Why is Accounting and Bookkeeping Necessary in Switzerland

Accounting and Bookkeeping Necessary in Switzerland

The concept of company incorporation is an integral part of your success.

However, do you know that incorporating a company and dealing with customers and sellers will not give you your desired profit?

Are you wondering why? Well, let me answer your query.

Recording and analyzing the business numbers are what you need to focus on to grow your profits.

Switzerland is one of the growing economies of the world that grabs the attention of business investors. If you have recently incorporated your business in Switzerland, then this guide is for you.

Why Are Accounting and Bookkeeping?

Irrespective of the size, every business entity occurs cost even before the business entity gets established.

Right from hiring the right staff to managing the daily expenses and carry out the business operations, every step requires finance to perform the activities smoothly.

Accounting and bookkeeping are the two grounds that any business entrepreneur or investor cannot avoid implementing the same business entity.

Many times, it seems the same; however, there is a difference that exists.

Recording business transactions is called bookkeeping.

Analyzing, summarising and segmenting the recorded data to fetch out more insights and utilizing the numbers to strategize to increase business numbers is called accounting.

Why Business Need Accounting and Bookkeeping?

Business entities require accounting and bookkeeping for the following reasons:

  • Manage a track record of the business transactions
  • Predict the business growth
  • Calculate the profits and losses instantly
  • Data-driven business decisions
  • Understand the mediums of cash in-flow and out-flow
  • Helpful to deal with the taxation process at the end of the financial year
  • Create a feasible financial budget

Swiss Financial Framework

Switzerland is not a member of the European Union, and thus, accounting and bookkeeping are not subjected to the EU International Accounting Standards.

After setting up a business in Switzerland, most business investors prefer to proceed with a professional expert to avoid accounting issues or snags.

When a company gets registered with the Commercial Register of Switzerland, the business entity must comply with the following rules:

  • The book of accounts are to be maintained according to the Swiss Code of Obligations
  • The company’s profit and losses statement is to be maintained
  • An annual statement is to be maintained to evaluate the company’s assets
  • The internal audit process is to be carried out if the following criteria are met:
    • The internal staff count is more than 50 employees
    • The annual company turnover exceeds CHF20m
    • The total balance sheet is more than CHF50m
  • The small business entities are obliged to the tax authorities if required

How to Avail Accounting and Bookkeeping Services in a Swiss Business?

Proceeding with the professional services turns out to be a great saviour. To avail, one should follow the below steps:

  • Get in touch with a professional consultant
  • Get clarity regarding the steps to be taken and streamline the process
  • Submit the essential company papers and provide access to the company books
  • Understand the complete process of how things will be carried forward
  • Analyze the books once completed

This is the generic process that one has to follow to avail the professional accounting services from an expert.

Maintaining the accounting books properly will not only help you to grow your profits but also get a clear way when it comes to taxation.

Now, since you have got an idea regarding the core steps that are to be followed, and also the benefits that you can get, what are you waiting for?

Wondering how to start? It is recommended to hire professional and certified business experts who can guide you according to the selected tax-haven jurisdiction rules.

Why Hire Experts?

Opting for professional services turns out to be a saviour for the following reasons:

  • Experts are well-versed with the accounting process of a specific jurisdiction
  • They hold a better knowledge on the practical grounds
  • Can act as a business guide
  • Assist in building the financial plan
  • Better utilization of the available time and resources

At Business Setup Worldwide, we take care of the core company essentials and help the business investors to sort the processes at ease.

Right from onshore and offshore company incorporation to the sorting of the business books, taking care of the intellectual properties etc. our experts take the necessary calls after understanding the business requirements.

They are well-versed with the accounting process and can assist you in sorting your business books hassle-free.

If you plan to take it forward, feel free to have a word with our business advisors.

Contact us today-we’d be glad to assist!