Accounting

Key figures help to efficiently evaluate the financial situation of companies using balance sheet and profitability analysis. They facilitate the assessment of liquidity, profitability, and debt ratio.

Depreciation reflects the loss in value and wear and tear of company assets, depending on their lifespan. The declining balance method of depreciation utilizes tax-recognized rates that vary by type of asset.

The digital storage of accounting records is permissible under Swiss law, provided that certain principles are observed to ensure integrity and availability. A qualified electronic signature is required for the business and audit report.

The break-even analysis allows entrepreneurs to determine the sales point at which costs and revenues are equal in order to ensure that the business becomes profitable. It helps in determining the necessary sales volume and price for products but reaches its limits with inaccurate cost estimations or a wide variety of products.

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.