What is a Document in Accounting?

Journal entries are basic supporting documents that document all business events in the accounts. They serve as proof that a transaction has taken place and provide the necessary information for correct accounting . Without journal entries, the accounts would lack credibility and could not meet the legal requirements for documentation. Journal entries are therefore the very foundation of reliable accounting and are essential for internal control in all companies.

What is an Attachment?

A voucher is any document that documents a business event and provides the basis for an accounting entry. Vouchers can be both incoming (received from external parties) and outgoing (sent to external parties), as well as internal (created internally within the company). All vouchers must contain sufficient information to allow the transaction to be reconstructed and checked at a later date.

Legal requirements for Annexes

According to the Norwegian Accounting Act and the Accounting Regulations , all accounting entries must be documented with supporting documents. The supporting documents must be kept for at least 5 years after the end of the accounting year, and they must be available for inspection by the tax authorities and the auditor.

These requirements are part of the comprehensive set of regulations that govern Norwegian accounting. For a detailed review of all accounting rules and standards, we recommend our complete guide.

Types of Documents in Accounting

Attachments can be categorized in several ways depending on their origin, content, and function. Here is an overview of the most important types:

External Attachments

External documents are documents that are exchanged with parties outside the company:

Incoming External Documents

• Invoices - Requests for payment from suppliers
• Receipts - Proof of cash payment
• Bank statements - Overview of bank transactions
• Customs declarations - Documentation of import/export
• Insurance policies - Insurance coverage agreements
• Leasing contracts - Agreements for leasing fixed assets

Outgoing External Documents

• Sales invoices - Demand for payment to customers
• Credit notes - Corrections to previous invoices
• Payment voucher - Documentation of payments
• Payment requests - Reminders to customers

Internal Attachments

Internal vouchers are created by the company itself to document internal events:

• Pay slip - Documentation of salary payments and employer's social security contributions
• Depreciation voucher - Documentation of depreciation on fixed assets
• Accrual voucher - Distribution of costs and income over several periods
• Correction voucher - Corrections of previous postings
• Inventory lists - Documentation of inventory counting
• Travel expenses - Documentation of employee expenses

Requirements for Attachment Content

For a voucher to be valid for accounting purposes, it must contain certain mandatory information :

Enlightenment	Description	Example
Date	When the transaction took place	15.03.2024
Amount	Transaction value incl. VAT	12,500.00 kr
Parties	Who is involved?	Supplier AS and Buyer AS
Description	What the transaction concerns	Purchase of office furniture
VAT processing	VAT specified	2,500.00 kr (25% VAT)
Accounting	Which accounts are affected?	Account 1200 and 2700

Special Requirements for Different Document Types

Certain document types have additional requirements beyond the basic information:

• Invoices : Must contain invoice number, organization number and payment deadline
• Receipts : Must be machine-printed or digitally generated
• Travel expenses : Must document business purposes and be approved by supervisor
• Cash voucher : Must have a receipt or other form of proof of payment

Digital Documents and Electronic Archiving

Modern businesses are increasingly moving towards digital document solutions . This offers significant benefits in terms of efficiency, searchability and space savings, but also requires that certain technical and legal requirements be met.

Benefits of Digital Receipts

• Increased efficiency - Faster processing and approval
• Better searchability - Easy retrieval of historical vouchers
• Reduced costs - Less need for physical storage
• Improved internal control - Automatic checks and traceability
• Environmentally friendly - Reduced paper consumption

Legal Requirements for Digital Documents

For digital vouchers to be legally valid, they must meet the following requirements:

• Authenticity - The origin of the document must be verifiable
• Integrity - The content must not be able to be changed without being detected
• Legibility - Documents must be legible throughout the entire retention period
• Availability - Must be available for inspection by authorities

Technical Solutions for Digital Document Processing

Modern accounting systems offer comprehensive features for digital document processing:

• OCR technology - Automatic recognition of text in documents
• Automatic posting - Suggested posting based on document content
• Workflow Management - Automated Approval Processes
• Integrations - Connection to bank and other systems
• Backup and security - Secure storage with redundancy

Document processing and internal control

Efficient journal processing is a critical part of a company's internal control. A systematic approach ensures that all transactions are properly documented and approved before they are posted.

The voucher processing process

A typical voucher processing process consists of the following steps:

1. Reception and registration - Documents are received and registered in the system
2. Factual control - Verification that the goods/services have been delivered
3. Accounting control - Control of accounting and VAT processing
4. Certification - Approval by authorized person
5. Bookkeeping - Registration in the accounts
6. Payment - Payment to supplier
7. Archiving - Saving for future reference

Distribution of responsibilities in document processing

To ensure good internal control, different people should be responsible for different parts of the process:

Role	Responsibility	Checkpoint
Orders	Ordering goods/services	Business purposes
Recipient	Reception and quality control	Delivery according to order
Accountant	Accounting and VAT processing	Correct accounting
Certificate	Payment approval	Power of attorney and budget
Cashier	Payout	Approved voucher

Control routines for vouchers

Companies should establish regular routines for document control:

• Number sequences - All vouchers must have unique, consecutive numbers
• Completeness check - Checking that all mandatory information is present
• Amount control - Verification of calculations and totals
• Authorization control - Ensuring that only authorized persons can approve
• Periodic review - Regular control of voucher processing
• Daily control - Integrated part of daily settlement routines

Storage and Archiving of Documents

Correct storage of vouchers is not only a legal requirement, but also a practical necessity for the company's operations and control. Vouchers form a central part of the total documentation in accounting and bookkeeping , which encompasses all aspects of accounting documentation from legal requirements to modern digital solutions.

