Why the first year is decisive

The first financial year of a Swiss startup or newly established GmbH sets the foundation for the company's entire future financial management. The choices made in the first few months — from the chart of accounts to VAT registration, from opening a bank account to documenting expenses — have a direct impact on tax compliance, operational efficiency and the ability to attract investors.

In Switzerland, the obligation to keep proper accounts begins from the date of registration in the Commercial Register (art. 957 CO). From the very first day of business, the company must be able to document every financial transaction in a complete, truthful and systematic manner. There is no 'grace period' for startups: the FTA and cantonal authorities expect orderly accounts from the outset.

This guide walks founders step by step through the fundamental accounting and tax decisions of the first year, with a specific focus on Swiss requirements: the Kontenrahmen KMU, VAT rates, banking requirements and the deadlines every new company must meet.

Setting up the chart of accounts (Kontenrahmen KMU)

The Swiss SME chart of accounts (Kontenrahmen KMU) is the reference standard for the vast majority of new GmbHs and startups. Structured in numbered account classes, it provides a comprehensive framework compliant with the Code of Obligations. Here are the steps to configure it correctly:

Choose the chart of accounts template

Start from the standard Kontenrahmen KMU, which covers classes 1 (Assets), 2 (Liabilities), 3 (Revenue), 4 (Cost of materials), 5 (Personnel costs), 6 (Other operating expenses), 7 (Non-operating income), 8 (Extraordinary items) and 9 (Closing entries). Most Swiss accounting software includes a pre-configured KMU template.

Adapt accounts to your industry

Customise sub-categories based on your activity: a SaaS startup will need specific accounts for recurring revenue (subscriptions), hosting and development costs; a trading company will need accounts for goods purchases, inventory and transport. Don't create too many sub-accounts: start with the minimum needed and expand later.

Set up cost centres

If your startup has multiple business lines or projects, set up cost centres from the beginning. This enables profitability analysis by product, department or project without having to restructure accounting later. For a GmbH with a single product, one cost centre is sufficient.

Configure VAT rates

Configure the three current Swiss VAT rates in the chart of accounts: 8.1% (standard), 2.6% (reduced) and 3.8% (special accommodation). Assign the correct rate to each revenue and expense account to automate VAT calculation in daily entries.

Record capital and opening balances

The first entry is the opening balance sheet: paid-in share capital (account 2800), contributions in kind (if applicable), formation expenses (notary, Commercial Register, advisory fees) and the business bank account balance. Verify that the opening balance sheet balances (assets = liabilities) before proceeding with current operations.

First accounting entries

In the first months of business, the most frequent transactions follow recurring patterns. Knowing them in advance helps configure the software correctly and avoid allocation errors:

Formation expenses

Notary fees, Commercial Register charges, legal and accounting advisory, registered office costs. These expenses are recorded as operating costs (class 6) or, if the company's policy allows, capitalised and amortised. VAT on Swiss advisory services is deductible if the company is VAT-registered.

Initial purchases and investments

Hardware, software, furniture, equipment: if the value exceeds CHF 1,000 per item, they must be capitalised as tangible fixed assets (class 1) and depreciated according to FTA guidelines (depreciation tables). Below the threshold, they can be recorded as operating expenses.

First invoices issued

Invoices to customers must contain all mandatory VAT elements: VAT number, applicable rate, separate VAT amount, date, description of the service/product. Record the revenue in the correct account (class 3) with the appropriate VAT rate. If you use Swiss QR-invoices, verify that the software generates a compliant QR code.

Salaries and social contributions

If you have employees from the start, set up accounts for gross salaries (5200), employer AHV/IV/EO contributions (5700), BVG (5720), UVG (5730) and family allowances. Social contributions in Switzerland have quarterly deadlines: the most common founder mistake is forgetting accruals and facing an unexpected debt.

Payments and bank reconciliation

Every outgoing payment must be linked to an invoice or supporting document. Bank reconciliation — the comparison between bank account movements and accounting entries — should be performed at least monthly. Software with automatic bank connection (API/Open Banking) greatly simplifies this task.

VAT from day one

In Switzerland, VAT registration is mandatory when annual turnover (projected or actual) exceeds CHF 100,000. However, many startups choose to register voluntarily from the start to deduct VAT on investments and start-up expenses. Key points to consider:

VAT obligations and opportunities for startups

Mandatory registration with the FTA when turnover exceeds or is expected to exceed CHF 100,000/year. Registration is retroactive to the start of business if the threshold is reached during the year
Voluntary registration is recommended if the startup plans significant investments in the first year (equipment purchases, software development, consulting): VAT paid on expenses is deductible as input tax, generating a VAT credit
Choice of reporting method: the effective method (based on actual turnover and input tax) is more precise, but the flat-rate method with net tax rates simplifies management for small businesses with few VAT-subject purchases
Quarterly deadlines: the VAT return must be submitted to the FTA within 60 days of the end of each quarter (March, June, September, December). The first return covers the period from the registration date to the end of the current quarter

Warning: if the startup does not register and subsequently exceeds the CHF 100,000 threshold, the FTA may demand retroactive VAT payment from the start of business, plus default interest. Evaluating preventive registration with a fiduciary is strongly recommended.

