Choosing accounting software for the self-employed: a checklist for Germany

What does accounting software in Germany need to do?

The term “accounting software” (Buchhaltungssoftware) is not protected. Some programs are pure invoice writers, others cover the whole route to the tax return. What you really need follows from your legal obligations – not from the feature list on a provider’s home page.

For most self-employed people using the cash-basis profit statement (Einnahmenüberschussrechnung) there are five areas: invoices with mandatory details, e-invoicing, proper record keeping under GoBD, VAT with electronic submission and calculating profit. The table shows the legal basis of each obligation and what the software should do for it.

Invoices and e-invoicing: the mandatory part

Any software can produce a nice PDF. What matters is whether it guides you to all mandatory details and assigns invoice numbers without gaps. Corrections must not be made by overwriting, but via a credit note or cancellation invoice (Stornorechnung) – a program that simply lets you change or delete issued invoices is a warning sign. What belongs on a correct invoice is explained in the guide writing invoices.

Since 1 January 2025 you must be able to accept e-invoices from other businesses. From 2027 you must issue e-invoices to businesses yourself if your prior-year turnover was above €800,000; from 2028 this applies to everyone. Small invoices up to €250 and small businesses (Kleinunternehmer) are exempt from issuing them. The timeline is explained in the guide on mandatory e-invoicing.

With e-invoicing, check exactly what “supported” means:

• Does the software create XRechnung (UBL or CII) and ZUGFeRD in the EN 16931 profile – not just MINIMUM or BASIC WL, which are not e-invoices? Details in the guide on e-invoice formats XRechnung and ZUGFeRD.
• Can it display incoming XML invoices in readable form and take over the amounts?
• Does it validate the file against the official rules (schema and Schematron) before sending?
• Is there a field for the Leitweg-ID in case you invoice public authorities?
• Is e-invoicing included in the entry plan or does it cost extra?

GoBD: archive, log and period locking

The GoBD (Grundsätze zur ordnungsmäßigen Führung und Aufbewahrung von Büchern, Aufzeichnungen und Unterlagen in elektronischer Form sowie zum Datenzugriff – principles for properly keeping and storing books, records and documents in electronic form and for data access) require entries and receipts to be complete, timely, unalterable and traceable. A collection of PDF files on your laptop or photos in a messenger does not meet this, because any file can be changed or deleted unnoticed.

Important to know: there is no official “GoBD certificate” for software. Audit reports by auditors can help, but you remain responsible for proper bookkeeping. So look for concrete features rather than seals. The rules in detail are explained in the guide GoBD for the self-employed.

Since 2025, a retention period of 8 years applies to accounting vouchers such as invoices and receipts, and 10 years for books, records and EÜR documents. You keep documents received electronically in their original format – an e-invoice as XML or ZUGFeRD PDF, not as a printout.

• Original files are stored unchanged and cannot be deleted.
• A change log shows who changed what and when.
• Closed periods can be locked so that reported figures can no longer be changed unnoticed.
• Every figure can be traced back to the receipt.
• Data can be provided in machine-readable form for a tax audit (Betriebsprüfung).

VAT and ELSTER: direct submission saves time

You must file the advance VAT return (UStVA) electronically – monthly if your VAT in the previous year was above €9,000, otherwise usually quarterly. It is due on the 10th day after the end of the period, or one month later with a permanent deadline extension (Dauerfristverlängerung). How exactly this works is explained in the guide on the advance VAT return.

Good software calculates the Kennzahlen (for example Kz 81 for sales at 19 % or Kz 66 for input VAT) from your entries. If it can also validate the return via the official ERiC interface and send it with your ELSTER certificate, there is no need to type it into Mein ELSTER – and a typical source of errors disappears. What you need for submission is explained in the guide ELSTER for the self-employed.

When comparing, ask explicitly: which returns are submitted directly (UStVA, annual VAT return, EC sales list, Anlage EÜR, trade tax return)? And from which plan? It is also good if the software reminds you of your tax deadlines.

EÜR, chart of accounts and fixed assets

Most freelancers and small traders calculate their profit with the Anlage EÜR. The software should create it from the entries and show each line with the official Kennzahl. In the background it books according to a chart of accounts (Kontenrahmen) – in Germany usually SKR03 or SKR04. Why this also matters for self-employed people using the EÜR is explained in the guide on the charts of accounts SKR03 and SKR04.

