Digital Bookkeeping

What Does Digital Bookkeeping Include?

Digital bookkeeping is much more than just saving your receipts as PDFs in the cloud. It’s about automating and connecting your financial processes to create a more efficient and cohesive system for managing and documenting your business.

Here are some of the key functions that digital bookkeeping typically includes:

1. Automatic import and processing of invoices and documents:
Instead of entering data manually, you can scan or receive invoices digitally. The system automatically reads and posts the information, reducing typing errors and eliminating piles of paperwork.

2. Integration with banking and payments:
When your bookkeeping is connected to your bank, the system can automatically retrieve transactions and match them with your receipts. This makes bank reconciliation and bill payments faster and more transparent.

3. Automatic VAT calculation and reporting:
VAT is calculated in real-time based on your income and expenses – and you can often report it directly to the tax authorities from your accounting system. This makes VAT reporting easier to manage and less time-consuming.

4. Ongoing updates to accounts and inventory status:
If your bookkeeping system is integrated with an inventory management system – or a more advanced WMS (Warehouse Management System) – both your accounts and stock levels can be updated automatically as orders are created, goods are received, and invoices are sent. This gives you a more accurate, real-time view of your business operations.

5. Consolidation of financial data from multiple systems:
Many businesses use separate systems for sales, purchasing management, inventory, and accounting. Digital bookkeeping makes it possible to gather data in one place, giving you a full overview of your company’s financial health without switching between platforms.

In short: Digital bookkeeping is about streamlining and automating your financial workflows, so you can focus more on what creates value – developing and running your business.

Digital Bookkeeping and Legislation

Digital bookkeeping isn’t just a smart business decision. It’s also becoming a legal requirement under the new Bookkeeping Act adopted in Denmark in 2022 and being rolled out gradually from 2024 onward.

The law requires many businesses to use a digital bookkeeping system that is approved by the Danish Business Authority. The goal of the legislation is to:

• Reduce the risk of errors and fraud in bookkeeping

• Ensure more consistent and accurate financial reporting

• Make it easier for authorities to conduct audits and supervision

In other words, Excel sheets and paper documents are on their way out. Instead, systems must be used that automatically record and store bookkeeping data, receipts, and transactions – and comply with the technical standards set by the authorities.

If your business fails to meet the requirements, it could result in formal warnings, fines, or other sanctions. That’s why it’s crucial to be proactive and start digitalizing your bookkeeping in good time.

What Does Digital Bookkeeping Have to Do with Rackbeat?

Although Rackbeat is not an accounting system, we are an essential part of many businesses’ digital foundation. We provide a user-friendly and efficient inventory management solution, and we know how important it is that your stock levels, orders, and financial data are connected.

That’s why we’ve developed a direct integration to e-conomic, making it possible to:

• Transfer invoices and sales orders directly from Rackbeat to e-conomic

• Automatically synchronize customers, products, and stock movements

• Eliminate double entry and reduce manual errors

• Keep both your inventory and your financials up to date – in real-time

This gives you a fully integrated workflow, where WMS, purchasing, and accounting work together in one seamless flow. You save time, reduce the risk of errors – and gain complete visibility into both operations and the bottom line.

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