What is an accounting department?
The accounting department is the division within a company that manages the accounts and processes financial transactions. This department is responsible for ensuring the company’s accounts are accurate and reliable.
All companies, large and small, must keep accounts. If receipts are not accounted for correctly, it will lead to incorrect control and reconciliation of the accounts. And that will cause problems if the authorities come knocking.
You can handle electronic invoices automatically with Acubiz
The accounting department must ensure that income and expenses, such as salaries, VAT, and creditor and debtor invoices, are well-managed. An excellent way to do this is through digital and automated expense management with Acubiz.
Financial accounting, creditor accounting, and debtor accounting
Financial accounting
The accounting department is the division within a company that manages the accounts and processes financial transactions. This department is responsible for ensuring the company’s accounts are accurate and reliable.
Creditor accounting
The creditor accounting department keeps track of invoices received in the company as well as the payment of these. The department must ensure, among other things, that creditors are paid for the services they provide and keep an eye on the company’s expenses.
If a company has many creditors, creating a creditor accounting department makes sense. If your company is smaller, it is unnecessary as long as you can keep track of your creditors yourself.
Debtor accounting
The debtor accounting department manages invoice management, reminder procedures, debtor reconciliations, and more. It is virtually everything related to the bookkeeping of the company’s debtors and income.
Accounting Department tasks
The tasks of the accounting department are straightforward. The department is generally responsible for ensuring that the company’s finances are in order. This can include tasks such as verifying employee salaries and ensuring that the correct amount is paid or following up on invoices and reminders to see what the company has earned and spent – along with supporting documentation.
Often, a department manager is responsible for reporting on the company’s finances to management. Management makes decisions based on this, which is another good reason why bookkeeping must be done correctly.
Digital Accounting – according to the new accounting law
On July 1, 2022, a new accounting act was passed, resulting in several changes in requirements for how companies must keep accounts and conduct business in Denmark.
The law was updated to accommodate the increasing use of electronics in receipt management. Additionally, the law is intended to ensure greater security surrounding the storage of documents and data.
From January 1, 2023, all documents must be registered and stored digitally so the Danish Tax Authority can more easily control a company’s bookkeeping. With digital bookkeeping, you can therefore meet the requirements of the new accounting law and, at the same time, ensure that documents are better protected.
Automation of Accounting – avoid crumpled receipts
In addition to digital accounting, there are other ways to meet the requirements of the new accounting law, which make work easier for all parties in a company.
We are talking about automated processes that provide your business with a more robust everyday life.
Automating accounting means reducing manual work and having more time for other tasks. For example, some apps handle automatic bookkeeping and invoice management for you.
With an app, you can get a digital and automated workflow for invoices to avoid time-consuming data entry.
Do you want to know more?
If you are curious about more knowledge about digital expense management, you can read more about the requirement for digital bookkeeping.
If you have any questions, you are always welcome to contact us.