A sound monthly routine is not a miniature annual closing. It keeps invoices, accounting documents or receipts, payments and deadlines aligned while the details are still easy to clarify. That makes advance VAT returns, the German cash-basis income statement (EÜR), work with a tax adviser and liquidity planning much easier.
Not every tax obligation is monthly. Whether you file an advance VAT return monthly, quarterly or not on a regular basis depends on your status and the notices issued by the German tax office (Finanzamt). The routine prepares the records; your actual deadlines remain decisive.
The four month-end questions
- Have all completed services been invoiced and checked?
- Are all incoming invoices and other accounting documents complete and stored in their original format?
- Do bank, cash records, payments and unpaid invoices reconcile?
- Which filings, advance payments and reserves are due next?
Choose a fixed appointment, such as the first working day after month end. Cash transactions cannot wait until then: section 146 AO requires cash receipts and cash expenses to be recorded daily.
What to collect first
Prepare bank transactions, cash records, outgoing and incoming invoices, receipts, credit notes, cancellation documents and evidence for business payments. Add contracts or proof of performance where they explain the transaction. Mark private transactions separately instead of silently mixing them into business expenditure.
For an electronic invoice, retain the file received. Since 2025, a plain PDF is not an E-invoice for German VAT purposes. XRechnung and permitted ZUGFeRD versions contain structured invoice data. At least that structured part must be kept intact in its original format.
Step 1: Complete outgoing invoices
Identify services completed but not yet invoiced. Issue invoices promptly. The six-month statutory limit in section 14(2) UStG for certain mandatory invoices is an outside limit, not a sensible workflow target.
For a standard invoice, check names and addresses, tax number or VAT ID, issue date, unique invoice number, clear description, supply or service date, net amounts, tax rate and VAT amount or the correct exemption statement. Simplified information applies to invoices of up to €250 under section 33 UStDV. The special rules in section 34a UStDV apply to invoices from businesses using the German VAT exemption scheme for small businesses (Kleinunternehmerregelung); they do not show VAT separately.
Do not overwrite a sent invoice. Correct or cancel it transparently so that the original transaction, correction and replacement remain linked.
Step 2: Check incoming invoices and receipts
Assign every accounting document or receipt to the correct business transaction. Check supplier, date, amount, business purpose, tax rate and the invoice details needed for input VAT. Ask promptly for a missing or corrected invoice. A bank statement proves a payment, but it does not automatically replace the invoice or proof of what was purchased.
Scanning helps with capture, but an electronically created original remains electronic. Do not keep only a screenshot or rendered PDF of an XRechnung. Store the structured original and any attachment needed to understand the service.
Step 3: Reconcile bank and cash
Payment reconciliation means linking every business bank movement to an invoice or other documented transaction. Match customer payments to unpaid invoices and record part-payments, charges, refunds, returned direct debits, private contributions and withdrawals separately. Investigate unknown entries instead of leaving them in a suspense category.
For many businesses using EÜR, the actual payment date matters: income is generally assigned to the year in which it is received, and expenses to the year in which they are paid (section 11 EStG). Exceptions include certain regularly recurring items around year end. Accrual-accounting businesses follow different timing rules.
Step 4: Review unpaid invoices and liquidity
Separate unpaid, overdue and disputed invoices. Check the due date, actual receipt of funds and previous contact. A friendly payment reminder and a formal payment demand are different stages; record them separately.
Compare expected receipts with upcoming expenses and tax dates. Revenue shown on issued invoices is not necessarily available cash. Base the short-term plan on realistic receipts and flag doubtful balances.
Step 5: Classify VAT and E-invoice duties
If you must file advance VAT returns, the normal filing and payment deadline is the tenth day after the reporting period (section 18 UStG). An approved permanent deadline extension moves it by one month. Your reporting period may be a month or a quarter, or the Finanzamt may release you from periodic returns, depending on the statutory thresholds and your situation.
The Kleinunternehmerregelung is not a simplified income-tax return. It is a German VAT exemption. Since 2025 it generally applies when prior-year turnover did not exceed €25,000 and current-year turnover does not exceed €100,000. The current-year ceiling operates during the year; special cases and opting out require individual review. These businesses must be able to receive E-invoices from 1 January 2025, although their own supplies are exempt from the duty to issue one.
For domestic B2B supplies, transitional issue rules apply: businesses may generally continue to use another type of invoice until the end of 2026; where the issuer's prior-year turnover does not exceed €800,000, this generally continues through 2027. The ability to receive E-invoices has applied since 2025.
Step 6: Update tax dates and reserves
Record only dates that apply to your business. Income-tax advance payments set by the Finanzamt normally fall due on 10 March, 10 June, 10 September and 10 December (section 37 EStG). Trade-tax advance payments for commercial businesses normally fall due on 15 February, 15 May, 15 August and 15 November (section 19 GewStG). Your notices determine the amounts.
