11 Tips for Optimally Organizing Your Finances with Lexware Office
Lexware Office (formerly LexOffice) is a web app that helps self-employed individuals, small business owners, and small companies efficiently organize their accounting processes. With the software, you can manage customer and supplier lists, create offers, write invoices, process incoming receipts, and handle payments.
However, every tool is only as good as the person using it. An experienced user can work much more efficiently with the right tricks. Based on my practical experience with clients who use Lexware Office, I have compiled 11 valuable tips to make your workday easier.
As a tax consultant, I advise many self-employed individuals who work with Lexware Office. The most important thing is that you find tools that allow YOU to work efficiently. Many of the following tips can also be applied to other accounting systems. If you’re interested in collaborating or have your own experiences with these tips, I’d be happy to hear from you!
1.
Cash booked, even though no cash register is present
The "Cash" function in Lexware Office is intended for a real cash register or an open cash register with a managed cash book. If you are a freelancer who only makes private expenses from your wallet, upload the receipt normally and mark it as "privately paid." ("privat bezahlt")
Why is this important?
If you book a cash register, the tax office can request a cash book and check your cash management. Without a managed cash book, this can lead to problems.
2. Salary booked instead of withdrawal
Freelancers and sole proprietors do not pay themselves a "salary" but rather withdraw money from their business. The booking should therefore be made as a "withdrawal" and not under "salary." The "salary" account is intended exclusively for the wages of salaried employees.
3. Receipt uploaded twice
A common mistake: a receipt is recorded twice, e.g., once with a bank debit and once marked as "privately paid." This means the duplicate does not appear immediately in the open items, but can still lead to errors in accounting.
4. Only payment receipt uploaded, not the invoice
When paying by card, you often receive two receipts: the actual invoice or receipt and the payment receipt. However, the payment receipt alone is not sufficient as proof of business expenses.
Tipp:
If you don’t receive an invoice, create a substitute receipt.
5. No receipt uploaded
Without a receipt, neither the input tax deduction nor the deduction of operating expenses is possible.
Important:
- There is no obligation to upload receipts in Lexware Office – they can also be archived externally.
- Thermal paper fades. Folders, receipts, and files can get lost. Digital storage protects against the loss of important receipts.
- Regular documents (e.g., lease agreement) do not need to be uploaded every month.
6. Insurance tax booked as input tax
Insurance tax (19%) looks like VAT, but it is not and therefore cannot be deducted as input tax. Be sure to book insurance services correctly.
7. Input tax deduction without German VAT
Only German VAT can be claimed as input tax. Invoices from abroad usually do not contain German VAT.
Attention:
Lexware Office often automatically suggests 19% input tax, even if only 7% or no input tax is shown. Special care is required here.
8. No documentation of the business purpose
An expense can only be claimed as a business expense if it is business-related. In many cases, this is obvious, but in unclear cases, you should document the reason for the business use.
9. Collective customer used to much
It is recommended to create customers individually and to use the collective customer (e.g., "10001") only rarely.
Why?
- Clear assignment of payments and invoices
- Better clarity in accounting
10. Collective supplier used too much
Even with suppliers, the collective supplier (e.g., "70001") should only be used rarely. Too many documents on a collective supplier make tracking difficult and can lead to duplicate bookings.
Attention:
Lexware Office does not always recognize suppliers correctly and often suggests the collective supplier, even if a supplier already exists. This can unintentionally create duplicate suppliers or assign a document to the collective supplier, even though a supplier exists.
11. Invoice drafts deleted
Invoices must be numbered consecutively (e.g., RE001, RE002, etc.). The tax office may interpret missing invoice numbers as an indication of unreported income.
Source of error:
Lexware Office assigns the invoice number as soon as an invoice draft is created. If a draft is created (RE001) but not used and then deleted, a gap arises that could later raise questions from the tax office.