Start-up accounting: A comprehensive guide for young companies

In order for your company to ideally grow and to keep track of current developments at all times, even as a start-up, you need well-structured accounting.
‍
The earlier you establish clear processes, the easier it is usually to uncover savings potential, improve liquidity and make well-founded decisions.
‍
Apart from that, meaningful and up-to-date accounting is also important when it comes to submitting funding applications, holding discussions with the bank and convincing investors, for example.
‍
If you look into your start-up's accounting department at an early stage and seek advice if necessary, you will protect yourself from unpleasant surprises — both internally and externally. With it, you create the basis for your further business.

Choosing the right accounting method is crucial in order to work in a legally secure manner right from the start and not to risk unpleasant surprises at the tax office. As a start-up, depending on the legal form and turnover, you either have the choice between surplus income statement (EURE) and double bookkeeping or are legally bound to a variant.
‍
For example, if you want to attract investors or scale up in the long term, double bookkeeping is often worthwhile. Although it is more complex, it offers more transparency about assets, liabilities and capital flows — both for internal decisions and for external financiers.
‍
The following overview shows you how EURE and double bookkeeping differ:

Deciding whether to do your bookkeeping yourself or hand it over to a tax advisor has a direct impact on time, costs, and control. While you maintain full transparency about your figures when you do it yourself, you benefit from professional support and less effort in everyday life.
‍
Which solution best suits your start-up depends primarily on your knowledge, available time and budget.
‍
In the table below, you can see the advantages and disadvantages of doing your own bookkeeping and outsourcing the corresponding tasks.

Founders who want to save money during their start-up phase often decide to outsource only part of their accounting, for example by pre-sorting and/or pre-booking documents. This is how they relieve the tax advisor, which then has to invest less time.

The right software is the key to efficient and error-free accounting. It saves time, reduces manual work and creates transparency about your finances.
‍
Which solution is best for your start-up depends on how complex your processes are, whether you do your bookkeeping yourself or working with a tax advisor. The following tools are among the most popular solutions for founders and small businesses, from entry-level solutions to scalable all-in-one systems.

integral
Integral is aimed at everyone who has their Tax as a start-up want to edit on the basis of an all-in-one solution. Here you can use a combination of tax advice, bookkeeping and payroll. The tool is used by founders, start-ups as well as by small and large companies that value automated processes and personal support.
And because accounting, payroll and tax advice are available, this option requires fewer interfaces. Personal support is also available, which you can contact if you have any questions.

sevDesk
sevDesk is a cloud-based accounting and invoicing software that is used particularly often by start-ups, small companies and self-employed people. Among other things, you can use it to create invoices, offers and reminders and upload receipts via app. Depending on the tariff, you can also connect the solution to your inventory management system. DATEV export and tax advisor access are also available here.
‍
Lexoffice
With Lexoffice, you have also found a cloud solution for your accounting, invoicing and tax. This option is also used primarily by start-ups, small companies and the self-employed. It offers you various integration and interface options, a connection to payroll and meaningful reporting. Thanks to various tariff levels, you can choose the scope that best suits your company.

‍

Whether your start-up operates exclusively in Germany — based in Berlin, for example — or also has international customers and partners directly influences which requirements apply to your accounting.
‍
Start-ups focused on the German market
If your company operates nationally, the German regulations from the Commercial Code (HGB) and the Sales Tax Act (UStG) apply. You are required to submit advance sales tax returns on time, correctly calculate profits and archive all receipts in accordance with GoBD.
A clear structure in your accounting saves you time and helps you meet tax deadlines securely.
‍

Start-ups with an international focus‍
As soon as you work across borders, there are additional requirements:
· Different sales tax regulations, such as the reverse charge procedure
· Currency conversions and country-specific invoice formats
· Tax registration abroad, if applicable
· Customized reports for international investors

Even if you currently only work nationally, it's worthwhile to make your accounting scalable right from the start. This allows you to react quickly to subsequent growth or international business without having to completely adapt your structures.

If you are planning to become active beyond Germany in the long term, it makes sense to work early on with a tax advisor who has experience with international clients. This saves you time later and avoids time-consuming changes when your start-up expands and you don't have to change tax advisors as soon as your company grows larger.

Well-organized bookkeeping saves time, reduces errors and ensures that you always have an overview. It is crucial that your processes comply with the GoBD guidelines (principles for the proper management and storage of books, records and documents in electronic form as well as for data access), which means that they must be comprehensible, complete and timely.

The following tips will help you to organize your bookkeeping efficiently and in compliance with the law:
‍
1. Enter documents immediately: Upload invoices and receipts promptly or scan them with accounting software. This keeps your figures up to date and keeps you in control of your spending.

2. Keep an eye on deadlines: Create an overview of all relevant dates — such as for advance sales tax returns, annual financial statements and advance payments — and schedule them firmly in your calendar.

3. Use automation: Modern accounting software for start-ups automatically recognizes receipts, reconciles payments and reminds of deadlines. This saves time and prevents errors.

4. Observe legal form: Find out which tax deadlines and requirements apply to your type of company. This ensures that you meet all requirements.

5. Include professional advice: If you're unsure, get help from a tax advisor. He can advise you, optimize processes and ensure that your accounting meets legal requirements.

An experienced tax advisor can also show you how to simplify your internal processes and which tasks can be automated. In this way, your accounting remains efficient even as your start-up grows.