The digital accounting requirement now applies
From July 1, 2024, a number of companies must record transactions and store documents in a digital accounting system approved by the Danish Business Authority. The requirement for digital bookkeeping applies from the first accounting or income period after the rules come into force.
For companies that are required to submit annual financial statements - these are public and private limited companies, commercial foundations and other limited liability companies as well as partnerships and limited partnerships (without the participation of natural persons as partners and general partners) - and that use a standard accounting system, the dates look like this:
- If the accounting period starts on July 1, the rules apply from July 1, 2024.
- If the accounting period starts on January 1, the rules apply from January 1, 2025.
- If the accounting period starts on April 1, the rules apply from April 1, 2025.
If the company uses a customized accounting system, the law will apply from January 1, 2025.
On January 1, 2026, companies not subject to annual accounting, such as sole proprietorships, associations and financial institutions etc. where the commercial net turnover in each of the two most recent income years (2024 and 2025) is more than DKK 300,000, must book digitally.
What do the changes mean?
In essence, the changes to the law mean that companies must, among other things:
- Store accounting material digitally in a way that complies with GDPR regulations
- Make backup copies of the accounting material according to the motto: The more transactions, the more frequent the backup
- Describe procedures for recording transactions and storing accounting records.
As something new, the Danish Business Authority can also carry out a risk-based bookkeeping check if a company has opted out of an audit or has not submitted the first annual report. This can result in fines of up to DKK 1.5 million if the rules are not complied with.
We help with digital bookkeeping
If you need advice or assistance, please contact inforevision's Business Services department.
You can also read more about digital bookkeeping on the Business Guide and about the possibility of applying for grants for advice on digital solutions at SME:Digital.
Micky Jørgensen
Partner, Head of Department, Business Consulting
T 39 53 57 34
myj@inforevision.dk
