Accrual of provisions in self-employment

Self-employed individuals can effectively reduce their taxable income through professionally justified accruals.

2015

Accrual of provisions in self-employment

Here is the text translated into English while preserving all HTML tags:

Self-employed individuals can record provisions as an expense in accounting if they are justified on a business or professional basis. The formation of provisions leads to a reduction in taxable income.

In self-employment, provisions (see blog post) represent tax-deductible costs if they are justified on a business or professional basis. Technically, provisions can be included as an expense in the profit and loss account. The law stipulates in Art. 29 DBG, which provisions are permissible for tax purposes:

More blog posts

In-depth insights, inspiring success stories and practical tips for entrepreneurs - discover more in our other articles.

Outsourcing vs. In-House Accounting: Which is More Worthwhile?

The decision whether to manage accounting internally or to outsource it depends on various factors.

Why Outsourcing Accounting Increases Efficiency

Accounting is one of the most important but also time-consuming tasks of a business.

Participations and securities: Accounting registration made easy in Switzerland

Companies in Switzerland must ensure accurate accounting records when acquiring securities (<20% voting rights) or participations (>20% voting rights). Participations use account 1480, securities account 1400, with Jens account like bank account 1020.