Clear accounting is a prerequisite for the success of any business. Those who practice meticulous accounting for inflows and outflows keep a firm hand on their company’s financial situation.
Sole proprietorships with turnover of less than CHF 500,000 must, at the very least, practice simplified accounting, showing income, expenditure and assets. In theory, it is enough to retain and file all receipts and supporting documents, should the company be required to produce these documents during an audit.
For a commercial company, this is not enough. Lack of financial control is a major cause of failure. In any company, finances should be one of the manager’s priority even if there is an in-house accountant or fiduciary in charge of this work.
Company founders and entrepreneurs need to at least have basic accounting and finance knowledge. This enables them to use accounts to present their company’s financial position, an essential prerequisite for obtaining a bank loan.
Last modification 02.07.2020