Understanding double entry bookeeping: A guide for SMEs in Switzerland
Double entry-bookeeping is a central tool for SMEs and founders in Switzerland to manage their finances transparently, precisely and in compliance with the law.
It forms the basis for clean financial statements, reliable evaluations and professional corporate management.
What is Double entry-bookeeping?
Double entry-bookeeping is based on the basic principle that every financial transaction is recorded twice:
- Once on debit side
- Once in credit side
This system ensures that every transaction is comprehensible and that the balance between assets, liabilities and equity is always right.
It forms the basis for:
- the balance sheet
- the income statement
This gives you a clear overview of your company's financial situation at any time.
Difference between Single and Double entry-bookeeping
While simple bookkeeping may be sufficient for micro-enterprises, double entry-bookeeping is required by law for many SMEs in Switzerland as soon as you exceed certain turnover or employee limits.
Typical mistakes made by SMEs
Many SMEs are reluctant to switch to double-entry bookkeeping because they find it complicated or time-consuming.
In practice, this often results in:
- lack of financial transparency
- inaccurate evaluations
- increased risk of tax errors
- difficult cooperation with banks or investors
With digital accounting solutions, getting started today is much easier, more structured and more efficient than before.
How double entry-bookeeping works today
Modern accounting systems such as Bexio, Xero or QuickBooks automate many double-entry bookkeeping processes. However, clear structures remain decisive:
- Define chart of accounts
You create debit and credit accounts cleanly. - Record transactions on an ongoing basis
Each booking is automatically posted twice. - Digitally archive documents
For transparency, traceability and revisions. - Carry out regular checks
You reconcile bank and general ledger accounts on a monthly basis.
In this way, your company remains tax-compliant, transparent and evaluable at all times.
Quick win for your company
Use an accounting tool that automatically creates duplicate bookings and introduce monthly financial reporting.
After just a short time, you will develop a significantly better understanding of your company figures - an important basis for well-founded decisions.
Example
A Swiss start-up switched from simple to double bookkeeping and was thus able to:
- more precise Sales and margin analyses create
- tax audits Prepare more efficiently
- Investor reports professionally prepare
Accounting went from mandatory process to real control instrument.
Conclusion: Why double entry-bookeeping makes sense for you
Double entry-bookeeping is not a bureaucratic obstacle, but a strategic tool.
It creates transparency, strengthens the trust of banks and investors, and gives you full control over your finances.
MKY Group implements double entry-bookeeping as part of a digital, structured and understandable financial solution for SMEs and start-ups in Switzerland.
If you understand your figures, you make better decisions.
