Best Accounting & Auditing Lawyers in Ringsted

About Accounting & Auditing Law in Ringsted, Denmark

Accounting and auditing in Ringsted follow nationwide Danish rules that apply across all municipalities. Companies keep books and prepare annual financial statements under the Danish Financial Statements Act, called Årsregnskabsloven. Bookkeeping is governed by the Bookkeeping Act, called Bogføringsloven, which has recently introduced stricter digital bookkeeping and documentation requirements. Auditors are regulated under the Auditors Act, called Revisorloven, and are overseen by the Danish Business Authority, called Erhvervsstyrelsen, and the public audit oversight system. Tax reporting and documentation obligations run in parallel under Danish tax laws, and anti-money laundering rules apply to auditors and certain accounting service providers.

Standards and practices are closely aligned with international norms. Statutory audits are performed in accordance with International Standards on Auditing, auditor quality management standards, and the Danish ethical code that reflects the IESBA Code. Larger companies are also preparing for EU corporate sustainability reporting under the CSRD, which introduces new disclosures and assurance by an independent practitioner. Although the law is national, many businesses prefer local advisors in Ringsted who understand the local market and can assist with filings, audits, and dialogue with authorities.

Why You May Need a Lawyer

Many accounting and auditing issues are technical and time sensitive, and legal guidance helps reduce risk and cost. You may need a lawyer if you are forming or restructuring a company and must decide whether you are subject to audit, extended review, or no assurance. You may need help if the company is late with its annual report, receives notices from Erhvervsstyrelsen, or is threatened with fines or compulsory dissolution. Legal advice is valuable in shareholder disputes about financial reporting, dividend capacity, or management liability tied to misstated accounts.

Lawyers often support negotiations and contracts with auditors, including engagement letters, independence and non-audit services, and limitation of liability. During tax audits or inquiries from Skattestyrelsen, legal counsel coordinates accounting evidence, privilege, and strategy. If suspected fraud, whistleblowing, or internal control issues arise, counsel helps manage investigations, reporting duties, and communication with law enforcement and the Money Laundering Secretariat. When implementing new digital bookkeeping systems under the updated Bookkeeping Act, lawyers help with compliance design, data protection, and vendor contracts. For companies in scope of the CSRD, counsel aligns sustainability reporting processes with accounting controls and assurance needs.

Local Laws Overview

Financial reporting and filing. Most Danish companies must file an annual report with Erhvervsstyrelsen. The general filing deadline is 5 months after the financial year end for most entities, with shorter deadlines for certain sectors. Failure to file can result in coercive fines and, if not remedied, compulsory dissolution proceedings. Financial statements may be prepared and filed in Danish or English.

Audit requirements and exemptions. Companies are divided into size classes under Årsregnskabsloven. Small private limited companies, called ApS, may opt out of audit if for two consecutive financial years they do not exceed two of these three thresholds: net revenue 8 million DKK, balance sheet total 4 million DKK, average number of employees 12. Even when not legally required to have an audit, some companies choose assurance voluntarily, for example due to bank requirements. For some entities, an extended review, called udvidet gennemgang, can be an alternative to a full audit depending on size and governing documents.

Bookkeeping and digital systems. The new Bookkeeping Act requires timely, accurate, and traceable bookkeeping with strong documentation. Many companies must use a digital bookkeeping system that meets functional and security requirements specified by Erhvervsstyrelsen, with phased-in obligations from 2024 to 2026 depending on company type and size. Accounting records must generally be retained for 5 years and must be stored and accessible in a compliant manner. If data is stored outside the EU or EEA, additional safeguards are required under data protection law.

Auditor regulation and independence. Approved auditors are subject to licensing, independence, and quality management requirements. Public oversight includes inspections, and the disciplinary board can sanction misconduct. Independence rules restrict non-audit services and require safeguards. For public interest entities, there are enhanced rules including rotation of key audit partners and audit firms under EU law.

Tax, VAT, and AML. Accounting figures support tax returns and VAT reporting. The Tax Control Act requires adequate documentation, and transfer pricing documentation is mandatory for groups above thresholds. Auditors and certain accounting service providers are subject to the Anti-Money Laundering Act, which requires risk assessments, customer due diligence, recordkeeping, training, and reporting of suspicious transactions.

Data protection. Accounting and payroll data include personal data. Companies and service providers must comply with the GDPR, including lawful basis for processing, retention aligned with bookkeeping rules, and appropriate technical and organizational security measures.

Frequently Asked Questions

Do we need a statutory audit for our Ringsted company?

It depends on your legal form and size. Many small ApS companies can opt out if they do not exceed two of three thresholds for two consecutive years, currently 8 million DKK in revenue, 4 million DKK in balance sheet total, and 12 employees on average. Your articles, loan covenants, or grants may still require an audit or another form of assurance even if the law does not.

What are the filing deadlines for the annual report?

Most companies must file the annual report no later than 5 months after the financial year end. Certain regulated sectors have shorter deadlines. Late filing triggers coercive fines and can lead to compulsory dissolution if not remedied.

