Switzerland's simplified single-entry bookkeeping for freelancers under CHF 500K. Learn thresholds, VAT rules, and when to upgrade to double-entry.
If you're a freelancer in Switzerland, you've probably heard the term "Milchbüchlein" and wondered what it means. Don't worry—you're not alone. This charming Swiss-German term literally translates to "milk book," but it's actually the key to simplified accounting for small businesses.
Milchbüchlein refers to single-entry bookkeeping, a straightforward accounting method that's perfectly legal (and often ideal) for Swiss freelancers and sole proprietors with annual turnover under CHF 500,000.
The name comes from Switzerland's agricultural heritage, when farmers would record their daily milk sales in simple ledgers. Today, it represents the same principle: uncomplicated, single-entry accounting that "fits into a milk book."
Before 2013, all Swiss businesses—regardless of size—were required to maintain double-entry bookkeeping. This created unnecessary complexity for freelancers and small sole proprietors.
The new accounting law (Rechnungslegungsrecht) introduced in 2013 changed everything. Small businesses no longer needed complex double-entry systems. Instead, they could use simplified accounting—what the Swiss colloquially call Milchbüchlein.
This reform recognized a simple truth: a freelance graphic designer with CHF 80,000 in annual revenue doesn't need the same accounting system as a multinational corporation.
Understanding the turnover thresholds is critical. Swiss law defines three key levels that determine your accounting requirements.
Optional accounting. No mandatory VAT registration. Simple income and expense tracking suffices.
Milchbüchlein mandatory. Must register for VAT. Quarterly or annual VAT statements required.
Double-entry bookkeeping becomes mandatory. More detailed financial statements required.
If your annual turnover is below CHF 100,000, accounting is technically optional—though strongly recommended. At this level:
Once you exceed CHF 100,000 in annual turnover:
When you cross the CHF 500,000 threshold:
Important note: If you operate as a GmbH (limited liability company) or AG (corporation), you must use double-entry bookkeeping from day one, regardless of turnover.
According to Article 957 of the Swiss Code of Obligations, all sole proprietorships must maintain proper accounting records. For businesses under CHF 500,000, "proper accounting" means:
The principles of proper accounting (GOB) still apply to Milchbüchlein. You can't just scribble numbers on napkins—your records must be organized, complete, and verifiable.
Records must be kept for at least 10 years. This applies to receipts, invoices, bank statements, and all supporting documentation.
Single-entry bookkeeping is refreshingly simple. Instead of recording each transaction twice (like double-entry), you record it once. You create two lists: Income and Expenses. That's it.
You create two lists:
That's it. No complex chart of accounts, no debits and credits, no counter-entries.
For each transaction, document:
| Date | Receipt # | Description | Amount |
|---|---|---|---|
| 15.01.2026 | INV-2026-001 | Web design project - Client ABC | CHF 4,500 |
| 22.01.2026 | INV-2026-002 | Logo design - Client XYZ | CHF 1,200 |
| Date | Receipt # | Description | Amount |
|---|---|---|---|
| 18.01.2026 | REC-001 | Adobe Creative Cloud subscription | CHF 65.70 |
| 25.01.2026 | REC-002 | Business lunch with client | CHF 87.00 |
The key is consistency. Choose one method and stick with it.
For many freelancers, VAT registration is where Milchbüchlein accounting gets slightly more complex. You must register for VAT when your annual turnover exceeds CHF 100,000.
8.1% for most services
2.6% for essential goods
3.8% for hotels and lodging
Quarterly or annual VAT returns
Note: A planned VAT increase to 8.8% has been delayed until 2028.
While Milchbüchlein works beautifully for basic income and expenses, VAT reporting requires additional detail:
Many freelancers consult a trustee or tax advisor once they hit the CHF 100,000 threshold. The cost (typically CHF 30-100 per hour) can be worthwhile to avoid costly VAT mistakes.
Understanding the pros and cons helps you decide if Milchbüchlein is right for your business.
Single-entry bookkeeping reduces accounting work by more than half compared to double-entry.
You don't necessarily need expensive accounting software or professional accountants.
No accounting background required. If you can maintain a budget, you can handle Milchbüchlein.
Despite its simplicity, Milchbüchlein is completely legitimate and meets Swiss legal requirements.
Because each transaction is only recorded once, mistakes are harder to catch. There's no built-in verification like in double-entry systems.
Milchbüchlein doesn't provide detailed balance sheets or comprehensive financial statements. You know your income and expenses, but deeper analysis is limited.
While Milchbüchlein works for basic tracking, it's not ideal for sophisticated VAT reporting. Many freelancers find this challenging.
As your business grows, simple single-entry accounting becomes inadequate. You'll eventually need to transition to double-entry bookkeeping.
