The Swiss Chart of Accounts

The Swiss Chart of Accounts is an organized and vital model that standardizes the recording and reporting of financial transactions for companies operating in Switzerland. Designed to align with both local regulations and international accounting standards, this system enables all companies, regardless of their scale, to maintain transparency and uniformity in their financial management. Continuously adapted to meet changes in business practices and legislation, it plays a fundamental role in financial transparency and corporate responsibility in the Swiss economic landscape.

Article 957 of the Swiss Code of Obligations requires all companies, including subsidiaries, to ensure proper bookkeeping. This legal provision aims to ensure that companies’ financial statements transparently reflect their economic situation, thus providing a solid basis for stakeholders such as investors, creditors, and regulatory bodies to assess the financial health of the company.

Adherence to universally recognized accounting principles is paramount. These principles ensure that accounting is conducted regularly and in accordance with established standards, thus providing an accurate and fair reflection of the financial performance and economic situation of the company. This includes the accuracy, completeness, and comparability of financial information, enabling consistent and reliable analysis by all stakeholders.

More than just a compliance measure, rigorous accounting is also a key tool for internal management. It allows directors and Board Members to track the progress of their activities, strategically plan, and make informed decisions. In short, accounting in Switzerland is an essential component of transparency and corporate governance, contributing to the stability and credibility of the Swiss economic market.

Accounting management in Switzerland is regulated by the Swiss Code of Obligations, which defines several essential principles to ensure clear, transparent, and reliable accounting. These principles aim to ensure that accounting provides a faithful and fair representation of the financial situation of the company, thus enabling managers, investors, creditors, and other stakeholders to make decisions based on accurate and trustworthy financial information.

In addition to the fundamental principles of accounting such as truth, clarity, continuity, prudence, and periodicity, other principles also play a crucial role in accounting management compliant with Swiss standards. These complementary principles include non-compensation, immutability of the opening balance sheet, regularity, separation of periods, and materiality, all intended to support the preparation of reliable and accurate financial reports for adequate analysis and decision-making by various stakeholders. These principles reflect Switzerland’s commitment to rigorous corporate governance and financial transparency.

Here is a detailed presentation of the structure of the Swiss Chart of Accounts, analyzing each listed item, classified according to the categories of assets, liabilities, and profit and loss account:

1. Assets 

– 10.Current Assets

– 100 Cash

  – 1000 Cash

  – 1020 Bank (credit)

– 106 Short-term securities listed on the stock exchange

  – 1060 Securities

  – 1069 Adjustment of the value of securities

– 110 Trade and other receivables

  – 1100 Receivables from deliveries and services (Debtors)

  – 1109 Allowance for doubtful debts

  – 1110 Receivables from group companies

– 114 Other short-term receivables

  – 1140 Advances and loans

  – 1149 Adjustment of the value of advances and loans

– 1170 Prepaid tax: VAT on materials, goods, services, and energy

  – 1171 Prepaid tax: VAT on investments and other operating expenses

  – 1176 Anticipatory tax

– 1180 Receivables from social insurance and pension institutions

  – 1189 Withholding tax

– 1190 Other short-term receivables

  – 1199 Adjustment of the value of short-term receivables

– 120 Inventories and work in progress

  – 1200 Commercial goods

  – 1210 Raw materials

  – 1220 Auxiliary materials

  – 1230 Consumables

  – 1250 Goods on consignment

  – 1260 Finished goods inventory

  – 1280 Work in progress

– 130 Current asset clearing account

  – 1300 Prepaid expenses

  – 1301 Receivables for products to be received

14. Fixed Assets

– 140 Financial fixed assets

  – 1400 Long-term securities

  – 1409 Adjustment of the value of securities

  – 1440 Loans

  – 1441 Mortgages

  – 1449 Adjustment of the value of long-term receivables

– 148 Holdings

  – 1480 Holdings

  – 1489 Adjustment of the value of holdings

– 150 Movable fixed assets

  – 1500 Machinery and equipment

  – 1509 Adjustment of the value of machinery and equipment

  – 1510 Furniture and fixtures

  – 1519 Adjustment of the value of furniture and fixtures

  – 1520 Office machinery, IT, and communication systems

  – 1529 Adjustment of the value of office machinery, IT, and communication systems

  – 1530 Vehicles

  – 1539 Adjustment of the value of vehicles

  – 1540 Tools and equipment

  – 1549 Adjustment of the value of tools and equipment

– 160 Immovable fixed assets

  – 1600 Operating real estate

  – 1609 Adjustment of the value of operating real estate

– 170 Intangible assets

  – 1700 Patents, know-how, licenses, rights, development

  – 1709 Adjustment of the value of patents, know-how, licenses, rights, development

