Bookkeeping and payroll

When expenses are posted consistently to the same accounts, you can forecast more easily and see where your largest costs sit.

We set up your bookkeeping so that the same accounts are used each time. This reduces manual errors, including errors that can happen when staff change.

To understand and use your accounts, the people recording your expenses need to know which accounts those expenses belong in.

For example, if marketing costs are recorded as administration, the marketing budget will be misleading. When you use your figures to decide what to do next, your accounts need to make the information you rely on easy to find.

We take the time to understand your business and use the right accounts. That helps directors, boards and investors get clear answers from the accounts quickly.

Some costs do not appear clearly in your bank transactions, even though they are part of running the business. These costs still need to be included in your accounts and reporting.

Otherwise, you may overestimate your earnings and make decisions based on an incomplete picture.

We look for costs that can be easy to miss, so you get a fair view of your profit. These can include inventory adjustments, accrued holiday pay, loan interest, depreciation and other accrued expenses.

Accurate bookkeeping is useful for running your business, and it can also reduce the time your auditor spends correcting errors or filling gaps in your accounts.

We review and correct the accounts throughout the year, so there is less for your auditor to resolve. Read more about controlling and reporting.

An invoice is an expense when you incur it, regardless of when you pay it. It should therefore be recorded even if it is still unpaid. Otherwise, your earnings may be inaccurate and your accounts less useful. This is particularly important when cash is tight.

We track unpaid invoices and record them on time, using automation where it helps. Read more about automation.

We keep track of overdue customer invoices and can follow up with your customers on your behalf. That can improve cash flow and preserve good customer relationships, while sparing you the hassle of chasing late payments.

Your employees expect to be paid the right amount on time. We have seen clients face costly problems caused by incorrect payroll runs. Mistakes can leave employees feeling undervalued and make the business seem disorganised. Correcting payroll errors can also take time and money, especially when information has to be resubmitted to the Danish Tax Agency or the holiday-pay system. Getting payroll right from the start matters.

We handle payroll for many of our clients and help put a clear process in place to reduce errors.

We can handle your bookkeeping from end to end. The exact services you need, and how we record and present your accounts, depend on your business and your preferences.

Typical bookkeeping services include:

General ledger bookkeeping covers transactions other than supplier invoices, customer invoices and payroll. Broadly, once you set aside customer receipts, supplier payments and payroll from your bank transactions, the remaining transactions are part of the general ledger.

The bank is the main source for general ledger bookkeeping, so bank reconciliation is a key way to check that the accounts are complete and accurate. The general ledger should balance with the rest of the bookkeeping. Read more about how we do this in Controlling and reporting.

Accounts receivable focuses on your customers. We can record and check customer invoices and payments, and follow up on overdue balances. When a customer pays, we make sure the receipt is matched to the right invoice and customer, in the right currency.

If you have many customers, accounts receivable can become a substantial and complex part of your bookkeeping. We can help streamline the process and keep it manageable.

Accounts payable covers your suppliers, including recording supplier invoices and payments and checking that they are correct. We automate as much of this work as possible, so suppliers are paid on time and you spend less time managing invoices.

Depending on the size and complexity of your business, we can help decide whether you need a separate accounts payable ledger or whether supplier invoices should be recorded directly in the general ledger. A separate ledger is often useful when you have many suppliers or large invoices: it helps prevent duplicate payments and ensures expenses are recorded even before they are paid. Read more about accounts payable reconciliations in Controlling and reporting.

Payroll bookkeeping makes sure employees receive the pay they are entitled to, and that holiday pay, bonuses and other payroll items are recorded. We work with you to set up a process that fits your business and pays employees correctly and on time. We also check payroll amounts reported to eIndkomst, Denmark’s income reporting system. Read more in Controlling and reporting.

Invoicing means making sure customers are billed for the right amount, in the right currency and at the right time. Some invoices also need to be recognised over several accounting periods, which requires additional work.

We will often recommend that you issue customer invoices yourself, while we help with accruals and reconciliations. If you invoice before or after delivery, we can help you find a process that fits your business. We also have extensive experience with Stripe and other billing systems and project-management tools. Read more about Automation and integration.

We make sure your VAT is reported to the Danish Tax Agency by the required deadlines and that you claim the input VAT deductions your business is entitled to. That means checking which costs qualify and reconciling the VAT return with your income and expenses. We handle both the reporting and reconciliation, so you can pay the amount due when we let you know it is ready. Read more about VAT reconciliation in Controlling and reporting.

Your business may have several taxes and other payments due to the Danish Tax Agency. Many are collected automatically, but you still need to know what is due and when.

The taxes you pay depend on your business structure and whether you employ staff. Your tax account gives you an overview of amounts owed to the Danish Tax Agency. If you are a sole proprietor, you also need to keep track of your annual tax return and preliminary income assessment.

We work with both limited companies and sole proprietors and regularly reconcile their tax accounts. Read more about this in Controlling and reporting.

If your business is not VAT-registered because it sells VAT-exempt services, you may instead have to pay Danish payroll tax. The tax is often calculated using the company’s profit plus wages paid. We help calculate the taxable payroll base, file the returns and tell you how much is due. We also reconcile the filings regularly, particularly at year-end. Read more about reconciliations in Controlling and reporting.

If you have a specific need, we would be glad to hear from you.

We also provide services in these areas:

• Controlling, reconciliations and quality checks for your accounts: Controlling and reporting.
• Automating manual processes and integrating other systems with your accounting software: Automation and integration.
• Financial management advice to help you make decisions based on reliable accounts: Financial consulting.