Bookkeeping sounds like binders and headaches - yet for most sole proprietorships in Switzerland it is surprisingly simple. Anyone who stays below CHF 500'000 in revenue may keep heavily simplified accounting. All that matters is that you stay organised from the start.
This article shows you which accounting duties apply to your sole proprietorship, how long you have to keep receipts, from when VAT kicks in - and which tools take the work off your hands. As of: 2026.
Which accounting duty applies?
The Swiss Code of Obligations (CO) distinguishes by revenue:
Below CHF 500'000 in revenue
You only need to keep records of income, expenses and financial position - so-called cash-based accounting. No double-entry bookkeeping and no balance sheet in the classic sense required.
From CHF 500'000 in revenue
Above this threshold, ordinary accounting applies: double-entry bookkeeping with a balance sheet and income statement. From that point at the latest, accounting software or a fiduciary/accountant is worthwhile.
Simplified accounting must also be complete and truthful. "Simplified" does not mean "incomplete": every item of income and every expense must be recorded and backed by a receipt.
Simplified accounting: what belongs in it
For most sole proprietorships, three components are enough:
- Income: all business revenue, ideally traceable with an invoice number and date.
- Expenses: all business-related costs (materials, software, rent, insurance, travel costs).
- Financial position: bank balances, outstanding receivables (invoices not yet paid) and outstanding liabilities at year-end.
In practice, a clean Excel spreadsheet or simple accounting software is often enough. What matters is that the figures match your business account and are traceable at all times.
Record income and expenses on an ongoing basis - ideally weekly, not just in December. Anyone who collects 12 months of paperwork and then processes it all at once makes mistakes and loses track of their liquidity.
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Clean invoices as a foundation
Proper bookkeeping starts with correct invoices. Our invoice template contains all mandatory details and a QR-bill-compatible layout - so your income figures are right from the start.
Receipts and the retention duty
No receipt, no entry - that is the golden rule. Every item of income and every expense needs proof (invoice, receipt, bank statement).
Retention period
Accounting records, receipts and business correspondence must be kept for 10 years. Electronic retention is permitted as long as the documents are archived in a legible, complete and unalterable form. A simple, clearly named folder structure (digital or physical) is enough.
Keep private and business matters strictly separate. Private purchases do not belong in your business accounts - and business expenses do not belong on your private account. A clean separation protects you in the event of a tax audit.
Don't forget VAT and social contributions
Value Added Tax (VAT)
Below CHF 100'000 you are exempt. With voluntary or mandatory registration, you must show VAT on invoices and account for it periodically with the FTA. Never count VAT as your own money - it belongs to the state.
AHV/IV/EO social contributions for the self-employed
As a self-employed person, you pay your social contributions yourself to the compensation office. Set aside provisions for this on an ongoing basis - just like for taxes - otherwise you risk a nasty surprise at year-end.
Do it yourself or hire a fiduciary/accountant?
Both are possible - it depends on volume and complexity:
Doing it yourself
With a simple activity, no employees and below the VAT threshold, you can easily keep the books yourself. A structured Excel template or affordable accounting software is enough. This saves money and gives you the best overview of your business.
Bringing in a fiduciary/accountant
As soon as VAT, employees, higher revenue or year-end accounts with a balance sheet come into play, a fiduciary/accountant is worthwhile. They cost money, but they save time and prevent expensive mistakes. Many founders start on their own and bring in support later.
Even if you keep the books yourself: have your first year-end accounts reviewed once by a fiduciary/accountant. That way you know whether your system is sound - and can then confidently carry on yourself.
Common mistakes
- Mixing private and business: the classic one - it makes bookkeeping needlessly complicated.
- Losing receipts: without a receipt, the expense is not tax-deductible.
- Treating VAT as income: the VAT you collect is not yours - set aside provisions.
- Forgetting taxes and AHV: put money aside on an ongoing basis, not just when the bill arrives.
- Only booking in December: leads to mistakes and stress. Better to record as you go.
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Invoice Template Switzerland - CHF 39
Word/Excel template with all mandatory details, VAT logic and a QR-bill-compatible layout - the clean foundation for your bookkeeping. Buy once, use for all your clients.
Frequently asked questions
Does a sole proprietorship have to keep double-entry bookkeeping?
Only from CHF 500'000 in revenue. Below that, simplified accounting covering income, expenses and financial position is enough (CO Art. 957 para. 2).
How long do I have to keep receipts?
10 years. Electronic retention is permitted, provided the documents are legible and unalterable.
From when do I have to account for VAT?
From CHF 100'000 in annual revenue. Standard rate 2026: 8.1%. Below that, voluntary registration is possible.
Do I need a fiduciary/accountant?
Not necessarily. With a simple activity, a good template or software is enough. A fiduciary/accountant becomes worthwhile with VAT, employees or more complex year-end accounts.
Sources
- Code of Obligations (accounting, Art. 957ff): Fedlex - CO
- Federal SME Portal (accounting): kmu.admin.ch - Accounting
- VAT & tax rates: FTA - Value Added Tax