We excel in assisting clients in achieving accurate and timely completion of their accounting, payroll, annual reports, and tax returns at reasonable rates, all while ensuring compliance.
Introducing Radner: Your best pick for small business owners in Denmark
Drawing on over fifteen years of experience aiding over 1800 clients, we take pride in being more than just an accounting firm; we serve as trusted advisors to our clients. Our expertise lies in guiding clients through the accurate and timely completion of accounting, payroll, annual reports, and tax returns, all at a fair cost and in full compliance with regulations.
Additionally, we offer assistance with the registration and establishment of both sole proprietorships and the limited liability company structure, known as „ApS.” Moreover, we extend our support in preparing cash flow budgets and business plans for your financial institutions.
However, our primary emphasis is on ensuring our clients maintain diligence in their accounting and payroll requirements, enabling them to concentrate on the seamless growth of their small businesses without unnecessary concerns.
Radner in a nutshell
- Our team consists of 50 carefully selected and proficient English-speaking accountants and professionals dedicated to maintaining the compliance, efficiency, and accuracy of your accounting and payroll in accordance with Scandinavian regulations
- We collaborate with prominent audit firms in Denmark to enhance the credibility of your annual report when auditing services are required.
- A well-established accounting company with over fifteen years of experience catering to over 1800 small business proprietors and companies across Scandinavia.
Small business owners: What’s in our service portfolio for you?
Effective accounting processes are crucial for financial documentation to assist small business owners in managing various intricate issues related to business operations before they escalate into more costly problems. Instances such as clients failing to make timely payments, non-compliance with tax and VAT regulations, delays in expense payment, and accounting errors represent types of losses and exposure that can harm the financial security and reputation of a small business if left undetected. At Radner, we have years of experience in aiding small business owners in avoiding expensive mistakes and overseeing accounting processes, enabling them to expand their operations with peace of mind.
Comprehensive accounting services for small businesses
Generating payslips and managing payroll
Payroll processing stands as just one of the many financial services our accounting firm offers for your business. In our role as a dependable payroll service provider, we ensure that all payroll tasks align with employment laws in Denmark, maintaining legal compliance consistently. For payroll processing, we utilize Salary.dk. This system is a commendable payroll solution. We recommend it both for smaller businesses due to its user-friendly interface, as well as for larger companies, because of its enhanced customization options.
Registering a sole proprietorship
If you are a resident of Denmark and looking to establish a new sole proprietorship, we can assist you in the setup process.For non-residents, it’s recommended to incorporate a limited company known as an „ApS.” Alternatively, you have the option to register a sole proprietorship on your own for free through VIRK.
Find additional information about starting a sole proprietorship here.
Paying taxes as a sole proprietor
For small businesses operating as sole proprietorships, income taxes are levied on the profit, and specific tax rules apply. Throughout the year, small business owners in sole proprietorships are required to pay a unique personal income tax known as „B-tax” ten times annually. The process involves estimating this tax at the beginning of the year or the business’s commencement by projecting its expected profit. If a profit is estimated and taxes are due, the tax office sends ten payments for the year, scheduled monthly from January to May, with no payments in June. The second half of the taxes is paid from July to November, and no taxes are due in December. If the business starts during the year, instalments for the remaining months are provided. This process is termed the preliminary tax or self-assessment.
All sole proprietorships adhere to the calendar year, concluding on December 31st. While there is no obligation to submit an annual report as a sole proprietor, we prepare one to ensure an accurate income tax calculation. Additionally, banks often request the annual report. The income tax return for a sole proprietor must be declared by the 1st of July of the following year. Our comprehensive service includes both the annual report and the income tax return. It’s worth noting that a special tax scheme called the „Business Tax Scheme” can often be advantageous for businesses with high profits, paying the maximum rate, or having substantial interest from business loans. This scheme provides a better tax value on interests and allows for the postponement of tax payments by paying a 22% tax rate, as long as the profit remains within the business.
Learn more about the „Business Tax Scheme” here.
Paying taxes as an ApS (Private Limited Company)
An ApS (Anpartsselskab/Private Limited Company) has the option to pay estimated amounts for company income tax in March and November. Additionally, there is a voluntary payment in February related to the previous year. Our services include assisting you in estimating the appropriate amount of income tax to pay and ensuring accurate registration.
For more detailed information about company income tax and dividend tax, please refer to our resources here.
Generating invoices for your clients
Crafting a professional sales invoice for your clients is a crucial aspect of your business operations. This practice aids your clients in monitoring their purchases and payments effectively. Moreover, an invoice serves as a mutual guide for both parties involved – the seller and the buyer – outlining expectations and enhancing security for both. To facilitate this process, we provide our smaller clients with robust accounting systems such as the e-conomic system, Dinero, or Billy, enabling them to efficiently create sales invoices for their clients. Once our clients have delivered a service or product, they can log into the system and generate a sales invoice in PDF format. Typically, this invoice is directly sent from their system to their clients and is archived within both systems. Our responsibility involves recording the payment in the accounting system when it reflects in the bank, ensuring that the invoice in the system aligns with the payment received from their clients. Additionally, if needed, we are available to assist in designing your sales invoice template.
Settling supplier invoices
If you have a manageable number of supplier invoices, we recommend managing the payments independently. However, if handling payments becomes time-consuming, we are more than willing to take care of this task for you. In this process, you can grant us access to your bank, or we can implement a solution featuring an invoice approval workflow. With this approach, we handle the registration of supplier invoices and keep you informed about pending payments.
