European Accounting & Invoicing Software compared
Businesses that need to track income, expenses and tax obligations use accounting and invoicing software to automate bookkeeping, generate compliant invoices and prepare financial reports. The tools differ in scope: some cover basic invoicing for freelancers, while others handle full double-entry accounting, VAT returns and multi-currency support for growing SMEs. European buyers often prioritise solutions with EU-based server locations and clear data processing agreements, as financial and employee data fall under strict regulatory requirements.
In short
- FreeAgent automates UK tax, payroll and pension tasks for freelancers and small businesses with direct HMRC submissions.
- Collmex covers invoicing, bookkeeping, inventory and project management in one account for German businesses.
- Zervant focuses on simple invoicing and payment tracking for freelancers with a free tier for small client lists.
- Banana Accounting Plus offers double-entry bookkeeping with an Excel-like interface and multi-currency support for Swiss users.
Providers
All providers at a glance
| Provider | HQ | From | Rating | Free plan | EU hosting |
|---|---|---|---|---|---|
| Collmex | 🇩🇪 DE | €8.95/mo | 3.9 / 5 · 6 reviews | ||
| sevDesk | 🇩🇪 DE | On request | 3.9 / 5 · 3882 reviews | ||
| FreeAgent | 🇬🇧 GB | £5/mo | 4.6 / 5 · 5568 reviews | ||
| Zervant | 🇫🇮 FI | €9.99/mo | 4.7 / 5 · 6265 reviews | ||
| Lexware | 🇩🇪 DE | €7.90/mo | 3.3 / 5 · 1778 reviews | ||
| Banana Accounting Plus | 🇨🇭 CH | 89 CHF/yr | 4.5 / 5 · 810 reviews | ||
| Reviso | 🇩🇰 DK | £20/mo | 2.8 / 5 · 3 reviews |
What users care about in accounting & invoicing software
Recurring themes across the user reviews we collected for the tools on this page.
Ease of use
Users frequently highlight intuitive interfaces and quick onboarding as key advantages, especially for non-accountants. Some criticise clunky expense views or overwhelming dashboards for beginners.
Praised for this:FreeAgentZervantBanana Accounting Plus
Feature scope
Comprehensive tools that combine invoicing, bookkeeping and project management are praised for efficiency. Others note missing integrations or limited customisation in templates.
Praised for this:CollmexBanana Accounting Plus
Automation
Automated bank imports, tax submissions and invoice processing save time for users. Some report occasional calculation errors or missing automation for specific workflows.
Pricing and plans
Free tiers and discounts for annual payments are appreciated by small businesses. Higher costs and client limits on free plans are common criticisms.
Mobile and offline access
Mobile access for on-the-go management is valued, but some apps lack features or have readability issues. Offline functionality is a plus for users in low-connectivity areas.
Praised for this:CollmexBanana Accounting Plus
What to look for
Accounting depth
Check whether the tool supports single-entry bookkeeping for simple needs or full double-entry accounting for complex financial tracking and reporting.
Tax compliance
Look for built-in VAT handling, automated tax calculations and pre-configured templates for local tax authorities to reduce manual work.
Integration range
Assess which third-party apps the software connects with, such as payment gateways, e-commerce platforms or payroll systems, to avoid siloed workflows.
Data sovereignty
Confirm the server location and data processing terms to ensure compliance with GDPR and other regional regulations governing financial data.
Frequently asked questions
What does accounting and invoicing software actually do?
It automates financial record-keeping, tracks income and expenses, generates invoices and receipts, and helps prepare tax filings. Some tools also handle payroll, project costing or multi-currency transactions, depending on the target user.
Which accounting software is best for freelancers?
Freelancers typically need simple, affordable tools focused on invoicing and expense tracking. FreeAgent, Zervant and Collmex all offer free plans and cover basic needs, with Zervant specialising in straightforward billing and Collmex adding German VAT returns.
What’s the difference between single-entry and double-entry bookkeeping?
Single-entry tracks income and expenses in one column, suitable for simple cash-based accounting. Double-entry records each transaction twice (debit and credit) to ensure accuracy and is required for accrual accounting, VAT reporting and financial statements.
Can I use QuickBooks or Xero in Europe, or do I need a local alternative?
You can use QuickBooks or Xero, but European alternatives like Reviso, Collmex or sevDesk often provide better local tax compliance, EU-based server locations and native integrations with regional payment providers and banks.
Which tools have a free plan for accounting and invoicing?
FreeAgent, Zervant, Collmex and Banana Accounting Plus all offer free plans. These typically limit the number of invoices, clients or features, but are useful for freelancers or micro-businesses testing the software.
Do any European accounting tools integrate with Shopify or WooCommerce?
Yes. Collmex integrates with Shopify and WooCommerce, as does Reviso. FreeAgent also connects to WooCommerce, making these options suitable for e-commerce businesses needing automated order and inventory sync.
How do I migrate from Wave or FreshBooks to a European provider?
Most European tools offer CSV import for chart of accounts, contacts and transactions. Reviso and Collmex also support direct data migration from some competitors. Check the target tool’s documentation for supported formats and any migration assistance.
Are there European accounting tools with DATEV integration?
Yes. Lexware offers DATEV integration, which is critical for German businesses and tax advisors who rely on DATEV-compatible exports for official filings and advisor collaboration.
Do European accounting tools comply with GDPR?
Most do, especially those with EU-based server locations. Providers like Reviso, Collmex and sevDesk explicitly state GDPR compliance and offer data processing agreements. Always verify the server location and data handling terms before committing.
Can I self-host European accounting software?
Banana Accounting Plus is available as a desktop application, allowing for local installation. Most other European tools in this category are cloud-based, with no self-hosting option.