Bookkeeping Obligations in Switzerland: What the Law Requires

Swiss law requires every business to keep books that accurately reflect its financial position. The obligation exists regardless of your legal form.

What proper bookkeeping means

Proper books record every business transaction in a way that is complete, accurate and systematic. The Code of Obligations requires your accounts to reflect the true financial position of the business at all times.

Your books must record all income and expenses as well as your assets and liabilities. They must be kept in chronological order and be understandable to an independent third party who reads them.

Completeness matters more than perfection. A single missing invoice or unrecorded receipt breaks the chain of evidence and can make your accounts unreliable in an audit or a dispute.

The standard is functional rather than rigid. As long as a knowledgeable outsider can follow your books and verify the numbers, the law is generally satisfied.

• Record all income and expenses.
• Track assets and liabilities.
• Keep entries complete and systematic.
• Ensure a third party can understand them.

Who has to keep books

The obligation to keep books applies to every legal entity registered in the commercial register. This includes GmbHs and AGs of every size, with no small-business exemption.

Sole proprietorships must also keep books if they are registered in the commercial register. Many must register because their turnover crosses the statutory threshold.

A very small sole proprietorship that is not registered and stays below the threshold may keep simpler accounts, recording only income, expenses and assets. Even then, receipts must be retained.

When in doubt, assume you must keep proper books. The consequences of being found non-compliant are worse than the effort of maintaining them.

• Legal entities always keep full books.
• Registered sole proprietorships keep books.
• Unregistered micro-businesses may keep simpler accounts.
• Receipts must be kept in every case.

What that means in practice

For most small businesses this means recording every invoice you issue and every receipt you receive, without gaps. A reliable system captures documents at the moment they are created or received.

Reconcile your bank account regularly so your books match the actual money moving in and out. The bank statement is the anchor that confirms your records are correct.

Maintain a general ledger that groups transactions into accounts such as income, rent, software and travel. This structure is what makes your numbers useful at tax time.

The level of detail scales with the size of the business. A solo freelancer can keep far simpler books than a company with employees and inventory, but both must be complete and accurate.

Staying current and compliant

Bookkeeping works best as a weekly habit rather than a year-end marathon. Ten minutes a week keeps the books accurate and prevents a backlog of unrecorded receipts.

Set a recurring time to file new documents and reconcile transactions. Consistency matters more than the specific tool you use.

Keep your books and supporting vouchers for at least ten years, as the law requires. Digital storage is fully accepted provided the records remain readable and unalterable.