Swiss accounting plan for SMEs : Explanations and examples of general ledger
The Swiss accounting plan is an organized list that includes the elements necessary for recording the accounting operations carried out by a company.
How does the Swiss accounting plan work ? Is there an example or a model of this accounting plan?
Our accounting team tell you everything about the accounting plan in this article. You will also find a model of the Swiss accounting plan at the end of this article. If you want to do your own accounting, this article is for you !
Accounting plan for SMEs in Switzerland : understanding everything
What is an accounting plan (general ledger) ?
The accounting plan, which is sometimes called general ledger (or GL), is the organized list of all accounting accounts. In accounting, the accounting plan is used to classify and organize transactions into very specific categories. It is sometimes referred to as general ledger.
The obligation to keep accounts means an obligation to use an accounting plan. This accounting plan is normally standardized but can be modified with the aim of improving the understanding of the accounts.
It is one of the most important elements of a company’s accounting. Accountants cannot do accounting without an accounting plan. If one dares to make the comparison, it is as important as the skeleton is for a human being.
Accounting plan of an SME (LLC or Corporation)
An accounting plan can be summarized as a simple table with two columns (see our accounting plan example below).
Its objective is simple: to record the accounting-related activities of the company in very specific accounts. For each type of expense, income, or activity within the company, there is a specific account in the accounting. Each transaction of the company is recorded in accounting accounts that together form the accounting plan.
It is possible to categorize the different accounts of a company’s accounting into 4 main categories :
- Assets : these are elements of the company’s assets (bank accounts, inventories, fixed assets such as machines and related depreciation, participations in other companies)
- Liabilities : these are mainly the company’s debts, to its suppliers, but also bank debts, loans, or debts to shareholders or social insurance, for example
- Revenues : these are all the sales of goods or services that the company performs during its activity. Sometimes this is also referred to as turnover.
- Expenses : whether variable or fixed, expenses are the costs incurred by the company during its activity. This can include the purchase of equipment, personnel expenses, transport, advertising, or legal fees, for example.
These 4 main categories then allow for the presentation of the company’s annual accounts.
They consist of the balance sheet (assets and liabilities), the income statement (revenues and expenses), which is sometimes also called the profit and loss account, the notes (explanations of the items in the balance sheet and income statement), and sometimes the cash flow statement.
Specifics of the Swiss accounting plan
First of all, it’s important to note that Swiss companies are free to choose the format of their accounting plan. Unlike other countries like France, which has its General Accounting Plan (PCG), there is no obligation to follow an accounting plan defined at the federal or cantonal level.
However, be careful: once your accounting plan is chosen, it is complicated to change it. This is why it is important for a company to choose it wisely to avoid future inconveniences.
Although there is no single model of Swiss accounting plan, there is however a standard accounting plan that adapts to almost all Limited Liabilities Companies (LLCs) and Corporations. It consists of a list of accounts that allows for keeping the company’s accounting, whether it is simplified or complex.
The advantage of this plan is that it is easily customizable: it is easy to add accounts in order to be more precise in the maintenance of its accounting. It also allows, due to its flexibility, to be a powerful ally during more advanced financial analyses (financial evaluation, business plan, ratio, analytical accounting).
The Swiss accounting plan perfectly meets the needs of large companies, SMEs, but is also suitable for freelance and self-employed.
The importance of the accounting plan in a company’s accounting
But then, why is the accounting plan so important for small or medium-sized enterprises in Switzerland?
The Swiss SME accounting plan is important because it allows for structuring the accounting of your company.
Accounting for a company in Switzerland
For Swiss companies, the obligation to keep accounting records is discussed in Article 957 of the Code of Obligations (CO). All companies must keep accounting records, regardless of their size or legal form (including branches). The accounting of a company must respect certain principles to present its economic situation so that third parties can form a well-founded opinion.
