New enactments shall take effect in the summer of 2022. The law demands that all records and accounting have to be digitized. Therefore it is important to prepare for what the new rules could mean for your company, if you don’t want it to cost you. In this blogpost you can read more about what the new accounting law will look like for your company.
Why it is important to live up to the new demands
If you haven’t already considered a digitized solution for storing your records and accounting, now would be a good time to do it. The new accounting law will put forward some demands especially for the larger companies that in the last two years have surpassed net sales for 300.000 kr. and therefore are obliged to draw up an annual account according to the Financial Statements Act.
This will more concretely mean that companies must have a digitalized storing and a backup of all records and accounting material. The law is being introduced to ensure that there are no mistakes or swindles in the companies’ records, and it has the purpose of strengthening the following of rules and reducing mistakes in reporting. The new accounting law is expected to take effect on the 1st of June 2022. The law will have an impact on the record material that relates to financial transactions from the 1st of January 2023.
Which points do you have to be aware of?
It is being highlighted by several trade associations and the Business Authority that it is important to store the record materials on digital servers via cloud computing so that authorities that have the right to access them are able to do so. But what does the new law mean in everyday life for businesses?
Here are the most important changes in the new accounting law:
- A demand of digital storing of record materials and a continual backup, that is available to access.
- The Business Authority has authority to go through a security control on companies that have opted out on revision.
- An increased level of atone with the risk of paying up to 1,5 m kr. if the company can’t either provide the original digital record material or the digital back up.
Because the proposed legislation is approved in February 2022, it is not expected to have consequences for the financial annual accounts of 2021.
Financial benefits follows with the new accounting law
Even though the accounting law gives extensive demands for your business to digitize all record material, this can result in a number of cash prizes.
A digitizing of appendices gives the opportunity to control for mistakes in prizes and contracts that otherwise would be costly for the company. When you are working with invoicing, there will often be a number of appendixes that have to be documented. A large number of appendices are time consuming processes and administratively heavy work. The benefit of digitizing this process is that you naturally get fewer costs and you reduce the accounting time and thereby gain financial savings.
At Intempus we have experience with customers that find that these types of mistakes can hold large hidden costs that they otherwise would not have discovered without a digital control mechanism.
Begin your company’s digital journey now
At Intempus we are experts in digital solutions that give you the overview in your company. With intelligent time registration we can help you make the daily data collection easier by registering your employees working hours, expenses, transport and a lot more.
Digitizing appendices in accordance with the accounting law is an opportunity to automatically check for mistakes and prizes in contracts and at the same time spare time on time consuming, manual processes. Intempus can help you with managing your data by making use of integrations to accounting systems that makes managing appendices more foreseeable.
With Intempus you can keep the overview of your employees data and quickly pull out information that you need. We care about that time registration, administration and invoicing should be easy for you, so you can concentrate on the important things in your business. All data is therefore always available at your fingertips.
If you have questions about the accounting law or digital problem solving, feel free to contact us on +45 26390400. You are also welcome to book a free demo, where you can find out more about the possibilities with a digital solution from Intempus:
Source: Erhvervsstyrelsen.dk
