Annual accounts
The closing of the financial year with a balance sheet (assets and liabilities) and an income statement (income and expenses). It is the basis for the company's tax return and for talks with the bank and partners.
The Jahresabschluss (annual accounts) closes a company's financial year and consists chiefly of a balance sheet — assets, liabilities and equity, and an income statement of revenue and expenses. In Switzerland it forms the basis for the company's tax return and is a key document in conversations with banks, investors and business partners. The applicable accounting rules depend on the company's size and legal form.
Example: A GmbH with a 31 December year-end has its fiduciary prepare the annual accounts in the following weeks: the balance sheet shows what the company owns and owes, the income statement shows the year's profit, and both feed straight into the corporate tax return.
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What does the annual financial statement include?
At minimum a balance sheet and an income statement, plus notes where required by the Swiss Code of Obligations. Larger companies may also need a cash-flow statement and a management report.
Why are annual accounts important?
They determine taxable profit, document the company's financial position for banks and partners, and are a legal requirement. Clean, timely accounts also make audits and financing discussions far easier.