New accounting law - How does it affect debt collection?

On 19 May 2022, the Danish Parliament adopted a new bookkeeping law, which entered into force on 1 July 2022. The purpose of the law is, among other things, to increase the digitization of companies' bookkeeping and thus (hopefully) get a better bookkeeping for Danish entrepreneurs.

The timing and specific requirements for individual companies depend on their legal form and turnover.

At Collectia we love digitalization and we were looking forward to the new bookkeeping law coming into force.

This post is not an in-depth analysis of the new Bookkeeping Act. Instead, it will briefly explain what the new law is about and what it may mean for you if you use debt collection with a debt collection company or a debt collection lawyer.

What should you pay attention to?

In general, the requirements are the same as you already know about keeping records and storing your accounts securely. In general, it is important that your business continues to remember to record transactions accurately and as soon as possible. That is, when the sale, purchase or other transactions actually take place.

What the new law focuses on the most (and is the most comprehensive) are the requirements for digital bookkeeping in the digital bookkeeping system/accounting program. Requirements that will continuously enter into force until 2023.

The requirements will include, among other things, a stricter requirement for correct bookkeeping, an increased focus on security and, not least, automation of bookkeeping.

Digital bookkeeping - digital bookkeeping system, ERP or accounting software

The new Bookkeeping Act requires Danish companies to use a digital bookkeeping system/accounting program/ERP system such as Microsoft Dynamics 365 Business Central, e-conomic, Dinero, Billy, etc.

All providers of ERP systems and accounting programs must in future register their system with the Danish Business Authority so that users can see which ones they can choose from. This list has not yet been prepared, but it is expected that the most common systems that exist on the Danish market today will be covered by the new rules and requirements.

At Collectia, we look forward to even more business owners making use of a professional ERP system, as we experience that companies with an implemented ERP system, such as Business Central, increase efficiency and productivity at all levels of the company.

Who is covered by the law?

Basically, all Danish companies are covered by the new law and must comply with the new requirements to present and report the annual report digitally. In addition, everyone, regardless of size, will be subject to the requirement for bookkeeping via an online bookkeeping system.

New bookkeeping law could improve debt collection

At Collectia, we welcome the new requirements for increased digitization and automation; especially the digital bookkeeping and the introduction of a digital accounting program / ERP system.

As a debt collection company, we often see that especially small businesses that do not make use of a good ERP system or online accounting program often lose or have incorrect data. A digital and automated system will clearly make their everyday life easier in terms of their financial function, inventory management, HR and payroll administration, etc. Because when it comes to debt collection, good, correct and complete information about the claim, the size of the claim and not least the customer's information is crucial for a successful debt collection process. The introduction of a professional ERP system or accounting program can help with this.

In our experience, the more digitized you are and the better ERP and accounting systems the company uses - the better invoiceand debtor information most companies have available. Correct and accurate information can be crucial to whether you as a creditor get your money back and thus succeed with debt collection with a debt collection company.

Do you have questions about the new accounting law?

We recommend that you always consult your accountant and bookkeeper about how the new Bookkeeping Act will affect or will affect your business and what you need to do to comply with the new requirements.

It is our view that many companies would benefit from a thorough review of their bookkeeping as well as processes and workflows that can perhaps be digitized even more. For example, by implementing an ERP system such as Microsoft Dynamics 365 Business Central, Billy or E-conomic.

Collectia - a digital partner with 150 years of experience

As a debt collection company, Collectia has been involved in debt collection for more than 150 years, and has continuously created a digital company that ensures that our customers today have perhaps the most efficient, most digital and most transparent debt collection process on the market.

At Collectia, it is easy to transfer overdue invoices from an online accounting program to debt collection; quick and easy - just as debt collection should be.

Are you looking for a new debt collection company? At Collectia, we are ready to show you how our digital solutions can help you transform your bookkeeping.

Do you have any questions?

We are ready to help you every weekday from 08:30 to 15:30 if you have any questions or want to know more about our services. Fill in the form below if you would like us to contact you. You are also welcome to call us on +45 7730 1480 or write to us at salg@collectia.dk.