A new accounting legislation is on the way

The Accounting Law is constantly being updated, so more and more rules on digital bookkeeping continue to be introduced. These changes may result in additional requirements for some businesses. There may be higher penalties for not complying with them. We want to make sure you are aware of these changes, so we will explain what you need to pay attention to.

The major modifications introduced by the new law

The new Accounting Act requires that all accounting material must be stored digitally with proper backup and kept for at least five years. Registrations must be dated and attached to an appendix, and regular backups of records must be made. Any changes made to registrations or appendices must be recorded in the system. In addition, accounting data must be recoverable in a machine-readable format.

If a company fails to submit its annual report to the Danish Business Authority within the first financial year, the authority can conduct a risk-based accounting check. The new rules also mean that there could be significantly higher fines, up to 1.5 million kr.

Which types of businesses fall under the new Accounting Act?

The new Accounting Act applies to all businesses that are required to keep accounts under the Annual Accounts Act, such as A/S and ApS companies. Additionally, it also applies to individually run companies like sole proprietorships, partnerships, etc., if their net turnover is more than DKK 300,000 per year for two consecutive years.