Financial Statements

When starting a new business, it may be a good idea to get help from an accountant to act as a sounding board from day one to get to grips with the day-to-day handling of accounts.
Accounting legislation requires that you manage your accounts and allocate costs and reve-nues in your financial statements. By doing this you will save time and money and at the same time you will have an immediate overview of the results from month to month.
In many cases the majority of businesses have accountants prepare their annual accounts, take care of tax returns and handle other taxation issues that are required to keep on top of things.

Annual Report

The Financial Statements Act makes it a requirement that all limited companies, both public and private, must prepare an annual report to be submitted to the Danish Business Authority. Some of these companies are also required to undergo a mandatory audit, triggered when the company passes specific thresholds for total assets, net turnover and the average number of full-time employees.
Sole proprietors only provide financial information in the tax return and need only submit fi-nancial statements to SKAT (the Danish Tax Authority) if requested to do so.
Companies must submit annual reports to the Danish Business Authority using Regnskab 2.0 or as an XBRL file. This must be done within 5 months of closing the accounts.

Furthermore, there is no audit requirement for privately owned companies.


Receipts must be kept for 5 years. As a business owner it is your responsibility to comply with accounting and financial regulations.

Accounting Classes

The Financial Statements Act stipulates the rules for preparing an annual report based on a so-called “building block” model where companies are classified into accounting classes A, B, C or D, depending on their size.
Vistas Revisor works primarily with companies of class A and B. According to the new Finan-cial Statements Act, as of 1st January 2016 these are the thresholds for companies with a fiscal year starting on 01.01.2016 or later:

  • A – very small enterprises
    (1) Total assets: DKK 0-7 million
    (2) Net revenue: DKK 0-14 million
    (3) Number of employees: 0-10 employees
  • B – small businesses
    (1) Total assets: DKK 0-44 million
    (2) Net revenue: DKK 0-89 million
    (3) Number of employees: 0-10 employees
  • B – micro enterprises (new class under accounting class B)
    (1) Total assets: DKK 0 to 2.7 million
    (2) Net revenue: DKK 0 to 5.4 million
    (3) Number of full-time employees on average: 0-10 employees

According to specific criteria, there are some transitional rules that are to be taken into ac-count. For example, for companies that have financial income or income from investments that is at least equal to the net revenue, this revenue is added to the net revenue to obtain the total revenue, which is crucial for determining the reporting class of a company.
In addition, the new type of business in accounting class B – micro enterprises – small enter-prises included in accounting class B, is characterised by allowing people to opt out of some reporting requirements. In addition, these businesses, for example, may not hold investments in subsidiaries or operate an investment business.