Document background
The Balance Confirmation Letter is a critical financial document used in Danish business practice to verify and document account balances between financial institutions and their clients. Governed by Danish financial regulations, including the Financial Statements Act and Bookkeeping Act, this document serves multiple purposes: it provides independent verification of account balances for audit compliance, supports financial statement preparation, and serves as legal documentation of financial positions. The letter typically includes detailed account information, balance statements as of a specific date, and requires formal acknowledgment from the account holder. It is particularly important during annual audits, financial year-end processes, and when formal verification of financial positions is required for legal or business purposes.
