How to Prepare Documents for Your Accountant for ApS Annual Financial Reporting in Denmark

Running a Danish private limited company (ApS) requires compliance with strict annual reporting standards. One of the key responsibilities is to prepare accurate and complete documentation for the year-end financial statement (årsrapport). Providing your accountant with well-organized and comprehensive documents ensures a smooth and efficient annual closing process. Below is a thorough guide to help you understand which documents are required, how to organize them, and what to expect.

Understanding Your Obligations as an ApS Company

All Danish ApS companies must submit an annual report to the Danish Business Authority (Erhvervsstyrelsen) within five months of the end of their financial year. The report typically includes:

• A profit and loss statement (resultatopgørelse)
• A balance sheet (balance)
• Notes to the accounts (noter)
• A management statement (ledelsespåtegning)
• Auditor's report (if auditing is mandatory)

Failure to submit this report on time may result in fines, forced dissolution, or other legal consequences.

When to Start Preparing Your Documents

Ideally, you should begin gathering your financial documents shortly after the financial year ends. This gives your accountant enough time to process everything before the filing deadline. Most Danish companies use the calendar year (January-December) as their financial year, which means document collection should begin in January.

Core Financial Documents to Collect

Here is a checklist of the most essential financial documents your accountant will need:

• Bank Statements - For all business accounts, covering the entire financial year.
• Invoices Issued - A record of all outgoing invoices (sales), preferably organized by date or customer.
• Purchase Invoices and Receipts - For all company expenses, sorted by category or month.
• Payroll Reports - Including salary slips, tax payments (A-skat, AM-bidrag), and holiday allowances.
• Loan Agreements - If the company has taken out any loans or financial leases.
• Contracts and Agreements - Such as rental agreements, supplier contracts, or shareholder agreements.
• Fixed Asset Register - A list of assets with purchase dates and depreciation details.

Supporting Documents

While the core documents are mandatory, the following may also be required depending on your business type and activities:

• Mileage Logs - For company-related travel in private vehicles.
• Credit Card Statements - If company credit cards were used.
• Inventory Reports - If you deal with physical products.
• VAT Reports (Momsindberetninger) - All VAT declarations made during the year.
• Previous Year's Financial Report - To ensure consistency and continuity in reporting.

Digital Accounting Systems: What to Export

If you use accounting software (e.g., e-conomic, Dinero, Billy), your accountant may request exported data files. These usually include:

• General ledger (hovedbog)
• Chart of accounts
• Trial balance
• VAT reconciliation
• Customer and supplier lists

Export the data in a format compatible with your accountant’s software, typically Excel, CSV, or PDF.

How to Organize Your Documents

Efficient organization speeds up the accounting process and reduces the risk of errors. Here are some tips:

• Use folders per month or document type - Create digital folders for each category (e.g., January invoices, payroll, bank).
• Label files clearly - Use descriptive file names, such as “Invoice_2024-03-15_ClientX.pdf”.
• Avoid duplicates - Ensure that you only include finalized documents (no drafts or duplicates).
• Back everything up - Use cloud storage or an external hard drive to avoid data loss.

Special Considerations for Small or Inactive ApS Companies

Even if your ApS had minimal or no activity during the year, you are still required to file an annual report. In this case, you’ll need to confirm:

• No income or expenses were recorded.
• Bank statements show no activity (or explain any minimal movement).
• All corporate taxes and VAT are up to date, or properly reported as zero.

What Your Accountant Will Do with the Documents

Once you’ve provided all necessary documentation, your accountant will:

1. Reconcile the books and check for missing data.
2. Prepare the annual financial report in the required format.
3. Submit the report to Erhvervsstyrelsen and, if necessary, SKAT (the Danish Tax Agency).
4. Advise you on any tax payments or planning for the following year.

Tips for a Smooth Collaboration with Your Accountant

• Communicate early - Let your accountant know your preferred timeline.
• Ask about their requirements - Every accountant may have slightly different expectations.
• Keep documentation throughout the year - This avoids a last-minute scramble.
• Use shared drives or portals - To securely transfer files (e.g., Google Drive, Dropbox, or encrypted platforms).

Common Mistakes to Avoid

• Missing bank statements - Always double-check you’ve included all months.
• Unreported cash transactions - Must be documented and included.
• Forgetting to include salary documentation - Especially if you paid yourself a director’s salary.
• Mixing personal and business expenses - Keep private and corporate expenses strictly separate.