Swiss law highlights five key principles related to regular accounting maintenance :
- The complete, faithful, and systematic recording of transactions : this means that all operations must be recorded chronologically in a journal. No entry should be falsified, and the accounting must be kept on a double-entry basis, the famous debit and credit, respecting a logical structure, the famous accounting plan !
- The justification of entries by accounting documents : each entry must be documented and based on an accounting document. The key information includes the date, the amount, the name of the issuer of the invoice (supplier or client), and a precise description.
- Clarity : this principle may seem vague, but it is easily understood. An accountant or chartered accountant must be able to understand a company’s accounting without difficulty. It must be clear, intelligible, and explicit for the reader of the annual accounts and financial statements.
- Adapted to the company : keeping accounting records does not require the same complexity and level of demand between, for example, a carpenter and a multinational listed on the stock exchange. The books and the accounting plan must be adapted to the company.
- The traceability of accounting records : it is absolutely necessary to be able to trace back to the origin of each transaction recorded in the accounting. This is important, especially during controls such as audits or VAT inspections.
Simplified accounting maintenance
The rules mentioned above normally apply to all companies. However, there are some provisions that allow for simplified accounting maintenance. These exceptions specifically apply to:
- Individual enterprises and partnerships with a turnover of less than 500,000 Swiss Francs (approximately $600,000 USD)
- Associations and foundations not registered in the Commercial Register
- Foundations that are exempt from the obligation to audit
In these specific cases, maintaining simplified accounting is possible. This involves accounting for receipts and expenditures. The entrepreneur must also supplement these elements with an accounting of assets (assets and liabilities).
Despite the fact that this accounting is simplified, it must still respect the principles previously stated, particularly regularity, clarity, and the justification of each entry. And this is where the accounting plan becomes very important.
Questions and answers about the accounting plan in Switzerland
What is an accounting plan ?
An accounting plan is a set of rules and codes that define the accounts to be used to record a company’s financial transactions. It allows for the classification of accounts into categories that reflect the nature of the company’s activity.
Why is it important to use an accounting plan ?
Using an accounting plan ensures that the company’s accounts are correctly recorded and classified, which facilitates the preparation of financial statements and understanding the company’s financial performance. It also ensures that financial transactions comply with the applicable accounting standards.
Are there different types of accounting plans ?
Yes, there are different types of accounting plans that vary according to countries and sectors of activity.
Who is responsible for implementing and maintaining an accounting plan ?
The implementation and maintenance of an accounting plan are generally ensured by an accountant or a fiduciary. It is also important for the company’s leaders to be informed and involved in the implementation and maintenance of an accounting plan.
How can an accounting plan be used to improve a company’s financial performance ?
A well-designed and well-implemented accounting plan can help a company better understand and improve its financial performance by providing detailed information on the company’s accounts. It also allows for the establishment of financial indicators such as profitability ratios to track and improve the company’s performance
Example and complete accounting plan model for SMEs
You will find below a complete Swiss accounting plan model that you can use for the accounting of your small or medium-sized business.
Remember that your fiduciary, Karpeo, can assist you in maintaining your company’s accounting. Do not hesitate to contact us for more information.
