Accounting

Modern accounting conveys important financial information but involves risks due to discretionary leeway and external influences. Information deficits and short-term motives can lead to market distortions.

A good offer convinces potential customers with clear information on price, services, and company profile and answers all relevant questions. Offers contain essential information about the company, the services provided, and the costs, to create clarity before signing a contract.

Accrual accounting ensures the appropriate allocation of income and expenses to their correct periods, in order to accurately represent the financial position. Active and passive accruals assist in accurately reflecting the balance sheet.

By September 30, 2022, the red and orange payment slips in Switzerland will be replaced by QR-bills, which enable payments using the Swiss QR Code. Companies should plan and implement the necessary transition to the new technology as soon as possible.

Swiss raw material companies must disclose payments over 100,000 francs to states from 2021 to promote transparency. The Federal Council can extend the regulations to commodity trading.

Errors in the financial statements, such as poor preparation and inaccurate COVID-19 provisions, can have serious consequences. Careful preparation avoids liability risks and leads to tax benefits.

The year is ending and the preparation of the financial statements is imminent, which should clearly present the financial situation to stakeholders. Early preparations, such as collecting documents and making adjusting entries, are essential.

Corporations must take legally defined measures in case of financial difficulties, divided into stages such as underbalance, capital loss, and over-indebtedness. In the event of over-indebtedness, an audit by a revisor is required, and upon confirmation, the judge must be informed.

Swiss companies use different accounting standards such as OR, IFRS, US GAAP, and Swiss GAAP FER, which are specifically tailored to various corporate forms. These standards are designed to enhance transparency and creditor protection and are tailored to international or national needs.