Bookkeeping forms the basis of all business financial management in Switzerland. It consists of systematically and chronologically recording all of a company's financial transactions: purchases, sales, receipts, payments, salaries, social charges, depreciation and provisions.
In Switzerland, bookkeeping is governed by articles 957 to 964 of the Code of Obligations (CO), which define accounting obligations, principles to follow and documents to produce. This guide explains in detail what bookkeeping involves, your legal obligations and how AX-Fiduciaire can support you.
Legal obligations regarding accounting in Switzerland
Who is required to keep accounts?
Article 957 CO distinguishes two categories:
- Mandatory complete accounting (double-entry): all legal entities (LLCs, corporations, associations, foundations, cooperatives) and sole proprietorships/partnerships whose annual revenue exceeds CHF 500,000
- Simplified accounting possible (receipts/expenditures): sole proprietorships and partnerships whose annual revenue is below CHF 500,000
Accounting principles under the CO
Swiss law (art. 958c CO) requires compliance with fundamental principles:
- Clarity and comprehensibility: accounts must be understandable to a qualified third party
- Completeness: all transactions must be recorded
- Reliability: accounts must faithfully reflect the economic situation
- Prudence: risks must be anticipated; profits are only recorded when realised
- Consistency: the same valuation and presentation rules must be applied from one financial year to the next
- No offsetting: assets and liabilities, income and expenses must not be offset against each other
Mandatory accounting documents
Complete accounting must produce the following documents:
| Document | Content | Frequency |
|---|---|---|
| Journal | Chronological recording of all entries | Continuous |
| General ledger | Grouping of entries by account | Continuous |
| Balance sheet | Statement of assets and liabilities at the closing date | Annual |
| Income statement | Summary of income and expenses for the financial year | Annual |
| Notes to the accounts | Additional information (methods, detail of certain items) | Annual |
Retention period
Article 958f CO requires retention of books and supporting documents for 10 years from the end of the financial year. This obligation applies to both paper documents and electronic media.
Swiss accounting standards
CO accounting law (legal minimum)
The Code of Obligations defines the minimum framework applicable to all businesses. It governs the presentation of accounts, valuation principles and publication obligations.
Swiss GAAP FER (Financial reporting recommendations)
Swiss GAAP FER standards represent the Swiss accounting reference framework. They aim to give a true and fair view of the company's financial position, results and cash flows. Swiss GAAP FER is mandatory for:
- Companies listed on the Swiss stock exchange (SIX Swiss Exchange) that do not report under IFRS
- Large companies subject to ordinary audit that choose this framework
For SMEs, applying Swiss GAAP FER is voluntary but recommended, as it strengthens the credibility of accounts with banks and partners.
IFRS (International Financial Reporting Standards)
IFRS standards are primarily used by large internationally listed companies. They generally do not concern Swiss SMEs.
The Swiss chart of accounts (PMC)
The Swiss chart of accounts PMC (Chart of accounts for SMEs, formerly Kafer) is the reference for structuring accounts in Switzerland. It organises accounts into classes:
| Class | Designation | Examples |
|---|---|---|
| 1 | Assets | Cash, bank, receivables, inventory |
| 2 | Liabilities | Payables, debts, capital, reserves |
| 3 | Operating income | Revenue, service income |
| 4 | Material and merchandise expenses | Purchases, subcontracting |
| 5 | Personnel expenses | Salaries, social charges |
| 6 | Other operating expenses | Rent, insurance, depreciation |
| 7 | Non-operating income and expenses | Financial income, financial expenses |
| 8 | Extraordinary income and expenses | Gains/losses on asset sales |
| 9 | Closing | Consolidation accounts, result |
What our bookkeeping service includes
At AX-Fiduciaire, our bookkeeping service covers all the tasks necessary for proper management of your accounts:
Accounting entry recording
We record every transaction in your accounts: purchase and sales invoices, payments, receipts, expense reports, payroll entries. Each entry is verified, classified and allocated to the correct account according to the PMC chart of accounts.
Bank reconciliation
We systematically compare bank statements with accounting entries to ensure every movement is correctly recorded. Reconciliation helps detect any errors or omissions.
Accounts receivable and payable tracking
We keep receivable accounts (client invoices) and payable accounts (supplier invoices) up to date. This tracking helps control payment terms and optimise cash flow.
VAT management
If your company is subject to Swiss VAT, we manage the entire process: accounting with VAT breakdown, preparation of quarterly returns and filing with the Federal Tax Administration (FTA).
Monthly reporting
Our SE and ME plans include monthly reporting comprising: interim balance sheet and income statement, variance analysis against budget (ME plan), revenue and margin trends.
Payroll accounting
If you use our payroll management service, payroll entries are automatically integrated into the accounting, including social charges (AHV, IV, APG, AC, BVG, LAA).
Accounting software we use
We work with the main accounting software used in Switzerland:
- Odoo: our reference solution. As an official Odoo partner, we have thorough expertise in this comprehensive ERP software integrating accounting, invoicing, CRM and inventory management.
- Bexio: a Swiss cloud solution very popular with SMEs, with a simple interface and good bank integration.
- Cresus: a historic Swiss software, particularly widespread in French-speaking Switzerland, ideal for small structures.
- Abacus: a comprehensive ERP solution for medium to large enterprises.
We also adapt to any software already in place at your company.
How much does bookkeeping cost?
Our packages start at CHF 149/month for the Start-up plan. This rate is significantly lower than the cost of an in-house accountant (CHF 70,000-100,000/year) and often more advantageous than the hourly rates of traditional fiduciaries (CHF 120-180/hour). See our detailed guide How much does an accountant cost in Switzerland?.
Common bookkeeping errors
The most common accounting errors we observe with new clients:
- Missing supporting documents: every entry must be documented with supporting evidence
- Confusion between private and business expenses: particularly common among self-employed individuals
- Incorrectly recorded VAT: rate errors, unidentified exempt services
- Forgotten depreciation: fixed assets must be depreciated at fiscally accepted rates
- Provisions not established: foreseeable expenses not anticipated at year-end
- Missing accrual entries: accrued expenses, accrued income
AX-Fiduciaire tip: Submit your accounting documents regularly (ideally each month) rather than all at year-end. Up-to-date accounting enables better management of your business and avoids unpleasant surprises during the annual closing.
Ready to entrust your bookkeeping to professionals? Request your free quote and receive a personalised offer tailored to your business.