Solo GmbH & SARL

Solo GmbH & SARL Bookkeeping: The Simple Approach That Actually Works

You started a GmbH for limited liability and professional credibility. But you're essentially a freelancer at heart. Here's how to stay compliant without drowning in corporate complexity.

Swiss Business Office

You started a GmbH (or SARL, if you're in French-speaking Switzerland) for all the right reasons: limited liability protection, professional credibility with clients, and the chance to leave personal assets out of business risks.

But here's the reality: you're a freelancer at heart. You work solo, manage your own projects, and don't want to drown in corporate accounting complexity.

The good news? You don't have to choose between GmbH benefits and freelancer simplicity. There's a practical middle ground that lets you stay compliant while keeping your bookkeeping straightforward.

What Makes a Solo GmbH/SARL Different?

A solo GmbH or SARL (Société à Responsabilité Limitée) is a one-person limited liability company where you're the sole shareholder and director. In Switzerland, these terms mean the same thing—GmbH in German-speaking regions, SARL or Sàrl in French-speaking areas.

Structure Comparison

Quick Comparison: Your Structure Options

Understanding the trade-offs between sole proprietorship, solo GmbH, and full company structures.

FeatureSole ProprietorshipSolo GmbH/SARLFull GmbH with Employees
Personal LiabilityUnlimited✓ Limited✓ Limited
Minimum CapitalNoneCHF 20,000CHF 20,000
Annual StatementsOnly if revenue > CHF 500K✓ Always requiredAlways required
Audit RequirementNever✓ Rarely*Often
Setup ComplexityLow✓ MediumHigh
Annual Accounting CostsCHF 500-1,000✓ CHF 1,500-2,000CHF 3,000+
Best ForSmall side projects✓ Solo professionalsGrowing companies
Legal Requirements

Your Non-Negotiable Legal Requirements

Let's be clear about what Swiss law requires from your GmbH. The Swiss Code of Obligations (OR) doesn't care that you're a one-person operation—certain obligations apply to all limited liability companies.

Annual Financial Statements (Jahresrechnung)

Every GmbH must prepare three core documents each year:

1. Balance Sheet (Bilanz)
Shows your company's financial position at year-end—assets, liabilities, and equity including your CHF 20,000 minimum share capital.

2. Profit & Loss Statement (Erfolgsrechnung)
Documents your annual results with all revenue by category and all business expenses.

3. Notes / Disclosures (Anhang)
A shorter section covering accounting principles, depreciation rules, shareholder loans, and employee count. For solo GmbHs, this is typically just a few paragraphs.

Complete Accounting Records

Swiss law requires you to maintain for 10 years:

  • All invoices you issued to clients
  • All expense receipts
  • Contracts and agreements
  • General ledger entries (Hauptbuch)
  • Bank statements for all business accounts
Magic Heidi Solution

How Magic Heidi Fits Your Solo GmbH

Magic Heidi was built with freelancers in mind—and that's exactly why it works so well for solo GmbH owners who operate with a freelancer mindset.

Magic Heidi Invoice Management

What Magic Heidi Doesn't Provide (And Why That's Okay)

Since Magic Heidi focuses on freelancer needs, it doesn't generate certain corporate-specific documents:

  • Balance Sheets: We don't track assets and liabilities over time
  • Cash Balance Statements: We don't directly import and reconcile bank accounts
  • Depreciation Schedules: We don't manage multi-year asset depreciation

Here's why this limitation isn't a problem: These are exactly the documents your accountant can easily generate from the information Magic Heidi provides, combined with your bank statements and asset purchase records. This is their specialized work—and typically costs CHF 1,500-2,000 per year.

The Hybrid Approach: Best of Both Worlds

Think of your bookkeeping as having two distinct phases—daily operations you handle yourself, and annual compliance managed by professionals.

