Update to Denmark Bookkeeping Act

The Danish Bookkeeping Act, introduced in 2024, comes into effect this month for those companies whose financial year end is 31st December. The below insight highlights the key features to be aware of.

Bookkeeping Procedure

According to the updated Danish Bookkeeping Act, a description of the company’s bookkeeping procedures must be prepared alongside the filing of the annual statutory financial statements.

The description should cover the company’s procedures for:

• Ensuring that all company transactions are continuously recorded and reconciled.
• Ensuring that the company’s accounting records are stored securely.

It should also include which employees in the company are responsible for these procedures.

Digital Bookkeeping System

Another important change concerns the bookkeeping system. Providers of IT solutions for ERP/bookkeeping systems can have their systems registered with the Danish Business Authority, and the authority must approve these systems for compliance with the new bookkeeping law. A list of approved systems have been published here.

Systems regularly used by global businesses such as NetSuite, Xero, Sage Intacct and Quickbooks are not yet approved systems with the Danish authorities and as such, businesses now must make changes to how their books are reported and stored locally in Denmark.

When the annual report for 2024 is submitted to the Danish Business Authority, you must state which bookkeeping system your company is using in order that it can be verified as an approved system.

Which bookkeeping system are you using?

If your bookkeeping system is not registered on the approved list, you must ensure that your system complies with the requirements for a digital bookkeeping system.

The system must be able to store all receipts digitally, automate processes if they are part of the regular bookkeeping, have IT security, and allow for tracking transactions from receipts to bookkeeping with identifiers, ensuring that records cannot be deleted.

More details regarding the new Danish Booking Act can be found here. Should you need any assistance in ensuring that your company books are compliant, Crowe UK can advise and implement solutions to suit all needs.