Accounting

The income statement can be presented using the total cost method (production success) or the cost of sales method (sales success). The total cost method recognizes inventory changes as revenues or expenses.

New payment slips in Switzerland now uniformly use IBAN and QR codes, simplifying payment transactions and reducing fees. Available from July 2018, they will completely replace the old versions from 2020.

Travel expenses of a sole proprietorship can either be accounted for via a travel log in case of private ownership or as a business vehicle with private usage. Both methods allow for the tax consideration of these costs in the accounting.

Annual financial statement audits identify significant errors, where "significance" includes both quantitative sizes and qualitative influences. The determination of these limits affects the scope and cost of the audit.

In Switzerland, 71% of SMEs align their accounting with the Code of Obligations, while Swiss GAAP FER is used by 14% and IFRS by 12%. US GAAP is used by only 2% of the non-listed Swiss SMEs.

A deficit balance arises when assets do not cover share capital and reserves; it can be a capital loss or over-indebtedness. In case of legal consequences, the board of directors must take measures or file for bankruptcy.

The cash flow statement shows changes in liquid funds and uses direct/indirect methods for calculation. It divides the cash flow into operating, investing, and financing activities.

Small businesses are allowed to keep their accounts using simplified milk book accounting, which records income, expenses, and financial status. This regulation aims to minimize administrative effort.

In Switzerland, small employers can use a simplified procedure to pay social insurance contributions annually instead of monthly, significantly reducing administrative effort. The application requires limits on salary amount and total, and offers tax advantages with a flat rate of 5%.