A bookkeeping/accounting software is a software solution for the systematic recording, processing and analysis of business transactions. It supports freelancers and small businesses with ongoing bookkeeping, preparation of the preliminary VAT return, the income surplus calculation (EÜR) or with balance sheet obligations under the HGB and EStG. The aim is a legally compliant, efficient and transparent representation of all financial transactions.

Functions and Areas of Use

Modern accounting programs offer a range of functions tailored to different company sizes and legal forms.

Key Basic Functions

Specific Use Cases

An accounting program must meet the requirements of German legislation. Of particular relevance are the GoBD (principles for the proper management and storage of books, records and documents in electronic form), the Umsatzsteuergesetz (UStG), the Einkommensteuergesetz (EStG), the Handelsgesetzbuch (HGB) and the Abgabenordnung (AO).

Important points are:

Selection Criteria and Practical Tips

When choosing an accounting program, prioritise practical criteria that simplify your workflow.

Key Questions Before Deciding

Practical Tips

Practical Examples from Accounting Practice

Concrete use cases show how accounting software makes everyday work easier:

Function Freelancer/Sole Proprietor Corporation (GmbH)
Receipt capture Yes Yes
EÜR / Balance sheet EÜR Balance sheet & P&L
DATEV export Optional Required
Fixed asset accounting Mostly optional Important

Conclusion: A suitable accounting program saves time, reduces errors and ensures compliance with statutory obligations. Check functions, interfaces and GoBD compliance carefully against your company’s requirements and coordinate the solution with your tax advisor.

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Glossary Questions
What must an accounting program be able to do at a minimum?

An accounting program should support document/receipt management, bank reconciliation, a posting function (EÜR or double-entry bookkeeping), VAT advance returns/declarations via ELSTER, exports (e.g. DATEV), and provide GoBD-compliant storage/archiving functions.

Is every accounting program automatically GoBD-compliant?

No, GoBD compliance is not automatic; the provider must offer functions ensuring immutability, complete logging and comprehensive documentation, and you should ask to be shown the GoBD evidence and the procedural documentation (Verfahrensdokumentation).

Do I need accounting software as a small business owner (Kleinunternehmer)?

Formally you are also obliged to keep proper accounts and retention records, but for a simple Einnahmenüberschussrechnung (EÜR) sometimes simple programs or templates are sufficient; it is recommended, however, to use software that offers ELSTER interfaces and GoBD compliance to avoid mistakes and extra work.

Cloud solution or local software — what should I consider?

Cloud solutions offer automatic updates, bank connections and access from anywhere, but you should pay attention to GDPR compliance and server location (preferably Germany/EU); local solutions give you more control over your data but require you to handle backups and maintenance yourself.

How long must accounting data be retained in the program?

Books, accounting records and annual financial statements must generally be kept for 10 years (§147 AO); other business documents are usually retained for 6 years. Minutes and procedural documentation should also be kept available accordingly.

History
Publication date:
11/14/2025
Modification date:
11/15/2025
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