What are the bookkeeping and accounting requirements for Danish companies?

## Danish Accounting and Bookkeeping Requirements\n\nDenmark's bookkeeping requirements are governed by Bogføringsloven (the Danish Bookkeeping Act), which was significantly updated in 2022 and is being phased in with the digital bookkeeping mandate from 2024 onwards.\n\n## Bogføringsloven — Core Requirements\n\n### Who Must Keep Accounts?\n\nAll virksomheder (businesses) conducting commercial activity in Denmark are subject to Bogføringsloven. This includes:\n- ApS and A/S companies\n- Sole traders and partnerships with activity\n- Associations with commercial activity\n\n### Record Retention — 5 Years\n\nAll accounting records must be retained for 5 years from the end of the financial year to which they relate. This includes:\n- Accounting software data and exports\n- All supporting documents (bilag): invoices, receipts, bank statements\n- Payroll records\n- Correspondence relating to transactions\n\nDigital records must be stored in a format that allows SKAT to review them during an audit. Cloud accounting software automatically satisfies this requirement for records stored in the system.\n\n## The Digital Bookkeeping Mandate (2024 Onwards)\n\nThe 2022 revision of Bogføringsloven introduced a mandatory digital bookkeeping requirement for companies above certain size thresholds. The phased implementation:\n\nFrom 1 January 2024 (or the company's financial year starting in 2024)

\n- Companies with annual net revenue above **DKK 300,000** must use an approved digital bookkeeping system\n- The system must meet SKAT's requirements for data security, access control, and export capability\n\n**Approved systems**: Systems that meet the Bogføringsloven digital requirements are listed on Erhvervsstyrelsens website. Most major Danish accounting software qualifies: e-conomic, Dinero, Billy, Uniconta, and international software like QuickBooks and Xero (when meeting the specific Danish requirements). AccountsOS is designed to meet these requirements.\n\n**What counts as a qualifying system**:\n- Must create an unalterable audit trail for all entries\n- Must support export in standard formats for SKAT access\n- Must enforce access control and log user actions\n- Must store data securely (defined standards)\n\n## Annual Accounts (Årsrapport) — Reporting Classes\n\nAll limited liability companies must file an årsrapport (annual report) with Erhvervsstyrelsen within 5 months of their financial year-end. The content requirements depend on company size (regnskabsklasse):\n\n**Class B — Micro (mikrovirksomhed)**: Below two of (10 employees, DKK 8.9m revenue, DKK 4.4m balance sheet). Simplified balance sheet and P&L. Minimal notes. Audit exemption available.\n\n**Class B — Small (lille virksomhed)**: Below two of (50 employees, DKK 89m revenue, DKK 44m balance sheet). Standard balance sheet and P&L. Required notes. Audit exemption available if two of three thresholds met for two consecutive years.\n\n**Class C — Medium**: Below two of (250 employees, DKK 313m revenue, DKK 156m balance sheet). More extensive notes. Cash flow statement required. Mandatory audit.\n\n**Class D — Large/Public**: Exceeds Class C thresholds, or listed. Full IFRS or Danish GAAP large company standard. Mandatory audit. Extended disclosure.\n\n## Accounting Principles (Danish GAAP — ÅRL)\n\nDanish annual accounts are prepared under **Årsregnskabsloven** (the Annual Accounts Act), which is based on EU accounting directives. Key principles:\n\n- **Going concern**: accounts prepared on the assumption the business continues\n- **Accruals**: income and expenses matched to the period they relate to\n- **Consistency**: same methods applied year to year\n- **Prudence**: assets not overstated, liabilities not understated\n\nSmall companies may use simplified valuation methods. Large companies use more rigorous fair-value or historical-cost rules depending on asset type.\n\n## What Must Be Recorded\n\nAll transactions must have a dated bilag (supporting document) — an original invoice, receipt, or equivalent. The bilag must be identifiable from the accounting entry (bilagsnummer / reference). Key records:\n\n- All sales: customer invoices in sequential number order\n- All purchases: supplier invoices with payment records\n- Bank reconciliation: monthly comparison of bank statement to accounting records\n- Payroll records: signed payslips and eIndkomst reports\n- Moms records: all input/output moms documents for moms return preparation\n- Fixed assets register: for depreciation calculations\n\n## SKAT Access Rights\n\nSKAT has the right to inspect all accounting records at any time. The Skatteforvaltningslov gives SKAT access to request any document or system export within a stated deadline. Companies using cloud accounting software should ensure they can export all historical data in a SKAT-compliant format.