The new bookkeeping law – what does it mean for you?
The overriding general rule in the new Accounting Act is that accounting records must be kept digitally.
This means that both entries and supporting documents must be available in digital form.
In addition, there are a number of specific technical requirements for the accounting system itself.
Therefore, you generally have two options. You can either choose a publicly approved system, in which the responsibility for meeting the technical requirements rests with the provider. Alternatively, you can choose a “non-approved system,” which the new law refers to as a “custom-developed system.”
In this case, you are responsible for ensuring that the system complies with all technical requirements.
What happens if you have an unapproved system?
To comply with the new accounting law, you are not required to use one of the approved systems. You can use a “non-approved system” and simply add the functionality you need to comply with the law, such as apps.
You can also choose to upgrade to Business Central Cloud, which is one of the approved systems.
Confused? – Can we help you?
The requirements for digital bookkeeping systems
The requirements for digital accounting systems are set by the Danish Business Authority and include, among other things, digital recording and storage, IT security standards and automatic backups, support for the automation of administrative processes—such as automatic e-invoicing—and that journal entries must be made in accordance with an established public chart of accounts.
However, it will not be mandatory for companies to use the standard chart of accounts. Companies will still be able to use their own chart of accounts. The company’s own chart of accounts simply needs to be mappable to the standard chart of accounts.
The list of approved accounting systems
As of this writing, the list of approved accounting systems has not yet been published. However, it is expected to be published in early 2024.
Business Central Cloud will be included on the list of approved accounting systems.
If you are currently using Business Central Cloud, the technical requirements will therefore be met.
If you use solutions other than Business Central Cloud, you may therefore need to add the missing functionality—such as apps—to comply with the new accounting law.
