Keeping your Own Accounts: How does it Work?
Sometimes it's possible to do your own bookkeeping. However, this will depend on a number of factors. Follow the steps below to see if it makes sense for you to do your own bookkeeping.
Determine the Type of Accounting You Need
Depending on your company's legal form, sales and number of employees, you may be able to keep simplified accounts, or you may be required to keep Swiss GAAP accounts.
In the case of a Sole proprietorship or a Société en Nom Collectif, you can keep simplified accounts, i.e. simplified accounts that take into account only the company's expenses and income, as long as the sales threshold of CHF 500,000 is not exceeded.
However, in the case of a LLC or a SAIf you're a company, you'll need to keep accounts in accordance with the Swiss Code of Obligations. The CO requires that a balance sheet, income statement, and notes be presented.
Do You Have Employees?
If you have employees, you'll need to take care of drawing up their pay slips. To do this, you'll need to have an excellent knowledge of Swisspayroll rules. Indeed, in the event of failure to comply, the penalties can be severe, both in terms of social insurance and trade unions.
Number of Entries
5 Steps for Good Bookkeeping
1. Learn the Basics of Accounting
If you want to be the accountant for your own business, you first need to understand the principles of accounting. To do this, you need to understand the purpose of accounting.
In short, accounting is about balancing your assets and liabilities (expenses), so you can make the right decisions.
You can find a wide range of training courses on the basics of accounting at your favorite training center. Please refer to our Swiss chart of accounts.
2. Open a Business Bank Account
When you start your own business and you want to do your own bookkeeping, it's essential to keep your personal transactions separate from your business transactions.
We therefore recommend that you take out a credit card with a reputable bank, and use it only for your business transactions. This will save you an enormous amount of time when it comes to bookkeeping.
3. Choose an Accounting System
Today, there are a number of software packages available to help freelancers and small businesses manage their accounts. It can be a good idea to invest in a system tailored to small businesses, offering a range of functions such as invoicing, drawing up estimates and posting entries.
There is currently a wide range of software offering these options on the Swiss market.
It's also possible to do your accounting manually using software such as Excel or Google Spreadsheets. This will save you costs, but bear in mind that it will also take longer.
Accounting made easy with Fidulex.
Need help with your bookkeeping? Concentrate on your core business, our experts will take care of it.
4. Record all Your Business Expenses
Don't forget to keep all receipts for your business purchases, even the smallest ones, such as stamps, petrol, bus and train tickets, etc.
5. Managing your taxes
Finally, you'll have to pay your taxes, and keeping proper, organized accounts will help you in this task. Your tax return can be a tedious and complex task. For this last point, unless you have a very good knowledge of taxation, Fidulex recommends that you call in a tax expert.
That's right, filing your tax return in Geneva is not a task to be taken lightly, as the repercussions can be serious if you make a mistake.
Frequently Asked Questions
Do I really need an accountant?
The answer will depend on a number of factors:
What type of company do you own?
Do you have dependents?
How many entries do you have to book?
Are you comfortable with numbers?
Do you have time to take care of your bookkeeping?
Answer these questions and you'll know whether you need an accountant or not.
How do you manage your own accounts?
To manage your own bookkeeping in Switzerland, you'll need to take the following steps:
1. Learn the Basics of Accounting
2. Open a business bank account
3. Choosing an accounting system
4. Record your business expenses
5. Prepare your tax return
Why use a fiduciary for your accounting?
A trustee is a accounting and tax firm.
In a fiduciary such as Fidulex, you'll have access to a multidisciplinary team of experts who can help you with a wide range of issues surrounding your company.
Fidulex's team includes finance and accounting specialists, tax experts and chartered accountants.
What are the advantages of outsourcing accounting?
There are many advantages to delegating your accounting. Firstly, you'll be able to concentrate on your core business and developing your company, rather than learning or doing your own bookkeeping.
What's more, you'll benefit from expert advice to help you grow your business.
