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 large 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.
First of all, the majority of large clients have an annual audit, which means they have an external auditor in addition to the normal accounting. We help prepare the balance for audit when the year is over. We’re also normally responsible for all the communication between the client and auditor when we’re preparing this balance.
Different auditors have different requirements; some are very strict in terms of documentation while others are more relaxed. Normally, we initiate the preparation with a meeting to define the tasks we’re responsible for and those the auditor is responsible for and, based upon that, we start preparing the annual report documentation. On average, it takes between 10-20 hours per year to prepare for audit, which is an additional cost to the regular services we provide for our client.
Some of the larger clients no longer require audits. The rules in Denmark have changed; annual audits are no longer obligatory depending upon the following criteria: the size of your business measured in sales, along with the balance sum – the total sum of your assets – as well as the amount of employees you’ve had during the year. If you are within the legal requirements, you can choose whether or not to have an audit.
If you opt out of an audit, we can prepare the annual report and tax declaration every year. We can do this for you if you are a sole owner of a limited liability company, several owners, or if you’re part of a structure of one or more holding companies that owns the company we’re doing the accounting for.
If you’re required to have an audit, you must hire an external auditor, since we do not audit our own work.
We can help you finding an external auditor if needed.
Public Registry of Owners
We assist with updating the public registry of owners. This is an online registry in Denmark where information for all business owners is available.
Shareholder Meeting Protocols
We assist with the protocols after you’ve had a shareholder meeting. An auditor can also help assist you with these protocols.
We assist with all the normal tasks, one of which is the VAT. Most large companies declare their VAT every three months; some, every month if they have big sales. We declare the VAT if you need to claim a refund or if you need to pay the VAT. If we’re paying bills, we enter the VAT into the netbank for payment. Depending upon the agreement we’ve made with you, you must either authorize the payment first or we can authorize it in the internet banking system. We normally prefer the first option.
Booking Supplier Invoices
Basic accounting services consist of booking all the supplier invoices, which we receive on a daily basis from the client. Most of our clients receive invoices as a PDF from their suppliers by email, which they can then forward to the accounting system. We have access to them and can book from there.
If your supplier doesn’t send invoices via email, then we normally agree upon a weekly schedule by which the client scans all the invoices and sends them to us in PDF, so we can book them in the system. Very seldom do we offer a service where we drive to the client to pick up invoices; it’s simply too time-consuming and expensive.
When we book the supplier invoices, we also book all the data related to the payment, which includes the supplier bank account, the invoice, the amount, the payment ID (if specified), etc. All this data is registered into the accounting system, and we’ll use all this information when we make payments for the clients.
In addition to supplier invoices, we also book all small receipts – those that you might rack up from buying random supplies, like gas for your company car, pens, etc. We don’t have to transfer these amounts to your net bank, because they’ve already been paid either in cash or by credit card, but we do need to book them. We receive these either by scan (PDF) or via a smartphone photo emailed to the accounting system in JPEG (as a normal picture).
Bank Account Reconciliation
We also reconcile the bank accounts, and we can do this for as many bank accounts as you need, including forex (foreign exchange) accounts. When we reconcile the bank accounts, we match the sales invoices with payments from your clients and of course the supplier invoices with payments you’ve made, so we’re able to print a statement on both your customers and your suppliers at any given time.
If you have any cash transactions – say, for instance, you own a shop and there’s a daily cash report – that’s also something we can reconcile. You must have an employee who counts the cash in your shop at the time of closure every day, and we can then help you write the cash report, itself, which is a legal requirement in Denmark.
After we’ve booked the invoices, we offer our larger clients a monthly review. We can do this by telephone or a Skype meeting, where we can share the screen. During the review, we look at the balance together, account to account, and we discuss any changes needed or client preferences.
Normally, we do this once a month, but it could also be done every quarter or not at all. It’s a good idea to opt for this service, because accountants are humans and can make mistakes, so it’s better to spot them, fix them, avoid misunderstandings and decide how to book them accurately in the future. If you have an accountant booking, Jonas (our employee in charge of larger clients) will speak to the accountant and discuss the review with the client. The time spent on this review is between 2-3 hours per month, which is a good investment.
In addition to all this accounting and reviewing, of course there are payrolls. We can prepare the payrolls either in Bluegarden or in Danløn, which are the two most popular payroll systems in Denmark. If you have fixed salaries, preparing the payroll is normally quite easy; but if you have hourly paid employees, we must discuss how to calculate the gross salaries and how to calculate and track holidays, sick days, etc. To calculate salaries, it normally takes between 1-2 hours per month if you have 5-10 employees.
For holiday accounting, you should create an employee list in excel in order to document how many days of holiday they have left and how many days they’ve used. In addition, if you’ve had any employees who’ve been sick or you have a refund agreement with the local city hall (offered typically for companies who hire a refugee or someone who isn’t able to work at 100% efficiency), we can handle these areas of accounting for you.
Employee Contract Templates
You must have employment contracts with all your employees. We’re not a legal office, so we can’t create these contracts for you, but we do have access to a number of templates that you can use as a base for your employment
Another service we offer is sales invoicing. Typically, we spend 2-4 hours invoicing per month, but this largely depends on how many invoices the client has. This is optional, and sometimes it’s a better idea for the client to do it, rather than hiring the invoicing out to us. For instance, if the sales invoices are very complex, it could take more time for the client to describe the invoice to us than it would for them to complete the invoicing on their own. It also depends on the size of the company.