Business bank account

A separate bank account for the business is essential for orderly accounting and company credibility. In Switzerland, banks require specific documentation for new companies:

Required documentation

Up-to-date Commercial Register extract, GmbH articles of association, identity documents of managing partners, Form A (beneficial owners). Some banks also require a business plan or business description. Opening times vary from 1 to 4 weeks depending on the institution.

Asset separation

Never mix your personal account with the business account: besides creating accounting confusion, asset commingling can compromise the limited liability protection of the GmbH. Every business expense must go through the company account, even in the early stages.

Digital banking connection

Choose a bank that offers API or Open Banking access to connect the account to your accounting software. Automatic import of bank transactions drastically reduces manual recording work and minimises reconciliation errors.

Foreign currency account

If the startup operates internationally or pays suppliers in EUR/USD, consider opening a multi-currency account. Exchange rate differences must be recorded in the accounts (class 6900 accounts) and can have a significant impact on the first-year result.

Common first-year mistakes

Founders of startups and new GmbHs often make the same accounting mistakes in the first year. Recognising them in advance helps you avoid them:

Failure to separate assets

Paying business expenses from a personal account (or vice versa) creates accounting confusion, reconciliation difficulties and risks losing the GmbH's limited liability protection.

Supporting documents not kept

Every transaction must have a supporting document (invoice, receipt, contract). Without documentation, the expense is not tax-deductible and the accounts do not comply with the CO.

VAT not managed correctly

Forgetting to register for VAT, applying incorrect rates, failing to file the quarterly return: VAT errors are among the most penalised by the FTA and can be costly for the startup.

Depreciation not calculated

Ignoring depreciation on investments (hardware, software, patents) artificially inflates the first-year profit and creates problems in the tax return.

Social accruals forgotten

Failing to accrue AHV/IV/EO, BVG and UVG contributions for employees creates a hidden debt that surfaces at the quarterly account closing, causing liquidity problems.

Accounts updated only at year-end

Accumulating invoices and receipts for months and doing the accounting only before the annual closing makes it impossible to have visibility on the financial situation and increases the risk of errors and omissions.

When you need a fiduciary

Not every startup needs a fiduciary from day one, but there are situations where professional support is strongly recommended or even necessary:

Audit obligation

If the GmbH exceeds two of the following three thresholds for two consecutive years — total assets CHF 20 million, turnover CHF 40 million, 250 employees (annual average) — it is subject to an ordinary audit. Below these thresholds, a limited audit is mandatory unless opted out (≤ 10 employees).

VAT complexity

Startups with international activities, exports, exempt or mixed supplies, triangular transactions or digital services to foreign clients: VAT management becomes complex and the risk of errors is high. A fiduciary with VAT expertise prevents costly penalties.

Employees and payroll

Managing salaries in Switzerland requires specific expertise: calculating social contributions (AHV, IV, EO, ALV, BVG, UVG, KVG), salary certificates, declarations to the Compensation Office. From the first employee, professional support avoids mistakes that can be expensive.

Annual closing and tax return

The first-year closing includes preparing the balance sheet, income statement, notes and tax return (income and capital taxes at municipal, cantonal and federal level). A fiduciary ensures everything is correct and optimised.

Fundraising and due diligence

Investors (business angels, VCs) require impeccable accounts during due diligence. A fiduciary who oversees accounting from day one guarantees reliable data and accelerates the fundraising process.

Tip: even if you don't need a full-time fiduciary, consider an initial consultation to set up the chart of accounts, VAT registration and basic processes correctly. An investment of a few hours at the start can save weeks of corrections later.

Practical tips for the first year

Set up accounting software before starting operations: KMU chart of accounts, VAT rates, cost centres, bank connection. Starting with a system already in place prevents a backlog of entries to catch up on
Record every transaction within 48 hours: the more time passes, the harder it is to remember details and find supporting documents. Real-time updated accounts are also the best protection in the event of a tax audit
Immediately digitise every paper receipt (till receipts, invoices, contracts) and store the digital original in the accounting system. Lost supporting documents are the most frequent cause of tax adjustments
Set a quarterly reminder for the VAT return (deadline: 60 days from the end of the quarter) and for bank reconciliation. Regularity is the key to accounting without surprises
From the start, separate expenses by category (marketing, development, personnel, infrastructure) using cost centres: you'll have immediate visibility on where the money goes and can optimise the budget in real time
Plan the first-year closing at least 2 months in advance: check depreciation, accruals, deferrals, reconcile all bank accounts and prepare documentation for the tax return
Use AccountEX to automate accounting from day one: OCR for invoices, automatic bank reconciliation, pre-configured KMU chart of accounts and integrated VAT reporting. Less time on accounting, more time to grow your startup

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