Accounting

A deficit balance arises when assets do not cover share capital and reserves; it can be a capital loss or over-indebtedness. In case of legal consequences, the board of directors must take measures or file for bankruptcy.

The cash flow statement shows changes in liquid funds and uses direct/indirect methods for calculation. It divides the cash flow into operating, investing, and financing activities.

Small businesses are allowed to keep their accounts using simplified milk book accounting, which records income, expenses, and financial status. This regulation aims to minimize administrative effort.

In Switzerland, small employers can use a simplified procedure to pay social insurance contributions annually instead of monthly, significantly reducing administrative effort. The application requires limits on salary amount and total, and offers tax advantages with a flat rate of 5%.

Swiss SMEs often use auditors for questions on accounting and taxes; the regulations on independence are more relaxed for limited audits. The type of audit depends on the balance sheet total and turnover, and determines whether an audit expert or auditor is needed.

In Switzerland, companies must provide an audited annual financial statement depending on their legal form and size; large companies require a statutory audit. This ensures high trust among stakeholders and is considered a seal of quality.

Outsourcing payroll accounting relieves SMEs and allows focus on main tasks. External service providers take over payroll accounting and communication with authorities.

The audit office must be independent; in case of self-review risk, organizational measures are necessary (Art. 729 Para. 2 CO). Clear separation of accounting and auditing required.

Companies record their expenses and revenues in expense and income accounts to determine profit or loss. Success depends on the industry and business cases; a uniform chart of accounts does not exist.