In a move to embrace digital transformation, the Danish government has recently introduced a new Bookkeeping Act, signaling a shift towards modernized financial practices for businesses. While the Danish Business Authority is still fine-tuning the details, we have gathered key insights to help businesses understand the implications of this legislation.
Approval process for new bookkeeping systems
As part of the transition, the Danish Business Authority is currently evaluating bookkeeping system providers to ensure compliance with the upcoming regulations. Microsoft has taken a proactive step by applying for approval for the Business Central SaaS solution. After investing considerable time and effort, Microsoft aims to meet the stringent requirements set by the government. The list of approved bookkeeping systems is expected to be published in January 2024.
Implementation timeline
It’s crucial for businesses to note that the new measures won’t take effect until the financial year, starting after 1 July 2024. For companies following the calendar year, this means full compliance is expected by January 2025.
Digitalization requirements
The core focus of the Danish Business Authority’s requirements is the ability to work digitally. This entails that all transactions must be digital and traceable, with all relevant documents stored within the financial system. This includes ledger journals, purchase journals, and more. Additionally, businesses must be equipped to send and receive invoices and credit notes in OIOUBL and PEPPOL formats.
Choosing the right ERP solution
Choosing Business Central on Microsoft SaaS places you in an advantageous position. The latest cloud-based versions seamlessly integrate OIOUBL and PEPPOL capabilities directly into the system. To ensure compliance, a simple agreement with a VANS provider is all you need, and we are ready to assist you in this process if necessary. Furthermore, in Business Central, you have the option to include image attachments with the transactions. We also offer a solution where we add POS actions for handling expenses and returns directly from the POS, by using a scanner or camera. The taken images are stored electronically on the transaction and you can access it at any time via Business Central.
Migration considerations
For those yet to migrate to the Microsoft Business Central SaaS solution, previous versions of Business Central and Navision still provide options for handling digital documents. However, it’s important to note that investments made in these solutions may need to be duplicated when eventually migrating to Business Central SaaS. Moreover, it’s vital to emphasize that delaying migration to Microsoft Business Central SaaS solution can be significantly more expensive for the business.
Support and assistance
Businesses are encouraged to embrace the changes and ensure that they are well-prepared for the digital era. Microsoft, with its commitment to compliance, assures users that the SaaS version will continue to support current and future changes from the Danish Business Authority. Businesses considering the migration can benefit from support and solutions provided by Microsoft.
As the Danish business landscape embraces digital transformation, staying ahead of the curve is essential. The new Bookkeeping Act signifies a significant step towards a digital future, and businesses can thrive by adopting solutions that not only meet current requirements but also position them favorably for future changes. NaviPartner is also actively embracing this digital change, and our solutions are here to help our customers seamlessly navigate through these changes. If you have questions, we are here to support you in this transition.
Note: If you want to read this blog in Danish, click here.