Management of supplier invoices
Supplier invoices are directly transmitted to the accounting system, and we handle the entire invoicing process on your behalf. Each supplier invoice is meticulously recorded, with a designated cost account assigned and a thorough verification of all registered data. This comprehensive registration encompasses key details such as the invoice date, VAT type, currency, amount, supplier’s name, payment date, payment source, text, and more. To streamline this process, various methods provided by the accounting system provider can be utilized for submitting your supplier’s invoices directly to the system. Generally, you have three options:
- Forward emails containing attached supplier invoices in PDF or JPG format.
- Utilize a smartphone app to scan invoices and receipts.
- Upload invoices directly from your desktop computer.
Note: Simplify the process by encouraging your suppliers to send invoices directly to the accounting system or by setting up rules in your inbox to automatically forward received invoices.
Annual report for ApS (Private Limited Company)
For an ApS (Private Limited Company), the submission of an annual report to the Business Authority is a legal requirement. This must be completed no later than six months after the end of the fiscal year, along with the tax return. Our services encompass the preparation of the annual report on your behalf and ensure its timely submission to the Business Authority. If your ApS is subject to audit requirements, we collaborate with audit partners who conduct audits on the accounting work we have undertaken.
VAT declaration process
Value Added Tax (VAT) constitutes a 25% tax imposed on sales made by businesses to their clients. As your dedicated accounting firm, we specialize in handling your VAT registration and ensuring compliance, allowing you to focus on your business dealings with clients. The process unfolds as follows:
- Invoice booking and bank reconciliation:
Upon receiving supplier invoices and bank transactions from you, we initiate the process of booking the invoices in the accounting system and reconciling the bank. In cases where invoices are missing, we notify you and await their submission. Any inquiries regarding the accounting are communicated to you through email or phone. - VAT declaration on SKAT Erhverv:
Subsequently, we use the records in the accounting system to declare the VAT on the Danish tax office website, SKAT Erhverv. In Denmark, companies typically settle VAT every quarter initially, with the possibility of transitioning to a 6-month or monthly schedule, contingent on sales volume and payment history. - Confirmation and documentation:
Following the VAT declaration, you will receive a confirmation from us, usually delivered via email. This confirmation includes a receipt and comprehensive details outlining the amount of VAT to be paid or refunded. Alongside the VAT confirmation, you will also receive Profit and Loss (PnL) statements, balance sheets, and ledger cards for each accounting period. Access to the accounting details is available directly in the accounting system. We are also delighted to offer a meeting to review the reports together.
Audit for ApS (Private Limited Company)
The requirement for an audit of the annual report is applicable to specific companies.
Our collaboration extends to some of the top audit firms in Denmark, and we manage the audit process in conjunction with our esteemed audit partners. Among the audit firms we offer to work with Martinsen, Beierholm, Deloitte, PwC and EY. Working with these companies ensures a comprehensive and meticulous audit process for companies that require this level of investigation.
Incorporating an ApS (Private Limited Company)
If you’re interested in starting an ApS (Private Limited Company), we provide incorporation services for both residents and non-residents of Denmark. As the owner, you can also serve as the director of the ApS.
Selecting the appropriate accounting system
Our expertise in dealing with diverse business entities empowers us to assist you thoroughly in selecting the most suitable accounting system tailored to meet your specific requirements. For example, among our smaller clients, the three most used accounting systems in Denmark are e-conomic, Dinero and Billy. We recommend choosing Billy because it is generally the most efficient system. Inform us of your accounting needs, and we can configure the accounting system to align with your requirements.
Advantages of working with Radner
- Ease your concerns about accounting and payroll, allowing you to dedicate more attention to your business.
It’s a common challenge for many small business owners to navigate their finances successfully. Managing both business operations and finances without sufficient manpower and resources poses significant difficulties. Engaging an external accountant not only proves cost-effective but is also crucial in comprehending tax laws and efficiently handling your budget, facilitating the successful growth of your business. - Ensure adherence to Danish laws
Our specialization in Danish accounting and payroll services enables us to remain abreast of the latest developments in financial accounting legislation within Denmark. Internally, we maintain dedicated controlling and compliance departments that conduct internal audits, oversee anti-money laundering measures, and ensure GDPR compliance.This guarantees peace of mind for small business owners, who constitute a significant portion of our client base, as we can keep you informed and assist in implementing any necessary changes well in advance to maintain compliance. - Minimize your overhead expenses
Being a company that consistently recruits and trains accountants as full-time employees, we comprehend the financial impact this can have on a business. Unless your business is substantial in size, outsourcing your requirements to an accounting firm stands out as the most cost-effective and practical solution to maintain compliance while achieving successful business growth. - Mitigate your risks
It’s widely acknowledged that every business inherently involves risks. Although we cannot eliminate risks entirely for our clients, we can curtail them and optimize your profits by implementing industry-best practices in accounting. This involves ensuring the security of confidential client information and collaborating with prominent audit firms to enhance credibility and prevent financial discrepancies. - Benefit from our knowledge and proficiency
With over fifteen years of experience, we provide our clients with the assurance that they can depend on us to impart a professional touch to their accounting and payroll needs. This entails leveraging our insights and expertise to assist you in overcoming financial challenges that may be beyond your immediate capabilities. In essence, we are here to establish a foundation for success for both you and your small business. - Automate your accounting workflow
We believe relying entirely on spreadsheets and human labour to fulfil the accounting needs of a business is a thing of the past. Instead, we use the latest technologies and workflows to minimize the time spent on doing accounting and payrolls. This involves employing API integrations to connect your banking system with the accounting platform, enabling the automated and real-time import of bank transactions into the accounting system. Rather, as part of our efforts to get our clients more accurate financial reporting, we will help them to move to a smarter, more integrated financial software system that optimizes their financial records and invoices for the digital age.