A chart of accounts is the organised list of accounts used to record a business’s transactions. It gives bank balances, customer invoices, sales, salaries and debts a consistent place in the books. A well-designed chart makes figures easy to find and financial years easier to compare.
The example below is a learning framework for a small Swiss business. Adapt it to your activity and accounting software; it does not reproduce a complete standard chart of accounts.
At a glance
- The Code of Obligations sets bookkeeping and financial reporting requirements. It does not impose a universal account numbering system on every SME.
- Classes 1 and 2 cover the balance sheet. The following classes mainly organise income, expenses and closing entries.
- Create an account when it supports a check or a decision. Avoid adding a separate account for every supplier or one-off purchase.
What is a chart of accounts for?
Transactions need to be recorded consistently from one month to the next. If a software subscription is posted first to “advertising”, then to “equipment” and later to “IT”, comparisons of your expenses become unreliable.
The chart of accounts gives the business owner, bookkeeper and accounting firm a shared classification system. It defines each account’s number and name. Usage rules complete that system: which expenses belong there, which VAT code to use and which supporting document to retain.
A ledger account is different from a bank account. The first is a category in your books; the second is an account held with a bank. You may therefore have several bank ledger accounts, one for each actual bank account.
Which businesses must keep full accounts?
Swiss LLCs (Sàrl/GmbH) and limited companies (SA/AG) must keep accounts and prepare financial statements under the Code of Obligations. For sole proprietorships and partnerships, turnover of CHF 500,000 or more in the previous financial year triggers full accounting requirements.
Below that threshold, a sole proprietorship must at least record receipts, expenditure and its financial position. It still needs supporting documents and records of its business assets and debts. Voluntarily using double-entry bookkeeping may also be useful.
Our article on sole proprietorships in Switzerland explains their main obligations. The examples here use double-entry bookkeeping: each transaction has equal total debits and credits.
How do Swiss account classes work?
The following structure is commonly used in SME charts of accounts. Some names and subdivisions vary with the software and model chosen. What matters is maintaining the correct mapping to the items in the annual financial statements.
| Class | General content | Examples |
|---|---|---|
| 1 | Assets | Bank balances, receivables, inventory, equipment |
| 2 | Liabilities and equity | Payables, loans, capital |
| 3 | Operating income | Sales of goods and services |
| 4 | Materials, goods and services expenses | Goods for resale, direct subcontracting |
| 5 | Personnel expenses | Salaries and employer social contributions |
| 6 | Other operating expenses | Rent, IT, insurance, depreciation |
| 7 | Result from ancillary activities | Identified secondary activities |
| 8 | Other results and taxes | Non-operating, exceptional or tax items, depending on the chart |
| 9 | Closing and system accounts | Transfers and technical entries, depending on the software |
Balance sheet classes describe the position at a particular date. Income and expenses describe activity over a period. Our comparison of the balance sheet and income statement explains the distinction.
A sample chart of accounts for a small business
This is an illustrative starting point. Before importing these numbers, compare them with the chart already used by your software. The same number may serve a different purpose in a customised model.
| Illustrative number | Account | Use |
|---|---|---|
| 1000 | Cash | Cash physically held |
| 1020 | CHF bank account | Transactions on a specific bank account |
| 1100 | Trade receivables | Customer invoices awaiting payment |
| 1170 | Input VAT on purchases | Deductible VAT on the relevant purchases |
| 1171 | Input VAT on investments and other expenses | Corresponding deductible VAT |
| 1200 | Goods inventory | Goods held at the balance sheet date |
| 1500 | Machinery and equipment | Fixed assets under the chosen accounting policy |
| 2000 | Trade payables | Supplier invoices awaiting payment |
| 2200 | VAT payable | Output VAT on sales |
| 2201 | VAT settlement | Balance transferred to the VAT return account under the chosen setup |
| 2300 | Accrued liabilities | Expenses for the year not yet invoiced |
| 2800 | Capital | Capital account suited to the legal form |
| 3200 | Sales of goods | Income from goods sold |
| 3400 | Service revenue | Fees and services |
| 4200 | Purchases of goods | Goods purchased for resale |
| 5000 | Salaries | Gross salaries paid by the business |
| 5700 | Social contributions | Employer contributions, with appropriate subdivisions |
| 6000 | Rent | Business premises |
| 6500 | Administrative expenses | Defined office supplies and administrative costs |
| 6570 | IT | Software and IT services, depending on the chart |
| 6800 | Depreciation | Allocation of the cost of fixed assets |
It is often better to track customers and suppliers in subsidiary ledgers linked to control accounts 1100 and 2000. This provides the detail for each party without turning the general chart into a directory.