Move the amount intended for VAT and profit taxes to a separate reserve account or identify it clearly. A reserve is not a tax calculation, but it prevents tax money from appearing to be free operating cash. If profit has changed substantially, discuss an adjustment of advance payments with a tax adviser.
Step 7: Secure and hand over the month
Keep a concise month-end record: unresolved entries, missing documents, disputes, filings made and payment evidence. Check that exports are complete and that a backup could actually be restored. One download folder or one laptop is not a resilient backup.
When working with a tax adviser, include a short note on private-use elements, major purchases, foreign transactions, reverse-charge cases, doubtful debts and missing documents. Motorica can support tax data preparation and an orderly handover; it does not provide tax advice.
A compact 45-minute routine
- 10 minutes: create missing outgoing invoices and check numbering.
- 10 minutes: capture incoming invoices and receipts; retain originals.
- 10 minutes: carry out payment reconciliation and flag unknown entries.
- 5 minutes: review unpaid and overdue invoices and prepare reminders.
- 5 minutes: check VAT, tax dates and reserves.
- 5 minutes: complete the month file, export, backup and handover.
With many transactions this will take longer. The essential point is that every unresolved item has an owner and a next action.
Monthly checklist
- All completed services are invoiced or documented as outstanding.
- Invoice numbers, service dates, VAT details and special statements are checked.
- Incoming invoices and receipts are complete and assigned correctly.
- Structured E-invoice files and relevant attachments are stored in original format.
- Cash receipts and expenses were recorded daily and reconcile.
- Bank entries, part-payments, fees and refunds are matched.
- Unpaid and overdue invoices are reviewed; reminder and formal demand remain distinct.
- The advance VAT return and payment are prepared if due for this period.
- Income-tax and trade-tax dates from notices are in the calendar.
- Tax and liquidity reserves reflect current figures.
- Missing records and technical questions have a clear next action.
- Month file, export, backup and tax-adviser handover are checked.
Common mistakes
Capturing everything only at month end: this is too late for cash records and makes missing evidence harder to recover. Record continuously, then review at month end.
Treating a PDF preview as the entire E-invoice: structured XML data are decisive. Keep the original file intact.
Treating invoice and payment as the same event: an issued invoice is not a receipt of money. Link the events without merging them.
Planning every tax as a monthly task: VAT, income tax and trade tax use different periods. Use the routine to prepare, then follow the actual notice and ELSTER deadline.
Using the old retention period: invoices and accounting vouchers are generally retained for eight years since 2025. Books, annual accounts and certain organisational records remain ten years; business correspondence is generally six years. A pending tax matter may extend the period.
Frequently asked questions
How often should I run the routine?
At least monthly, with continuous or daily recording wherever required. A weekly interim check is useful for businesses with many receipts or payments.
How long must invoices be retained?
Incoming and outgoing invoices are generally retained for eight years under section 14b UStG, starting at the end of the calendar year in which the invoice was issued. Section 147 AO specifies other ten-, eight- and six-year periods.
Is printing an E-invoice enough?
No. At least the structured part must remain intact in its original electronic format. A printout or visual rendering does not replace the source file.
Does every self-employed person file VAT monthly?
No. The period may be monthly or quarterly, and the Finanzamt can release some businesses from periodic returns. Businesses under the Kleinunternehmerregelung are generally outside the regular section 18(1) to (4) obligations, although special cases remain.
What should I do when a receipt is missing?
First request an invoice or copy from the supplier. A self-created voucher is only a fallback for suitable, verifiable cases and does not create an input-VAT deduction without a proper invoice.
Can a closed month be corrected later?
Yes. Correct the error transparently instead of silently replacing the original data. If tax data have already been filed, check whether an amended return is required.
Official sources and review date
Fact-checked on 23 September 2026.
- Section 14 UStG – issuing invoices
- Section 14b UStG – retaining invoices
- Section 14b UStG – retaining invoices
- Section 18 UStG – advance VAT returns
- Section 19 UStG – Kleinunternehmerregelung
- Sections 33 and 34a UStDV – small and Kleinunternehmer invoices
- Section 46 UStDV – permanent deadline extension
- Sections 146 and 147 AO – records and retention
- Section 11 EStG – receipt and payment principle
- Sections 37 EStG and 19 GewStG – advance payments
- Federal Ministry of Finance – E-invoice FAQ, March 2026
- Federal Ministry of Finance – GoBD amendment, 14 July 2025
This general guide does not replace advice on your individual German tax or legal situation. Your specific notices and deadlines remain decisive.