bokføring

Bokföring is the systematic recording of all financial transactions of a company or organization, forming the basis for financial statements and tax returns. It is required by law in Sweden for businesses and organizations that keep accounts.

Core principles: The practice uses the double-entry bookkeeping system; every transaction is recorded with at least one debit and one credit, and the sum of debits equals credits. Source documents (verifikationer) such as invoices, receipts, bank statements support each entry. Transactions are first entered in a journal and then posted to individual accounts (konto). The verifikationsprincipen requires documentation.

Scope in Sweden: Bokföringslagen outlines general requirements, including timely registration of transactions, organization of books, and retention of records. The Bokföringsnämnden issues guidelines for proper bookkeeping. Records must be kept for seven years. Larger companies prepare annual accounts (årsredovisning) and annual reports, while smaller entities may use simplified bookkeeping under certain thresholds. VAT reporting (moms) is also part of bookkeeping, with periodic filings. Bank reconciliation is common.

Process: Steps: collect source documents, register entries in a journal, post to ledgers, reconcile accounts, generate financial statements, ensure tax compliance, archive records.

Importance: Provides a reliable financial basis for decision making, audits, tax compliance, and transparency.