Accounting April 30, 2023 | David Merz Income Statement for a Sole Proprietorship As a sole proprietor operating in Switzerland, you may wonder whether it is necessary to prepare an income statement. While you may not be obliged to maintain detailed accounts, it is still essential to have a clear understanding of your business's financial health and to keep accurate records of income for tax purposes. An income statement will help you fulfil both these needs. In this article, we will explore the importance of an income statement for a sole proprietorship and the different methods of producing and presenting them. Read more
April 29, 2023 | David Merz Depreciation Methods in Switzerland As your businesses acquires assets, it is essential to understand the concept of depreciation and how to record it. Depreciation is a means of accounting for the decrease in the value of assets over time due to usage, wear and tear, obsolescence, etc. In this article, we will explore the various depreciation methods used in Switzerland, why depreciation is important, the types of depreciation, methods for calculating depreciation, and how to record depreciation. Read more
April 28, 2023 | David Merz Double-Entry Accounting Simply Explained Proper accounting is an essential aspect of running a company effectively. Most businesses are required to follow the principles of double-entry accounting while preparing their accounts. Double-entry accounting is a fundamental concept in modern accounting practices. It is a system of accounting in which every financial transaction is recorded in two different accounts, a debit account and a credit account. This article provides a simple explanation of double-entry accounting in Switzerland. Read more
April 12, 2023 | David Merz Accounting for vouchers: how companies can deal with this challenging problem with the right support Vouchers can be used to reward customers or as giveaways for marketing purposes. It is important for companies who regularly use vouchers to understand their correct accounting and VAT treatment, as well as the legal validity and expiry of vouchers. This article provides detailed information on these topics. Read more
April 12, 2023 | David Merz Accounting costs at a glance – How Nexova AG can help you save time and money If you run a business, you know how important it is to have proper and efficient bookkeeping. But what are the costs involved, and how can you minimise them? In this article, we look at the various aspects of bookkeeping costs and show you how the services of Nexova Treuhand AG can help you save time and money. Read more
April 12, 2023 | David Merz Provisions in GmbH Accounting GmbH (Gesellschaft mit beschränkter Haftung) is a common business structure in Switzerland, especially for small and medium-sized enterprises (SMEs). As with any business, accurate accounting is an essential part of managing a GmbH, and provisions form an important component of accounting. This article will explore what provisions are, their properties, types, and accounting effects, as well as how they can be used to optimise taxes. Read more
March 24, 2023 | David Merz Special features of accounting for a GmbH One of the most popular business structures in Switzerland is the GmbH, or “Gesellschaft mit beschränkter Haftung,” which translates to “company with limited liability.” In essence, it is the Swiss equivalent of a “Limited Liability Company” (LLC). A GmbH offer many benefits to business owners, including limited liability protection and flexible management structures. However, like any other business, a GmbH must comply with certain legal and accounting requirements. In this article, we will discuss the special features of accounting of a GmbH. In doing so, we will provide a brief introduction into what accounting is and its importance in the corporate environment in Switzerland. Read more
February 5, 2023 | David Merz VAT Revision – What do foreign companies have to consider when selling mail order to Switzerland? Foreign companies shipping products to Switzerland by mail order need to consider Swiss regulations surrounding VAT, import tax, and customs. This article discusses the revisions made to the Swiss Value Added Tax Act in recent years, particularly as they apply to foreign mail-order companies. The article also provides background on the previous tax laws on parcel shipments to Switzerland and the customs and tax regulations that foreign companies must comply with. Read more
February 3, 2023 | Marco Schoch Comparison of minimum capital tax rates for companies in all 26 cantons Swiss companies are subject to two types of taxes: taxes on profits and a capital tax on equity. However, some cantons have introduced a flat minimum tax to cover the costs associated with conducting tax audits for each company. This tax is often overlooked, especially in the start-up phase of newly founded companies that are not yet making a profit. In this article, we delve into the world of corporate taxes in Switzerland and in particular the minimum tax that some cantons in Switzerland levy on companies. Read more