This guide decodes the complexities of the system to guarantee your peace of mind. Whether you are an expat or a business owner, don’t let the bureaucracy hold you back. Follow our clear breakdown of the legal and fiscal procedures for Digital Bookkeeping (EÜR) and keep your business moving forward.
The Einnahmenüberschussrechnung (EÜR) is the simplified method of profit determination used by most freelancers (Freiberufler) and small tradespeople. Unlike complex double-entry bookkeeping, the EÜR follows a “cash-in, cash-out” principle: profit is calculated by subtracting your paid business expenses from your received revenue. While it sounds simple, the categorization of these expenses must adhere to rigid German standards.
A common mistake is managing business finances in an Excel spreadsheet. Under the strict GoBD principles (Principles for the proper management and storage of books), editable Excel sheets are no longer accepted by the Finanzamt as a primary record because they lack an audit trail. Choosing Agroup Consulting means choosing safety. We use certified, GoBD-compliant software to record your transactions. This ensures that every booking is unalterable and legally secure, protecting you from hefty estimates during a tax audit (Betriebsprüfung).
We understand that as an expat, you may travel frequently. Our service is designed to be location-independent:
The key to lowering your tax bill lies in correctly identifying deductible expenses. Many expats miss out on valid deductions due to uncertainty. We meticulously review your outgoings to include:
Bookkeeping isn’t just for the tax office; it’s for you. Instead of waiting until the end of the year to know your profit, our monthly or quarterly reporting gives you a clear view of your financial health. This allows you to plan your income tax prepayments accurately and avoid nasty surprises when the final tax assessment arrives.
Navigating German bureaucracy requires precision. We start by analyzing your specific situation to define the most effective legal and fiscal strategy for your case.
Once your strategy is set, we guide you through the paperwork. We identify exactly which documents are needed and prepare everything on your behalf to ensure a flawless application.
We handle the final submission to the local tax office (Finanzamt). We manage all communication to ensure full compliance and secure the fastest possible result for you.
At Agroup Consulting, we work with certified German tax advisors (Steuerberater) specializing in international taxation. With over 15 years of experience, a proven track record of results, and the trust of more than 500 expats in Germany, our firm delivers trusted services that help you navigate the complex German fiscal system with complete confidence.
Most freelancers and small business owners in Germany do not need a full balance sheet; instead, they file an “Income-Surplus Determination” (Einnahmenüberschussrechnung – EÜR). While this method is simpler, it relies on the strict “Inflow/Outflow Principle” (Zufluss-/Abflussprinzip), meaning taxes are based on when money actually hits your account, not when the invoice is written. To remain audit-proof, your digital records must prove:
“No Booking Without Receipt” (Keine Buchung ohne Beleg): Every bank transaction must be matched with a valid invoice or receipt. A credit card statement alone is insufficient proof for the Finanzamt.
The 10-Day Rule: Recurring payments made between Dec 22nd and Jan 10th (like rent or insurance) must be assigned to the economic year they belong to, not necessarily the payment year.
Business vs. Private Split: For mixed expenses (like mobile phone bills or internet), we must strictly separate the deductible business portion from your private usage to avoid rejection.
Yes, but strictly under GoBD regulations. Many expats fear throwing away paper receipts. However, German tax law (specifically the GoBD principles) allows you to digitize paper receipts and destroy the originals—if the digitization process is correct.
The “Scan & Toss” Reality: Simply taking a photo with your phone and saving it to a random folder is not sufficient. The digital archive must be unalterable, indexed, and accessible for 10 years. At Agroup Consulting, we provide a certified portal that meets these GoBD standards. once you upload your document to our system, it is legally secured. This allows you to run a truly paperless office without fearing that an auditor will demand a physical shoebox of receipts five years from now.
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Yes. You can digitize and destroy paper receipts if you use GoBD-certified software. A simple photo in a standard folder is insufficient and may be rejected during an audit.
No. Most freelancers use the simplified EÜR (Income-Surplus Method). You are taxed based on actual cash flow (when money lands), not when you send the invoice.
Strictly no. The rule is “No booking without a receipt.” A credit card statement is not enough; you must attach a valid invoice to every transaction.
Not recommended. Excel files are easily alterable and violate GoBD security standards. Using our certified portal ensures your books remain audit-proof for the mandatory 10 years.