Complete Swiss accounting plan model for an SME
| Account number | Account description | Type |
|---|---|---|
| 1 | Assets | Asset |
| 10 | Current assets | Asset |
| 100 | Cash | Asset |
| 1000 | Cash on hand | Asset |
| 1020 | Bank | Asset |
| 106 | Short-term marketable securities | Asset |
| 1060 | Securities | Asset |
| 1069 | Adjustment of securities value | Asset |
| 110 | Receivables from deliveries and services | Asset |
| 1100 | Receivables from deliveries and services | Asset |
| 1109 | Allowance for doubtful accounts | Asset |
| 1110 | Receivables from deliveries and services to group companies | Asset |
| 114 | Other short-term receivables | Asset |
| 1140 | Advances and loans | Asset |
| 1149 | Adjustment of advances and loans value | Asset |
| 1170 | Input tax: VAT on materials, goods, services, and energy | Asset |
| 1171 | Input tax: VAT on investments and other operating expenses | Asset |
| 1176 | Withholding tax | Asset |
| 1180 | Receivables from social insurances and provident institutions | Asset |
| 1189 | Source tax | Asset |
| 1190 | Other short-term receivables | Asset |
| 1199 | Adjustment of short-term receivables value | Asset |
| 120 | Inventories and unbilled services | Asset |
| 1200 | Commercial goods | Asset |
| 1210 | Raw materials | Asset |
| 1220 | Auxiliary materials | Asset |
| 1230 | Consumables | Asset |
| 1250 | Consignment goods | Asset |
| 1260 | Finished goods inventories | Asset |
| 1280 | Work in progress | Asset |
| 130 | Active accruals | Asset |
| 1300 | Prepaid expenses | Asset |
| 1301 | Accrued income | Asset |
| 14 | Fixed assets | Asset |
| 140 | Financial fixed assets | Asset |
| 1400 | Long-term securities | Asset |
| 1409 | Adjustment of long-term securities value | Asset |
| 1440 | Loans | Asset |
| 1441 | Mortgages | Asset |
| 1449 | Adjustment of long-term receivables value | Asset |
| 148 | Investments | Asset |
| 1480 | Investments | Asset |
| 1489 | Adjustment of investments value | Asset |
| 150 | Tangible fixed assets | Asset |
| 1500 | Machinery and equipment | Asset |
| 1509 | Adjustment of machinery and equipment value | Asset |
| 1510 | Furniture and fixtures | Asset |
| 1519 | Adjustment of furniture and fixtures value | Asset |
| 1520 | Office machines, IT, communication systems | Asset |
| 1529 | Adjustment of office machines, IT, and comm. systems value | Asset |
| 1530 | Vehicles | Asset |
| 1539 | Adjustment of vehicles value | Asset |
| 1540 | Tools and devices | Asset |
| 1549 | Adjustment of tools and devices value | Asset |
| 160 | Real estate | Asset |
| 1600 | Operating buildings | Asset |
| 1609 | Adjustment of operating buildings value | Asset |
| 170 | Intangible fixed assets | Asset |
| 1700 | Patents, know-how, licenses, rights, development | Asset |
| 1709 | Adjustment of patents, know-how, licenses, rights, development value | Asset |
| 1770 | Goodwill | Asset |
| 1779 | Adjustment of goodwill value | Asset |
| 180 | Unpaid capital: share capital, foundation capital | Asset |
| 1850 | Unpaid share capital, share capital, participation rights, or foundation capital | Asset |
| 2 | Liabilities | Liability |
| 20 | Short-term liabilities | Liability |
| 200 | Short-term trade payables | Liability |
| 2000 | Trade payables (creditors) | Liability |
| 2030 | Customer prepayments | Liability |
| 2050 | Trade payables to group companies | Liability |
| 210 | Interest-bearing short-term liabilities | Liability |
| 2100 | Bank loans | Liability |
| 2120 | Leasing obligations | Liability |
| 2140 | Other interest-bearing short-term liabilities | Liability |
| 220 | Other short-term liabilities | Liability |
| 2200 | VAT payable | Liability |
| 2201 | VAT settlement | Liability |
| 2206 | Withholding tax payable | Liability |
| 2208 | Direct taxes | Liability |
| 2210 | Other short-term liabilities | Liability |
| 2261 | Dividends | Liability |
| 2270 | Social insurances and provident institutions | Liability |
| 2279 | Source tax | Liability |
| 230 | Accrued liabilities and short-term provisions | Liability |
| 2300 | Accrued expenses | Liability |
