All companies in Denmark have a bookkeeping obligation, and this also applies to PMV. It is important to keep track of the accounts, and this can basically be done in several ways:
- You can post and report it all yourself
- You can pay an accountant or bookkeeper to handle the accounts
Bookkeeping and accounting in a PMV involves, among other things, registration of sales and purchases, registration of deductions, completion of annual statement and reporting of tax. Below you will find some basic principles and practices that can help you get started.
How do you get started with a PMV account as a freelancer?
A PMV account requires you to carefully book all your income and expenses during the year. Here, most people use an accounting program for bookkeeping, such as Dinner or Billy.
What you book here is at the same time your tax and annual accounts. The results from the accounts must later be filled in an information form for the Tax Agency, so it is important that the appendices and information are correct.
If you have had more income than expenses, you will have a profit which is taxed. If the situation is the other way around, and you have had more expenses than income, you have a deficit, which can have an impact on your personal income, as you, as PMV, are liable for your own personal wealth.
PMV and accounting - You should know that
In a personally owned small business (PMV), the profit is taxed as personal income due to your personal liability as a business owner. When you own a PMV, you are not VAT registered, but it is important that you continue to report tax.
Tips for keeping track of the accounts in a PMV
It may be a good idea to post all attachments on an ongoing basis so that your accounts are always up to date. In this way, you ensure that attachments are not forgotten or that you are suddenly behind with the accounts.
Here you must post both sales invoices, i.e. your sales to customers, and purchase invoices, which are purchases or expenses in the company.
If you are new to bookkeeping, it can be a good investment to get the help of an accountant or bookkeeper who can help you get off to a good start and ensure that you get everything posted correctly.
Alternatively, you can also use Factofly to keep track of the accounts, so that you don't have to worry about accounts and tax. Factofly's system automatically keeps track of everything, where you always have access to your information, and will have your money paid out as salary directly to your account.