Should we have an accountant? Should we choose a registered or non-registered accountant? What do we need the accountant for? Is it worthwhile for us to use an accountant and what does it cost? These are some of the typical questions you need to consider as a business.
The following information is useful when your company needs to choose accounting help and possibly the right financial sparring partner:
The work of an accountant consists of checking and auditing companies' accounts. An accountant can also help with accounting work and financial advice during the various stages of a company's development, from setting up and choosing a company form to expansions and transactions such as acquisitions, divestments, succession planning and more. You can read more about the work of accountants here.
The title 'accountant' is not a protected title, so anyone can call themselves an accountant. However, you can only call yourself an approved (registered or state-authorized public accountant) if you have an accountancy degree and are approved by the Danish Business Authority.
Many of those who call themselves accountants today are actually accountants with a shorter education and are not authorized to audit accounts. However, they can take care of bookkeeping, preparing accounts and day-to-day operations with reconciliations, postings, accounts receivable and accounts payable.
It is therefore important to distinguish between approved (registered and state-authorized) auditors and non-approved auditors depending on the service you need. Read more here about approved auditors.
Both state-authorized and registered auditors are approved auditors. Authorized public accountants have a long, higher education and are approved by the Danish Business Authority.
If you want an opinion on your company's financial statements, only a certified public accountant can provide one.
To maintain their license, certified public accountants must take at least 120 hours of continuing education every three years, and certified public accountants must be insured so that their clients are protected against losses related to their work.
With a certified accountant, you are assured that he/she is up-to-date on the latest knowledge and has insurance.
An audit or an extended review of the financial statements is required for companies of a certain size. An audit is the audit opinion that provides the highest level of assurance that the information in a financial statement is accurate, while an extended review provides slightly less assurance. The largest Danish companies must have an audit, while smaller companies can choose the extended review instead.
You must choose audit (or extended review) if your business exceeds two of the following three sizes for two consecutive financial years:
The difference between registered and chartered accountants is, in short, a matter of authorization. For example, state-authorized public accountants are the only ones allowed to audit listed companies, state-owned limited companies and financial companies. A state-authorized public accountant will usually be a member of the Association of State Authorized Public Accountants, while a registered public accountant will be a member of FRR, Registered Auditors.
Read more here about different types of accountants.
Accountants in Denmark are free to decide how much they charge for their services. As a rule of thumb, hourly rates will usually be set according to the educational background, experience and size of the accounting firm the accountant represents.
If you need a state authorized public accountant for your company, contact inforevision.