Retention periods

Norwegian legislation sets clear requirements for how long different types of documents must be kept:

• Accounting documents : Minimum 5 years after the end of the financial year
• Pay slip : Minimum 5 years after payment
• VAT voucher : Minimum 5 years after submission of VAT return
• Annual accounts : 10 years after the end of the financial year
• Board minutes : 10 years after meeting date

Physical vs. Digital Storage

Companies can choose between physical and digital storage, or a combination:

Physical Storage

Advantages: * Easy to implement * No technical requirements * Accepted by all authorities

Disadvantages: * Requires physical storage space * Difficult to search in * Risk of damage or loss * High costs for large volumes

Digital Storage

Advantages: * Space-saving * Easy search and retrieval * Better security with backup * Lower costs in the long term

Disadvantages: * Requires technical expertise * Depending on technology * Must meet legal requirements for integrity

Archiving systems

Regardless of whether vouchers are stored physically or digitally, they must be organized systematically:

• Chronological archiving - Sorted by date
• Numerical archiving - Sorted by document number
• Thematic archiving - Grouped by type or supplier
• Combined system - Mixture of several methods

Common Mistakes and Challenges

Many businesses experience challenges with document processing. Here are the most common problems and how to solve them:

Missing or Incomplete Attachments

Problem: Documents that are missing mandatory information or that cannot adequately document the transaction.

Solution: * Establish clear procedures for what is required of vouchers * Train employees in voucher requirements * Implement controls that catch deficiencies before posting

Delayed Document Processing

Problem: Documents not being processed on time, which can lead to late payments and poor supplier relationships.

Solution: * Digitize document processing for increased speed * Establish clear deadlines for processing * Implement automatic reminders

Loss of Attachment

Problem: Physical vouchers disappearing or getting damaged.

Solution: * Digitize vouchers immediately upon receipt * Establish backup routines * Use secure storage systems

Wrong Posting

Problem: Documents posted to the wrong accounts, resulting in incorrect accounting information.

Solution: * Train accountants in correct accounting * Use automatic posting suggestions * Implement controls and review

Best Practices for Document Processing

To ensure efficient and correct document processing, we recommend the following best practices:

Organizational Measures

• Establish clear routines - Document all processes for document processing
• Define roles and responsibilities - Make sure everyone knows their responsibilities
• Train employees - Provide regular training on voucher requirements and procedures
• Conduct regular checks - Check the quality of voucher processing

Technological Solutions

• Invest in a modern accounting system - Choose a system with good document management
• Implement OCR technology - Automate data entry
• Use workflow management - Automate approval processes
• Establish integrations - Connect different systems

Security and Control

• Implement access control - Limit who can process vouchers
• Establish traceability - Log all changes and actions
• Secure backup - Protect against data loss
• Conduct regular audits - Check that procedures are being followed

The Future of Document Processing

Document processing is in continuous evolution, driven by technological advances and changing expectations:

Artificial Intelligence and Machine Learning

• Automatic categorization - AI can automatically classify vouchers
• Intelligent accounting - Machine learning can suggest correct accounting
• Anomaly detection - AI can detect unusual patterns and potential errors
• Predictive analytics - Predict future spending based on historical data

Blockchain and Distributed Systems

• Immutable records - Blockchain can ensure that records cannot be changed
• Decentralized storage - Reduced dependence on central systems
• Smart contracts - Automatic execution of agreements based on vouchers

Increased Automation

• Robotic Process Automation (RPA) - Automation of repetitive tasks
• Integrated ecosystems - Seamless data flow between systems
• Real-time processing - Instant processing of vouchers upon receipt

Document processing will continue to evolve, but the fundamental principles of documentation, control and traceability will remain central to reliable accounting. Companies that invest in modern solutions and establish good routines will be best positioned for the future.

Conclusion

Documents are the foundation for reliable accounting and good internal control. By understanding the different types of documents, the legal requirements that apply, and best practices for processing and retention, businesses can ensure proper documentation of all business events.

Modern technology offers significant opportunities to streamline document processing, but it is important to remember that technology must support, not replace, basic principles of good accounting practice. Regardless of the tools used, documents must still contain the necessary information, be processed by competent people, and be stored in accordance with legal requirements.

For companies looking to improve their document processing, we recommend starting with a review of existing procedures, identifying areas for improvement, and then implementing solutions that suit the company's size and needs. With the right approach, efficient document processing can become a competitive advantage that contributes to better financial management and increased profitability.