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The keys to successful and realistic budgeting are collaboration, accurate data and the ability to adapt to changes in the business environment. This can be achieved by organizing the work in a series of steps, which you can see here:

1. Goal setting

Identify the overall goals and strategies for the organization. What does the company want to achieve in the short and long term?

2. collecting data

The necessary data is collected, including historical information about the economy, current market conditions and expected changes in the industry. This forms the basis for realistic estimates.

3. Creating budgets

Based on objectives and data, budgets are developed for revenue, costs, investments, etc. Budgets can be annual, quarterly or monthly. It depends on the needs of the business.

4. Discussion and approval

The prepared budgets are presented to the relevant stakeholders and decision makers in the company. After discussion and possible adjustments, the final budgets are approved.

5. Implementation

Once budgets are approved, they need to be implemented in the organization. This may require communication and employee training to ensure understanding and commitment.

6. Monitoring

Continuous monitoring of actual results compared to budgeted figures helps identify deviations and make timely adjustments.

7. Analysis of deviations

If deviations between actual and budgeted results occur, the causes are analyzed. This may involve changes in the market, internal factors or unforeseen events.

8. reporting

The financial results and budget deviations are periodically reported to stakeholders such as management, investors or the board.

2024 2023
Free phone 3,200 kr. 3,100 kr.
De minimis limit for fringe benefit taxation, employees (certain employee benefits for work purposes) 7,000 kr. 6,700 kr.
De minimis limit for employee benefits 1,300 kr. 1,300 kr.
Trade union, maximum tax deduction 7,000 kr. 6,000 kr.
Travel allowance DKK per day for food 574 kr. 555 kr.
Travel allowance DKK per day for accommodation 246 kr. 238 kr.
Travel allowance DKK per day, small necessities (25% reimbursement) 143.50 kr. 138.75 kr.
Travel allowance/limit on deductions (if travel reimbursements are not paid) 31,600 kr. 30,500 kr.
Mileage allowance up to and including 20,000 km per year per km. 3.79 kr. 3.73 kr.
Mileage allowance over 20,000 km per year per km. 2.23 kr. 2.19 kr.
Bicycle/moped mileage allowance 0.62 kr. 0.61 kr.
Transportation deduction for the first 24 km. 0.00 kr. 0.00 kr.
Commuting allowance from 24 km to 120 km. 2.23 kr. 2.19 kr.
Commuting allowance beyond 120 km. 1.12 kr. 1.10 kr.
Gifts to charitable institutions 18,300 kr. 17,700 kr.
Craftsman deduction - "green" craft services etc. (expected to be abolished as of April 1, 2022 according to the Finance Act agreement) 12,500 kr. Abolished
Craftsman deduction - services 6,900 kr. 6,600 kr.
Maximum for contributions to a retirement pension (no right to deduct) 9,100 kr. 8,800 kr.
Maximum for deposits on annuity pension and terminable annuity (after AM contributions) 63,100 kr. 60,900 kr.
Lifetime annuity - employer scheme Unrestricted Unrestricted
Lifetime annuity - private scheme, replenishment deduction (lump sum) 58,100 kr. 56,100 kr.
Lifetime annuity - private scheme, 10 year commitment Unrestricted Unrestricted
Limit for transferring business profits to assisting spouse 271,800 kr. 262,500 kr.
Small acquisitions, immediate depreciation 33,100 kr. 32,000 kr.
Limit for tax-free gifts to close family members 74,100 kr. 71,500 kr.
Limit for tax-free gifts to children-in-law 25,900 kr. 25,000 kr.
Christmas gifts from employer - tax-free 900 kr. 900 kr.
Personal allowance (from 18 years old) 49,700 kr. 48,000 kr.
Personal allowance (under 18 years) 49,700 kr. 48,000 kr.
Employment deduction 10.65% / max. 45,100 kr. 10.60% / max. 45,600 kr.
Extra employment deduction for single parents 6.25% / max. 25,300 kr. 6.25% / max. 24,400 kr.
Job deduction 4.50% / max. 2,800 kr. 4.50% / max. 2,700 kr.
Pension deduction, more than 15 years to retirement 12 % / max. 9,672 kr. 12% / max. 9,348 kr.
Pension deduction, less than 15 years to retirement 32 % / max. 25,792 kr. 32 % / max. 24,928 kr.
Federal tax 12,06 % 12,06 %
Top tax 15 % 15 %
Top tax, bottom deduction after deduction of any AM contribution 588,900 kr. 568,900 kr.
Top tax, incl. AM contribution 640,108 kr. 618,370 kr.
Marginal tax rate, sloped tax cap 52,07 % 52,07 %
Tax ceiling, capital income, excluding church tax 42 % 42 %
Labor market contribution 8 % 8 %
Share income 42 % for amounts over DKK 61,000. (DKK 122,000 for spouses) 42 % for amounts over DKK 58,900. (DKK 117,800 for spouses)
Share income 27 % for amounts up to DKK 61,000. (DKK 122,000 for spouses) 27 % for amounts over DKK 58,900. (DKK 117,800 for spouses)
Company car, percent of purchase price that is less than or equal to DKK 300,000. 23 % 23,5 %
Company car, percent of purchase price above 300,000 DKK. 22 % 21,5 %
Company car, environmental allowance (added to the value of free car) 600 % 450 %
Property value tax, percent of property value below DKK 3,040,000 (2023) / DKK 9,200,000 (2024) 0,51 % 0,92 %
Property value tax, percent of property value above DKK 3,040,000 (2023) / DKK 9,200,000 (2024) 1,4 % 3 %
Threshold for certain employee deductions 7,000 kr. 6,700 kr.

