Accounting

Cash flow is an important financial metric that shows the actual money movements of a company and is essential for liquidity analysis, financial planning, investment evaluation, and business valuation. It provides a clear insight into the financial health of a company, unaffected by accounting adjustments.

Accounting errors pose major risks for companies; accurate recording and separation of expenses are essential. Digital tools and regular bookkeeping help prevent such errors.

The article addresses current valuation methods for non-listed companies in Switzerland 2023. Asset-based and earnings-based approaches are crucial, depending on the type of company.

In Switzerland, corporations can be financed through cash contributions or contributions in kind, with the latter needing to meet certain requirements such as balance sheet eligibility. Contributions in kind require additional founding documents and checks, but can bring valuable assets into the company.

Swiss companies are legally required to maintain accounting records in accordance with the Code of Obligations, the format of which depends on their revenue and legal form. Legal entities and companies with a turnover exceeding CHF 500,000 maintain double-entry accounting, while others use single-entry accounting.

Employers must charge a deductible private share of 10.8% annually of the vehicle purchase price when providing a company car for the employee. This amount is subject to social security contributions and documented in the salary statement.

The income statement compares revenues and expenses to determine a company's profit. It serves to monitor financial performance and aids in decisions for increasing profitability.

Depreciation distributes the loss in value of fixed assets through direct or indirect methods. Both methods intentionally record depreciation in order to provide a clear picture of the financial situation.

In Switzerland, a ten-year retention period for accounting records such as business books and audit reports is legally required, with business books also allowed to be stored digitally. However, digital archiving requires demonstrable immutability of the data to meet legal requirements.