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. Companies that do not practice careful accounting are nearly all doomed to fail because they have no financial control. In any company, the finances should be the “boss’s business”, 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, so that they can use the accounts to present their company’s financial position. This is essential for obtaining a bank loan.
Last modification 03.03.2020