  – 1770 Goodwill

  – 1779 Adjustment of the value of goodwill

– 180 Unpaid capital: share capital, foundation capital

  – 1850 Share capital, social capital, participation rights or unpaid foundation capital

2. Liabilities 

– 20. Short-term liabilities

– 200 Short-term liabilities resulting from purchases and services

  – 2000 Liabilities resulting from purchases and services (creditors)

  – 2030 Customer advances

  – 2050 Liabilities resulting from purchases and services to related companies

– 210 Remunerated short-term liabilities

  – 2100 Bank liabilities

  – 2120 Leasing financing commitments

  – 2140 Other remunerated short-term liabilities

– 220 Other short-term liabilities

  – 2200 VAT payable

  – 2201 VAT settlement

  – 2206 Due anticipatory tax

  – 2208 Direct taxes

  – 2210 Other short-term liabilities

  – 2261 Dividends

  – 2270 Social insurance and pension institutions

  – 2279 Withholding tax

– 230 Accruals and short-term provisions

  – 2300 Accrued expenses

  – 2301 Advance payments received

  – 2330 Short-term provisions

24. Long-term liabilities

– 240 Remunerated long-term liabilities

  – 2400 Bank liabilities

  – 2420 Leasing financing commitments

  – 2430 Bond loans

  – 2450 Loans

  – 2451 Mortgages

– 250 Other long-term liabilities

  – 2500 Other long-term liabilities

26. Long-term provisions and legal provisions

– 2600 Provisions

28. Equity (corporate entities)

– 280 Share capital or foundation capital

  – 2800 Share capital, social capital, foundation capital

– 290 Reserves / profits and losses

  – 2900 Legal reserves from capital

  – 2930 Reserves on participations own to capital

  – 2940 Evaluation reserves

  – 2950 Legal reserves from profit

  – 2960 Free reserves

  – 2970 Profit / loss carried forward

  – 2979 Profit / loss for the year

  – 2980 Own shares, equity interests, participation rights (negative item)

28. Equity (sole traders)

– 2800 Equity at the beginning of the year

– 2820 Capital contributions / withdrawals

– 2850 Private account

– 2891 Profit / loss for the year

28. Equity (partnerships)

– 2800 Equity, partner A at the beginning of the year

– 2810 Capital contributions / withdrawals, partner A

– 2820 Private account, partner A

– 2831 Profit / loss for the year, partner A

– 2850 Equity, silent partner A at the beginning of the year

– 2810 Capital contributions / withdrawals, silent partner A

– 2820 Private account, silent partner A

– 2831 Profit / loss for the year, silent partner A

3. Sales resulting from sales and service provision

– 3000 Sales of manufactured products

– 3200 Sales of goods

– 3400 Sales of services

– 3600 Other sales and service provision

– 3700 Own services

– 3710 Own consumption

– 3800 Sales deductions

– 3805 Losses on customers, variation in the allowance

– 3900 Variation in semi-finished product stocks

– 3901 Variation in finished product stocks

– 3940 Variation in the value of unbilled services

4. Material, goods, and third-party service charges

– 4000 Workshop material charges

– 4200 Purchases of goods for resale

– 4400 Third-party services / works

– 4500 Energy charges for operations

– 4900 Charge deductions

5. Personnel charges

– 5000 Salaries/wages: Total gross remuneration paid to employees.

– 5700 Social charges: Employer’s mandatory social contributions.

– 5800 Other personnel charges: Other personnel-related expenses, such as non-monetary benefits.

– 5900 Temporary personnel charges: Costs associated with employing temporary staff.

6. Other operating expenses, Depreciation and value adjustment, Financial result

– 6000 Premises charges: Rent and maintenance costs of buildings.

– 6100 Maintenance, repair and replacement of equipment used in operations: Maintenance costs of equipment and infrastructure.

– 6105 Leasing movable fixed assets: Financing lease costs for furniture and equipment.

– 6200 Vehicle and transportation charges: Expenses related to the use of vehicles in commercial activities.

– 6260 Leasing and renting vehicles: Leasing or renting costs of vehicles.

– 6300 Property insurance, rights, taxes, permits: Insurance premium, taxes, and license fees.

– 6400 Energy and waste disposal charges: Energy and waste management costs.

– 6500 Administration charges: General administrative expenses.

– 6570 IT charges and leasing: IT costs, including leasing of IT equipment.

– 6600 Advertising: Advertising and promotion expenses.

