Peer Group: Architecture & Design
What most architecture firms in Germany actually use: traditional banking, cloud accounting for project-based invoicing, and tax advisory. Most manage multiple projects with billable hours.
How This Stack Works
Fyrst receives client invoices and project payments → Lexoffice auto-syncs transactions, tracks billable hours by project → Monthly project reconciliation → Monthly export to Steuerberater for quarterly tax estimates → Annual tax filing and DATEV export
App Compatibility
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
Industry standard among German architecture firms for reliable project-based banking. Most firms rely on Fyrst because it handles milestone payments and multi-project cash flow tracking smoothly, with Deutsche Bank backing for stability. Trusted by similar practices for its straightforward integration with accounting systems.
When to switch
Only if your firm expands internationally or opens offices in other countries.
lexoffice
Popular German accounting software by Lexware. GoBD-compliant, great for small businesses.
Why this choice
The go-to solution trusted by architecture firms across Germany for project-based billing. Most firms rely on lexoffice because it handles billable hours tracking, phased invoicing, and HOAI-compliant fee structures efficiently. Battle-tested in architectural workflows where precise project accounting is essential.
When to switch
Upgrade tier if you add sub-consultant management or complex project structures.
Accountable Tax Service
Combination of tax software and human tax advisors for freelancers.
Why this choice
Industry standard among architecture firms seeking tax advisors who understand project-based businesses. Most firms rely on Accountable Tax because they handle billable hours deductions, equipment amortization, and professional liability insurance correctly. Trusted by similar practices for their understanding of long-term project economics.
When to switch
Only if your Steuerberater no longer understands project-based service businesses.
Alternatives
Why this choice
Critical for architecture firms managing milestone payments across long-term projects against ongoing staff and overhead costs. Fellow architects use finban to forecast cash positions during project phases and plan for gaps between milestone invoices and client payments.
When to switch
N/A
About This Business Type
Architecture and engineering offices in Germany operate under a unique fee structure defined by the HOAI (Honorarordnung für Architekten und Ingenieure). While HOAI is now orientation rather than mandatory since 2019, it still heavily influences pricing and project structuring. Your finance stack must handle the complexity of long projects, phased billing, and the relationship between construction costs and fees. Projects span months or years with distinct HOAI phases (Leistungsphasen 1-9), each representing a portion of total fees. Revenue recognition should align with work phases completed, not payment timing. Many architects struggle with cash flow because significant work precedes billing milestones. Proper WIP tracking is essential. Professional liability is particularly important in architecture—errors can result in construction defects with massive remediation costs. Berufshaftpflichtversicherung is mandatory for Architektenkammer membership. Insurance costs and coverage levels affect both practice structure decisions and project profitability.
Common Challenges
- Long project timelines affecting cash flow
- HOAI phase-based fee calculations
- Work-in-progress before billing milestones
- Construction cost overruns affecting fees
- Professional liability management
Compliance Requirements
- HOAI fee structure orientation
- Architektenkammer membership requirements
- Berufshaftpflichtversicherung requirements
- Construction supervision (Bauleitung) billing
- Freiberufler status for architects
Why This Stack Works
- Project phase tracking and billing
- WIP and AR management
- HOAI-aligned fee calculations
- Long-term project accounting
- Freiberufler tax optimization
Frequently Asked Questions
How does HOAI affect architecture office finances?
HOAI provides fee tables based on construction cost (Baukosten) and fee zones. While no longer mandatory, most clients and architects still use HOAI as framework. Phases 1-9 have percentage allocations—bill as phases complete. If construction costs increase, fees should proportionally increase (renegotiate if significant). Track actual construction costs vs. original basis for fee adjustment discussions.
When should architects recognize revenue?
Recognize as phases complete and you have right to bill. Not when paid—when earned. For long projects, this means progressive recognition. Bill at major milestones (end of Phase 2/3, end of Phase 4, etc.). Track WIP carefully—work performed but not yet billed is an asset. Accrual accounting (Sollversteuerung) makes more sense than cash basis for architecture due to timing mismatches.
Are architects Freiberufler or Gewerbetreibende?
Architects are classic Freiberufler (Katalogberuf)—listed explicitly in §18 EStG. This exempts you from Gewerbesteuer and IHK membership. However, activities beyond core architecture (selling products, real estate development with own capital) may trigger gewerbliche Einkünfte. Keep architectural services separate from any commercial activities. Membership in Architektenkammer confirms professional status.
How should architecture offices handle project cash flow?
Architecture suffers from cash flow gaps—significant work before billing milestones. Strategies: bill phase advances (not full phase, but partial as work progresses), shorter billing cycles on long phases, retainer arrangements for ongoing advisory. Track WIP religiously—it represents cash tied up in projects. Consider line of credit for bridging gaps between work and payment.
Information on this page is sourced from publicly available data (official websites, pricing pages). Prices and features may change. We do not guarantee the accuracy or completeness of the information.
Our editorial ratings are created to the best of our knowledge and belief. Are you the owner or provider of this app and noticed that data is incorrect or outdated? Please reach out – we will update the information promptly.
Found an error? Contact us
Comments
Sign in to leave a comment