Baker Tilly | New Danish Bookkeeping Act has been passed and will…
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New Danish Bookkeeping Act has been passed and will enter into force on 1 July 2022

2 June, 2022

A new Bookkeeping Act was passed on 19 May 2022 and will place new demands on digitisation. It will take effect in different phases and in that way the systems in your company can be ready for the digital future

The new Bookkeeping Act makes requirements for digital bookkeeping and digital keeping of bookkeeping and vouchers, and that bookkeeping must, by default, be made in a digital bookkeeping system that meets the requirements of the Danish Business Authority.

Schedule for the new Bookkeeping Act

Parts of the law will already enter into force on 1 July 2022, while the new requirements for the digital bookkeeping systems will enter into force over several years and in several stages depending on the company's reporting class and turnover. It will apply at the earliest from 1 January 2024 for companies (reporting classes B, C and D), and at the earliest from 1 January 2026 for companies in reporting class A with a turnover of more than 300,000 DKK.

The specific requirements for the providers of the bookkeeping systems are prepared by the Danish Business Authority and will be published no later than 1 January 2023. The systems must then be approved and registered during the first six months of 2023.

What changes will the new Bookkeeping Act entail?

If you do not handle documents and accounting records digitally today, the new Bookkeeping Act will have a great impact on your daily work procedures.

Overall, the most significant changes are the following:

  • All accounting records must be kept digitally. The keeping must comply with the rules in force of the GDPR, just as the companies are obliged to ensure a backup copy of the records. The frequency of updating the backup copy depends on the complexity of the business as well as the number and size of transactions. However, according to the Act, companies with many daily transactions must make a backup copy daily.
  • The definition of accounting records is extended to include documentation of information in the management's review in the company's annual report.
  • Simplified requirements for the company's description of its procedure for recording transactions and keeping accounting reports.
  • The Danish Business Authority has the authority to carry out bookkeeping checks on companies that have not submitted their first annual report and companies that have opted out of auditing.
  • Introduction of a significantly higher fine.
  • Possibility of compulsory dissolution if the Danish Business Authority's requirements for injunctions and submission of accounting records are not complied with.

Contact us

At Baker Tilly, we can help you transform your traditional management of bookkeeping into a statutory digital solution.

Photo of Mazdak Rahimzadeh
Mazdak Rahimzadeh
Digitalization Director

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