Can I simply use my bank statements for my accounting?

For a Swiss GmbH or sole proprietorship, accounting must comply with the Swiss Code of Obligations (CO), which mandates accurate and transparent record-keeping.

You cannot rely solely on bank statement descriptions for expenses; you must maintain proper documentation, including invoices, receipts, and other relevant records, to ensure compliance and accuracy.

Below, I’ll explain why and provide guidance on the process.

Why Bank Statement Descriptions Are Not Enough

Legal Requirements: The Swiss Code of Obligations (Articles 957 ff.) requires all companies, including GmbHs, to keep orderly accounting records that reflect a true and fair view of the financial situation. This includes documenting all business transactions with supporting evidence, such as invoices, receipts, contracts, or other proof of payment. Bank statement descriptions alone lack the detail needed to meet these standards, as they typically only summarize transactions without providing specifics like VAT rates, supplier details, or the nature of the expense.+/+
VAT Compliance: If your GmbH is VAT-registered, you must provide detailed invoices to justify VAT deductions. Invoices must include specific information (e.g., seller/buyer details, VAT number, date, description of goods/services, VAT rate, and amount). Bank statements do not fulfill these requirements and cannot be used to reclaim VAT or defend against tax audits.+
Audit and Verification: Swiss GmbHs with annual turnover exceeding CHF 500,000 must use double-entry bookkeeping and prepare financial statements (balance sheet, income statement, and notes). Even smaller GmbHs may require limited audits unless they have fewer than 10 employees and shareholder approval to opt out. During audits, tax authorities or auditors will demand original invoices or receipts to verify expenses. Relying on bank statements risks non-compliance, potential fines, or disallowed deductions.+/+
Transparency and Accuracy: Bank statement descriptions often lack clarity (e.g., “Payment to Supplier X”) and don’t provide enough context to categorize expenses properly (e.g., office supplies, travel, or services). Invoices and receipts ensure accurate expense classification, which is critical for financial reporting, tax optimization, and internal decision-making.+

When Can Bank Statements Be Used?

Bank statements are a useful tool for reconciling transactions and ensuring all expenses are recorded, but they are supplementary, not a substitute for invoices or receipts.

They can help you:

Cross-check that all transactions are accounted for.
Identify missing invoices or receipts that need to be obtained.
Track cash flow for internal management purposes.

However, they cannot replace the need for detailed documentation, especially for tax purposes or audits.

What You Need to Do for Proper Accounting

Collect and Store Invoices/Receipts

Retain all business-related invoices, receipts, and other accounting documents (e.g., contracts, purchase orders, VAT returns) in paper or digital (PDF) format.+
Ensure invoices meet Swiss legal requirements, including seller/buyer details, VAT number, invoice number, date, description, quantity, pricing, and VAT rate/amount.+
Store these records for at least 10 years, as required by Swiss law.+

Use Double-Entry Bookkeeping

For GmbHs with turnover above CHF 500,000, double-entry bookkeeping is mandatory. This involves recording each transaction in at least two accounts (e.g., debiting an expense account and crediting cash/bank). Invoices and receipts provide the necessary details to categorize these entries correctly.+

Leverage Accounting Software

Modern Swiss accounting platforms (e.g., Bexio, Banana Accounting, or others) allow you to upload invoices and receipts as PDFs, link them to bank transactions, and categorize expenses automatically. This reduces manual work and ensures compliance.++
Digital invoices in PDF or XML format are widely accepted, provided they meet legal standards (e.g., include required details and, for e-invoices, digital signatures if needed).+

Handle VAT Properly

If VAT-registered, ensure all expense invoices include the correct VAT rate (e.g., 8.1% standard, 2.6% reduced, or 3.8% for accommodation as of 2025). This allows you to reclaim input VAT.++
Bank statements alone won’t suffice for VAT reporting, as they don’t provide the required VAT breakdown.

Prepare for Audits

For GmbHs subject to audits (ordinary audits for larger companies meeting specific criteria, such as CHF 20 million in assets, CHF 40 million in revenue, or 250+ employees, or limited audits for smaller GmbHs), you must provide detailed documentation to support all recorded transactions. This includes invoices, receipts, and other records that verify the nature and legitimacy of expenses. Auditors will not accept bank statement descriptions as sufficient evidence.++

Practical Steps for Managing Invoices and Expenses

To streamline your GmbH’s accounting process while ensuring compliance, consider the following:

Organize Expenses: Categorize expenses (e.g., office supplies, travel, services) using the Swiss Chart of Accounts structure (e.g., accounts like 4000 for workshop materials, 6000 for premises charges, etc.). This ensures your financial statements align with Swiss standards.+

Upload Invoices: Use accounting software to upload and store PDF invoices and receipts. Link these to corresponding bank transactions to ensure accuracy and ease of retrieval during audits. Software like Bexio or QuickBooks can automate matching invoices to payments, reducing errors.+

Regular Reconciliation: Periodically reconcile bank statements with your accounting records to ensure no transactions are missed. However, always obtain and attach the corresponding invoice or receipt for each expense.

Outsource if Needed: If managing invoices and accounting feels overwhelming, consider outsourcing to a Swiss fiduciary or accountant. They can ensure compliance, optimize tax deductions, and handle VAT filings. Costs for outsourcing typically range from CHF 100–300/month for small GmbHs to CHF 300–1,000/month for medium-sized ones.+

Exceptions for Small GmbHs

If your GmbH has an annual turnover below CHF 500,000, you may qualify for simplified accounting, which involves recording only income, expenses, and the financial position (cash-based accounting).
Even in this case, you must retain invoices and receipts as proof of transactions, as these may be requested by tax authorities or during a limited audit (unless you opt out with shareholder approval and have fewer than 10 employees).
Bank statements alone still won’t suffice, as they lack the required detail for verification.+

Risks of Relying on Bank Statements

Using only bank statement descriptions could lead to:

Fines and Penalties: Incomplete or incorrect documentation can result in fines from the Swiss Federal Tax Administration, especially for VAT-related issues.+
Disallowed Deductions: Without proper invoices, tax authorities may deny VAT deductions or expense claims, increasing your tax liability.
Audit Complications: During audits, lack of supporting documents can lead to additional scrutiny, delays, or financial adjustments.
Management Issues: Without detailed records, you may struggle to track expenses accurately, impacting financial planning and decision-making.+

Best Practices

Prompt Invoicing and Recording: Issue and record invoices promptly to maintain accurate records and improve cash flow.+
Digital Tools: Use accounting software to upload and organize PDFs of invoices and receipts. This ensures compliance and simplifies audit preparation.+/+
Retain All Documents: Keep all accounting documents (invoices, receipts, contracts, bank statements, etc.) for at least 10 years in a format that’s easily accessible (paper or digital).+
Consult Experts: For complex transactions or VAT issues, consult a Swiss accounting professional to avoid errors and optimize tax benefits.+

Conclusion

For your Swiss GmbH, you must upload and retain invoices, receipts, and other supporting documents for all expenses to comply with the Swiss Code of Obligations and VAT regulations. Bank statement descriptions are insufficient, as they lack the detail required for legal compliance, VAT deductions, and audits. Using accounting software to manage and link invoices to transactions can save time and ensure accuracy.
If your GmbH is small (turnover below CHF 500,000), simplified accounting may apply, but invoices and receipts are still required for verification. Outsourcing to a professional fiduciary can further reduce risks and optimize your tax position.

If you need specific recommendations for accounting software or fiduciaries, or have details about your GmbH’s size or turnover, let me know, and I can tailor further advice! 💼