If you do opt to hire us for this service, one thing that helps us greatly is to record the current employee who does the sales invoicing while he/she conducts a normal invoicing. This will allow us to see your invoicing methods, how you calculate the gross amount, etc. We could also share a screen and ask the necessary questions over Skype, or you could choose to write clear and detailed instructions for us.
If you use e-conomic, you have an option to make all the invoices as templates, so you can approve them before we send them to the clients. This is normally a good idea, especially in the beginning, until we’re 100% sure how to calculate the sales invoices.
Additionally, there’s a function for subscription clients in e-conomic. Some of our customers sell services that are good for a subscription basis, so they’re typically invoiced the same amount every month. The functionality available in e-conomic allows you to invoice your clients automatically. If you only have 10-20 clients, it doesn’t really matter, but if you have 100+ clients, you can save a lot of time using this feature.
Billing & Late Payment Reminders
We can send normal statements on a weekly or monthly basis, depending upon your preference. In addition to invoicing, we can also assist you in sending reminders to clients when they’re late with payments. When we send the reminders, we’re able to add interest and a fee for sending these reminders.
With e-conomic, we’re also able to handle projects (Dinero and Billy’s Billing don’t have project features, so this option is primarily for e-conomic clients). If you work with your clients in a project environment, then when we book your supplier invoices, we’re able to pin them to a specific project. We can also ensure that when you invoice your client on an individual project, all these costs will be added to the project. You’re able to set a price per hour, so that when you invoice your client in the project module, your invoice includes all the costs and hours that you have spent.
Supplier Service (LeverandørService – Automatic Payment System)
There’s also an automatic payment system, called supplier service (LeverandørService). This enables you, as a supplier, to withdraw money directly from your client’s bank account. You could withdraw weekly, every two weeks, every month – whatever’s been agreed. Your client gives you permission to withdraw the money and then you have a system that must be operated by an accountant. After we’ve done the sales invoicing, we’re able to order these payments from your clients, which is a nice feature that can help with cashflow, especially if your clients are late in getting their payments in.
Some clients need budgeting done for themselves, management or investors. A few of our clients need help with their cashflow budget, which we normally create on a monthly basis.
An app inside e-conomic called Budget123 exports the numbers from e-conomic into the budget program.
We have something in Denmark called an e-boks, which is where you’ll receive all correspondence from the government and the tax office – everything from tax declarations to reminders, etc. They no longer send letters through the regular post. When you have access, you can give us a proxy, so we can log in and check if there’s any mail or anything we need to react on (www.e-boks.dk).
Payment of Bills
If paying bills is something you want to delegate to us, we need access to your internet banking system. You must check with your bank that you’re able to import payments made from a financial system which come in a comma separated file (csv file); not every bank has this feature. We can take the information that we enter into e-conomic and, when we book the invoices, we can export it from e-conomic and import it straight into your internet banking system. Doing so saves a lot of time and eliminates risk for mistakes, since we receive everything automatically. Normally, this takes 1-2 hours, which we do weekly for most of the clients. We’re also able to contact suppliers directly if invoices are missing.
Checking of Booking
Normally, when you hire an accountant from us, you get a full-time or part-time accountant, depending upon the agreement we make. We do high quality work, but everyone makes mistakes, so we recommend that some controlling is added. Every accounting division has a controlling function, and you should too. Normally, checking takes 10% of the time that you have an accountant booking. For instance, if you have a full-time accountant, working 160 hours, then we’d spend 16 hours checking.
It’s not an accounting function; it’s an actual controlling function, where we try to eliminate mistakes, identify problems, etc. The mistakes are not always related to amounts and VAT; they can be general things – things that could be done smarter, things that we must change in order to meet the audit requirements, etc. Unless you know what to look for, you’re not going to spot the mistakes yourself, so we highly recommend this controlling function.
Old Bookings – corrections
Many clients who come to us were not satisfied with their previous accountant, so when we start booking, many times we’re required to look at the old bookings, which is charged separately. It’s difficult to estimate how much time reviewing old bookings will take, because we don’t know how many mistakes we’ll find, but if you can account for how many bank transactions and invoices there were, we’ll be able to calculate a fair estimate on the cost.
Payments to us
When you enter into an agreement with us, the fine print includes one month of service as a deposit, which is something you pay prior to us starting. We invoice you monthly in advance, so in the beginning, you’ll receive an invoice for the deposit and an invoice for the upcoming month of work.
There is a termination period, which is normally three months to the end of a calendar month. So if you enter into an agreement with us on September 1st, for example, if you want to get out of the contract within that first month, the agreement would still run for the full month of September and three more months – October, November and December. You’d be able to get out of the contract on December 31st.
When we agree on a fixed amount of hours per month, holidays, sickness and public holidays, etc., are all included. If an employee is sick or there’s a holiday, we’ll do overtime to make up the bookings when the employee returns. The number of hours we’ve agreed upon are fixed; you pay a monthly fixed flat fee rate, unless we’ve agreed on variable invoicing.
We normally regulate the prices once a year in January. Historically, you should expect 5-10%; the reason being that we must regularly increase employee salaries to keep them working for us. If we increase the price more than 10%, it’s related to something other than the general index increase. Maybe you require more/less hours, for example, in which case we need to talk about that and regulate the agreement.
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