💰 Save CHF 4,000-12,000 annually
⏱️ Minutes per week
🎯 Full compliance
😌 Peace of mind
⚡
Phase 1 - Daily Operations

You + Magic Heidi throughout the year

📊
Real-Time Tracking

Minutes per week, not hours

👨‍💼
Phase 2 - Annual Compliance

Your accountant once per year

✅
Professional Assurance

Full corporate compliance confidence

Is This For You?

Are You a Good Fit for This Approach?

The Magic Heidi + accountant hybrid works brilliantly for a specific type of solo GmbH. Use this checklist to see if that's you.

✅ You're Likely a Great Fit If

Perfect Candidates for the Hybrid Approach

These characteristics indicate you'll thrive with simplified bookkeeping while maintaining full compliance.

  • No employees: You're the only person working in the business
  • Service-based: Consultant, designer, developer, coach, or similar professional
  • Low asset intensity: No inventory or expensive depreciating equipment
  • Simple financing: No complex loans or investor arrangements
  • Straightforward income: Invoice clients for services, not selling physical products
  • Client relationships: Multiple clients or steady retainer relationships
  • Former freelancer: Incorporated for protection/credibility but work style unchanged
Swiss Entrepreneur
⚠️ You Might Need More If

Consider Additional Support

These situations may require more robust accounting solutions or specialized tools.

  • Growing team: Planning to hire employees within the year
  • Physical products: Manufacturing, inventory, or e-commerce operations
  • Complex assets: Significant equipment, vehicles, or property to depreciate
  • Multiple entities: Operating several companies or partnership structures
  • Specialized industry: Highly regulated sectors with specific accounting requirements
Complex Paperwork
🚫 This Approach Won't Work If

Better Solutions Exist

These scenarios require specialized accounting systems beyond the hybrid approach.

  • Already have employees: Payroll complexity requires robust accounting
  • Asset-heavy business: Car dealerships, equipment rental, real estate need specialized tracking
  • Complex financing: Multiple loans, investors, or complex shareholder structures
  • High transaction volume: Hundreds of monthly transactions exceed manual tracking capacity
Complex Tax Situations

Setting Up Your Bookkeeping System

Here's your practical workflow for managing a solo GmbH with Magic Heidi:

Initial Setup (One-Time)

  1. Create your Magic Heidi account and set up your business profile
  2. Connect your business categories matching your typical expense types
  3. Find a GmbH-experienced accountant who understands this hybrid approach
  4. Establish your document storage system for bank statements and major contracts

Monthly Workflow (15-30 Minutes)

Week to week:

  • Create invoices as you complete client work
  • Photograph expense receipts immediately
  • Categorize expenses in Magic Heidi when you have a spare moment

End of month:

  • Quick review: Do all bank deposits match invoices?
  • File any receipts you received by email
  • Check that major expenses are recorded

Quarterly Check-In (1 Hour)

  • Review your revenue and expense trends
  • If VAT-registered: prepare your quarterly VAT return
  • Update any asset purchases in your records
  • Touch base with your accountant if anything unusual occurred

Annual Process (Coordinated with Accountant)

Your responsibilities:

  1. Export your complete year's data from Magic Heidi
  2. Gather all business bank statements
  3. Document any asset purchases with receipts
  4. List any shareholder transactions
  5. Provide this package to your accountant

Your accountant's work:

  1. Review your transaction records for completeness
  2. Create the formal balance sheet
  3. Prepare depreciation schedules
  4. Complete profit & loss statement in required format
  5. Draft notes to financial statements
  6. Prepare corporate tax returns
  7. File with authorities and Commercial Register

Timeline: Start this process 3-4 months before your filing deadline to avoid stress.

Cost Reality

What You'll Actually Spend

Let's look at realistic numbers for managing your solo GmbH under different approaches.

