Financial statements accounting for Swiss companies - simply explained
The annual financial statements are a central part of accounting for companies in Switzerland.
It clearly shows you how your company is doing economically and forms the basis for taxes, decisions and legal obligations.
What are financial statements?
The annual financial statements summarize the financial situation of your company at the end of a fiscal year.
It provides information on assets, liabilities, income and expenses and is required by law for many companies.
The most important components of the financial statements
A complete financial statement usually consists of:
- Balance sheet: Shows assets (assets), liabilities (borrowed capital) and equity.
- Income statement (profit and loss statement): compares income and expenses and shows whether your company has made a profit or a loss.
Depending on the type and size of the company, further elements such as an annex or management report may be required.
Why are the annual financial statements important for companies in Switzerland?
Financial statements are much more than a formal obligation. It is crucial to:
- Realistically assess your financial situation
- Calculate and declare taxes correctly
- to make well-founded business decisions
- creating trust among banks, investors and business partners
- comply with legal requirements vis-à-vis authorities
In short: Without a clean financial statement, you lack control over your company.
Common mistakes in financial statements
Many companies make similar mistakes when making financial statements, for example:
- incomplete or late bookings
- lack of reconciliation of bank and account balances
- incorrect or forgotten provisions
- unclear separation of business and private costs
- lack of preparation for tax requirements
These errors could result in back payments, delays, or legal risks.
What really works when it comes to financial statements
A successful financial statement is based on structure and regularity. The following have proven effective:
- Continuously maintained bookkeeping throughout the year
- monthly or quarterly votes
- clean document management and documentation
- early preparation for the financial statements
- Technical review before submission
In this way, the annual financial statements become a controlled routine instead of a stressful phase.
Quick tip for your annual accounting
Keep regular financial reports (e.g. monthly).
This allows you to identify developments in turnover, costs and liquidity at an early stage — and in the end, the annual financial statements are no surprise, just a clean financial statement
practical example
An SME that regularly maintains its accounts and prepares its annual financial statements in a structured manner can:
- Prepare tax returns efficiently
- Conduct talks with banks confidently
- Based on reliable figures for investment decisions
The annual financial statements thus become a strategic tool, not just an obligation.
Conclusion: Using annual financial statements correctly
The annual financial statements are a central element of accounting for Swiss companies.
It creates transparency, reduces risks and supports sustainable growth — if created correctly and professionally.
At MKY Group, the financial statements are not viewed in isolation, but as part of a holistic, digital and understandable financial solution for SMEs and start-ups.
If you know your figures, you can manage your company better.
