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Year-end in SMEs: figures, goals and time pressure
26.11.2025
Daily business, tax optimization, setting new year goals – the end-of-year rush is challenging. At this time, it’s all about keeping track. Reto Wettstein, a fiduciary lecturer at the STS Schweizerische Treuhänder Schule AG, answers the most important questions about financial statements.
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Other year-end to-dos in a downloadable checklist
The annual financial statements are approaching – and countless other tasks along with them. To ensure that nothing gets lost in the year-end rush, here’s our practical checklist.
What is the biggest headache for small companies preparing their financial statements for the year?
Experience shows that in small companies there are missing or unsorted documents, unclear book entries and time pressure. For sole proprietorships in particular, the combination of private and business receipts is always a challenge. With this in mind, we recommend that you keep your private and business receipts strictly separate and always have at least one private and one business account (including account card).
“To avoid making annual financial statements stressful, regular accounting updates, digital tools, clear filing structures and a monthly check of your finances all help.”
Reto Wettstein, a fiduciary lecturer at STS Schweizerische Treuhänder Schule AG
Which documents do companies need to compile their annual accounts?
As a rule, all receipts, account statements, contracts and outstanding invoices that are relevant to the annual financial statements. Depending on the type of company, this can also include inventory lists, payslips and, where applicable, investment documents. It’s important not to forget anything that could be relevant for tax purposes. It’s better to submit too many documents to your fiduciary office than too few. They will know how to proceed.
Why are annual financial statements so important?
The annual financial statements show the company’s financial situation and form the basis for tax returns, strategic decisions and discussions with banks or investors.
Annual financial statements by legal form: components and deadlines
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What should be included in the annual financial statements?
Sole proprietorships with an annual turnover of less than 500,000 francs are generally exempt from the requirement to prepare comprehensive annual financial statements (see “Good to know”). All they need to do is maintain simple accounting with an income-expenditure statement and provide information about their assets. In specific terms, it means that sole proprietorships have to show how much money they’ve earned and spent in the financial year and what profit is generated as a result. Unlike double-entry bookkeeping, single-entry bookkeeping does not require closing entries to be recorded (deferred assets and liabilities, depreciation, provisions, etc.), as only the effective date of receipt or expenditure is relevant for an income-expenditure statement. Outstanding invoices as at 31 December do not need to be taken into account in the annual financial statements. This information must then be enclosed in a separate document in the tax return.
What deadlines must be observed?
Sole proprietorships submit their annual financial statements together with their tax return to the cantonal tax authority. The deadlines for this differ from canton to canton. In almost all cantons, a deadline extension is generally also possible.
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What should be included in the annual financial statements?
Limited liability companies and private limited companies are required to carry out double-entry bookkeeping and are obliged to prepare annual financial statements. They include a balance sheet, income statement and notes, and, in special cases, a management report and cash flow statement. Certain companies are required to have an audit (ordinary or limited) performed on their annual financial statements by an independent auditor (Art. 727 et seq. CO).
In addition, these companies are required to publish their annual financial statements (Article 696 para. 1 CO). Certain companies are also required to have an ordinary audit performed on their annual financial statements by an independent auditor (Art. 727 CO and Art. 728 CO).
What deadlines must be observed?
According to the Swiss Code of Obligations, limited liability companies (GmbH) and private limited companies (AG)must hold ordinary (annual) general meetings of shareholders or members within six months of the end of the financial year. The annual financial statements must be drawn up in good time, as the annual report and audit reports must be made available to the shareholders 20 days before the meeting.
Good to know
The obligation to keep accounts is governed by Art. 957 of the Swiss Code of Obligations; the obligation to file financial reports is governed by Art. 958.
Tip
Discuss tax deadlines, such as for annual financial accounts, VAT or filing your tax return, ideally with your fiduciary office, and draw up a timetable with your contact person for finalizing the financial statements that is feasible for all parties.
As an expert, what tips can you give SMEs on annual financial statements?
As an SME owner or finance manager, always keep in mind the annual financial statements throughout the year and set aside the relevant documents and information for the financial statements on an ongoing basis. You can also take advantage of digital accounting options – i.e. accounting software – and have regular consultations with your fiduciary office.
Keep an eye on important deadlines
For electronic payment orders, electronic credit advices, SWIFT MT101 and much more: you’ll find PostFinance’s year-end processing deadlines here.
How can companies still save on taxes now?
You can save on taxes by making targeted investments before the end of the year, through operating expenses such as training, marketing or necessary purchases. Required operational provisions also help to optimize the tax burden.
Provisions and depreciation are always an issue: what do microenterprises and small SMEs need to know?
Provisions and depreciation reduce profit and, in turn, your tax burden. It is important that they are documented correctly and in a traceable manner. Depreciation and provisions have to comply with the legal requirements.
What else can companies do now to better manage their liquidity?
Liquidity can be managed in particular through early invoicing, consistent reminders and forward-looking investment planning and the creation of reserves. A liquidity plan with a monthly overview is recommended for the following year.
What investments are worthwhile before the end of the year?
In principle, all investments that have clear benefits for operations and are actually required (operational necessities) are worthwhile. The important thing is that they are justified from an operating perspective and therefore tax-deductible. Replacement investment is usually a loss-making transaction, because the tax savings never fully offset the investment costs.
What can small companies do during the course of the year to ensure their annual reporting doesn’t become stressful?
Regular accounting updates, digital tools, clear filing structures and a monthly check of your finances will help you throughout the year. Whenever possible, accounting should always be updated, and any uncertainties should preferably be discussed with the fiduciary office during the year.
What is the best way for smaller companies to organize their accounting for upcoming financial years?
There are two basic strategies: outsourcing to a fiduciary office and independent digital processing of accounting. The former requires a good filing system and good communication with the fiduciary office. The second depends on the accounting system selected. It’s important that the fiduciary office also supports and knows how to use the relevant accounting software to ensure the client operates as efficiently as possible.
What else do SMEs need to think about at year-end – including with regard to the new year?
At the end of the year, companies should review their strategic goals and define goals for the new year, conduct staff appraisals and get personnel planning underway, and plan marketing measures for the upcoming year. It’s important to always pay attention to economic and political developments (e.g. customs duties, abolition of rental value, etc.) and their possible impact on the business. Budget planning and the resulting target definitions shouldn’t be forgotten. Here too, it may make sense to involve the fiduciary office, especially for the financial part.