Top Accounting Mistakes to Avoid as a Swiss Entrepreneur

Accounting in Switzerland is highly regulated — with detailed requirements under the Swiss Code of Obligations (OR) and Swiss Accounting and Reporting Recommendations (Swiss GAAP FER). For startups and small businesses, simple errors can delay tax filings, damage credibility, or trigger penalties. Whether you're outsourcing bookkeeping or managing it yourself, staying aware of common mistakes is critical to long-term financial and legal health.

Here are the top accounting mistakes entrepreneurs in Switzerland should watch out for:

● Not registering for VAT when required

If your annual turnover exceeds CHF 100,000, VAT registration is mandatory. Failure to do so can result in backdated liabilities. More info via Swiss Federal Tax Administration (FTA).

● Mixing personal and business expenses

This is one of the most common red flags during audits. Always maintain a separate business account.

● Ignoring deadlines for annual reports

Swiss companies must prepare annual accounts and submit them by legal deadlines. Late filings can lead to sanctions.

● Incorrect classification of income or costs

Misreporting salaries, consulting fees, or intercompany charges can impact both taxes and legal liability.

● Not backing up documentation

All business transactions must be verifiable. Missing invoices or receipts weaken your audit trail and violate recordkeeping laws.

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Website: https://domiziladresse.ch

Phone: +41 44 688 04 14

Email: info@domiziladresse.ch

Address: Chamerstrasse 176, 6300 Zug, Switzerland