What is a fiscal year?
A fiscal year is the period in which a company prepares its financial statements. All companies are required to prepare an annual report to provide an overview of the company’s financial situation and inform the Danish tax authorities of the amount of tax to be collected each year.
You can get a quick overview of your expenses with Acubiz
With Acubiz, you can quickly gain an overview of your company’s expenses and receipts, making it easier to prepare a financial report.
Cut-off dates for a fiscal year
When your company is required to prepare an annual report, you can choose the fiscal year cutoff date yourself. The only important rule is that there must be continuity in the report.
Most companies follow the calendar year for their fiscal year, while others operate from May 1 to April 30.
However, financial institutions do not have this option – they must follow the calendar year.
Other rules for financial companies and consolidated financial statements
Financial institutions
When preparing an annual report, financial institutions such as insurance companies and banks are legally required to follow the calendar year.
By law, all Danish financial institutions must therefore prepare financial statements from January to December, and no other cutoff date can be chosen.
Consolidated financial statements
When determining the period for the financial statements, it is a requirement for companies that are part of the same group to use the same fiscal year in all departments and respective statements in the group.
You can learn more about this in the Annual Report Act.
Do you want to know more?
With Acubiz, you can get a grip on your fiscal year and ensure everything is accounted correctly. With automatic invoice management, we help you get an overview of your fiscal year.
Contact us if you want to know how we can help your business or book a free online demo to learn more.