Aspects of the Bookkeeping Law
Current Requirements (From July 1, 2022)
- Requirements for describing procedures for bookkeeping and storing accounting records
- Requirements for reconciliations
- The definition of accounting records is expanded to include, in addition to invoices and bookkeeping, documentation for information in the notes and management commentary in the annual report, as well as for estimates and judgments made in the preparation of the company's annual report.
- Stricter monitoring and sanctions.
Requirements for Digital Bookkeeping (From July 1, 2024)
- Applicable to companies required to maintain accounts with a registered bookkeeping system.
- All documents must be digitized and stored for a minimum of 5 years.
- Companies must use electronic systems for bank reconciliation and e-invoicing.
- Companies must describe their bookkeeping procedures and ensure IT and data security.
- Requirements to provide necessary data to public authorities.
Future Requirements (from 2025 onward)
- January 1, 2025: Requirement for digital bookkeeping for companies obligated to maintain accounts with non-registered or custom-developed bookkeeping systems. They must begin digital bookkeeping from the first date of their new financial year.
- From 2026: Requirement for digital bookkeeping for sole proprietorships not obligated to prepare annual reports but with an annual turnover exceeding DKK 300,000 for two consecutive years. They must begin digital bookkeeping starting in 2026.
Learn more about the requirements for digital bookkeeping here.
Guide to Accounting, Bookkeeping, and Invoicing
SKAT has also created a guide to accounting, bookkeeping, and invoicing. The guide includes the necessary information and features video explanations, among other resources. Read more here.
Feel free to contact us if you have any questions.
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