The annual report is the company’s official financial statement for a fiscal year and a legal requirement for the vast majority of Danish companies. Limited liability companies, corporations, startup companies, and most foundations must submit an annual report to the Danish Business Authority within six months after the end of the fiscal year. At Accountview, we handle the entire process so you can meet the deadline, avoid fines, and focus on running your business.
What is an annual report?
An annual report compiles the year’s financial figures and provides a brief overview of how the year went. It becomes publicly available once the Danish Business Authority has received it and can therefore be used by banks, suppliers, customers, and investors when assessing the company’s financial position. The annual report differs from internal accounting in that it follows established rules regarding presentation, notes, and content.
As a general rule, sole proprietorships are not required to prepare an annual report for publication. In this case, you only need to prepare tax accounting records, which form the basis for your personal tax return. This makes an annual report for a sole proprietorship optional, but it can be useful if the bank requests one or if you want a more professional overview of the figures.
Content Requirements
The length of the report depends on the accounting class. Most small companies fall under Accounting Class B and must include at least the following:
- Management Statement
- Income Statement
- Balance
- Notes on the Most Important Items
- Management Report
If your company falls into accounting class C, you must also prepare a statement of equity and a cash flow statement. We’ll assess which class your company falls into and prepare the report in accordance with the rules so that it can be approved upon initial submission.
Deadlines and Consequences for Late Reporting
For companies with a calendar year as their fiscal year, the deadline is June 30. If the fiscal year ends at a different time, the six-month period begins on that date. If you do not meet the deadline, the Danish Business Authority will first send a letter granting an eight-day extension. If the deadline is missed again, the executive board may be personally liable for a fine of 500 to 3,000 kroner per member. Continued failure to file may ultimately result in compulsory dissolution by the Maritime and Commercial Court, where it typically costs between 10,000 and 20,000 kroner to have the company reinstated afterward.
How Accountview Can Help
We prepare annual reports for small ApSs, holding companies, and slightly larger operating companies. The package includes preparing the books leading up to the balance sheet date, drafting the report, preparing the minutes of the general meeting, and filing the report with the Danish Business Authority. You’ll be assigned a dedicated advisor, receive a fixed price, and get a review of the year’s financial results, during which we’ll discuss what they mean for next year.
We use digital tools such as Billy, Dinero, or e-conomic, and we respond to 92 percent of all emails within 24 hours. This means you can keep moving forward if the bank or the tax authorities have any questions while we’re working on the report.
Consider opting out of the audit
Smaller companies may opt out of an audit if they meet two out of three criteria: a balance sheet total of 4 million kroner, revenue of 8 million kroner, and 12 employees. The decision to opt out of an audit is made at the general meeting and recorded in the articles of incorporation. We prepare a detailed memo each year so that you can make this decision with all the relevant information in mind. Some companies choose to retain an audit for the sake of the bank or investors, while others save on costs by opting out. We advise you on what provides the most value in your specific situation.
Frequently Asked Questions
Can someone help me understand the figures in the annual report?
Yes, a review of the annual report is part of our package. We go over the numbers with you, explain the key figures, and discuss where there are opportunities to optimize operations, liquidity, or taxes. This is often where the real decisions for the new year are made.
What happens if the fiscal year changes partway through the company's existence?
The fiscal year may be changed once during the company’s lifetime without special authorization, provided that this does not harm creditors or employees. A transition period is established, which may be shorter or longer than 12 months. We handle the reporting of the change and ensure that the opening and closing balances match the historical records.
How are dividends reported in the annual report?
The proposed dividend is disclosed in the statement of shareholders’ equity or in the notes to the financial statements and is approved at the annual shareholders’ meeting. Only after the dividend has been approved can it be paid out to the shareholders. We prepare the minutes, the dividend statement, and the tax return to ensure that the payment is processed correctly.
Do you want to get your annual report done without any stress? Let’s have a no-obligation chat about your fiscal year.