ApproachWhat You GetAnnual CostBest For
Full-Service AccountingAll transaction entry, monthly updates, annual statements & tax returnsCHF 6,000-14,400Very high income, complete hands-off
Hybrid (Magic Heidi + Accountant) ⭐You track daily, professional annual compliance, full confidenceCHF 1,680-2,420Solo GmbHs operating like enhanced freelancers
Pure DIYAll bookkeeping yourself, create statements yourself, complete tax returns yourselfCHF 300-600 + significant time + compliance riskPeople with accounting backgrounds
ROI Analysis

The ROI Analysis

If you value your time at CHF 100/hour (typical for solo professionals), the hybrid approach saves you significant time and money.

FAQ

Frequently Asked Questions

Can I really manage GmbH bookkeeping without being an accountant?

Yes—for the daily transaction tracking. You're simply recording what happens: invoices sent, expenses paid, receipts collected. Magic Heidi makes this straightforward. However, you absolutely need an accountant's expertise for the annual corporate filings and ensuring compliance with Swiss Code of Obligations requirements.

What if I have just one or two big clients—is that okay for a GmbH structure?

Completely fine. Many solo GmbHs work with just a handful of major clients. The structure protects you legally and presents a professional image regardless of client count. Just ensure you're genuinely providing services as an independent business, not functioning as a disguised employee.

When do I absolutely need to involve my accountant?

Beyond the annual filings, contact your accountant when: making major asset purchases (over CHF 5,000), considering loans to/from the company, your revenue crosses the VAT threshold (CHF 100,000), thinking about hiring employees, business structure might change, or you receive any communication from tax authorities.

Can I switch from SARL to AG (stock corporation) later?

Yes, you can convert your SARL/GmbH to an AG (Aktiengesellschaft) if your business grows and you want the benefits of a stock corporation structure. This requires legal and accounting support but is a well-established process in Switzerland.

What about asset depreciation—can I just ignore it?

No. If you purchase business assets (computers, office equipment, furniture), Swiss tax law requires you to depreciate them over their useful life. However, for solo GmbHs with minimal assets, this is straightforward—your accountant will handle the schedule. Just keep purchase receipts and note what you bought.

When do I need to register for VAT?

VAT registration becomes mandatory once your annual taxable turnover reaches CHF 100,000. You can also voluntarily register earlier if you're a startup expecting to exceed the threshold, want to reclaim VAT on business expenses, or work with international clients. Many solo GmbHs operate below the threshold initially.

What happens during a tax audit?

Tax audits for small GmbHs are relatively rare unless there are red flags. If audited, authorities will want to see all the documents you're already maintaining (invoices, receipts, bank statements), your financial statements, and proof that personal and business expenses are properly separated. This is another reason the Magic Heidi + accountant approach works well—you have clean records and professional oversight.

How much will I actually save with this hybrid approach?

Full-service bookkeeping for a solo GmbH costs CHF 6,000-14,400 annually. The hybrid approach (Magic Heidi CHF 180-420 + annual accountant CHF 1,500-2,000) totals CHF 1,680-2,420 annually. Potential savings: CHF 4,000-12,000 per year while maintaining full compliance.

Your GmbH Can Be Simple

You chose a GmbH structure for good reasons. Those benefits don't have to come with overwhelming complexity. Experience freelancer-like simplicity for your solo GmbH with professional compliance confidence.

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You're a solo entrepreneur who happens to operate as a GmbH

Your bookkeeping should reflect that reality—simple enough for one person to manage, professional enough to satisfy Swiss authorities.

What you get with Magic Heidi + accountant:

✅ Compliance confidence knowing experts handle your corporate filings
✅ Cost savings of CHF 4,000-12,000 annually vs. full-service bookkeeping
✅ Time efficiency spending minutes, not hours, on bookkeeping
✅ Financial clarity with real-time visibility into your business
✅ Flexibility to scale up if your business grows

Have questions about whether Magic Heidi works for your specific GmbH situation? Our support team includes people who've managed their own solo GmbHs—we're happy to help you figure out if this approach fits your needs.