– 6700 Other operating expenses: Other unclassified operational expenses.

– 6800 Depreciation and value adjustment of items on movable fixed assets: Depreciation of physical assets.

– 6900 Financial charges: Interest and other finance-related costs.

– 6950 Financial income: Financial revenues, such as received interest.

7. Results from ancillary operating activities

– 7000 Accessory products: Revenues from non-primary sources.

– 7010 Accessory charges: Expenses related to ancillary activities.

– 7500 Revenues from operating real estate: Rental income from company properties.

– 7510 Charges from operating real estate: Costs associated with properties operated by the company.

8. Extraordinary and non-operating results

– 8000 Non-operating charges: Expenses not directly related to current operations.

– 8100 Non-operating revenues: Revenues not related to primary operations.

– 8500 Extraordinary, exceptional, or off-period charges: Rare or unusual events affecting finances.

– 8510 Extraordinary, exceptional, or off-period revenues: Extraordinary or off-period revenues.

9. Closing

– 9200 Profit / loss for the year: Net result of the year, calculated as the difference between income and expenses.

This well-structured framework simplifies accounting in accordance with Swiss requirements, allowing companies to effectively manage their finances accurately.The Swiss Chart of Accounts is specially designed to offer adaptability that meets the challenges of a global economic market, thus facilitating local companies’ compliance with both local and international accounting requirements.

Here are some distinctive aspects of accounting and the Swiss Chart of Accounts:

Compliance with IFRS standards: Swiss companies that are listed or operate internationally may require adherence to International Financial Reporting Standards (IFRS). The Swiss accounting framework offers the flexibility needed to harmonize local accounting practices with these international standards, simplifying the consolidation of financial statements and ensuring their comparability on an international scale.

Technological integration: Switzerland actively promotes the use of advanced technologies in accounting management. Modern accounting software, adopted by many Swiss companies, facilitates the automation of accounting processes, thereby increasing accuracy and efficiency while ensuring continuous compliance with Swiss and international accounting principles.

Audits and internal controls: Swiss legal framework requires certain companies to undergo external audits, strengthening transparency and investor confidence while ensuring compliance with standards. Internal control systems also play a crucial role in ensuring the integrity of financial information and protecting against errors or fraud.

Professional training and accreditation: In Switzerland, accountants and other financial professionals often need specific certifications to practice. These professionals, including fiduciaries, financial advisors, and auditors, undergo rigorous training and adhere to high standards, ensuring quality expertise in accounting management.

Influence of Swiss legislation: The Chart of Accounts is closely linked to local laws, notably the Code of Obligations, which dictates standards for bookkeeping and financial reporting. Accounting legislation is constantly updated to meet economic and technological developments as well as international standards.

These elements illustrate Switzerland’s commitment to methodical and rigorous accounting, reflecting its dedication to accuracy, transparency, and compliance in corporate financial management.

Beyond being a mere set of rules, the Swiss Chart of Accounts is a crucial resource for companies’ financial strategy, facilitating not only compliance with standards but also improving decision-making at all levels. By adopting and regularly updating their accounting system, Swiss companies can optimize their financial management and navigate more effectively in a complex and evolving economic environment.

In conclusion, the Swiss accounting framework serves as the foundation for preparing the balance sheet and income statement, and represents much more than just a regulatory formality. It is a fundamental pillar for any company seeking to navigate confidently through Switzerland’s complex and globally integrated economy. Anchored in the principles of precision, clarity, and compliance, this system ensures that all commercial entities maintain impeccable accounting that accurately reflects their financial health through the balance sheet and income statement. It continuously adapts to integrate best practices and international standards, thus facilitating the transparency and comparability of financial statements. This accounting tool is crucial, not only for regulatory compliance but also for enabling precise and reliable analysis of a company’s economic performance.

My Swiss Company SA, as a Swiss Corporate Services Provider perfectly embodies adherence to this accounting framework. By providing comprehensive accounting services, the company helps its clients comply not only with local standards but also, where applicable, with international requirements. Through the use of advanced technologies, My Swiss Company SA automates and refines accounting processes, ensuring both efficient and compliant data management. Furthermore, through its audit and advisory services, it ensures that companies adhere to principles of prudence and continuity, while optimizing their performance and strategically planning for the future.

In sum, My Swiss Company SA does not merely follow the Swiss Chart of Accounts; it values it as an essential strategic tool for the success and sustainable growth of its clients. Its ability to integrate local rigor and international perspectives makes it a preferred partner for companies operating in Switzerland, thereby consolidating the confidence and financial security necessary for their development.