If you buy a laptop, a car or furniture, the software must handle fixed assets: write off low-value assets (GWG) up to €800 net immediately, spread more expensive ones over their useful life (AfA) and keep the fixed asset schedule (AVEÜR). If this is missing, you end up recalculating in a spreadsheet at the end of the year – exactly what you want to avoid with software.

Bank: statement import or live connection?

The biggest time-eater in bookkeeping is matching payments. Software can fetch bank transactions in two ways: by importing a file from online banking or via a direct bank connection. Both save typing if the software then matches the transactions to open invoices and expenses.

For file imports, CAMT.053 is the current standard of German banks; MT940 is being phased out, and CSV is structured differently at every bank. Check whether the software reads these formats, detects duplicates and reports gaps between two statements. A separate bank account for the business makes matching much easier – more in the guide on the business bank account for the self-employed.

Language, tax advisor, users and security

If you did not grow up with German as your native language, you benefit from an interface in your own language. Make sure the official German terms still remain visible – otherwise you will not recognise „Umsatzsteuer-Voranmeldung“ in the letter from the tax office. Tips for getting started without a German background are in the guide for self-employed people from abroad.

If you work with a tax advisor, clarify beforehand how the firm gets your data: via its own access to the software or via an export in a format the firm can import – many firms work with DATEV and ask for an export in that format. Ask your firm what it needs before you decide.

Further points to check:

• Users and roles: can staff only record receipts without changing settings or tax returns?
• Security: two-factor login, encrypted storage, servers in the EU, data processing agreement under GDPR (DSGVO).
• Export: can you download your data at any time, even if you cancel?
• Scope: do you need payroll, a POS system or inventory management? Many programs for the self-employed do not offer this.

Comparing costs properly: a worked example

The entry price says little. Calculate the cost of the plan that covers all your obligations, and the time spent on what the software does not do. The example uses assumed prices and an hourly rate of €60 for a freelancer with a quarterly UStVA and Anlage EÜR.

Option A looks cheaper, but only if your time costs nothing. On top of that there is the risk of typing errors when transferring. Incidentally, subscription costs are business expenses; if you are subject to standard VAT, you reclaim the input VAT on them via the advance return.

Trial period and switching: checklist

Use the free trial for a real run-through, not just to look around. Ideally, take a completed month and book it in full:

• Create one invoice as ZUGFeRD and one as XRechnung and run the validation.
• Record an incoming e-invoice and a photographed till receipt.
• Import a bank statement and match the payments.
• Look at the advance return for the month and compare it with your last filing.
• Check whether ELSTER submission is available in the trial plan or only in a higher plan.
• When switching: schedule the switch for the start of a year or quarter if possible, take over open invoices and fixed assets with their remaining book value, and continue the invoice number sequence unambiguously.
• Do not delete old data: the tax office may access your accounting data throughout the entire retention period. Export it completely from the old program or keep read access. How bookkeeping is structured overall is shown in the guide bookkeeping for the self-employed.

Choosing accounting software: Kontelio

Kontelio is made for the self-employed and small businesses in Germany. Already on the Start plan you create invoices with all mandatory details and sequential numbers, credit notes and cancellation invoices, ZUGFeRD and XRechnung, receive e-invoices, record expenses and archive receipts unalterably for ten years. From the Business plan, you also get bookkeeping under SKR03, a fixed asset register with AfA and GWG, bank statement import (CAMT, MT940, CSV), EÜR, advance VAT return, annual return, EC sales list (ZM) and trade tax return – validated with ERiC and sent directly to ELSTER – plus free access for your tax advisor with their own role. Rules for automatic bank matching are available on the Pro plan.

An audit log records every change, months can be locked, and owners sign in with two factors. The interface is available in nine languages, and the official German terms remain visible; the simplified mode shows only what you need. Not included are payroll, a POS system and a DATEV export – you download reports as CSV or XLSX. You can find all features on the page accounting software for the self-employed; you can try Kontelio free for 30 days.

Frequently asked questions