Accounting and bookkeeping are generally done by every business operating in any country, but in some jurisdictions, there is no obligation to present it to the government. Those jurisdictions are generally very lenient with regard to legal compliances.
Switzerland is one of those locations that believes in transparency from the business activities that the companies incorporated there are conducting. In Switzerland, it is mandatory by law to keep track of accounts and transactions.
Since January 1, 2015, new guidelines have been presented in regard to corporate accounting and bookkeeping. These should be obeyed by every one of the organizations concerned. Since that date, all organizations, legal entities, and sole proprietors are needed to keep accounts, regardless of whether they are not enrolled in the business register.
The new law came into power on January 1, 2013, and began being applied from January 1, 2015. Under the Code of Obligations, all organizations, lawful elements, and individual organizations are presently liable to bookkeeping.
So, if you are thinking of forming a company in Switzerland, you will be required to maintain your ledgers to show them to the government.
Accounting and Bookkeeping
Accounting and bookkeeping are two operations that are critical for each business association. In the least difficult of terms, accounting is liable for the record of monetary exchanges though bookkeeping is answerable for classifying, reporting, analyzing, interpreting, and summarizing the financial data.
Accounting and bookkeeping may seem, by all accounts, to be a similar calling to an undeveloped eye. This is on the grounds that both bookkeeping and accounting manage monetary information, require fundamental bookkeeping information, and characterize and produce reports utilizing the financial transactions.
Simultaneously, both these functions are intrinsically different and have their own arrangements of benefits. Learn more about the need for audit services in Switzerland on our blog.
Which companies are required to maintain books?
Each business owner who maintains a business needs to oversee it as indicated by certain business angles, and they are additionally liable for the accounting. All things considered, the organization should produce benefits and is run for revenue-driven purposes.
The entries in the business register are compulsory for a sole proprietorship with a yearly turnover of at any rate CHF 100,000, says the Commercial Register Ordinance in Article 36. In any case, this section in the business register doesn't influence the commitment to maintain accounts and records.
Read more about the types of companies in Switzerland, on our website to get a better idea about the same.
Commercial companies bookkeeping
The Code of Obligations characterizes common bookkeeping. It incorporates a stock, a total asset report, and a benefit and misfortune account.
In Switzerland, the types of organizations are needed to consent to the principles characterized in the Swiss Code of Obligations:
- Lawful substances (AGs, GmbHs, restricted organizations, cooperatives, foundations, and associations);
- Partnership and Individual Companies (group and restricted associations), which made sales of a minimum of CHF 500,000 in the last accounting year;
- Partnership and Individual companies whose turnover is less than CHF 500,000 should, at any rate, keep a simplified bookkeeping framework that only includes expenses, income, and net worth.
The commitment to keep up accounts specifically implies that stock, just as a total asset report and a profit and loss account with every single supporting record, should be arranged.
The records and reports related to the organization's accounting should be kept up for at any rate ten years. Special arrangements additionally apply to archives that are put away electronically or in a similar way.
Why Hire Consultants?
The accounting and bookkeeping obligations can prove to be quite a task at times. It is not recommended that you take on this liability on your shoulders without proper guidance. Professional consultants can help you maintain accounts in a smooth and efficient manner. Some of the benefits of a consultant are:
- Specialists are knowledgeable with the bookkeeping interaction of a particular locale
- They hold better and superior information about the main subjects
- They can perform as a business guide
- Assist you in building a sound financial plan
- Better use of the accessible time and resources
At Business Setup Worldwide, we deal with the essentials that a company requires to grow and flourish further. We provide customized business solutions to help you in the best way.
Directly from coastal and seaward organization fuse to the arranging of the business books, dealing with intellectual properties and so forth our specialists make the essential calls subsequent to understanding the business prerequisites.
They are knowledgeable about the bookkeeping cycle and can help you in arranging your business books. Contact us today to get started with the best business services.