Why corporate cards alone are not enough
Corporate credit cards simplify recurring payments, travel and online purchases, but they do not replace accounting. In a Swiss SME subject to bookkeeping obligations (Art. 957 et seq. CO), every card transaction must be traceable, documented and recorded in the correct period. Without a clear process, the bank statement remains the only source of truth and expenses accumulate as liabilities to the card issuer, often unreconciled with invoices and supporting documents.
The operational risk is real: exceeded credit limits, unauthorized purchases, non-recoverable VAT due to missing documents, costs posted to the wrong account, or the cardholder's personal expenses left uncorrected. For GmbHs (Sàrl), AGs and sole proprietorships with staff, the corporate card is a treasury tool that requires internal rules, technical limits and a reconciliation workflow aligned with the monthly or quarterly accounting cycle.
This guide explains how to set effective limits, reconcile expenses with the card statement and record transactions in compliance with Swiss accounting standards and VAT law, with practical references for users of accounting software such as Accountex.
Card types: corporate, business and prepaid
Before defining limits and accounting processes, it helps to distinguish the solutions offered by Swiss banks and fintech providers:
Corporate card (revolving credit)
The balance is not debited immediately from the current account: the company receives a monthly statement and pays the total or partial amount. Suitable for teams with frequent travel or recurring purchases. Requires a credit card liability account and periodic reconciliation.
Credit limits and per-card sub-limits are negotiable with the issuer. Interest on unpaid balances is a deductible financial expense if related to business activity.
Business/debit card linked to current account
Every payment is debited directly from the company current account. The accounting flow is simpler — no liability to the issuer is created — but it remains essential to link every debit to supporting documentation and an expense account.
Daily limits and monthly spending caps are configurable; useful for containing risk without managing a separate card balance.
Prepaid or virtual cards
Funds loaded in advance or single-use cards for projects and subscriptions. Budget control is maximum: when the limit is exhausted, the transaction is declined. Ideal for occasional collaborators or IT/SaaS expenses.
In accounting, advance loading may temporarily pass through a transit or prepayment account before actual use.
Company card vs. named card
A card issued to the company with multiple cardholders makes it easier to identify the spender via MCC codes and per-card reports. Avoid managers' personal cards used "for convenience": they mix assets, complicate tax evidence and increase the risk of undeclared fringe benefits.
Every cardholder should sign an internal policy defining eligible categories and deadlines for submitting supporting documents.
Spending limits: credit limits, thresholds and internal policy
The credit limit agreed with the bank (overall credit ceiling) does not coincide with the company's operational budget. A prudent SME defines both: the bank limit as an absolute ceiling and internal rules that anticipate budget exhaustion by cost centre or employee.
Typical elements of a corporate card policy:
- Per-card and per-transaction limits — maximum daily and monthly amounts, enforced at issuer level.
- Eligible categories — travel, meals on business trips, office supplies, software; explicit exclusion of cash withdrawals except in authorized cases.
- Approval threshold — expenses above CHF 500 (or another threshold) require prior approval from the supervisor or manager.
- Receipt submission deadline — e.g. within 5 business days of the transaction, otherwise temporary card suspension.
- Prohibition of personal use — with immediate reimbursement procedure if it occurs by mistake.
Document the policy in writing (internal regulations or attachment to the employment contract for employee cardholders). In the event of an audit or tax review, this demonstrates that the company exercised due diligence in managing expenses.
Reconciliation: from card statement to journal entries
Reconciliation links three sources: the card statement (or bank feed), supporting documents (invoices, receipts, expense reports) and accounting entries. Goal: zero "orphan" transactions at month end.
| Stage | Action | Expected output |
|---|---|---|
| 1. Import statement | Download card transactions (camt/csv) and import them into accounting software or the expenses module | Transaction list with date, amount, currency, MCC, cardholder |
| 2. Match documents | Link each line to a supplier invoice, receipt or scanned expense report | Attached document with consistent amount and VAT |
| 3. Account coding | Assign expense account (6xxx), input tax (1170) and cost centre where applicable | Complete entry per individual expense or batch |
| 4. Balance closing | Verify that expenses + statement payment = opening card balance | Credit card liability account at zero after balance transfer |
| 5. Exceptions | Handle foreign exchange fees, rounding and pending transactions | Adjustments to bank fees or transit account |
Foreign currency transactions must be recorded at the exchange rate on the transaction date (or at the card's contractual rate, if the accounting policy applies this uniformly). Issuer fees and surcharges are separate financial costs, not part of the purchase cost.
