Accounting

Swiss SMEs often use auditors for questions on accounting and taxes; the regulations on independence are more relaxed for limited audits. The type of audit depends on the balance sheet total and turnover, and determines whether an audit expert or auditor is needed.

In Switzerland, companies must provide an audited annual financial statement depending on their legal form and size; large companies require a statutory audit. This ensures high trust among stakeholders and is considered a seal of quality.

Outsourcing payroll accounting relieves SMEs and allows focus on main tasks. External service providers take over payroll accounting and communication with authorities.

The audit office must be independent; in case of self-review risk, organizational measures are necessary (Art. 729 Para. 2 CO). Clear separation of accounting and auditing required.

Companies record their expenses and revenues in expense and income accounts to determine profit or loss. Success depends on the industry and business cases; a uniform chart of accounts does not exist.

The income statement compares expenses and revenues of a company, resulting in profit or loss. It is part of accounting and shows operational results.

Business transactions are recorded in active and passive accounts, which capture the ongoing changes in assets and liabilities. The balance sheet, as a snapshot, shows all assets and liabilities, summarized in activated and passivized balance sheet items.

The balance sheet provides insight into the assets and liabilities of a company in order to present its financial position. Assets show how the capital is invested, while liabilities reveal the source of the capital.

Depreciation is only recognized for tax purposes if it is business-related and properly recorded. Tax authorities provide guidelines for depreciation rates to standardize.