A majority shareholder and a company are two independent entities that can enter into agreements with each other. Typically, there is an employment agreement that describes the salary and terms of the main shareholder's employment with the company, but the agreements can also deal with the transfer of assets such as real estate or cars.

Writing is wise, but not a requirement

Previously, company law required all agreements between a majority shareholder and their company to be in writing. However, this has changed. Today, oral agreements are in principle just as valid as written agreements. Company law only requires that the agreements can be documented (section 127(2)).

It is obvious that written agreements are significantly easier to document than oral agreements and that this increases the possibility of proving the content of an agreement. In other words, evidence is weakened if there is a lack of writing.

Arm's length terms are important for major shareholders

Especially in tax law, we often encounter challenges when there are no written agreements. All funds and assets that are transferred from a company to a majority shareholder must be taxed and all agreements must therefore be made on so-called 'arm's length' terms.

This means that the agreements must be made on the same terms and at the same prices as if they were made between independent parties. Purchases and sales of assets must be valued at market price. If the agreement is not at arm's length, the tax authorities can override the agreement.

The burden of proof then falls back on the main shareholder and the company, which can result in taxation that is higher than it should be.

Save valuation documentation

Agreements such as property transfers require written agreements in order to register ownership correctly, but we recommend that all transfers of assets between a main shareholder and a company have written agreements.

Remember to also save the documentation for the valuation of the asset for each transfer.

Loan agreement

If main shareholders lend money to the company, it is recommended that a written loan document is prepared if it is an actual loan and an overall framework agreement describing the loan conditions for an ongoing interim settlement.

Please note that a principal shareholder cannot borrow money from his company without tax consequences. Such loans are taxed to the main shareholder either as salary or dividends.

Solid procedures and secure handling of sensitive data are more important than ever.

Increasingly, data processors and service providers are being asked to provide independent evidence that they are in control of information security. The topic has moved into the boardroom, with authorities continuously passing new legislation and issuing fines for non-compliance.

Here are some of the benefits your business can gain from an IT auditor's report.

External:

1. Your customers get independent proof that you take good care of their data.

2. You signal that you are a professional company with a focus on quality and safety.

3. The declaration is based on international standards and also applies to your foreign operations.

4. With an IT auditor's statement, you can stand out from the competition in tenders and marketing.

Internal:

5. Management and employees gain a sharper focus and understanding of IT information security and personal data

6. Regular renewal of the declaration ensures that there is a focus on up-to-date processes.

7. you get an overview of weaknesses and derived improvement opportunities.

8. the IT audit is a great opportunity to get professional, expert advice on your information security.

Certified public accountants can provide declarations and attestations that provide a degree of assurance on the content and quality of the product.

The declarations can be made about e.g. company law matters, including:

  • Foundation
  • Increase and decrease of capital
  • Merger and demerger
  • Review of annual and interim financial statements.

Auditor statements for e.g. mergers, loans and grants

Companies facing changes in capital and ownership in the form of a merger or demerger often need an auditor's opinion that the information is fairly presented with a certain degree of certainty.

They can also be statements for companies that are responsible for taking out loans or receiving grants and have therefore signed a specific audit agreement.

IT auditor statements

An IT auditor's statement shows customers, partners and stakeholders that a company has described all IT procedures and processes in a way that reflects reality. In a way, the company gets paper proof that it is doing what it has written that it will do.

IT auditors also look at whether the company complies with any requirements, regulations and guidelines in the area in question.

Review of financial statements

Smaller companies that are not subject to a statutory audit can have a review - a so-called review - of annual and interim financial statements. In this case, the auditor only examines the financial statements through inquiries and analysis and issues a statement based on this.

In a full audit, the auditor checks the entire financial statements.

In tough times, there are a number of levers you can pull right now to strengthen your company's cash flow. Here are 7 actions.

1. The budgets

Bring them up to date. This creates an overview and helps you take the necessary actions.

2. Banks

Talk to your advisor. Can you reschedule loans, extend credit limits, increase overdrafts or defer payments?

3. Tax and VAT

Explore installment options for your company's tax and VAT payments.

4. Invoicing

Take stock of outstanding customer accounts and invoice at short intervals.

5. Creditor agreements

Contact creditors and suppliers to agree new payment deadlines or terms.

6. Fixed costs

Can you change or cancel subscriptions, fixed agreements, etc.

7. investments

Put internal projects on hold and postpone investments.

Some companies may choose to have an extended financial statement review instead of a normal audit. It's cheaper, but not always the best choice.

Selling, expanding or generational change?

An extended review can most likely cover the needs of the very small owner-managed business where banks and other stakeholders do not require an audit. However, if the business is to be sold, expanded or generational change within a short number of years, management should consider whether it would be appropriate to have the financial statements audited according to international auditing standards.

11 risk industries with mandatory auditing

Since 2022, companies in 11 so-called risk industries have been required by the authorities to use an auditor:

  • Road freight transportation

  • Moving stores

  • Restaurants & Bars

  • Pizza parlors, grill bars, ice cream parlors, etc.

  • Event catering

  • Other restaurant services

  • Cafes, pubs, discos, etc.

  • Data processing, web hosting and similar services

  • Web portals

  • Wholesale of cars, vans and minibuses

  • Retail sale of cars, vans and minibuses

Download our leaflet for advice on what to consider when choosing an audit or extended review.