BOOKKEEPING

Ongoing bookkeeping is the cornerstone of a Swedish limited company's financial management. According to the Swedish Accounting Act, every business transaction-such as sales, purchases, payments, or bank transfers-must be recorded systematically and accurately. Each transaction requires a supporting document, known as a "verifikation," which could be a receipt, invoice, or bank statement. These records form the basis for financial reports and tax declarations... Swedish limited companies are required to use double-entry bookkeeping, a method where each transaction is recorded in two accounts: debit and credit. This ensures that the company's assets, liabilities, and equity remain balanced. For example, paying a supplier reduces the bank account (credit) and decreases accounts payable (debit). Similarly, a cash sale increases the cash account (debit) and boosts sales revenue (credit). A simple rule to remember is that cash increases are recorded as debits, which can help foreigners new..