Dania Accounting provides quality service to both small and large companies, including accounting services, VAT declarations, tax returns, annual reports, payrolls and budgets, and more. This article will focus on the smaller companies, who make up a large portion of our client base. We’ve served more than 1500 small companies during our time, so we have a vast level of experience, which is available to you.
Choosing an accounting system
Our clients typically use one of the three most popular accounting systems in Denmark: e-conomic, Dinero and Billy´s Billing.
The e-conomic system offers several different languages for the user-interface, including English, so English-speaking clients often choose this system.
Dania Accounting has experience in handling many different types of companies and will provide you full guidance, in choosing the best accounting systems for your company.
Making sales invoices to clients
Using the e-conomic system, Dinero or Billy’s Billing, our smaller clients can make sales invoices to their own clients. After a service or a product has been delivered, they log into the system and issue a sales invoice in PDF. The invoice is normally sent directly from the system to their client and then stored inside the system. We later book the payment from the client, when it appears on the bank, to match the invoice in the system with the payment.
The client can choose to pay bills themselves, meaning that Dania Accounting doesn’t have access to pay bills in the bank. Normally, only small clients use this option. By logging into their netbank, they can pay their phone bill, car insurance, etc. After a month or more, depending on the agreement between the client and Dania Accounting, the client scans the invoices in PDF, and they either email them directly to Dania Accounting or directly into e-conomic, Dinero or Billy’s Billing. Once the invoices have been delivered, the client can log into their internet bank and save all the transactions that have occurred. The function is called “Save CSV” (comma separated file), and it allows the client to save the transactions from their bank and email the file to us. This provides us with all the information we need from the bank and can be done in nearly every Danish internet banking system. Sometimes the banks use other words for these files: CSV, Excel, text-file and so on, but it is the same in this context.
Clients who have employees can also send us a monthly email with the payroll containing employees’ names, how many hours each employee has worked, and the gross salary. This is typically sent around the 25th of every month, after which we produce the payslips, using one of two systems.
One is called Danløn, which has a fixed 20 DKK price per pay slip.
The other is called Bluegarden, which is a little more expensive.
They’re both great systems, and the choice of system is mainly a matter of preference.
We recommend Danløn to smaller companies and Bluegarden to larger companies – but technically they can do the same, we just find Danløn to have a simpler user interface.
After Dania Accounting has received the invoices and the file from the bank, we start booking the invoices in e-conomic, Dinero or Billy’s Billing in order to declare the VAT on the Danish tax office website called SKAT Erhverv. In Denmark, companies normally pay the VAT every quarter in the beginning, but later this can change to 6 months or monthly, all depending on sales and history of payment. The client will receive a confirmation that we’ve declared the VAT, along with a receipt, usually via email. The confirmation also contains all the details about how to pay the VAT on your internet banking system. Together with the VAT confirmation clients also receive a P&L, balance and ledger cards for every period.
Paying tax – sole proprietors
Ten times a year, business owners of sole proprietorships pay a special type of personal tax, called a B tax (in danish called: “B-skat”). We estimate this tax at the beginning of the year by projecting the revenue of the business. If we estimate a high revenue, then the tax office will send ten payments to be made every month from January to May, with no taxes to be paid in June; the second half of the taxes are paid from July to November, while no taxes are due in December. This is the preliminary tax, or self-assessment, which in Danish is called “Forskudsopgørelse” or “Forskudsregistrering”.
All sole proprietorships follow the calendar year, so for this type of small companies, the accounting year always finishes December 31st. The annual report must be made by the 1st of July the following year, and the tax declaration submitted to the Danish tax office at the same date. Our service is a “full service”, consisting of both the annual report and the tax declaration. The annual report is not a legal requirement in Denmark, but needed to produce the tax declaration.
Different rules applies for LTDs.
Small companies normally need 1-19 hours of accounting services per month.
If you’re unsure how many hours you’ll need, estimate 3-5 minutes per invoice + 1 minute per bank account transaction.
The more hours you need, the lower price we can offer you.
Our fee per hour ranges from 350-395 DKK + VAT per hour for smaller clients.
We also produce your company’s annual reports and tax declarations, a service priced between 1.995 DKK and 6.995 DKK + VAT per year, depending on the complexity of the accounting required (number of sales, invoices, etc.).
Additionally, we provide monthly payslips, with average fees of 150 DKK + VAT per employee per month, again depending upon the complexity of the service.
If you need 20 hours of accounting services per month or more, then we consider you to be a “large company” and wehave some really interesting offers for you also. Please read more on our website about services for larger clients, if this is relevant for you.
Read more about our services and prices for large companies here:
Please send us an email: email@example.com
Listen to our podcasts, watch our videos, or visit us on social media, and learn more about us, tax, vat, how to start a company and much more: