Bookkeeping for a sole proprietorship – what is required?

In short: If your sole proprietorship has less than CHF 500,000 in revenue a year, simplified bookkeeping is enough: you record income, expenses and your financial position (Art. 957 para. 2 CO). Every entry needs a receipt, and everything must be kept for ten years. You enclose a statement with your tax return.

Two levels

Revenue in the last financial year	What applies
under CHF 500,000	simplified bookkeeping: income, expenses, financial position
CHF 500,000 or more	full accounts and financial statements (balance sheet, income statement)

What simplified bookkeeping covers

• Income: everything you receive, with invoice or receipt.
• Expenses: everything you spend for the business, with receipt.
• Financial position: what belongs to the business (cash, materials, equipment) and its debts.
• Private: what you withdraw or contribute privately.

The principles of proper bookkeeping apply accordingly: completeness, accuracy, systematic recording, supporting documents and verifiability.

What you enclose with your tax return

• the signed annual financial statements (balance sheet and income statement), or
• with simplified bookkeeping: statements of income and expenses, financial position, and private withdrawals and contributions.

Keep records for ten years

Accounting records and receipts must be kept for ten years, starting from the end of the financial year. Paper or electronic form is fine – as long as everything remains readable at all times.

Practical tips

• File every receipt immediately, ideally digitally and by month.
• Keep business and private separate – a dedicated account helps: Business bank account for a sole proprietorship.
• If you become liable for VAT, you will also need these figures for your VAT return: When do I have to register for VAT?