What are the annual accounts?
The annual accounts are the financial status of a company and it must, as the name indicates, be prepared once a year in accordance with the Danish Financial Statements Act. The baseline for the annual accounts is the bookkeeping which has been done throughout the year.
The annual accounts create an overview of the company’s economy – including income, expenses, assets, VAT and possible cash flows and key figures depending on the company’s accounting class. There are different requirements for the annual accounts depending on the type of company. There are more requirements for the annual accounts of big corporations contrary to that of a sole proprietorship. We will take a deeper look at the different requirements below.
What period of time does the annual accounts cover?
The annual accounts typically cover from the 1st of January until the 31st of December. It is also possible to keep a deferred or skewed financial year, which means that the period of time the annual accounts cover run from the 1st of July to 30th of June instead.
What is the deadline for turning in the annual accounts?
The deadline for turning in the annual accounts is five months after the end of the financial year. As mentioned earlier, most companies follow the calendar year. If this is the case, then the turning in must be done no later than the 31st of May in the following year. Listed companies and state-owned corporations must turn in the annual accounts no later than four months after the end of the financial year. If you are running a sole proprietorship, you have to state your surplus or deficit no later than the 1st of July in the following year after the financial year has come to an end.
What are the requirements for the annual account?
As mentioned above, there are different requirements for Danish companies. The requirements depend on the size of the company. In Denmark companies are split into accounting classes from A to D. Smaller companies like e.g. a sole proprietorship belongs in accounting class A. There are the least requirements for those. On the other hand, there are the most requirements for the listed companies in accounting class D.
The annual accounts must include an income statement, balance sheet, a management statement and a description of the accounting policies applied. The higher the accounting class, the more requirements. Among other things, there will be requirements for a management report, a status of financial ratios, a cash flow statement and an auditor’s statement.
Do you want to know more?
In order to prepare the annual accounts, you must have control of all documents from the financial year. With Acubiz, you can digitize the process revolving around all kinds of employee-related expenses and invoices. This way you can be sure that there are no issues in this regard, before the annual accounts must be prepared.