Accounting—an unavoidable aspect of self-employment in Germany, whether you’re a freelancer or a small business owner. Like it or not, the law requires you to manage your finances, keep records, and meet deadlines. These tasks can often feel time-consuming, confusing, and frustrating. The good news: the right accounting software can be a game-changer. Here’s why it’s indispensable.

1. Save time and money: Go digital instead of drowning in paperwork

The daily reality for many self-employed individuals: receipts stuffed into drawers or bags, fading till slips, and a frantic search when tax season arrives. According to § 147 of the German Tax Code (AO), you’re legally required to keep essential documents for 10 years.

This leaves you with two options: meticulously store everything in paper form or invest in a digital solution that does the heavy lifting for you. While hiring an accountant could be an alternative, it’s often too costly for smaller businesses.

Here’s how accounting software saves you time and money:

• Digital receipt management: Snap photos of receipts, and the software securely stores them. No more sorting or rummaging through folders!

• Automated processes: Income and expenses are categorized instantly, giving you a clear overview of your cash flow.

• Streamlined tax filing: The software prepares data for taxes, saving you hours of manual input.

This way, you can focus more on what truly matters—your core business.

2. E-Invoices: Future-proof and soon mandatory

Digitalization is advancing, and invoicing is no exception. According to the EU Directive 2014/55/EU, e-invoices are becoming standard, particularly for government agencies and large companies transactions. In Germany, they’re already mandatory in many cases.

Creating and managing e-invoices manually is tedious and prone to errors. Keeping track of payments or sending reminders can be even more stressful. Accounting software simplifies the entire process:

• Automated invoice creation: Choose a template, input the data, and send the invoice instantly.

• Automatic payment reminders: If a client misses a payment, the software sends a reminder automatically.

• Compliance and future-readiness: E-invoices are created in the correct format to meet all regulatory requirements.

With the right software, you’re well-prepared for the future and save yourself a ton of work.

3. Archiving deadlines? No problem with the right solution

Legal retention requirements can feel daunting. According to § 14b of the German VAT Act (UStG), business documents such as invoices, receipts, or bank statements must be archived for 8 years. Storing these in paper often leads to chaos and issues when documents get lost or become illegible.

Modern accounting software solves this:

• Digital archiving: All documents are stored securely and centrally—no more endless searching.

• Deadline management: The software reminds you of what needs to be retained and for how long.

• Audit-proof storage: If you’re ever audited, everything is properly documented and easily accessible.

You’ll not only stay legally compliant but also save yourself countless sleepless nights.

Why many accounting programs fail to impress

Not all accounting software is created equal. Many tools are outdated, overly complex, and lack automation. Often, you’re forced to buy expensive add-ons to unlock all features—leaving you juggling multiple tools for invoicing, bookkeeping, VAT returns, and tax declarations.

Norman offers an all-in-one solution, from invoicing and bookkeeping to profit and loss statements (EÜR) and tax filing. Powered by artificial intelligence, it automates much of the work while giving you complete control over your finances.

Looking for accounting software that truly makes life easier? Try Norman today and say goodbye to accounting chaos!