How to choose the best accounting software for your business

How to choose the best accounting software for your business in Denmark in 2024

In this blog, we discuss how to choose the best accounting software for your business in Denmark in 2024.

Accounting software has become a core function in the modern business world, and it’s easy to understand why. Both large and small businesses in Denmark use online accounting software to simplify or automate most key accounting processes, reduce bookkeeping errors and make data-driven decisions to use company resources more efficiently.

As more companies in Denmark seek these digital accounting solutions and the range of options grows, choosing the best accounting software for startups and small businesses has never been more challenging or critical.

While large businesses have a higher volume of activity, need more comprehensive functionality and have bigger software budgets, finding the perfect fit for small and startup companies is often more complicated. Many platforms offer tiered free and paid versions with varying functionality and price tags. It’s essential to define what your business needs from its accounting software – now and in the future – before choosing one.

We have vast experience working with Denmark’s most popular accounting solutions and the many options available from each.

The importance of accounting software

The truth is that accounting can be a massive headache for any business. But accounting will always be a central business function: it’s how your business will receive money, pay suppliers, prepare for VAT and tax returns and fund the essential operations that keep the wheels turning daily.

Accounting software helps you do all this but makes it faster and easier. Modern accounting software can also use your business data to offer actionable insights to help you make better financial decisions, optimise resource management and avoid bookkeeping mistakes.

In small and startup businesses, where using company resources efficiently is crucial for daily operations now, and growth in the future, time-saving and risk-reducing software is essential.

Because of this, accounting software is essential and is ultimately one of the smartest investments a business can make.

What should you look for when choosing accounting software?

Small businesses and startups usually have lower IT budgets and different requirements from their accounting software than larger businesses. Platforms designed for larger enterprises often involve complicated onsite setup processes, require server space not typically available in small offices, are expensive to license and only cost-effective for companies with a high volume of accounting operations.

With the market for accounting software booming in Denmark, we’ve never had so many options. Though e-conomic has historically held the lion’s share of the market, it now competes with many new and diverse online accounting software products.

You can read about cash flow budgets here – also download a free cash flow budget template

We will look at e-conomic and two other SAAS products that are very popular with small businesses and startups, Dinero and Billy.

Smaller businesses typically use e-conomic, Dinero or Billy.

Medium-sized businesses tend to prefer e-conomic.

Larger businesses often turn to Microsoft Dynamics or SAP.

So, how can you find the best accounting software for your business’s specific needs and goals?

Three tips for choosing the best accounting software for small business and startups

1. Choose a program you can grow with

Most accounting programs have pricing structures with a range of options with different capabilities and prices, such as free, combination and pro subscriptions. This suits startups and small companies, which often don’t need complex and costly programs to fulfil their accounting requirements.

Most accounting software in Denmark has the same overall functionality at first glance.

But there are differences:

e-conomic

Choose e-conomic if you plan to use a professional accountant or accounting firm to handle your accounting.

Almost all accountants and auditors in Denmark use and know e-conomic very well.

So with this solution, you get easy access to professional assistance.

e-conomic is made by accountants for accountants.

You can also use e-conomic to issue sales invoices to clients and even book some expense invoices in the system. But ensure you know what you are doing to avoid costly mistakes later.

e-conomic offers an English version.

Furthermore, this is the only accounting solution in this price range that offers an approval workflow for payments, dimensions, projects and automated accruals that tends to cater to businesses that could grow larger.

Dinero

Choose Dinero if you plan to do your own accounting.

This solution is made for the “DIY” type of entrepreneur.

It is not a solution we recommend to limited liability companies.

You should only do your accounting if you understand and are confident with the Danish accounting rules, VAT and tax legislation to avoid later problems with the Danish Tax Agency.

What seems easy now could cost you a lot of money in the future.

Dinero does not offer an English version.

In general, most accountants and auditors do not prefer to work in Dinero since it is not designed for accounting professionals.

Generally, it is slower to work in if you have many transactions.

Billy

Choose Billy if you plan to do your own accounting.

This solution is also made for the “DIY” entrepreneur.

It is not a solution we recommend to limited liability companies.

As with Dinero, and in general, you should only do your accounting if you understand and are confident with the Danish accounting rules, VAT and tax legislation to avoid problems with the Danish Tax Agency later.

Billy offers an English version.

As with Dinero, most accountants and auditors do not prefer to work in Billy since it is not designed for accounting professionals.

Generally, it is also slower to work in if you have many transactions.

2. Price should not be a deciding factor

Both Dinero and Billy offer a free version which naturally can be tempting for a new business with a low budget.

But the versions are not fully functional, and eventually, you will need to pay to get even basic functionality like storing your invoices online.

So we recommend looking beyond the free trial and choosing based on functionality and requirements.

Making a decision based on price now could make your life much more difficult later.

Taking on accounting software involves migrating data, training staff thoroughly and updating accounting processes. This requires a significant investment of your resources every time, so you should always think long-term when choosing accounting software.

e-conomic offers quarterly payments.

Both Dinero and Billy offer monthly (more expensive) or annual payments.

3. Choose accounting software that can integrate with your existing apps or programs

You must ascertain whether your new accounting software can integrate if you use CRM, e-commerce, inventory, projects, dimensions, time management, or other requirements.

Though you may not need certain apps or integrations now, it’s essential to consider what you need because it will be far more difficult to untangle your data and information later.

You don’t want to end up doubling specific accounting tasks to run two programs for different but related purposes.

Ensure the most efficient operations possible by choosing accounting software that integrates with your existing suite of programs.

e-conomic, Dinero and Billy offer a wide range of integrations.

Comparison of e-conomic, Dinero and Billy

Our recommendation of accounting software

Given the minimal difference in pricing we recommend not looking at the accounting software’s price.

Instead, pick the best solution for your business.

We recommend choosing the “e-conomic smart” version since this is the best choice for a small business in 2024, in our opinion.

It offers a wide range of functionality, and you can rest assured that any accountant you choose to work with in the future also appreciates and knows your accounting system.

Conclusion

With so many options, making the right choice is more complicated and critical than ever. But if you ask the right questions and consider what your business needs now and in the future, you can find the best accounting software.

(This blog was updated: 26.3.2024)

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