What do we offer small business owners?
Late payment of your expenses, clients not paying you on time, errors in the accounting, and the resulting non-compliance with tax and VAT rules are all types of losses and exposure that could hurt a small business’s financial security and reputation if they go undetected.
With proper accounting processes in place, financial records can help small business owners to stay on top of these issues before they lead to more expensive problems.
At Dania Accounting, we have decades of experience helping small business owners to avoid costly errors and stay on top of their accounting processes so they can grow their businesses with peace of mind.
Dania Accounting At A Glance
Who is Dania Accounting, and what makes us the right choice for small business owners in Denmark?
With more than two decades of experience helping more than 1500 clients, we are proud to say that we are not just an accounting firm but a trusted advisor for our clients.
Headquartered in Copenhagen, Denmark, we specialize in helping clients get their accounting, payroll, annual report and tax returns done accurately and on time, at a fair price, while still being compliant.
We can also assist you with the registration and incorporation of both sole proprietorships and the limited liability company structure we call “ApS”.
Also, you can get our help preparing a cash flow budget and business plan for your bank.
That being said, our ultimate focus is to get our clients to stay on track with their accounting and payroll needs so they can focus on growing their small businesses worry-free.
Dania Accounting will help you to,
1. Stay compliant with Danish legislation
Our expertise and focus on Danish accounting and payrolls allow us to stay up-to-date on all financial accounting legislation in Denmark.
We have internal controlling and compliance departments that oversee internal audits, anti-money laundering and GDPR procedures.
This assures small business owners like you, who make up the major part of our clientele, that your business is always compliant, as we can inform and help you to make necessary changes ahead of time.
2. Worry less about your accounting and payroll and focus more on your business
We find that many small business owners often struggle to handle their finances.
After all, managing business operations and finances without adequate manpower and resources is not an easy feat.
But not only is hiring an external accountant cost-effective, but it’s also important to understand tax laws and manage your budget effectively so you can successfully grow your business.
3. Tap into our expertise
Relying on our more than 20 years of experience, we bring our clients confidence that they can rely on us to give their accounting and payroll the professional touch it deserves.
That means we bring our insights and expertise to help you solve the financial challenges that you are not prepared to handle on your own.
In short, we will set you and your small business up for success.
4. Reduce your overhead cost
As a company that regularly hires and train accountants as full-time employees, we understand the financial implication that it can cost a business.
Unless you are a big business, outsourcing your needs to an accounting firm would be the most cost-effective and viable option to stay compliant while successfully growing your business.
5. Automate your accounting workflow
We believe relying entirely on spreadsheets and human labour to fulfil the accounting needs of a business is a thing of the past.
Instead, we use the latest technologies and workflows to minimize the time spent on doing accounting and payrolls.
Rather, as part of our efforts to get our clients more accurate financial reporting, we will help them to move to a smarter, more integrated financial software system that optimizes their financial records and invoices for the digital age.
This includes using API integrations between your banking system and the accounting system, which allows for the automated real-time import of bank transactions into the accounting system.
Also, through our partners at Corpay One we can help setup invoice approval workflows that enable invoice payment without having to log into the bank each time.
Through our partners at PLEO we can offer a system to handle expenditures in an easy way, including issuing MasterCards to you and your team.
6. Minimize your risks
It is common knowledge that no business comes without risk.
While we can’t completely eradicate risks for our clients, we can minimize the risks and maximize your profits by applying the best practices in the accounting industry.
This includes securing confidential client information and pairing up with major audit firms for extra credibility and to avoid financial discrepancies.
Now that we have covered why small businesses choose us over competitors, it’s time we explore the following;
Accounting services, that we offer, to small business owners, include
1. Choosing the right accounting system
Our experience in handling different types of companies enables us to provide you with full guidance in choosing the best accounting system to fulfil your unique needs.
For instance, our smaller clients often use one of the three most popular accounting systems in Denmark:
When you have a small business, we suggest you choose e-conomic since this is overall the best system.
Dinero and Billy offer a free version, but once you activate the full functionality, the price is more or less the same.
The cost for e-conomic is from 199 DKK + VAT per month (2023 rates) for the smallest version.
