An invoicing program is a software solution that enables companies and freelancers to create, manage and archive invoices electronically in a legally compliant manner. It supports the complete invoicing workflow from invoice creation through dispatch to posting and dunning and takes into account legal requirements such as the UStG (German VAT Act), the GoBD and retention periods.
What an invoicing program does
Modern invoicing programs automate recurring accounting tasks and reduce manual errors. Typical functions include:
- Invoice creation with mandatory information according to the UStG (tax number/VAT ID, invoice number, date of service, tax rate, etc.)
- Dispatch by e‑mail, PDF or structured e‑invoice (e.g. XRechnung or ZUGFeRD)
- Automated dunning and monitoring of incoming payments
- Document capture and assignment for later posting
- Export functions for tax advisors (e.g. DATEV or ELSTER formats)
For freelancers and small businesses, ease of use, templates for quotes and invoices and the option to mark invoices under the small‑business scheme (Kleinunternehmerregelung) are particularly helpful.
Legal requirements and GoBD compliance
An invoicing program must meet the requirements of German tax and commercial law. Important aspects are:
Mandatory invoice information
- Full name and address of the invoice issuer and recipient
- Tax number or VAT identification number
- Consecutive invoice number
- Invoice date and date of service
- Net, tax and gross amounts as well as the tax rate or a note on tax exemption (e.g. small‑business rule)
GoBD, retention and traceability
The GoBD require immutable and traceable storage of electronic invoices and accounting records. A suitable invoicing program should:
- Provide audit‑proof logging of all changes
- Archive documents in a tamper‑proof manner and support retention periods (usually 10 years)
- Offer export options for tax audits and tax advisors
Electronic invoices
For billing authorities and certain business partners, structured formats such as XRechnung are mandatory. Invoicing programs should therefore support export to common e‑invoice formats and validation against the relevant profiles.
Practical features and integration into accounting
Key functions for daily use in small businesses are:
- Automatic account coding: Suggestions for standard postings to simplify subsequent transfer to financial accounting.
- Bank reconciliation: Matching incoming payments with open invoices, partly automated via PSD2 interfaces.
- Dunning: Configurable dunning levels, fees and templates to protect liquidity.
- Interfaces: DATEV export for the tax advisor, ELSTER interface for VAT pre‑declarations, CSV import/export for other systems.
Good integration reduces duplicate entries and makes it easier to prepare monthly closes and VAT pre‑declarations.
Selection criteria and practical examples
When comparing invoicing programs you should check the following criteria:
- GoBD compliance and traceability
- Supported e‑invoice formats (XRechnung, ZUGFeRD)
- Interfaces to DATEV, ELSTER and bank accounts
- Usability, mobile access and support
- Pricing (monthly license fee, transaction costs, additional modules)
Practical examples
Freelancer: A freelance graphic designer uses an invoicing program to convert quotes into invoices, record hours as line items and automatically post payments. When registered under the Kleinunternehmerregelung the VAT does not need to be shown.
Small business/GmbH: A small company with multiple suppliers uses the program to manage incoming invoices, perform automatic bank reconciliation and export to DATEV. When invoicing authorities the XRechnung format is used.
Conclusion: An invoicing program is a central tool for freelancers and small businesses to save time, ensure legal compliance and simplify cooperation with the tax advisor. Choosing the right program should be based on functionality, integration and legal conformity.