Bookkeeping for the self-employed in Switzerland: a practical guide

Check your accounting obligations first

A Swiss sole proprietor must keep records even with modest income. From CHF 500,000 turnover in the previous financial year, full accounting is required. Swiss LLCs and SAs need full accounts regardless of sales.

VAT follows separate rules. The general threshold is CHF 100,000 of relevant worldwide turnover from supplies that are not excluded from the scope of VAT, with specific rules on when liability begins. Voluntary registration may also be possible. A VAT-registered sole trader can therefore still qualify for simplified bookkeeping, provided the records support the VAT returns. See our Swiss VAT management service.

Your compensation office assesses self-employed status for social insurance purposes separately. Buying accounting software or registering a business does not itself establish that status. Our sole proprietorship service can help you prepare the practical steps.

Set up a filing system you can maintain

A dedicated business bank account makes it easier to separate transactions. This is an organisational recommendation, not a general requirement to buy a particular banking product.

Create folders for sales, purchases, banking, insurance and social contributions, contracts and year-end documents. Give each bookkeeping entry a reference that leads back to its invoice or receipt. For mixed expenses, record how the business share was determined.

A bank statement proves payment but does not always explain what was bought. Keep the detailed invoice and photograph receipts before they fade. The basic retention period is ten years after the end of the financial year, subject to longer periods for particular records. Documents must remain readable, complete, reliable and accessible. A cloud folder or timestamped scan alone does not establish compliance with all archiving requirements.

A worked example: income, expenses and owner’s drawings

For a small, straightforward activity, record the date, document reference, customer or supplier, description, category and amount. Keep business income, business expenses and private movements separate.

This monthly example uses receipts and payments for a business that is not VAT registered. It illustrates classification, not a complete taxable-income calculation.

Income less the listed expenses is CHF 4,810. With an opening bank balance of CHF 5,000, the closing balance is CHF 12,810: 5,000 + 5,400 − 590 + 3,000.

The CHF 5,000 contribution is not sales revenue. The CHF 2,000 withdrawal is not an expense. Personal social contributions, investments, depreciation and other adjustments require separate treatment under the applicable method. Use categories consistently: advertising and administration, for example, should not be mixed merely because both are operating costs.

Track assets, debts and unpaid invoices

Income and expense records must be supplemented by an inventory of the business’s financial position. At year-end, list bank and cash balances, customer invoices still unpaid, stock, equipment, supplier invoices and other debts.

Distinguish this inventory from the income calculation. If you use a receipts-and-payments method, automatically adding all unpaid customer invoices to the year’s income would mix methods.

Geneva’s published guide distinguishes invoicing-based accounting from receipts and payments. It requires consistency and prior tax-authority approval to move from the latter to the former. Prepare any change before altering your spreadsheet or software. The source below is the 2024 guide; use the instructions applicable to the tax period being filed.

Separate business expenses from private spending

An expense must be justified by the business. For a phone, car or premises used partly privately, document the allocation and private share under the relevant rules.

Long-term equipment is not necessarily deducted in full when paid for. It may need to be recorded as an asset and depreciated. There is no universal CHF 500 rule allowing every purchase below that amount to be expensed immediately in every situation.

As a sole proprietor, transferring a fixed amount to your personal account each month does not create a deductible salary. Record it as drawings. Keep social insurance decisions, instalment notices and final assessments, and deduct contributions in the appropriate place without counting the same amount twice.

Personal deductions are a separate part of your return. Our Geneva tax return service can help coordinate the business and private sections.

Build a bookkeeping, tax and social insurance calendar

Set aside regular time to enter documents and reconcile the bank. The right frequency depends on transaction volume. Investigate unexplained differences while the details are still easy to recover.

Review year-to-date earnings and the annual forecast each quarter. Ask the compensation office to adjust provisional contributions if the estimate is no longer realistic. The official self-employed contribution leaflet provides for quarterly instalments, payable within ten days after the quarter ends.

For VAT, follow the reporting frequency actually assigned to your business; it is not quarterly for everyone. The return deadline and the annual reconciliation are different obligations.

For a Geneva return, prepare the self-employment schedules, accounts and evidence required for the relevant tax year. Check the notified filing deadline and arrange an extension where necessary. Keep a cash reserve based on your expected tax and social contributions, updating it as earnings change rather than relying on a universal percentage.

Spreadsheet, accounting software or an accountant?

A spreadsheet can suit a very simple activity if records, checks and retention are properly organised. Multiple banks, high invoice volumes, stock, staff or mixed VAT treatments make it harder to maintain.

Assess tools against your actual workflow: invoicing, payments, VAT, supporting documents, exports and accountant access. Data portability matters if you later switch systems.

You can also share the work: issue invoices and send receipts yourself, while your accountant handles agreed checks and year-end work. If you plan to hire, budget for payroll administration as well as salary; our Swiss payroll service covers the practical support available.

Frequently asked questions