Annual financial statement: checklist

The annual statement is a fundamental requirement for correct, transparent bookkeeping. It's essential that all documents are entered accurately and completely, with nothing left out. Here, accounting software is an indispensable support, since it ensures that every transaction is recorded correctly and that all the necessary documentation is always available for your fiduciary or accountant.

Balance carried forward to the new tax year

For balance sheet accounts, the balance needs to be carried forward to the new tax year. Check that the current balances match those published in the last annual financial statement.

Profits and losses

Have the previous year's profits and losses been resolved and recorded correctly? Was a decision made to create reserves? If so, make sure they're recorded correctly. The balance of profits and losses carried forward to the new year must match the annex to the annual statement, the "application for the allocation of retained earnings".

Bank accounts and cash register

Check that the account balance in the accounts department matches the bank statement. Likewise, the cash balance must match the till statement. Don't forget your rental deposit account!
If you work with foreign currencies, book them at the year-end rate set by the Federal Tax Administration. If you find discrepancies while reconciling, it's best to check the balance for each month until you find the error.
Tip: reconcile your accounts regularly! This will save you time and stress during the annual financial statement.

Debtors and creditors

If you're not using double-entry bookkeeping, we suggest creating a list of open items as at the closing date. This list should include both debtors and creditors and record which invoices are still open at the end of the tax year. You can also add a column to track payments made against these invoices. We also recommend attaching a copy of the outstanding invoices. Make sure the total balance of open items at the closing date matches the accounting records.

Provisions

Managing accrued invoices, that is, accrued income and accrued expenses, can be tricky. We recommend reversing accrued income and accrued expenses at the start of the financial year and recording them again at year-end closing. This lets you manage the amounts relating to these accruals accurately and correctly.

Inventory and fixed assets

Carefully value your inventory of goods, work in progress and semi-finished products, and record the corresponding value in your accounts. Remember that you can value these items at two-thirds of their value. Make sure this valuation is clearly shown in the notes. Bear in mind that overstating the value of these items isn't allowed. Fixed assets must also be depreciated annually, following the depreciation table provided by the Federal Tax Administration. You can use the book value or the acquisition value as the basis for depreciation, as long as you use the same method every year.

Check salaries

Check whether salaries have been adjusted and recorded on a gross basis. If you don't keep a payroll ledger, it's advisable to include a payslip for each employee. Make sure the balance of the salary account matches the AHV (old-age and survivors' insurance) salary statement.

If you have staff who aren't subject to AHV contributions, such as apprentices or pensioners, we recommend keeping several salary accounts in your financial accounting.

Check social insurance contributions

Make sure all the final invoices from the various social insurance schemes (AHV, IV, ALV, BVG, accident insurance,…) have been entered correctly. Remember to include a copy of the annual statement (final invoice) in the closing file.

Private use of company vehicles

Do your employees use a company car? 

Check your VAT

The Federal Tax Administration (FTA) requires an annual return. This return shows whether taxable sales match declared sales and the VAT reconciliation. Check whether the balance of the VAT settlement account matches the last return filed, whether all VAT accounts are at zero, and whether any VAT corrections need to be filed for individual quarters or half-years.

Provisions to set aside

Don't forget to take the following steps. The most important are:
* Bad debt provision (estimated debtor losses) on receivables. 5% of domestic receivables and 10% of foreign receivables are recognised for tax purposes.
* A third off stock value (see point 6)
* Warranty provisions: for example, two per cent of annual sales over the last two years.
* Provisions for holiday and overtime: timesheets must be signed by employees.
* Litigation provisions: no provision should be created arbitrarily, there must be genuine, suspected disputes.
* Tax provisions: yes, you can deduct tax from your taxes. For the calculation, the cantons provide a calculation tool on the homepage of the relevant tax office.

Is your financial statement complete?

Sole proprietorships and general partnerships with annual turnover of up to CHF 500,000 can use a simple income statement. Everyone else is required to keep proper accounts. A complete annual statement includes the balance sheet, the income statement, the notes, the allocation of profits and the minutes of the general meeting. Naturally, all documents must be signed by the responsible body.

Documentation

Those responsible are required to keep accounting records for ten years. In the event of an audit, for example by the tax office, the VAT office or the AHV office, you need to be able to produce these records. Such audits usually require the following documents:

* Annual financial statement (balance sheet, income statement, notes, allocation of profits, minutes of the general meeting)
* Accounting sheets
* Proof of closing entries and other records such as vehicle registers and asset accounting
* Payslips, bank statements and payroll summaries
* Bank statements
* VAT returns and annual reconciliations

Key dates for the new year

To start the new financial year in an organised way, here's an overview of the most important dates:

* 1 January:

* Check whether the following premium rates have been adjusted: social insurance contributions from compensation funds (AHV, IV, FAK), daily sickness allowance insurance and daily accident allowance insurance.

* Also check the pension fund and the deductions per employee.

* 31 January: Salary declarations for all social insurance schemes

* 28 February: VAT return

* 30 June (or 6 months after the end of the financial year): annual financial statement

* 30 August: Annual VAT vote

* The deadline for filing the tax return is set by the canton and falls between 30 April and 30 September.

Conclusion

Preparing the annual financial statement is a fundamental task for ensuring transparency, accuracy and continuity in running a business. A thorough checklist helps you avoid missing anything, from opening balances to reconciliations, from open items to VAT checks, and helps you present a complete, reliable statement in line with Swiss regulations.

With modern accounting software (Klara, Bexio), many of these tasks become much simpler and more automatic, since data entry, account reconciliation and report generation happen quickly and accurately, reducing errors and saving valuable time.

If you'd like to streamline your company's accounting or get personalised advice on preparing your annual statement, get in touch: we'll support you step by step with tools and solutions suited to your business.