New Accounting Act

 In short: from 1 January 2025, it became a requirement for companies that submit an annual report in accordance with the Annual Accounts Act that the bookkeeping must be digital. The requirement comes into force from the start of the company's new financial year. This applies if the company uses an unregistered accounting system!

It may sound like another administrative burden, but in reality it can also be an opportunity to make your bookkeeping simpler, smarter and more efficient.

Let's dive into what you need to know and how best to prepare.

Create an overview, save time and make bookkeeping smarter

It may seem like a heavy law jungle, but basically the Accounting Act is about ensuring that your company or association keeps track of the accounts – safely, correctly and safely. And yes, this applies to almost everyone who does business or activity in Denmark, regardless of whether it is a small sole proprietorship, a larger company or an association.

But why even care about it? Because the law also opens the door to smarter solutions. With the requirements for digital bookkeeping, you get the opportunity to make your bookkeeping both easier and more efficient – and it is time that can be used better elsewhere in your everyday life.

So who should actually post? All! 

If you run a business in Denmark – large or small – or perhaps even a foreign company with activities here, you are covered by the law. And also for organizations that do not necessarily make money, the rules apply if they are taxable or taxable, or receive public subsidies.

It may sound like a lot to keep track of, but it doesn't have to be unmanageable. The Accounting Act is here to help you create structure, security and maybe even a little extra time in the calendar.

How do you ensure that your bookkeeping meets the new rules?

The new rules may seem overwhelming, but let's break it down together. How much you need to change depends on how you handle your bookkeeping today.

Maybe you already use a digital accounting system? Maybe you book manually or through a bookkeeping business? Either way, there are some clear guidelines that can help you well on your way.

 If you use a registered accounting system, are you already one step ahead. Registered systems comply with the requirements of the law, but remember: it is still your responsibility to ensure that all transactions and attachments are correctly entered.

If you use a bookkeeping business, is the responsibility for the system complying with the law, placed with the bookkeeping company. But you are still responsible for providing the necessary attachments and information. Ensure a good dialogue with your bookkeeper or accountant – it can save you time and worries.

If you post manually or with an unregistered system yourself, you must ensure that your system meets the requirements for unregistered accounting systems. It can be a good opportunity to consider switching to an approved digital system that makes the process easier and more manageable.

Appendix: Your foundation for correct bookkeeping

Attachments are the cornerstone of your bookkeeping – they show what your business earns and uses. It is therefore important that you save them correctly. The legislation requires you to keep vouchers for the current year + 5 financial years.

If your company is covered by the requirements for digital bookkeeping, certain attachments – such as invoices and credit notes – must be stored digitally. The invoices must contain specific information such as amount, VAT, date of issue and CVR number of both buyer and seller. It can, for example, be in the form of a PDF or an image.

Do you have attachments that do not meet all the requirements, for example cash strips or paper invoices from abroad? Then they can still be stored physically, but make sure they are safely stored.

So who is in charge? It has you! 

While it may seem like an additional burden, digital storage of all your attachments can be an advantage. It gives you a clear overview and makes it easy to present accounting material to authorities or auditors. And remember: you only have to digitize attachments from the time your company is covered by digital bookkeeping – old attachments can stay where they are.

Having control over bookkeeping is not just about meeting legal requirements. It is also about creating structure and security in your company's finances. When you take control, you release time and energy for what you're really passionate about – running your business.

Common standards make bookkeeping easier – and safer

Have you heard about the common public standard chart of accounts and the SAF-T format? It may sound technical, but behind the slightly dry words hide a number of advantages that make bookkeeping easier and more efficient – for both you and your company.

What is a common public standard chart of accounts?

Imagine that your bookkeeping can automatically play together with the systems of the public authorities. This is precisely the idea behind the standard chart of accounts. It ensures that companies can easily and accurately report their annual report by uploading a file with posting data – completely without manual entry and the errors that often come with it.

You decide how you want to use the chart of accounts. It can either be implemented directly in your accounting system, or you can choose a solution where your existing accounts are simply linked to the standard. And don't worry, you're not forced to use the entire chart of accounts. You choose the accounts that are relevant to your company.

The Danish Business Authority and the Tax Agency are also in the process of updating (version 2), which will make the system even more user-friendly and cover more accounting classes.

What is SAF-T and why is it important to you?

SAF-T (Standard Audit File for Tax) may sound complicated, but it's actually a smart solution that makes sharing your posting data easy and secure. Whether you need to change the accounting system or share data with your accountant, SAF-T ensures that the files can be transferred seamlessly and without the risk of errors.

Ready for the new bookkeeping law? Here's what to remember

The new bookkeeping law is about much more than rules – it's about making your everyday life as a business owner easier, more structured and more efficient. From requirements for digital bookkeeping to better opportunities to handle your attachments and share data, there are both challenges and gains.

In short:

• Digital bookkeeping will be a legal requirement from 2025 for companies that report according to the Annual Accounts Act.
• Attachments and documentation are the basis for correct bookkeeping. Remember to store them correctly – and digitally if required.
• The standard chart of accounts and SAF-T make it easier to collaborate with authorities and share data securely and efficiently.
• Modern ERP and AI solutions can improve bookkeeping efficiency and optimize the company's financial decisions.

The Accounting Act may be an amendment, but also an opportunity to get an overview and save time. When you are at the forefront of requirements, you get peace of mind to focus on the most important thing: your company's growth and success.