Accounting in Switzerland is governed by the Code of Obligations (art. 957 ss CO), which sets rules that vary with a company’s size. Below CHF 500,000 in annual revenue, simplified accounting is allowed; above it, double-entry bookkeeping becomes mandatory. Larger companies must produce a balance sheet, an income statement and notes, and undergo an audit once they cross defined thresholds. My Swiss Company AG (Lucerne) / SA (Geneva) has handled Swiss accounting for international companies since 1989, across Geneva, Lucerne and Zug.
Contents
- The legal framework: the Code of Obligations
- Accounting obligations by company size
- Swiss accounting standards
- Ordinary audit, limited audit and opting-out
- Key accounting and tax deadlines
- Accounting services for companies in Switzerland
- How much does accounting cost in Switzerland?
- Accounting for foreign companies
- Choosing an accounting partner in Switzerland
- FAQ
The legal framework: the Code of Obligations
Accounting in Switzerland is regulated by the Code of Obligations (CO), which imposes rules based on the size and nature of the company. Articles 957 to 963b CO define who must keep accounts, what financial statements must contain and how long records must be retained (ten years).
The principle is proportional: the smallest structures keep simple records, while companies above certain thresholds face full financial-statement and audit obligations. This framework applies identically across all cantons — Geneva, Lucerne, Zug or elsewhere — because it is federal law.
Accounting obligations by company size
Swiss accounting obligations scale with turnover and headcount. In short: sole proprietors and micro-businesses keep light records, capital companies keep full double-entry books, and large companies add a statutory audit.
Small businesses and sole proprietors
- If annual revenue is below CHF 500,000, simplified accounting is accepted (tracking of income, expenses and asset position — the “milk-book” accounting of art. 957 al. 2 CO).
- Double-entry bookkeeping becomes mandatory once this threshold is exceeded.
SMEs and large companies
- Obligation to prepare a balance sheet, an income statement and notes to the financial statements (art. 958 ss CO).
- A company (SA/AG or Sàrl/GmbH) must undergo an ordinary audit when it exceeds two of the following three criteria in two consecutive financial years:
- balance sheet total above CHF 20 million;
- revenue above CHF 40 million;
- more than 250 full-time employees on annual average.
Important
These thresholds trigger the audit regime, not the bookkeeping obligation. Any SA/AG or Sàrl/GmbH keeps full double-entry accounts from day one, regardless of turnover — the CHF 500,000 exemption only applies to sole proprietorships and partnerships.
Swiss accounting standards
Companies can choose from several accounting standards based on their activity and level of complexity. The right choice depends on who reads the accounts — tax authorities, banks, investors or a foreign parent company.
Code of Obligations (CO)
- Used by most SMEs and the default statutory basis.
- Sets the minimum rules for financial-statement preparation and valuation.
Swiss GAAP FER (Swiss GAAP RPC)
- Suitable for SMEs, non-listed companies, foundations and pension funds.
- Provides clearer, more transparent financial reporting than the CO minimum — often requested by banks and investors.
IFRS (International Financial Reporting Standards)
- Adopted by publicly traded companies and groups with international reporting needs.
- Facilitates comparability of financial statements across borders.
US GAAP
- Used by some international companies with activities or a parent company in the United States.
Ordinary audit, limited audit and opting-out
Beyond the ordinary-audit thresholds, most Swiss SMEs fall under a lighter regime. Swiss law distinguishes three situations, defined in articles 727 and 727a CO.
- Ordinary audit (art. 727 CO): mandatory for companies above the size thresholds above, and for listed companies.
- Limited audit (art. 727a CO): the default regime for SMEs that stay below those thresholds — a lighter review of the financial statements.
- Opting-out: a company with no more than 10 full-time employees on annual average may waive the limited audit entirely, with the consent of all shareholders.
Advice from My Swiss Company
Opting-out reduces cost but is not always in your interest: banks, investors and a foreign parent company often value an audited or reviewed set of accounts. We assess, case by case, whether keeping a limited audit strengthens your credibility with third parties.
Key accounting and tax deadlines
Swiss accounting runs on a fixed compliance calendar. Missing a deadline exposes the company to interest and, for VAT, to estimated assessments. The essentials are as follows.
- Annual financial statements: prepared after year-end and approved by the general meeting within six months of the close of the financial year (art. 699 CO for an SA/AG).
- VAT: quarterly returns under the effective method, with an annual reconciliation (“finalisation”) due by the end of the following year’s reporting; the net-tax-rate method allows half-yearly returns.
- Corporate income tax: an annual return filed with the cantonal administration, with deadlines and extensions that vary by canton.
- Social security and payroll: monthly or quarterly AVS/AHV contributions and annual salary certificates.
Accounting services for companies in Switzerland
A Swiss corporate services provider covers the full accounting cycle so that management can focus on the business. For local and international companies, the core services are the following.
- Bookkeeping in compliance with the Code of Obligations, with year-end closing and financial statements.
- Tax: preparation of corporate tax returns, tax planning and assistance during tax reviews.
- VAT: registration, quarterly returns and, for foreign companies, fiscal representation.
- Payroll: payslips, social-security and insurance contributions, salary certificates.
- Audit support and certification: coordination of the ordinary or limited audit.
- Registered address and domiciliation: legal address and management of official correspondence.