Compliant accounting: typical accounts and entries
In the Swiss chart of accounts (Kontenrahmen KMU), corporate cards generate two distinct accounting events: the expense at the time of purchase and payment of the monthly statement.
At the time of purchase
Record the expense with a credit to the credit card liability account (e.g. 2030 "Credit cards") rather than the bank account, until the statement is paid:
Debit 6200 Expenses / 1170 VAT
Credit 2030 Credit card
When paying the statement
Transfer from the company current account that clears the liability to the issuer:
Debit 2030 Credit card
Credit 1020 Bank
For debit cards linked to the current account there is no interim liability: the debit goes directly from the bank account to the expense account, with the same attention to supporting documents. In both cases, observe the accrual principle (Art. 958b CO): allocate costs to the period in which the service was consumed or goods received, not when supplier invoices are paid if these arrive late.
Retain documents and records for ten years (Art. 958f CO). Digitize paper receipts promptly: thermal receipts fade and make input tax recovery impossible in a subsequent FTA audit.
VAT on card expenses: deduction and critical cases
Input tax deduction (Art. 28 VAT Act) requires that the purchase be allocated to business activity and that a valid document exists with an explicit or calculable VAT amount. Payment with a corporate card does not replace the supplier invoice: the card statement alone is insufficient to deduct VAT on B2B purchases.
Watch out for these common situations in SMEs:
- Meals and accommodation — different VAT rates (8.1% catering, 3.8% lodging); distinguish business travel from internal hospitality and verify deductibility for income tax purposes as well.
- Fuel and tolls — generally deductible if related to business activity; for mixed-use vehicles apply allocation rules.
- Foreign purchases — VAT on imported goods is payable on import; for foreign services, reverse charge generally applies (Art. 45 et seq. VAT Act), even if payment is made with a Swiss card.
- Exempt or excluded expenses — insurance, certain medical services: no VAT to record, but supporting documentation for the cost is still required.
Align VAT codes in accounting software with current rates (8.1% standard, 2.6% reduced, 3.8% accommodation sector from 1 January 2024). A systematic error on card expenses propagates across every filing period and complicates year-end closing.
Personal use, fringe benefits and corrective entries
If an employee or partner uses the corporate card for private expenses — even occasionally — accounting must immediately separate the private component. The private amount is not deductible from the company's taxable income and, if it benefits an employee, may constitute an economic advantage subject to social security contributions and, for tax purposes, income tax (and, where applicable, withholding tax).
Recommended procedure: charge the employee/partner via an internal debit note and transfer from a transit account, or deduct the amount from the next month's payslip. Do not leave private expenses on cost accounts: an auditor or cantonal tax authority may reclassify them as hidden remuneration or unjustified disbursement.
For partners and close family members, the line between business expense and private benefit is even more closely scrutinized. Document the business purpose (client trip, equipment purchase) in the expense reporting system.
Digitalization: reducing manual work with Accountex
Integrated accounting software eliminates parallel Excel spreadsheets and speeds up monthly card account closing:
Automatic bank import — connection to the card account or current account to download transactions and suggest matches with registered suppliers.
Document capture — receipt photo from app or email to a dedicated address, with OCR for date, amount and VAT.
Coding rules — saved by merchant (MCC or merchant name): hotel → 6520, software → 6530, to pre-fill accounts and VAT rates.
Approval workflow — employee submits expense report, supervisor approves, accounting posts in batch before statement payment.
Cost centre reports — budget monitoring against internal limits, not just the bank credit ceiling.
Operational checklist for monthly closing
| Check | Completeness criterion |
|---|---|
| Card statement imported | All period transactions present in the system |
| Supporting documents matched | 100% of expenses > defined threshold (e.g. CHF 75) with attached document |
| VAT verified | VAT code and amount consistent with supplier invoice |
| Credit card liability balance | Account 2030 matches amount payable on statement |
| Payment executed | Transfer recorded; no late payment interest |
| Private expenses excluded | Any private items reversed or charged to cardholder |
With clear limits, timely reconciliation and structured accounting, the corporate credit card remains an agile tool without compromising accounting and tax compliance. The key is to treat every transaction like a mini supplier invoice: documented, coded and closed in the right period.