Outsourcing accounting for sole proprietorships Welcome to Nexova AG: your reliable partner in outsourcing accounting for sole proprietorships in Switzerland. We are a leader in the accounting industry and help sole proprietorships manage their finances efficiently and cost-effectively. Book a call NexovaCalculator What does a sole proprietorship refer to in Switzerland? In Switzerland, a sole proprietorship is when a natural person runs a business. The business owner is known as a sole proprietor, who runs the business at his own responsibility and for his own account. A sole proprietorship is not a separate legal entity but a natural person who runs a business. As the business is not defined as a separate legal entity, it means that the sole proprietor is personally liable for all business liabilities and debts. This is an essential difference compared to the structures of a GmbH and AG. A sole proprietor can operate in many different industries in Switzerland, such as a craftsman, consultant, salesperson or online retailer. Anyone can set up a sole proprietorship as long as the activity is legal and the tax and legal requirements are met. However, other business forms in Switzerland, such as the GmbH or AG, are often more suitable for larger companies or companies with multiple owners. Book an initial consultation with our experts. It’s free! Book a call Are Swiss sole proprietorships required to maintain accounts? Sole proprietors in Switzerland are obliged to maintain accounts. There is a legal accounting obligation for all companies in Switzerland, regardless of their size or legal form. The purpose of bookkeeping is to accurately document all business transactions and keep track of the company’s financial situation. A sole proprietorship with a turnover of less than CHF 500,000 per year must keep at least one set of accounts, which includes a revenue and expenditure account (Milchbüechli account) and records the asset position of the business. However, although it is not mandatory, keeping double-entry bookkeeping with a balance sheet and income statement is advantageous, especially for sole proprietorships that are subject to VAT. The balance sheet provides an overview of the company’s assets and liabilities. The income statement provides information about the profits or losses of the company. Accounting can be done by an external accountant or internally by the sole proprietor. However, it is important to ensure the accounting is accurate and complete to avoid unnecessary problems with the tax authorities. It is also possible to outsource accounting services to ensure that all financial data is recorded accurately and timeously. Outsourcing accounting offers the advantage of having experienced accountants handle the bookkeeping while allowing the sole proprietor to focus on their core competencies. Here you can easily calculate the costs of your accounting: Book a call How is bookkeeping regulated for a sole proprietor in Switzerland? The Code of Obligations (CO), particularly Articles 957 to 962, regulate bookkeeping requirements for businesses in Switzerland. The CO stipulates that all business transactions must be carefully documented without gaps. In Switzerland, accounting must be carried out in accordance with the principles of proper accounting(GoB). The GoB in Switzerland includes various principles that must be observed in the accounting process. These principles include the completeness, accuracy and comprehensibility of accounting, the recording of all business transactions in chronological order, and the correct valuation and accrual of business transactions. Another important principle to be followed is clarity of accounting such that it is comprehensible to outsiders. Sole proprietorships in Switzerland must keep their accounts for at least ten years. This serves as proof of business transactions and business events that the tax authorities can verify. Bookkeeping can be kept in paper form or electronically, as long as electronic storage meets the requirements of proper bookkeeping. If a sole proprietor exceeds certain sales or profit thresholds, it may be necessary to keep detailed accounting records and provide additional information to the tax authorities. It is, therefore, advisable to check with local tax authorities for specific accounting and reporting requirements. Book an initial consultation with our experts. It’s free! Book a call Why should sole proprietorships outsource their accounting? Outsourcing accounting services can provide many benefits for sole proprietorships. Below are some of the most important reasons to outsource: You save money Outsourcing accounting services can result in significant cost savings for sole proprietorships, as they no longer need to invest in hiring an accountant or acquiring accounting skills, which is often expensive. Accounting software is also expensive, with an annual cost of at least CHF 500, plus support and training expenses. However, by using a trustee’s services, the software’s cost can be shared among several clients. You benefit from our know-how & experience A major benefit of outsourcing accounting services is that companies can tap into the expertise and experience of accounting professionals. Even simple questions, such as whether to pay into a pension fund for retirement or a pillar 3a instead, are issues that are best discussed with an expert. External accounting service providers have professionals with many years of experience with the necessary knowledge and skills to handle all accounting tasks effectively You save valuable time Bookkeeping requires time and resources that sole proprietorships may not have. By outsourcing accounting services, sole proprietorships can save time which they can use for more important business tasks. In addition, accounting service providers usually have automated processes and systems that can save time and increase efficiency. You avoid costly & unnecessary mistakes Outsourcing accounting services can help reduce the risk of errors and costly audits. Accounting service providers have strict controls and procedures that can help minimise accounting errors and deficiencies. This helps ensure that the sole proprietorship is made aware of potential tax risks during the year. Here you can easily calculate the costs of your accounting: Check out our pricing How can Nexova AG help? Nexova AG specialises in providing accounting services to sole proprietorships in Switzerland. Our experts have many years of experience in the accounting industry and the necessary knowledge and skills to handle all accounting tasks effectively. Our services include: Accounting We provide complete accounting services, including recording incoming invoices, reviewing outgoing invoices, preparing financial statements, and bookkeeping. We ensure that all of your financial information is accurately recorded and processed so that you can always stay on top of and in control of your finances. Payroll services We also offer payroll services to ensure your employees are paid on time and correctly. Our services include: Preparing payrolls Calculating taxes and social security contributions Managing vacation and sick days We ensure that all relevant legal requirements are met so you can focus on your core business. Private tax return As part of Nexova AG’s comprehensive services, we can also handle your personal tax return, which is also that of your sole proprietorship. Our experts support you in analysing your tax situation and preparing and completing your personal tax return. In addition, we review tax assessment notices and invoices. We also answer questions regarding tax advice, particularly on the maintenance of real estate, deduction of value-preserving or value-enhancing expenses and other aspects of tax planning. We can also help you obtain binding information from tax authorities to ensure you are always compliant with tax rules and regulations. Let us help you optimise your personal tax return and save you time and effort so you can focus on your core business. Advice and support At Nexova AG, we understand that every business is unique and has individual requirements. For this reason, we offer comprehensive consulting and support to ensure we can provide services tailored to your exact needs We work closely with you to understand your needs and develop a customised solution that meets your requirements Learn more about our accounting experts. Our team This is why you should work with us! We pride ourselves on our high standards of quality and reliability. Here are some of the benefits you can expect from working with us: Experience: We have years of experience in accounting, and a deep understanding of the tasks and challenges companies face in this area. Reliability: We always ensure that we meet the highest standards of quality and reliability. You can be sure that your accounting needs are in good hands with us. Cost-efficiency: We offer a cost-effective outsourcing model that helps you save money without compromising on quality or reliability.is more environmentally friendly. Security: We understand the importance of data security and guarantee that all your data is safe, private and secure. Book an initial consultation with our experts. It’s free! Book a call Our team Our team comprises experienced and qualified accountants specialising in bookkeeping, payroll and taxes. We work closely with you to ensure we understand and meet your needs.. Accounting for sole proprietorships:Contact us today If you are interested in our services or have further questions, please do not hesitate to contact us. We are available to answer any of your questions and help you implement your accounting solution. Learn more about our accounting experts. Our team Outsource accounting? Let’s work together. Book a call