| 2301 | Deferred income | Liability |
| 2330 | Short-term provisions | Liability |
| 24 | Long-term liabilities | Liability |
| 240 | Interest-bearing long-term liabilities | Liability |
| 2400 | Bank loans | Liability |
| 2420 | Leasing obligations | Liability |
| 2430 | Bond loans | Liability |
| 2450 | Loans | Liability |
| 2451 | Mortgages | Liability |
| 250 | Other long-term liabilities | Liability |
| 2500 | Other long-term liabilities | Liability |
| 260 | Long-term provisions and legal reserves | Liability |
| 2600 | Provisions | Liability |
| 28 | Equity (corporations) | Liability |
| 280 | Share capital or foundation capital | Liability |
| 2800 | Share capital, share capital, foundation capital | Liability |
| 290 | Reserves / profit and loss | Liability |
| 2900 | Legal reserves from capital | Liability |
| 2930 | Reserves from own equity participation | Liability |
| 2940 | Valuation reserves | Liability |
| 2950 | Legal reserves from profit | Liability |
| 2960 | Free reserves | Liability |
| 2970 | Carried forward profit / loss | Liability |
| 2979 | Profit / loss for the year | Liability |
| 2980 | Own shares, participations, rights (negative item) | Liability |
| 28 | Equity (for sole proprietorships) | Liability |
| 2800 | Equity at the beginning of the year | Liability |
| 2820 | Capital contributions / withdrawals | Liability |
| 2850 | Private account | Liability |
| 2891 | Profit / loss for the year | Liability |
| 3 | Sales revenue from sales and services | Revenue |
| 3000 | Sales of manufactured products | Revenue |
| 3200 | Sales of goods | Revenue |
| 3400 | Sales of services | Revenue |
| 3600 | Other sales and services | Revenue |
| 3700 | Own services | Revenue |
| 3710 | Own consumption | Revenue |
| 3800 | Sales deductions | Expense |
| 3805 | Losses on receivables, change in allowance for doubtful accounts | Expense |
| 3900 | Change in semi-finished goods inventories | Revenue/Expense |
| 3901 | Change in finished goods inventories | Revenue/Expense |
| 3940 | Change in value of unbilled services | Revenue/Expense |
| 4 | Material, goods, and third-party services expenses | Expense |
| 4000 | Material purchases | Expense |
| 4200 | Goods purchases | Expense |
| 4400 | Third-party services / works | Expense |
| 4500 | Operational energy expenses | Expense |
| 4900 | Deductions on expenses | Revenue |
| 5 | Personnel expenses | Expense |
| 5000 | Salaries | Expense |
| 5700 | Social charges | Expense |
| 5800 | Other personnel expenses | Expense |
| 5900 | Temporary personnel expenses | Expense |
| 6 | Other operating expenses, depreciation, financial result | Expense |
| 6000 | Premises expenses | Expense |
| 6100 | Maintenance, repairs, and replacement of operating facilities | Expense |
| 6105 | Leasing of tangible fixed assets | Expense |
| 6200 | Vehicle and transport expenses | Expense |
| 6260 | Leasing and rental of vehicles | Expense |
| 6300 | Insurance, duties, taxes, permits | Expense |
| 6400 | Energy and waste disposal expenses | Expense |
| 6500 | Administrative expenses | Expense |
| 6570 | IT charges and leasing | Expense |
| 6600 | Advertising and marketing | Expense |
| 6700 | Other operating expenses | Expense |
| 6800 | Depreciation and value adjustment on tangible fixed assets | Expense |
| 6900 | Financial expenses | Expense |
| 6950 | Financial income | Revenue/Expense |
| 7 | Income from ancillary activities | Revenue / Expense |
| 7000 | Incidental income | Revenue |
| 7010 | Incidental expenses | Expense |
| 7500 | Income from operational buildings | Revenue |
| 7510 | Expenses for operational buildings | Expense |
| 8 | Extraordinary and non-operational results | Revenue / Expense |
| 8000 | Non-operational expenses | Expense |
| 8100 | Non-operational income | Revenue |
| 8500 | Extraordinary, exceptional, or out-of-period expenses | Expense |
| 8510 | Extraordinary, exceptional, or out-of-period income | Revenue |
| 8900 | Direct taxes | Expense |
| 9 | Closing | Closing |
| 9200 | Profit / loss for the year | Revenue/Expense |
