Accounting Procedures
Entrepreneurship
The new accounting law requires companies to prepare a description of the procedure for recording transactions and for storing accounting materials. The rules for preparing this procedure description apply to the following business enterprises: (1) Companies required to submit an annual report according to the Financial Statements Act (Accounting Class B – D) and (2) Other companies where the net turnover in 2 consecutive years exceeds DKK 300,000.
The new accounting law requires companies to prepare a description of the procedure for recording transactions and for storing accounting materials. The rules for preparing this procedure description apply to the following business enterprises: (1) Companies required to submit an annual report according to the Financial Statements Act (Accounting Class B – D) and (2) Other companies where the net turnover in 2 consecutive years exceeds DKK 300,000.
The Danish Business Authority has published a template for such a procedure description along with a guide for it. It is a Word template, which can thus be immediately downloaded and worked on.
The Danish Business Authority's Template for Procedure Description and Guide
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It is a voluntary option for companies to use the Danish Business Authority's template. Companies can also prepare their own description, which however must at a minimum contain the information requirements set out in the template.
The Danish Business Authority's template is primarily aimed at and can suitably be used by companies in accounting class A and B. Larger companies may need more comprehensive and detailed descriptions than what is immediately provided for in the template.
Requirements for the Procedure Description
The overall requirements for the content of the procedure description are that it must describe:
- The company's procedures to ensure that all the company's transactions are continuously recorded
- The company's procedures to ensure that the company's accounting materials are stored securely
- Which employees are responsible for these procedures
The requirement to describe the accounting procedure replaces the previous requirement to describe IT systems for accounting and storage of accounting materials.
Læs reglerne om procedurebeskrivelse herRegardless of whether a company chooses to use the template or prepares the procedure description in another way, the description forms a mandatory part of the company's overall accounting materials, which must be stored in accordance with the accounting law and can be demanded to be handed over in connection with an authority inspection.
This guide is provided by BDO Revision
BDO Revision is part of our advisory network. Their help is indispensable in our work with entrepreneurship, where they share their knowledge and make their competencies available to our entrepreneurs.
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