Tax software for businesses and self-employed individuals

Do your taxes yourself or prepare receipts for your tax advisor? We compare tax software and invoicing tools, including decision support for your business.

What good tax software needs to be able to do today

Tax software is a digital tool that supports you in creating and filing your tax return. It typically offers features such as:

• Income surplus statement (EÜR)
• Advance VAT return (USt-VA)
• Income tax return
• Trade tax return
• Submission to the tax office via ELSTER
• Document archiving and plausibility checks

Most programs guide you step by step through the relevant tax forms and provide tips on optimizing your payments.

Tax software, accounting software or invoicing tool?

Tax software is primarily geared toward preparing and submitting the tax return to the tax office. Accounting software, on the other hand, supports you with the ongoing recording of all business transactions: capturing receipts, reconciling bank transactions, keeping a cash book, creating reports—but it does require some prior knowledge.

Invoicing tools, in turn, focus entirely on billing: quotes, invoices, reminders, customer management and, more recently, e-invoices. They are the right solution for businesses and self-employed people without their own bookkeeping who work with a tax advisor.

Who needs a tax program?

Tax software makes sense if you:

• want to do your tax return yourself
• don’t have a tax advisor
• have the time and understanding for tax matters
• have simple or mid-level tax cases (e.g., EÜR, no balance sheet)

Tax software is not recommended, however, if:

• you have complex tax circumstances (balance sheet accounting, holding structures, etc.)
• you outsource your bookkeeping completely
• you want to focus on your core business

Especially for companies that already work with a tax advisor, specialized invoicing software is the better choice because tax advisors receive all documents in digital formats and can process them further—and you don’t have to deal with unnecessary features. This saves a lot of time and paper for everyone involved.

Comparison: tax software vs. invoicing software

The best tax software providers at a glance

For businesses and self-employed people, there are a number of well-known and specialized tax software providers that go beyond the functions for employees. Here is a small selection of the best-known providers:

1. WISO Steuer (Buhl Data Service)

WISO Steuer is one of the most frequently used solutions not only for employees, but also for the self-employed, freelancers, and landlords. The program offers a wide range of features that also cover complex tax cases.

• Preparation of the income surplus statement (EÜR).
• Preparation of the VAT advance return (USt-VA) and the trade tax return.
• Document manager for digital archiving.
• More specialized functions such as billing for photovoltaic systems.

2. Lexware

Lexware products often go beyond pure tax software and are more designed as comprehensive office and accounting software for anyone who wants to do their own bookkeeping. Lexware offers several products:

Lexware Office: A comprehensive solution that combines features for accounting, invoicing, and creating tax filings (EÜR, USt-VA).

QuickSteuer Deluxe: Tax software tailored specifically to self-employed people and business owners.

TAXMAN: Another tax software that is aimed particularly at freelancers, business owners, and landlords.

3. DATEV

DATEV is Germany’s market leader for software solutions in tax advisory firms and among auditors. Businesses that work with a tax advisor often use DATEV products or programs with a DATEV interface. It is less a software for the end user who prepares their own tax return, and more the standard for professional tax advisory.

• Comprehensive solutions for financial accounting, payroll accounting, and annual financial statements.
• The focus is on collaboration between companies and tax advisors.
• Modern invoicing software often offers a direct DATEV interface, enabling data exchange at the push of a button.

4. SteuerSparErklärung (Wolters Kluwer)

This program is often recommended as an alternative to WISO. It also offers versions specifically for self-employed people that cover the EÜR and other business forms.

• Extensive database with tax information and tips.
• Intuitive user interface that presents even complex matters in an easy-to-understand way.

5. Smartsteuer

Smartsteuer is a purely browser-based tax software that is also suitable for self-employed people. It stands out with its interview mode, which guides users through the necessary questions with ease.

• Online platform: No installation required, accessible from anywhere.
• Can be used for EÜR, advance VAT return (USt-VA), and other forms for self-employed people.
• Real-time calculation of the expected tax liability or refund.

The right setup for your taxes

Not every self-employed person needs fully comprehensive tax software. If you do your taxes yourself, a good tax program like WISO Steuer or Smartsteuer is a helpful solution.

However, if you work with a tax advisor, in many cases a powerful invoicing program like easybill is the more sensible solution. It takes the pressure off you in day-to-day business, supports you with the e-invoicing requirement, and prepares all documents optimally for passing on to the firm—without burdening you with unnecessary functions.