Accounting software comparison – what can it do and do I need it?

You have probably asked yourself what exactly the difference is between accounting and bookkeeping. In our Accounting software comparison & guide we clarify this question and give you a comprehensive insight into both areas. We also shed light on what legal requirements there are and how modern software solutions can make your everyday work easier with just a few clicks.

Accounting and bookkeeping: A clear distinction

Strictly speaking, accounting is the organizational unit of a company that is responsible for bookkeeping. Accounting, on the other hand, is the actual process of recording all of a company’s financial transactions. This is important not only for the company itself, but also for external authorities such as the tax office, which determines the tax burden on this basis.

Legal basis: What does the HGB say?

According to the Commercial Code (HGB), entrepreneurs in Germany are obliged to keep proper accounting records. Sections 239 and 243 HGB stipulate that all entries must be complete, correct and timely. The principles of proper accounting (GoB) must be strictly adhered to. Software solutions for accounting can provide valuable support.

Who is obliged to keep the books?

• Here too, the HGB stated that, according to Section 238, every merchant is obliged to keep books and to show their commercial transactions and the position of their assets in accordance with the principles of proper accounting.
• This applies to registered merchants, corporations and partnerships.
• Even if you are not a large company or have no general legal requirement, accurate accounting is essential for financial planning and investment decisions.

Preparatory accounting: your responsibility

• As soon as you are obliged to submit an advance sales tax return to the tax office, all of your invoices from the past month, as well as incoming and outgoing invoices, are required.
• Even if your tax advisor carries out the complete bookkeeping, the task of preparatory bookkeeping lies with you.

What is preparatory accounting?

• The preparatory accounting includes collecting and chronologically sorting all receipts, preparing the cash report, organizing the cash receipts and obtaining the bank statements, either by collecting them from the bank or printing them out in online banking.
• Payroll matters, financial statements and the like are then taken care of by the accountant or tax office.

Choosing the right accounting software

A good accounting software should have a DATEV interface and be interested in working with a tax advisor. This saves time and reduces costs. When choosing, pay attention to established and professional providers with a broad customer base to minimize risks. If you are unsure, we recommend choosing a monthly payment method.

Why an accounting program is essential

Accounting software minimizes the risk of errors and makes it easier to manage outstanding invoices, dunning and other financial aspects. Make sure that the accounting software has the functions that are relevant to you. Such accounting programs are a great relief, especially for small companies, freelancers or self-employed people without their own accounting department. The range of functions should include, among other things, dunning, invoicing, digital document management, data transfer to tax advisors, reports and evaluations. An integrated cash book, an Elster interface, a function for an annual financial statement or a function for pay slips is also advantageous in almost every program.

It’s worth persevering!

• Every software has a training period. Don’t be discouraged and use the provider’s support to overcome any hurdles.
• Especially when it comes to support, you should make sure that you are really helped and not just sent suggested answers.

Accounting software comparison 2023

All accounting software providers are paid and have different plans to choose from.

lexoffice

• 30 days free trial possible.
• There are four different packages with different features.
• The term can be selected monthly; there is no minimum term.
• Can be canceled monthly.
• The costs can be paid via direct debit or credit card.
• An app is practical, with which you can also use it when you’re on the move, for example. B. Write invoices and orders and access your account balances.
• Wage and salary options can be booked optionally with every package.
• The website has a large “Knowledge” section, with many questions, tips and explanations.
• Disadvantages include:
• If you also have international customers, creating invoices can be problematic because they are only issued in euros.
• Sending invoices by post is not possible directly from lexoffice.
• A BWA is not possible.
• Reminders cannot be automated, only with external add-ons.

 

sevdesk

• 14 days free trial possible.
• There are three different packages with different features.
• For example, the invoice package is only suitable for writing invoices; in order to have more detailed options, another package should be selected.
• The terms are one month, one year or two years.
• The costs can be paid via Paypal or by credit card.
• Cancellation is possible 14 days before the end of the term.
• There is also an app included here.
• The advantage here is that foreign currencies can be selected.
• Invoices can be sent by post.
• Disadvantages include:
• Reminders and time recording can only be booked as an option.
• There is no payroll accounting.
• The Android app is a little more limited than the iOS version.

 

Accounting Butler

• 14 days free trial possible.
• There are four different packages with different features.
• The “Preparer” package e.g. B. is for those who only want to manage receipts and payments, write invoices and offers and credit notes. Here too, access to a tax advisor is possible and an advance VAT return is possible.
• The other packages include the online banking function, document recognition and sorting, BWA, EÜR and balance sheet.
• The terms are one month, one year or two years.
• Direct debit payment is the only method accepted here.
• Cancellation is possible up to one week before the next billing period.
• Optional add-ons are available that you can book.
• Disadvantages include:
• Foreign currency is not possible, which makes it difficult for international customers.
• Postal delivery is not included in this program.
• Dunning and time recording are not integrated.
• A profit and loss statement (P&L) is not possible.

 

Paperwork

• 14 days free trial possible.
• There are four different packages with different features.
• One package is even free to use, including the ability to create offers and invoices, manage receipts and record working hours, although support is only available for the first 60 days.
• Functions such as reminders, delivery notes, invoices in English, EÜR (revenue surplus accounting), DATEV export, BWA (business evaluation), online banking or a multi-user function are included in the other packages.
• The terms of this program are monthly and annual.
• Credit card and direct debit payment methods are supported.
• There is no notice period.
• There is also an app here.
• Disadvantages include:
• There is no foreign currency.
• A balance sheet or profit and loss statement (P&L) is not possible.
• No API interface available.
• Bills cannot be paid directly in online banking from paperwork.

 

billingEngine

• 30 days free trial possible.
• There are also four different packages with different functions.
• A free package with limited features is offered.
• You can pay the contributions by credit card. If you want to pay by Paypal or bank transfer, you must first contact support.
• The notice period is seven days before the end of the term.
• Particularly suitable for freelancers.
• It is definitely an advantage here that the invoices can be executed in multiple languages.
• Foreign currency possible.
• Tax advisor access possible.
• Disadvantages include:
• The ISO 27001 certificate is missing (this specifies which conditions an information security management system must meet).
• DATEV, API and Elster interfaces are missing.
• Payroll statements are not available.
• Invoices cannot be sent by post with this program either.
• There is no telephone service.

  We hope this article helped you understand the differences between bookkeeping and bookkeeping, but also the importance of carefully choosing accounting software. In a world where financial transparency and efficiency are becoming increasingly important, it is essential to use the right tools. Hopefully this will make your path in financial management a little easier and more successful.