Accounting for the Self-Employed

Accounting for the Self-Employed in Switzerland

Accounting is the foundation of every business, including sole proprietorships and self-employed individuals. It enables the systematic recording and evaluation of all financial transactions and is closely linked to business success. Proper accounting provides a clear overview of income, expenses, and financial position.

Accounting Obligations in Switzerland

Regardless of company size or legal form, self-employed individuals in Switzerland are subject to accounting obligations. These are regulated by the Swiss Code of Obligations and ensure that business transactions are properly documented and archived. Compliance with these rules is essential for legal and tax conformity.

Manual Accounting versus Online Accounting

Traditionally, accounting was handled manually. Today, digital and online solutions offer significant advantages. They allow automation, location-independent access to data, and simplified collaboration with trustees or accountants. Documents and receipts are stored centrally, structured, and easy to retrieve.

Income and Expenditure Accounting

For many self-employed individuals, income and expenditure accounting is a suitable and straightforward method. It records income and expenses at the time of cash flow and provides a clear overview of financial performance. Depending on the nature and scale of the business, other accounting methods may be more appropriate.

Managing Accounting Independently or with External Support

Whether accounting is handled independently or outsourced to an accountant or trustee depends on individual factors.

These include expertise, business complexity, and available time. Professional support can help avoid errors and improve efficiency.

Automated Accounting Systems

Modern accounting systems enable a high degree of automation. They simplify processes, reduce human error, and provide up-to-date insights into the company’s financial situation at any time.

Specific Rules for the Self-Employed in Switzerland

The Swiss Code of Obligations defines which documents must be maintained and how long they must be retained. In addition, regional differences may apply and should be considered in accounting practices.

Role of the Trustee

Trustees support self-employed individuals with bookkeeping, accounting, and tax-related matters. They provide professional advice and ensure that legal requirements are met.

Accounting Software and Tools

A wide range of accounting software solutions is available to self-employed individuals. These range from simple templates to comprehensive programs that enable efficient and convenient bookkeeping.

Traditional Methods and Modern Approaches

The so-called “Milk Book” accounting method is a traditional form of bookkeeping in Switzerland. However, many self-employed professionals are increasingly choosing modern, digital alternatives to optimise their processes.

Accounting for Sole Proprietorships and SMEs

Sole proprietors have specific accounting requirements, while SMEs face additional challenges due to higher transaction volumes. In both cases, structured and accurate accounting is essential.

VAT Reporting and Annual Financial Statements

Correct VAT reporting is a key element of accounting. The annual financial statement provides an opportunity to review financial performance and set objectives for the future.