My Swiss Company delivers these through a single dedicated contact, and gives clients real-time access to their accounts through an online ERP platform and digital vault — a decisive advantage for executives managing a Swiss company from abroad.
How much does accounting cost in Switzerland?
Accounting fees in Switzerland depend on your legal form, transaction volume, payroll and VAT status. As a guide, the published rates of the My Swiss Company group are as follows.
| Service | Indicative rate (CHF) |
|---|---|
| SME bookkeeping (flat monthly fee) | from 250 / month (small), ~500 / month (standard), 1,500 / month (high volume) |
| Time-spent basis | 150–250 / hour |
| Annual financial statements (Sàrl/GmbH closing) | 800–2,500 |
| Payroll | 25–100 / employee / month |
| VAT representation & returns (foreign company) | from 3,000 / year |
| Registered address / domiciliation | 1,000–4,000 / year |
Source: published My Swiss Company group rates. A precise quote is issued after reviewing your file.
Transparency is deliberate: most providers publish no rates at all. We prefer to give a clear range up front, then a firm quote once we have seen your volumes.
Accounting for foreign companies
Switzerland attracts many international companies for its stable, competitive environment and its access to European markets. For a foreign group, sound Swiss accounting is inseparable from a few structural requirements.
- Genuine economic substance: an effective seat, local governance and documented decisions — without which the structure is fragile before banks and tax authorities.
- Resident director: at least one representative resident in Switzerland (art. 718 CO for an SA/AG, art. 814 CO for a Sàrl/GmbH).
- VAT fiscal representation: a Swiss representative is required once the company is liable for Swiss VAT.
My Swiss Company supports foreign executives who manage their Swiss subsidiary or company from abroad, handling the entire accounting and administrative relationship in English. As a corporate services provider in Switzerland, we combine bookkeeping, tax, VAT and payroll under one roof, from our offices in Geneva, Lucerne and Zug.
Choosing an accounting partner in Switzerland
The accounting profession as such is not licensed in Switzerland, so the quality of your provider matters more than any single title. When you compare firms, weigh four criteria.
- Track record with international clients: cross-border tax, double-taxation treaties and multi-jurisdiction reporting are a different discipline from local SME bookkeeping.
- Language and responsiveness: an English-speaking team and a single dedicated contact avoid the friction of coordinating several local providers.
- Scope under one roof: accounting, tax, VAT, payroll, domiciliation and governance handled together keep your file coherent.
- Tooling: real-time access to your accounts through an online platform is decisive when you steer the company from abroad.
My Swiss Company has met these criteria since 1989: a corporate services provider covering Geneva, Lucerne and Zug, serving clients from more than 20 countries, with a 4.7/5 client rating. Our approach is documented in our case studies.
FAQ: accounting in Switzerland
Is bookkeeping mandatory for every company in Switzerland?
Yes for capital companies. Any SA/AG or Sàrl/GmbH must keep full double-entry accounts from incorporation, regardless of turnover. Sole proprietors and partnerships can keep simplified accounting (income, expenses, assets) as long as annual revenue stays below CHF 500,000; above that, double-entry bookkeeping becomes mandatory under art. 957 CO.
Which accounting standards apply in Switzerland?
The Code of Obligations (art. 957 ss CO) is the statutory minimum and covers most SMEs. Companies needing clearer reporting can apply Swiss GAAP FER; listed companies and international groups use IFRS; some US-linked companies use US GAAP. The choice depends on who reads the accounts — tax authorities, banks, investors or a foreign parent.
When is a statutory audit required?
An ordinary audit is mandatory when a company exceeds two of these three thresholds in two consecutive years: a balance sheet above CHF 20 million, revenue above CHF 40 million, or more than 250 full-time employees. Below that, SMEs fall under a limited audit, and a company with 10 or fewer employees may opt out entirely with the consent of all shareholders.
How much does accounting cost in Switzerland?
For SME bookkeeping, expect flat fees from around CHF 250 per month depending on volume, or CHF 150–250 per hour. Annual financial statements for a Sàrl/GmbH typically fall between CHF 800 and CHF 2,500, payroll runs at CHF 25–100 per employee per month, and VAT representation for a foreign company starts around CHF 3,000 per year. The final fee depends on your legal form, entries, payroll and VAT status.
Can I have my Swiss accounting handled in English, from abroad?
Yes. My Swiss Company AG works with international executives and manages the full accounting relationship in English — bookkeeping, closing, VAT and payroll — with real-time access through an online platform. The company must nonetheless maintain genuine economic substance in Switzerland, including a resident director.
How long must accounting records be kept in Switzerland?
Ten years. Under art. 958f CO, the books, accounting vouchers, the annual report and the audit report must be retained for ten years from the end of the financial year, in a form that can be reproduced at any time.
Sources
Conclusion
Accounting in Switzerland rests on a clear, proportional framework: light records for the smallest structures, full double-entry books and financial statements for companies, and an audit once size thresholds are crossed. Choosing the right standard — CO, Swiss GAAP FER, IFRS or US GAAP — and keeping compliant accounts is what protects a company before banks and tax authorities. My Swiss Company AG (Lucerne) / SA (Geneva), a corporate services provider active since 1989 across Geneva, Lucerne and Zug for clients from 20+ countries, handles the full accounting cycle in English for local and international companies. Talk to our team for a precise quote after review of your file.
