New amendments to the Bookkeeping Act will come into force in the summer of 2022, requiring all accounting and bookkeeping to be digitised. It's therefore important to prepare now for what the new rules could mean for your business, otherwise it could cost you dearly. In this blog post, you can learn more about how the new bookkeeping law will affect your business.
Why it's important to comply with the new requirements of the Bookkeeping Act
If you haven't already considered a digital solution for storing your accounts and bookkeeping, now would be a good time to start. The new Bookkeeping Act will place extensive requirements on primarily larger companies that have exceeded a net turnover of DKK 300,000 in the past two years and are therefore obliged to prepare an annual report according to the Annual Accounts Act.
Specifically, it will mean that companies must have digital storage and backup of accounting material and bookkeeping. The law is being introduced to ensure that no errors or fraud are made in companies' accounts, thereby strengthening compliance and reducing errors in reporting. The new Bookkeeping Act is expected to come into force 1 June 2022. The law will take effect for accounting records relating to financial transactions that take place from 1 January 2023.
What points should you pay attention to?
Several industry organisations and the Danish Business Authority emphasise the importance of storing your accounting material on digital servers or via cloud computing so that authorities with the right to inspect them can easily access them. But what does the new law mean in practice?
Here are the most important changes in the new Bookkeeping Act:
- A requirement for digital storage of accounting material and an ongoing backup that you can show.
- The Danish Business Authority is authorised to perform a security check on companies that have not submitted their first annual report and companies that have opted out of an audit.
- A significantly increased fine level with the possibility of fines of up to DKK 1.5 million if the company can neither provide the original digital accounting material nor the digital backup copy.
Because the bill was passed in February 2022, it is not expected to have any impact on the calendar year accounts for 2021.
Financial gains come with the new bookkeeping law
Although the Danish Bookkeeping Act sets some pretty extensive requirements for your company to digitise all accounting material, that very fact can result in a number of very cashable gains.
Digitising receipts makes it possible to check for errors in prices and agreements that can cost your business dearly. When it comes to invoicing, there are often a lot of documents that need to be documented at the same time. A large number of documents means time-consuming processes and heavy administrative work. The advantage of digitising this process is that you naturally reduce costs and bookkeeping time, resulting in financial savings.
At Intempus, we know from experience that customers realise that such errors can contain large hidden costs that they often would not have discovered without a digital control mechanism.
Start your company's digitalisation journey now
At Intempus, we are experts in digital solutions that give you an overview of your business. With intelligent time tracking, we can help you make daily data collection easier by recording employee hours, expenses, mileage and much more.
The digitisation of vouchers in connection with the Bookkeeping Act is an opportunity to automatically check for errors and prices in contracts while saving time on time-consuming manual processes. Intempus can help you manage your data by utilising integrations to accounting systems that make your voucher management manageable.
With Intempus, in addition to keeping track of all your employee data, you can quickly extract the information you need. We want to make time tracking, administration and invoicing 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 Bookkeeping Act and digital problem solving, contact us at +45 26390400. You are also welcome to book a free and non-binding demo where you can learn more about the possibilities with a digital solution from Intempus:
Source: Erhvervsstyrelsen.dk