What is an extended review and when is it used?

An extended review, called udvidet gennemgang, is an assurance engagement that sits between a review and a full audit. It includes additional procedures such as targeted tests of selected areas. It can be chosen where permitted by law and corporate documents, often to meet stakeholder demands at a lower cost than a full audit.

What does the new digital bookkeeping requirement mean for us?

The updated Bookkeeping Act requires many companies to use approved digital bookkeeping systems that meet functional and security criteria. There is a phased roll-out from 2024 to 2026. You must ensure proper documentation of transactions, audit trails, backups, and access controls, and you must be able to export data to authorities upon request.

How long must we keep accounting records?

As a rule, 5 years from the end of the financial year. This applies to vouchers, ledgers, and documentation necessary to understand transactions. Retention must align both with bookkeeping rules and the GDPR, which means only keeping personal data as long as legally required and then deleting it securely.

Can our auditor also provide bookkeeping or tax advisory services?

Possibly, but independence rules limit non-audit services for audit clients. The scope depends on whether you are a public interest entity and on the nature of the services. Before engaging your auditor for other services, confirm compliance with independence requirements and include safeguards in the engagement terms.

What happens if we do not file on time?

Erhvervsstyrelsen can impose coercive daily fines until the annual report is filed. Continued non-compliance can result in the company being referred for compulsory dissolution by the courts. Director liability risks can also arise if management fails to ensure timely reporting.

Who regulates auditors and handles complaints?

Auditors are overseen by Erhvervsstyrelsen and the public audit oversight system. Complaints about auditor conduct can be brought before the independent disciplinary board for auditors. Courts handle civil liability claims. A lawyer can help assess the right forum and prepare submissions.

How does the CSRD affect us in Ringsted?

The EU Corporate Sustainability Reporting Directive applies in phases to large companies, listed SMEs, and certain groups. It requires detailed sustainability disclosures under ESRS and limited assurance by an independent practitioner, with a later move toward reasonable assurance. Even if you are not yet in scope, your customers or lenders may request data and controls.

What should we expect in a tax audit or VAT inspection?

Skattestyrelsen will request accounting records, vouchers, reconciliation schedules, and transfer pricing documentation if relevant. You may be asked to explain revenue recognition, inventory, and VAT treatment. Keep complete and traceable records, respond within deadlines, and consider legal representation to manage scope, privilege, and appeals.

Additional Resources

Danish Business Authority, called Erhvervsstyrelsen. Registers companies, receives annual reports, issues guidance on the Bookkeeping Act, digital bookkeeping, and auditor oversight.

Danish Tax Agency, called Skattestyrelsen. Guidance on tax and VAT compliance, audits, and documentation duties.

FSR - danske revisorer. The professional body for auditors in Denmark, publishes guidance on auditing, ethics, and extended review.

Auditor Disciplinary Board, called Revisornævnet. Handles complaints concerning auditor conduct and imposes disciplinary sanctions.

Business Appeals Board, called Erhvervsankenævnet. Handles appeals of certain decisions by Erhvervsstyrelsen.

Danish Data Protection Agency, called Datatilsynet. Guidance on GDPR compliance for accounting and payroll data.

Money Laundering Secretariat under the National Unit for Special Crime. Receives suspicious activity reports and issues AML guidance.

Erhvervshus Sjælland. Regional business advisory house that serves companies in Region Zealand, including Ringsted, with guidance on growth, compliance, and funding.

Ringsted Municipality business services. Local municipal support for businesses on permits, local contacts, and events.

Next Steps

Map your obligations. Identify your company class under Årsregnskabsloven, confirm whether you need a statutory audit, extended review, or no assurance, and list all filing and tax deadlines. Decide on the language of your annual report, Danish or English.

Assess bookkeeping compliance. Review your bookkeeping processes against the new Bookkeeping Act, select or validate a compliant digital system, and set up retention, backups, and access controls. Align GDPR policies with bookkeeping retention.

Engage the right advisors. Speak with a Ringsted based lawyer who focuses on accounting and auditing matters to review your setup, draft or update the auditor engagement letter, and check independence and scope of services. If needed, appoint or change your auditor in accordance with corporate law and your articles.

Prepare documentation. Assemble trial balances, reconciliations, key contracts, board minutes, and vouchers. For tax, ensure you have transfer pricing files if required. For CSRD readiness, start a gap assessment and define data owners and controls.

Create a compliance calendar. Include year end close, audit or assurance work, annual report filing, tax and VAT deadlines, and AML training and reviews. Assign internal owners and build in buffer time for reviews and signatures.

If you face a dispute or enforcement action. Do not ignore notices. Contact legal counsel promptly, preserve evidence, and coordinate responses to Erhvervsstyrelsen or Skattestyrelsen. Consider whether voluntary remediation or restatement is appropriate and plan communications to stakeholders.

Taking these steps early will reduce risk, control costs, and help your Ringsted business meet Danish accounting and auditing requirements with confidence.