Starting your self-employed journey in Switzerland? Learn exactly what you need to track, which rules apply to your situation, and how to stay compliant without drowning in spreadsheets.
You've sent your first invoices, and now you're wondering: What exactly do I need to track? How much paperwork is actually required? And what happens if I get it wrong?
Here's the good news: Swiss accounting for self-employed individuals is more straightforward than you think—especially if you know which rules apply to your situation.
This guide covers everything from legal thresholds to practical tracking methods, so you can stay compliant without the complexity.
Swiss accounting requirements aren't one-size-fits-all. What you must track depends on your annual revenue.
Simple income-expense tracking. Basic spreadsheet or notebook legally sufficient. No Commercial Register or mandatory VAT.
Simplified accounting (Milchbüchleinrechnung) required. Commercial Register entry and VAT registration mandatory. 10-year retention.
Double-entry bookkeeping mandatory. Full balance sheets and financial statements. Consider professional accountant.
The term "Milchbüchleinrechnung" (milk book accounting) comes from the small notebooks Swiss farmers once used to track daily milk production and sales.
Today, it refers to simplified accounting that tracks:
It's called "simplified" because you don't need:
For most self-employed individuals earning under CHF 500,000, this method is perfectly legal and sufficient.
Proper accounting records serve three critical purposes that directly impact your success and financial health.
Here's exactly what you need to track to stay compliant and optimize your taxes.
Track all incoming payments and outstanding receivables.
Keep original receipts or invoices. Bank statements alone aren't sufficient for tax authorities.
Track your business property and outstanding debts.
As a sole proprietor, your finances are legally connected but must be tracked separately.
General principle: All costs necessary to generate business income are deductible. This includes expenses that an employer would normally cover if you were employed.
Workspace:
Equipment and Software:
Marketing and Client Acquisition:
Professional Development:
Travel and Meetings:
Administrative:
Social Security and Pension:
Large purchases can't be fully deducted in the year of purchase. Instead, they're depreciated over several years:
Common depreciation rates:
Example: You buy a CHF 3,000 laptop. Instead of deducting CHF 3,000 in year one, you deduct CHF 750 annually over four years.
Grey area tip: For expenses like phones and internet used for both business and personal purposes, you can deduct the business percentage. Be reasonable and consistent—80% business use for your personal mobile is hard to justify.
Swiss law requires you to keep all accounting records for 10 years from the end of each financial year.
All invoices, bank statements, receipts, contracts, business correspondence, VAT records, and financial statements.
As of 2025, Swiss regulations (Olico ordinance) explicitly permit electronic archiving. Files must remain readable and accessible.
Failure to maintain proper records can result in fines, disallowed deductions, higher tax assessments, and potential imprisonment in bankruptcy cases.
Scan or photograph all receipts immediately, organize them digitally, and keep originals in a box for high-value items.
Three practical options for keeping your records. Here's how to choose.
| Method | Spreadsheets | Accounting Software | Professional Accountant |
|---|---|---|---|
| Best For | Revenue under CHF 100K, simple business | ✓ CHF 100K+, VAT-registered | Revenue over CHF 500K, complex structures |
| Cost | Free - CHF 10/month | ✓ CHF 20-50/month | CHF 2,000-5,000/year |
| Time Investment | Hours monthly | ✓ 15 min weekly | Minimal (but prep needed) |
| VAT Compliance | ✗ Manual | ✓ Automated | ✓ Handled |
| Bank Integration | ✗ None | ✓ Automatic | ⚠ Varies |
| Learning Curve | ✓ Minimal | ⚠ Moderate | ✓ None |
For annual revenue under CHF 100,000 or very simple business models. Create two sheets: Revenue (invoices) and Expenses. Add categories like Office, Marketing, Travel, Software, and Insurance. Sum each category at year-end for your tax return.
Once you cross CHF 100,000 or want to save time from day one, accounting software designed for the Swiss market makes compliance effortless. Look for Swiss VAT compliance, QR-invoice support, bank integration, and receipt scanning.
Create QR invoices in 30 seconds. Track expenses with AI. Manage VAT automatically. Import bank statements. All in one simple app.
Generate compliant invoices with Swiss QR codes in seconds
Snap a photo—AI extracts date, amount, VAT, and category automatically
Automatic VAT calculations and quarterly reporting for Swiss rates
Import statements and match transactions automatically
Magic Heidi
CHF 500
Jan 29
Webbiger LTD
CHF 2000
Jan 24
John Doe
CHF 600
Jan 20
If your annual revenue exceeds CHF 100,000, you must register for VAT (MWST/TVA/IVA) with the Swiss Federal Tax Administration.
Once VAT-registered, you must:
Two methods:
Effective Method:
Net Tax Rate Method (Saldosteuersatz):
You can register voluntarily before hitting CHF 100,000 if:
Downside: Added administrative burden and complexity.
When required: Once your annual revenue reaches CHF 100,000
Registration:
All self-employed individuals must:
Good news: These contributions are fully tax-deductible.
Your compensation office determines your self-employment status. If you work for primarily one client, they may classify you as an employee—which changes your tax and insurance obligations.
Learn from others' expensive mistakes. Here's what to watch out for.
Makes tracking impossible and creates audit red flags. Solution: Open a separate business bank account.
Without proof, you can't deduct the expense. Solution: Photograph receipts immediately with your phone.
Confuses business profitability and creates tax errors. Solution: Note every transfer between accounts.
Deducting large purchases fully in year one violates tax rules. Solution: Apply correct depreciation rates.
Generic categories make analysis hard and appear unprofessional. Solution: Use consistent, specific categories.
Failing to register after CHF 100K results in penalties. Solution: Monitor revenue quarterly, alert at CHF 90K.
Scrambling to find receipts causes stress and errors. Solution: Spend 15 minutes weekly updating records.
Follow this simple roadmap to set up compliant accounting from day one.
Get the basics in place.
Catch up on everything from this year.
Make it a weekly habit.
Check your progress and stay compliant.
No. If your revenue is under CHF 100,000 and your business model is simple, you can manage your own accounting with a spreadsheet or basic software.
The Federal Tax Administration will require retroactive registration, and you'll owe VAT on all revenue over the threshold plus potential penalties and interest.
Yes. Calculate the percentage of your home used exclusively for business (e.g., one room in a 4-room apartment = 25%) and apply that percentage to your rent and utilities.
Plan for approximately 20-30% of your net income, depending on your canton and total income. Your first year will be estimated; subsequent years adjust based on actual earnings.
No. As of 2025, Swiss law permits electronic-only archiving if you ensure files remain authentic, readable, and accessible for 10 years.
You still owe tax on the income in the year invoiced. If it becomes definitively uncollectable, you can claim it as a loss in a future year with proper documentation.
Only the business percentage. Keep a mileage log showing business vs. personal use. The business portion of purchase price (via depreciation), insurance, fuel, and maintenance is deductible.
It begins at the end of the financial year. For a 2025 expense, you must keep the receipt until at least December 31, 2035.
Yes. Software subscriptions used for business purposes are fully deductible business expenses.
In Switzerland, these terms are essentially synonymous. Both refer to individuals working independently without a registered company structure (GmbH or AG). The key distinction is how you're classified by your compensation office.
Start tracking your income and expenses today. The sooner you build good habits, the easier tax season becomes—and the more money you'll save through proper expense documentation.