Let us know what requirements you have for your accounting, and we can set up the accounting system to match your needs.
2. Making sales invoices to your clients
It is important to create a professional sales invoice for your clients.
This will help your clients keep track of their purchases and payments.
In addition, an invoice gives both parties – the seller and buyer – guidance on what is expected from each other, which increases security for both parties.
That is why we equip our smaller clients with powerful accounting systems like the e-conomic system, Dinero or Billy; they can make their own sales invoices for their clients quickly.
So, once they have delivered a service or a product to their clients, they will log into the system and issue a sales invoice in PDF.
The invoice is normally sent directly from their system to their clients and stored inside both systems.
Our job here is to book the payment in accounting when it appears on the bank, to match the invoice in the system with the payment received from their clients.
Also, you might need our help designing your sales invoice template.
3. Handling of supplier Invoices
Supplier invoices are sent directly into the accounting system.
We book every supplier invoice for you.
We allocate a cost account for the supplier invoice and check that all data is registered correctly.
This includes registering the invoice date, VAT type, currency, amount, suppliers name, payment date, payment source, text etc.
You can send your supplier’s invoices directly to your accounting system using different methods offered by the accounting system provider.
In general, you will have these three options:
1: Forward emails with attached suppliers invoices as PDF or JPG
2: Use an app to scan invoices and receipts with your smartphone
3: Upload invoices from your desktop on your computer
NB: You can make it easier by asking your suppliers to send invoices directly to the accounting system or set up rules in your inbox to forward invoices automatically.
4. Payment of supplier invoices
If you do not have many supplier invoices, we recommend that you handle the payments yourself.
Should the payments take up too much of your time, we are glad to solve this task for you also.
Either we are provided access to your bank, or we apply a solution that enables an invoice approval workflow where we register the supplier invoices and simply inform you of what needs to be paid.
You can then approve the payments by clicking “approve” on the supplier invoice, and at the same time, payment is made without having to log into the banking system.
5. Issuing payslips and payroll processing
Payroll processing is just one of the many financial tasks we, as an accounting firm, offer to perform for your business.
As a reliable payroll service provider, we ensure that all the payrolls are handled according to employment laws within Denmark, keeping them legally compliant at all times.
They are both good payroll systems – the choice of system is mainly a matter of your preference.
We recommend Danløn to smaller business because of the ease to use and DataLøn to larger companies due to more customisation options.
6. Declaring your VAT
VAT (Value Added Tax) is a 25% tax levied on sales by businesses to their clients.
As an accounting firm, we are specialized in taking care of your VAT registration and other compliance requirements so that you can continue doing business with your clients.
Here is how it works,
1. Once we have received the supplier invoices and bank transactions from you, we will start booking the invoices in the accounting system and reconciling the bank. If some invoices are missing, we will notify you and wait for them to be submitted by you. Any questions we have relating to the accounting, we communicate to you by mail or phone.
2. Then, we use the records in the accounting system to declare the VAT on the Danish tax office website SKAT Erhverv. In Denmark, companies normally pay the VAT every quarter initially, but later this can change to 6 months or monthly – it all depends on the volume of sales and payment history.
3. Next, you will receive a confirmation from us that we’ve declared the VAT, along with a receipt, usually via email. The confirmation also contains all the details about how much VAT to pay or how much VAT will be refunded. With the VAT confirmation, you also receive a PnL, balance and ledger cards for every accounting period. The accounting can be accessed by you directly in the accounting system. And we also are glad to offer you a meeting to review the reports together.
7. Paying taxes as a sole proprietor
A small business pay income taxes on the profit.
Special tax rules exist for smaller businesses that are run as sole proprietorships.
Ten times a year, small business owners of sole proprietorships pay a special personal income tax called “B-tax”.
We estimate this tax at the beginning of the year or the start of the business by projecting the business’s profit. If we estimate a profit and tax is due, the tax office will send ten payments for the year 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. If you start the business during the year, you will receive instalments for the remainder of the year.
This is considered the preliminary tax or self-assessment.
All sole proprietorships follow the calendar year, so for this type of small business, the accounting year always finishes on December 31st.
There is no obligation to submit an annual report as a sole proprietor, but we prepare this to have a correct calculation of your income tax and also, very often, your bank wants to see the annual report also.
