Finance Stack for German Construction Company
Setup for construction businesses. Project-based accounting, Bauabzugssteuer, material costs, subcontractors.
How This Stack Works
Project contracts → ERP tracks costs and Abschläge → Invoices with Bauabzugssteuer handling → Bank for payments and guarantees → Sage for Baulohn → Agicap for cash flow → DATEV to Steuerberater
App Compatibility
How well the apps in this stack work together
2/10 pairs known
Integrations
Notes
No known integration between fyrst and sage-100
No known integration between fyrst and sage-lohn
No known integration between fyrst and agicap
+ 5 more notices
Apps & Services in This Stack
Each category below shows the recommended app or service and alternatives. Click on any item to learn more.
FYRST
Deutsche Bank's digital business banking offering. German reliability with modern features.
Why this choice
Construction companies require a traditional banking partner that understands the industry's unique financial needs including Bürgschaften (performance bonds), Avalkredite, and project-based financing. FYRST or Sparkasse/Volksbank offer the established relationships needed for bank guarantees that clients often require before project start. Strong credit facilities help bridge the gap between material purchases and Abschlagszahlungen from clients.
When to switch
Stay with Hausbank for established credit relationships.
Alternatives
sage-100
Why this choice
Sage 100 provides the comprehensive ERP functionality construction companies need for project costing, real-time material tracking across multiple job sites, and subcontractor management with Freistellungsbescheinigung documentation. The system enables accurate Vor- und Nachkalkulation to compare budgeted vs. actual costs per project phase. Integration with time tracking and equipment management helps control the complex resource allocation construction demands.
When to switch
Consider industry-specific Bausoftware for larger operations.
Alternatives
Why this choice
Construction accounting involves unique complexities that DATEV handles expertly: Abschlagsrechnungen with proper revenue recognition timing, Bauabzugssteuer compliance under §48 EStG, and ARGE partnership accounting for joint ventures. The system manages percentage-of-completion accounting required for multi-year projects and ensures proper Gewährleistungsrückstellungen. Direct Steuerberater collaboration through DATEV is essential given construction's regulatory complexity.
When to switch
N/A
Alternatives
Why this choice
Construction payroll is among the most complex in Germany, requiring specialized software that handles SOKA-Bau contributions, Baulohn calculations with site-specific Zuschläge, and Tariflohn compliance across different Gewerke. Sage Lohn manages mobile worker requirements, Verpflegungsmehraufwand for workers on distant sites, and the various construction industry collective agreements. Automated reporting to SOKA-Bau and proper 13. Monatslohn handling saves significant administrative time.
When to switch
N/A
Why this choice
Agicap is essential for construction's challenging cash flow dynamics with large upfront material purchases, extended payment cycles of 30-90 days, and reliance on timely Abschlagszahlungen. The platform provides project-level cash flow forecasting to anticipate when funds from specific contracts will arrive and when supplier payments are due. Scenario planning helps prepare for delayed payments or scope changes that are common in construction.
When to switch
finban for smaller operations.
Alternatives
Accountable Tax Service
Combination of tax software and human tax advisors for freelancers.
Why this choice
A construction-specialized Steuerberater is critical for navigating Bauabzugssteuer obligations, percentage-of-completion revenue recognition, and proper handling of Gewährleistungsrückstellungen for warranty periods. They understand SOKA-Bau compliance, ARGE taxation for joint ventures, and optimize Investitionsabzugsbetrag for heavy equipment purchases. Their expertise ensures proper treatment of subcontractor relationships and Freistellungsbescheinigung documentation.
When to switch
N/A
Why this choice
Construction requires specialized insurance coverage that general business policies do not provide, including Bauherrenhaftpflicht, Bauleistungsversicherung for project risks, and Gewährleistungsbürgschaften for warranty periods. Hiscox understands the unique liability exposures of construction sites, subcontractor relationships, and equipment protection needs. They can bundle coverage for multiple active projects and scale with your business growth.
When to switch
N/A
Alternatives
About This Business Type
Construction companies in Germany operate in a heavily regulated industry with significant project-based risk. From small Bauunternehmen to large general contractors, the financial challenges include managing large project costs, subcontractor coordination, and construction-specific regulations like Bauabzugssteuer. Project accounting is essential: tracking costs by project, understanding progress, and recognizing revenue appropriately. German construction often uses percentage-of-completion revenue recognition, requiring reliable progress measurement. Many construction companies have failed due to poor project cost visibility—recognizing problems only at project completion when losses are unavoidable. Cash flow management is critical. Construction involves significant outlays (materials, labor, subcontractors) before payment for completed work. Abschlagsrechnungen (progress invoices) help, but payment terms can stretch 30-60 days or more. Working capital lines and careful cash flow planning prevent project completion during liquidity crisis.
Common Challenges
- Large project cost management
- Subcontractor coordination and payment
- Progress billing and collection
- Material price volatility
- Warranty (Gewährleistung) reserves
Compliance Requirements
- Bauabzugssteuer compliance
- VOB contract requirements
- Abschlagsrechnung and Schlussrechnung
- Construction warranty periods (5 years typical)
- Subcontractor Freistellungsbescheinigung
Why This Stack Works
- Project cost tracking
- Progress billing management
- Subcontractor payment tracking
- Material cost management
- Warranty reserve tracking
Frequently Asked Questions
What's Bauabzugssteuer and how does it work?
Bauabzugssteuer: when you provide construction services (Bauleistungen), the client withholds 15% of your invoice as tax security, remits to Finanzamt. You can claim Freistellungsbescheinigung (exemption certificate) from Finanzamt if tax-compliant—then no withholding. Without Freistellungsbescheinigung, clients must withhold. Critical: subcontractors without Freistellungsbescheinigung = you withhold from their payments. Verify certificates carefully.
How should construction companies recognize revenue?
Options: completed contract (revenue at project end—simple but delays recognition) or percentage of completion (PoC—revenue as work progresses). PoC is common for larger projects; requires reliable progress measurement (often cost-to-cost method). Track estimated total cost and completion percentage. Revenue = Total contract × % complete. Update estimates as project progresses; significant estimate changes impact recognized profit.
How do VOB contracts affect construction finances?
VOB (Verdingungsordnung für Bauleistungen) standardizes construction contracts. Key financial aspects: Abschlagsrechnung (progress invoice) timing, Schlussrechnung (final invoice) procedures, Gewährleistung terms, payment terms. VOB/B specifies: progress invoices based on completed performance, final invoice within time limits, warranty reserves. Understand VOB requirements—they affect when you can invoice and collect.
How should construction companies manage warranty reserves?
German construction warranty (Gewährleistung) typically 5 years. Reserve 2-5% of project value for warranty claims during this period. Accounting: create provision (Rückstellung) at project completion. As warranty period passes without claims, release reserve to profit. Track claims and adjust provision estimates based on experience. Long warranty period means projects affect finances for years after completion.
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