Definition: XML (Extensible Markup Language) is a standardized, text-based data format for the structured representation of information. In accounting, XML serves as a transport and exchange format for invoices, payment files, bank statements and tax data because it is machine-readable, validatable and platform-independent.
What is XML and how does it work?
XML describes data using nested elements and attributes that can be validated against a schema (XSD). This allows the exact structure of an invoice or a payment file to be specified. For accounting processes this means: data arrives in a standardized form and can be processed automatically without manual input.
Key characteristics of XML:
- Structure: Fields such as invoice number, date, gross/net amounts are clearly identified.
- Validatability: Schemas (XSD) ensure that the file is complete and correctly formatted.
- Extensibility: New fields can be added without breaking existing systems.
Practical applications in accounting
XML is used in several central workflows of financial administration and bookkeeping. For freelancers and small businesses it opens up efficiency gains and improved compliance.
E-invoicing and formats
In Germany formats such as XRechnung and ZUGFeRD/Factur-X play a major role. XRechnung is the XML format required for electronic invoices to public sector clients. ZUGFeRD combines PDF with embedded XML and is suitable for data exchange with business partners.
Payments and bank communication
ISO 20022 XML (e.g. pain.001) is used for SEPA payment files. Likewise, account statement formats such as camt.053 deliver structured XML data that enable automated account reconciliation and incoming payment checks.
Tax data and interfaces
ELSTER uses XML-based data transmissions for tax returns and filings. Many accounting programs and ERP systems also export or import booking data in XML format to implement, for example, DATEV exports or bank interfaces.
Legal and audit-relevant aspects
Using XML does not exempt you from statutory requirements. The following points are important in practice:
- VAT and invoice requirements: An electronic invoice must meet the requirements of Section 14 of the German VAT Act (UStG). XML content must include all mandatory information to allow input tax deduction.
- GoBD compliance: Electronic documents and structured data must be retained so that immutability, traceability and availability are ensured. XML files should therefore be archived in an audit-proof manner.
- Authenticity and integrity: Electronic signatures or secured EDI processes can be used to guarantee authenticity and integrity. XRechnung is required for invoices to public sector clients.
Tips for implementation in small businesses
To ensure XML processes run smoothly in accounting, pragmatic steps are recommended:
- Use standardized formats (XRechnung, ZUGFeRD, ISO 20022) instead of proprietary solutions.
- Validate XML files against the appropriate XSD before import to avoid posting errors.
- Automate mapping of XML fields to ledger accounts to reduce manual rework.
- Archive XML files in a GoBD-compliant way and secure audit trails.
- Check whether your tax advisor or accounting software supports XML interfaces (e.g. DATEV import).
Sample overview of common XML formats:
| Format | Use | Benefit |
|---|---|---|
| XRechnung | Electronic invoices to public sector clients | Official standard, required for deliveries to public authorities |
| ZUGFeRD / Factur-X | Sending invoices to business partners | Combination of human-readable PDF and machine-readable XML |
| ISO 20022 (SEPA) | Transfers, direct debits, account statements | Standardized bank communication, simplifies reconciliation |
Conclusion: XML is an indispensable tool for modern accounting. It reduces manual work, improves data quality and supports compliance with legal requirements. Plan implementation in a structured way, validate formats and coordinate processes with your tax advisor to achieve maximum efficiency and legal certainty.