The Nordic societies are highly digitalised with advanced digital solutions, as well as a digitally competent business community. However, the digital development is only coordinated to a limited extent, which means that the potential of data is not unlocked, and digitalisation and automation is not interoperable and cannot be fully explored. In the Nordics, digital solutions are developed as separate containers and systems, with the result that businesses are required to submit the same data numerous times in different systems - and sometimes even on paper, so that data remains isolated and unavailable for new business opportunities.
Annual Reports are required to ensure transparency and trust in the market. Today, the businesses’ situation may change rapidly, but Annual Reports do not reflect sudden changes, and thus the report is more or less obsolete. However, to many users, this is still the best data available. This is not adequate in a highly competitive international market. In addition, government regulation and administration inflict heavy administrative burdens upon the SMEs as a result of the reporting requirements. In principle, the same financial raw data is basis for business reporting to Tax Authorities, Business Registries and National Statistical Institutes. The uncoordinated requirements and the non-automatic processes behind financial reporting are estimated to impose administrative burdens on the Danish SMEs which amounts to approximately 6 billion DKK yearly. There are similar analyses from Norway, suggesting at least as heavy burdens in this area in Norway as in Denmark. It is probably the same in the rest of the region.