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Bookkeeping in Sweden

Bookkeeping in Sweden

Bookkeeping in Sweden refers to the organization and management of the company’s financial transactions. It involves keeping accurate records, as well as registering them in order, according to certain principles.

Bookkeeping is one of the elements of accounting, which is mandatory for companies and it is based on the Swedish accounting standards, and the annual accounting act applicable in the country.

Entrepreneurs who open a company in Sweden need to take into account the need to follow the applicable bookkeeping and accounting rules. Companies can ensure that these are properly managed by working with an authorized public accountant.

Bookkeeping methods

Bookkeeping is a process based on recording the company’s transactions in accounting ledgers. Two main bookkeeping systems are used: single-entry bookkeeping, and double-entry bookkeeping. The latter is often preferred.

Commonly, there are several books of accounts used for recording financial transactions that are common among many types of businesses:

  • the general journal and the general ledger;
  • the cash receipt journal;
  • the cash disbursement journal;
  • the sales journal, and the purchase journal.

Bookkeeping in Sweden keeps track of all the transactions of a company, as well as keeping proper documentation to justify these transactions (invoices, receipts, and other documents). The reporting of the transactions takes place chronologically and systematically.

There are two main methods used for bookkeeping in Sweden: the invoice method and the cash method. regardless of the chosen type, the company will be asked to keep accounting records. This is mandatory in Sweden irrespective of the type of company the founders choose to incorporate.

Bookkeeping and accounting services in Sweden

It is common for companies to outsource bookkeeping in Sweden, along with other accounting-related matters. This allows the company owners to make sure that the filing deadlines are observed, the records are properly kept, and that the company pays its taxes and properly handles payroll in Sweden.

An important issue to take into account is that even when bookkeeping and accounting services are outsourced, the company founders are the ones ultimately liable for any accounting mistakes, misreporting, or underreporting. Our team specializing in company formation in Sweden can also give you details about the company founder’s obligations.

Annual accounts and reports in Sweden

As part of their accounting and bookkeeping in Sweden obligations, companies are asked to draw up and submit an annual report. All limited companies are asked to comply with this requirement and to make the necessary submissions to the Swedish Companies Registration Office.

A distinction is made between large companies and other types of companies. The former needs to follow a different set of regulations. Our team specializing in company registration in Sweden briefly lists the main criteria taken into account to classify large businesses:

  • they have an average number of employees that exceeds 50 individuals (for the last two financial years);
  • the balance sheet exceeds SEK 40 million for the last two financial years;
  • the company has a net turnover of more than SEK 80 million in both of the last financial years.

Bookkeeping is important for businesses of all sizes as it allows the company to access transparent information about its financial situation, which is not only mandatory to meet the legal requirements for reporting, but also to make informed decisions about the company’s future.

If you would like to know more about bookkeeping in Sweden, as well as other solutions for companies, our team can answer your questions.

Contact us if you want to set up a company in Sweden and are also interested in accounting and bookkeeping solutions.