New bill, digital accounting, and amendments to the Danish Bookkeeping Act

A proposal to amend the Danish Bookkeeping Act will be of great importance to companies that don’t store their accounting material digitally.
digital bookkeeping


Several decades ago, we saw the first wave of digitization hit the business world. Initially, to power analog media so they could be digitized. Today we’re in the fourth wave of digitization, where artificial intelligence and robotics are being implemented to support the way, we make decisions.

There’re still many organizations who haven’t embraced digitization and digitized the physical and analog medias. That’s going to change now. A proposal has been made to amend the Danish Bookkeeping Act. The proposal is expected to apply from 1st July 2022. An amendment to the Act will have great significance for those companies that currently don’t store their accounting material digitally.

Digital storage requirements

If the Act is amended there’ll be new requirements regarding accounting material: it must be stored digitally. In addition, a digital backup must also be kept, and it’ll no longer be legal to store bookkeeping material solely in physical form. The new storage requirements are intended to apply to companies with an annual net turnover greater than DKK 300,000. There’s no requirement for digitization of accounting material from previous financial years, but if a company fails to meet the new requirements of the Danish Bookkeeping Act, they can be punished with a fine of up to DKK 1,500,000.

Quick registration

In addition, the proposal also contains a requirement that all accounting material must be registered no later than 10 working days after receiving it. Depending on what exactly lies in “registered”, many companies will have to take a look at their internal processes for registering and bookkeeping expenses:

– It doesn’t look good for the companies that, upon receipt of an invoice or account statement from their card issuer, send the relevant postings to the individual employee or cardholder, who then attaches his or hers receipts and sends it all back for approval again, says Puk Askøe Bak, implementation consultant at Acubiz.

– Now, of course, we must wait and see what lies within the “10 days registration”. However, as I interpret it, all information to be used for posting must be registered, but not necessarily booked, within 10 days. So, no matter what the final legislation will be it doesn’t change the fact, that companies that manually distribute and handle expenses, invoices and other accounting material, are likely to find problems staying within the 10-day span, Puk continues.

The proposal to amend the Danish Bookkeeping Act, which has been submitted by the Danish Business Authority, is due for consultation in the Danish Parliament in February. Of course, we are going to follow up on any updates regarding the proposal.

Related articles

5 Questions for You, CFO!

In about four months, as the year approaches its conclusion, companies review their annual results. This typically includes the performance and financial results of the past year, as well as goals and strategies for the upcoming year.

The world’s top leaders’ predictions for 2023

PwC has asked more than 4,000 CEOs worldwide about how the future looks when speaking of economic growth, technological advancement, automation, inflation, macroeconomics, and much more.

Meet Visma Acubiz: our intern Adrian

‘Meet Visma Acubiz’ is a series of articles that take you behind the scenes. The articles tell the stories of everyday heroes at Visma Acubiz. In this article, the spotlight is on Adrian Guillen, who is an intern in our Marketing team.

The actual costs associated with manually handling expenses

We are often asked questions along the lines of, “how expensive is Acubiz?” or “isn’t it expensive to acquire a system for handling our expenses?”. Let us try to reverse the question by asking, “do you know how much you spend on handling expenses?”.

3 myths about Expense Management

Explore common myths about Expense Management, including its applicability to all company sizes, its ease of implementation, and its broader benefits beyond cost savings.