The income tax return for a sole proprietor must be declared latest by the 1st of July of the following year.
The service we offer is a “full service” consisting of the annual report and the income tax return.
Also, be aware that you can often benefit from applying a special tax scheme called the “Business Tax Scheme” if you have a high profit and pay maximum rate or have high interests from business loans. This will give a better tax value on interests and allow to postpone tax by paying 22% tax as long as the profit stays in the business.
8. Paying taxes as an ApS
An ApS can choose to pay estimated amounts for company income tax in March and November.
And also, there is a voluntary payment in February related to the previous year.
We can help you estimate how much income tax to pay and make sure it gets registered correctly.
9. Annual report for ApS
For an ApS, submitting an annual report to the Business Authority is required by law.
This needs to be done latest six months after the end of the fiscal year, together with the tax return.
We prepare the annual report for you and make sure it gets submitted to the Business Authority.
If your ApS is required to be audited, we have audit partners that audit the accounting we have done.
10. Audit for ApS
An audit of the annual report is required only for some companies.
We work with some of the best audit firms in Denmark and handle the audit process in cooperation with our audit partners.
For audits, we often work with the following audit firms:
11. Registering a sole proprietorship
We can help you set up your new sole proprietorship when you are a resident of Denmark.
If you are a non-resident, your best option is to incorporate a limited company called “ApS”.
Our fee for registering a sole proprietorship is 1.000 DKK + VAT.
You can also do it for free on your own on VIRK.
12. Incorporating an ApS
We also offer incorporation services if you would like to start an ApS.
You can incorporate, own and be the director of an ApS as both resident and non-resident of Denmark.
Our Price For Accounting Services
Accounting services are invoiced according to elapsed time.
An invoice is sent every month with a timesheet documenting our work.
We offer the following hourly rates for accounting services:
375 DKK + VAT for clients with at least 20 hours of accounting services per month
450 DKK + VAT for clients with 3-19 hours of accounting services per month
550 DKK + VAT for clients with 1-2 hours of accounting services per month
A minimum of 1 hour per month (550 DKK + VAT) is invoiced.
We may request a retainer.
How much time do we need to provide the Accounting Services
On average, small business owners normally need between 1-5 hours of accounting services per month.
If you’re unsure how many hours you’ll need, estimate that the accountant will spend 3 to 5 minutes per invoice and add another 1 minute for every bank account transaction.
In addition to this comes correspondence like emails, phone calls and meetings.
So, we usually estimate that for each 5-10 invoices, we need 1 hour of work, including accounting and correspondence.
But this is naturally a rough estimate which can vary depending on your actual requirements.
The more hours you need, the lower price we offer you.
Our Price For Payroll Services
Payroll services are invoiced according to elapsed time.
An invoice is sent every month with a timesheet documenting our work.
We offer the following hourly rates for payroll services:
375 DKK + VAT for clients with at least 20 hours of payroll services per month
450 DKK + VAT for clients with 3-19 hours of payroll services per month
550 DKK + VAT for clients with 1-2 hours of payroll services per month
A minimum of 0,5 hours per month (275 DKK + VAT) is invoiced.
We may request a retainer.
How much time do we need to provide the payroll service?
As a guideline, expect an average of 15-30 minutes per payslip.
Our Price for Annual report and income tax return services
Annual reports and income tax return services are invoiced according to elapsed time.
We offer the following hourly rate:
800 DKK + VAT
How much time do we need to provide the Annual report and income tax return services?
As a guideline, expect the following:
Sole proprietorships: 5-8 hours annually
Holding companies: 5-8 hours annually
ApS and A/S: 10-20 hours annually
The time needed depends on the complexity of the annual report and income tax return.
A minimum of 3 hours (2.400 DKK + VAT) is invoiced.
We may request a retainer.
In a nutshell
We work with businesses of all sizes, from sole proprietorships to large corporations, and our professional accountants will give you the attention and personal service you need to get back on track with your accounting and payroll.
No matter what kind of business you run, we can help you to meet your financial goals through innovative tax planning, strong strategic planning, and meticulous bookkeeping and reporting procedures.
(This blog was updated on: 14.10.2023)