What's the best accounting software for a small business in Germany?

For most small businesses in Germany, I’d start with Lexware Office—especially if you’re a freelancer, sole trader, or small business doing your own bookkeeping. Its L plan is listed at €21.90/month plus VAT and includes bookkeeping, EÜR and VAT returns; plans are monthly cancellable. (lexware.de)

Good alternatives depending on your setup:

• sevdesk — worth comparing if you want its workflow or integrations. Its bookkeeping plan is listed at €25.90/month plus VAT when billed monthly; check the features and price for the term you’d actually choose. (sevdesk.de)
• DATEV, or another solution your tax adviser recommends — often the practical choice when your Steuerberater wants to work directly in a particular system. Confirm the workflow with them before signing up.
• Lexware’s desktop bookkeeping software — consider it if you need double-entry bookkeeping, balance-sheet reporting or E-Bilanz; it offers those capabilities, unlike the basic cloud tools commonly aimed at EÜR users. (shop.lexware.de)

One important distinction: if you’re a GmbH or otherwise need a balance sheet, don’t assume a simple EÜR-focused cloud plan is enough. Check that the software supports your required accounting and annual-reporting workflow, or coordinate the setup with your Steuerberater.

Also check that the software can handle structured e-invoices. German businesses have had to be able to receive e-invoices since January 1, 2025; rules for when businesses must issue them have transition periods. (bundesfinanzministerium.de)

Bottom line: Lexware Office L is a solid default for a small EÜR business; choose sevdesk if it fits your workflow better, and let your tax adviser’s requirements guide the choice if you need a balance sheet or close collaboration. Compare the actual plans in a trial before committing.

The best choice depends on whether you're a freelancer or Kleinunternehmer, whether you want English or German, and what your tax advisor uses. For most German small businesses, the two leading options are Lexware Office and sevDesk.

Top picks

• Lexware Office: Reviewers generally rank it first for small businesses. One comparison describes it as Germany's leading cloud-based accounting and invoicing solution, serving over 600,000 self-employed entrepreneurs and small businesses. Its main advantage is DATEV compatibility. One guide says it handles GoBD compliance out of the box, integrates natively with DATEV. That matters if your Steuerberater works in DATEV. Its German-only interface is the main drawback for non-German speakers.
• sevDesk: This is the most-cited all-rounder for freelancers. One review calls it the tool I reach for first when a German freelancer wants one app that does everything, covering invoicing, expense capture, bookkeeping and tax filing. Another test describes its strengths as simple operation and mobile use. Pricing starts around €8.90–11.90/month depending on the source and plan.

If you need English or a simpler tool

• Accountable: A good fit for expats. One review describes it as fully English (and multilingual); purpose-built for solo freelancers, with direct ELSTER filing. The drawback is that a Steuerberater is less likely to be familiar with it, so confirm the export handover with your accountant.
• Norman: Aimed at people who want minimal bookkeeping. It is a clean, modern, English-language tax and accounting app, though one comparison notes its ELSTER support is still expanding.
• Papierkram: Useful if you mainly need invoicing and have a small budget. One listing notes its free tier for sole traders is particularly attractive.

If you only need invoicing

Facturwise is worth a look if you mainly need compliant invoices without a full accounting suite. Its E-invoicing (ZUGFeRD 2.4, XRechnung and Factur-X at EN 16931 profile) is included on every plan.

Things to avoid or check

• International tools like QuickBooks or Xero are not a good default for German businesses. One guide warns that neither tool is GoBD compliant by default, and that your tax advisor likely uses DATEV and cannot import QuickBooks or Xero data natively.
• DATEV itself is powerful but targeted at professionals. One guide describes it as built for tax advisors, which is usually more than a small business needs.

My recommendation

1. If you're a solo freelancer or Kleinunternehmer and comfortable in German, start with sevDesk or Lexware Office.
2. If English matters, try Accountable or Norman.
3. Before committing, ask your Steuerberater which platform they can import from. That is often the deciding factor.
4. Use free trials. Most of these tools offer them, and prices and features change often.

Note that many of these rankings come from vendors or affiliate-driven review sites (including sevDesk's own comparison page), so weigh them with that in mind.

For small businesses in Germany, the "best" accounting software is one that is built specifically for the German market to handle local tax requirements, such as GoBD compliance, ELSTER integration (for VAT returns), and DATEV export (for your tax advisor).

International software like QuickBooks or Xero is generally not recommended for German businesses because they often lack these critical, region-specific features.

Top Recommended Software for 2026

The following tools are widely recognized for their suitability for German freelancers, startups, and small-to-medium enterprises (SMEs).

Critical Considerations for Your Choice

When selecting your software, keep these three non-negotiables in mind to avoid trouble with the Finanzamt (tax office):

1. GoBD Compliance: Any software you choose must be GoBD-compliant. This ensures your digital bookkeeping is "audit-proof" and meets strict German data retention and immutability standards.
2. DATEV Export: Even if you do your own bookkeeping, you will likely need a Steuerberater (tax advisor). Ensure your software can export data in DATEV format, which is the industry standard for transferring records to tax advisors in Germany.
3. E-Invoicing Readiness: Since 2025, it is mandatory for businesses in Germany to be able to receive e-invoices (like XRechnung or ZUGFeRD). Choose a platform that fully supports these standards.

A Note on Language

Most of the top-rated German accounting tools are primarily in German. If you are not fluent in German, tools like sevDesk or Accountable are often preferred by international entrepreneurs because they offer better English-language support and interfaces, though you may still encounter German-only labels when categorizing specific expenses.

Recommendation: If you are just starting out, Lexware Office or sevDesk are the most common starting points due to their widespread use, compliance, and ability to scale as your business grows. It is always worth discussing your choice with your tax advisor, as they may have a preference for which system integrates most smoothly with their own internal software.

For most small businesses in Germany, Lexware Office is a strong default choice—especially if you want invoicing and day-to-day bookkeeping in one place. Its plans include features such as receipt capture, bank matching, invoicing, and—on higher tiers—VAT-related bookkeeping and EÜR. Listed prices in the current results range from €7.90 to €32.90 per month, excluding VAT, depending on the plan. ¹

Consider sevdesk instead if you want to try a free invoicing plan or place particular value on automated receipt processing. Its free tier is limited to three invoices a month; bookkeeping features are in paid plans. ⁹¹¹

A quick guide:

• Freelancer or very small business, mainly invoicing: Compare the entry plans; sevdesk’s limited free tier may be enough to test it. ⁹
• You need bookkeeping, bank reconciliation, and VAT support: Lexware Office’s L plan is listed at €21.90/month; sevdesk’s bookkeeping plan is listed at €25.90/month, both excluding VAT. ⁵⁹
• You work with a tax adviser: Check that the plan supports your adviser’s preferred DATEV workflow, and confirm what they expect you to handle versus what they will do.

Before choosing, verify that the specific plan supports the German e-invoice formats you need (such as XRechnung or ZUGFeRD) and fits your legal form and tax setup. Prices and features can change, so check the providers’ current plan pages before subscribing. ²³

Bottom line: Start by comparing Lexware Office and sevdesk; I’d lean toward Lexware Office for an all-around small-business setup and sevdesk for receipt automation or low-volume invoicing. Neither is automatically the right fit for a GmbH’s full year-end accounts—confirm that with your tax adviser.