Proper expense tracking is where Milchbüchlein really saves you money. Here are commonly overlooked deductions that can significantly reduce your tax burden.
If you use a dedicated room exclusively for your business, you can deduct a proportional share of:
Calculate based on square footage. If your home office is 15% of your apartment, you can deduct 15% of eligible expenses.
If you use your personal phone for business, deduct the professional usage percentage. Be reasonable—the tax authorities will question 100% business use of your personal mobile.
Deductible travel includes:
Training courses, conferences, certifications, and professional books are fully deductible.
Contributions to your Pillar 3a retirement account are tax-deductible up to CHF 7,056 annually for employed/self-employed persons with pension fund coverage (CHF 35,280 without pension fund coverage).
Business liability insurance, professional indemnity insurance, and the business portion of health insurance are deductible.
Understanding when to transition from Milchbüchlein to double-entry bookkeeping helps you plan ahead and avoid last-minute scrambling.
Consider upgrading before it's mandatory if:
Moving from Milchbüchlein to double-entry requires:
Most businesses hire an accountant or trustee to manage this transition. Budget CHF 2,000-5,000 depending on complexity.
Learn from others' errors and set up your accounting system correctly from the start.
While you can legally use your personal bank account, it creates confusion. Separate accounts make tracking much easier.
I don't need the receipt because it's in my bank statement
Recording income monthly but expenses quarterly creates an inaccurate financial picture. Be consistent.
If you transfer personal money into your business, document it. Otherwise, it might look like unreported income.
Many freelancers overpay taxes by not tracking deductible expenses. Every business coffee adds up.
Choosing the right tool for your Milchbüchlein bookkeeping depends on your business complexity and VAT requirements.
| Feature | Excel/Sheets | Magic Heidi | Bexio | CashCtrl |
|---|---|---|---|---|
| Monthly Cost | Free | CHF 24.99 | CHF 35+ | CHF 29+ |
| Best For | Under CHF 100K | ✓ All freelancers | SMEs | Small businesses |
| VAT Management | Manual | ✓ Automated | ✓ Yes | ✓ Yes |
| QR Invoice | ✗ No | ✓ Included | ✓ Yes | ✓ Yes |
| Setup Time | 1 hour | 2 minutes | 30+ minutes | 15+ minutes |
| AI Features | ✗ No | ✓ Expense scanning | ⚠ Limited | ✗ No |
You can manage Milchbüchlein in Excel if:
Consider accounting software when:
Magic Heidi: Comprehensive solution designed specifically for Swiss freelancers, covering accounting, invoicing, expense tracking, and VAT management.
Bexio: Popular among Swiss SMEs, used by over 90,000 businesses. More feature-rich but steeper learning curve. Read our Bexio alternative comparison.
CashCtrl: Cost-effective option starting at CHF 350 annually. Good balance of features and simplicity.
Accounto: AI-powered solution with OCR for receipt scanning. Particularly strong for expense management.
Swiss law doesn't require professional accounting help for most freelancers, but knowing when to get help can save you time and money.
You probably don't need an accountant in these situations
Professional help makes sense when
Expect to pay CHF 30-100 per hour for a qualified accountant in Switzerland. For annual accounting review and tax filing, budget CHF 500-2,000 depending on complexity.
Use this checklist to ensure you're managing your Milchbüchlein properly and staying compliant with Swiss regulations.
Record all income with invoices • Record expenses with receipts • Reconcile bank statements • File documentation
Prepare VAT return (if registered) • Submit to Federal Tax Administration • Pay VAT due
Summarize total income and expenses • Prepare asset/liability statement • Calculate profit/loss • Submit tax return
Review 10-year retention requirements • Archive previous year's records • Dispose of records older than 10 years
Yes, this is legally permitted for sole proprietors. However, a separate business account makes tracking easier and looks more professional to clients.
You must register for VAT within 30 days of exceeding the threshold. VAT obligations begin from the date of registration, not retroactively.
All accounting records, receipts, and supporting documentation must be kept for 10 years in Switzerland.
If you're VAT-registered, you'll submit quarterly or annual VAT returns. Otherwise, only your annual tax return is required.
Yes, though it's easier to transition at year-end. You'll need to create an opening balance sheet as of the transition date.
Banks typically require more detailed financial statements than Milchbüchlein provides. If you're seeking financing, consider upgrading to double-entry or having an accountant prepare supplementary statements.
Magic Heidi is built specifically for Swiss freelancers, making Milchbüchlein bookkeeping effortless with automated tracking, Swiss VAT compliance, and professional invoicing.
If you're ready to implement Milchbüchlein accounting for your Swiss freelance business:
Proper accounting doesn't have to be complicated. With Milchbüchlein, you can stay compliant, maximize deductions, and focus on what you do best—growing your freelance business.