Three entries that show how it works
These examples assume a VAT-registered business using the effective reporting method, a full right to deduct input VAT and supplies subject to the standard 8.1% rate.
A service invoice for CHF 1,081 including VAT
The invoice includes CHF 1,000 for services and CHF 81 of VAT. Debit “Trade receivables” by CHF 1,081, credit “Service revenue” by CHF 1,000 and credit “VAT payable” by CHF 81. When payment arrives, debit the bank account and credit the customer account by CHF 1,081. Do not record the sale a second time.
An administrative purchase for CHF 108.10 including VAT
For a deductible purchase costing CHF 100 before VAT and paid through the bank, debit the relevant expense account by CHF 100 and input VAT by CHF 8.10. Credit the bank account by CHF 108.10. The software’s VAT code must match the actual invoice.
A transfer between two bank accounts
Moving CHF 2,000 between your bank accounts creates neither income nor an expense. Debit the receiving bank account and credit the account sending the funds. Record any bank fees separately.
Our explanation of debits and credits develops the logic behind these examples. Do not copy them unchanged for a business that is not VAT-registered or uses another VAT reporting method.
How can you adapt the chart to your business?
Start with the information you need to monitor. A retailer needs to distinguish sales, purchases and inventory. A service business may want to separate recurring fees from one-off assignments. In either case, cost centres or project cost accounting can provide additional analysis without multiplying general ledger accounts.
Do not create a new account for every exceptional expense. Ask whether the distinction will still be useful in a year and whether the same information could be obtained another way. An overly detailed chart encourages classification errors; an overly broad one hides useful information.
Which checks belong in the year-end close?
- Bank balances agree with statements at the closing date.
- Receivables and payables correspond to substantiated amounts.
- Inventory and fixed assets are documented and valued correctly.
- VAT accounts are reconciled with the returns.
- Private transactions and movements involving owners are identified.
- Suspense accounts are explained and cleared wherever possible.
A stable chart also makes comparisons with the previous year easier. If you change its structure, document the mapping between old and new accounts. Our article on reading a Swiss balance sheet helps connect these checks to the company’s financial position.
Review fixed-asset balances and depreciation entries, then reconcile outstanding invoices with your customer payment follow-up.
A classification system that supports your decisions
A good chart of accounts is understandable, consistent and suited to the business. It helps produce reliable accounts and answer practical questions. If you take over an accounting file or change software, have the structure and opening balances checked before recording new transactions. Our accounting team can help you set it up.
Frequently asked questions
Is the SME chart of accounts mandatory in Switzerland?
The law sets accounting requirements and financial statement headings, but does not impose one numbering system on all SMEs. Your chosen chart must enable you to meet those requirements.
Can account numbers be changed?
Yes, provided the structure remains consistent and compatible with the software. Avoid changing a number already in use without checking transaction histories, financial statements and VAT mappings.
Should each bank account have its own ledger account?
Yes. Keeping each bank account separate makes reconciliation with statements easier. It also helps identify internal transfers without confusing them with sales.
Do you need an account for every customer?
Customer details can be held in a subsidiary ledger linked to a control account. This lets you track unpaid invoices without multiplying general ledger accounts.
How long must accounting documents be retained?
Under the Code of Obligations, accounting books and supporting documents generally have to be kept for ten years from the end of the financial year. Specific rules may require longer retention for certain documents.
Sources and references
- Code of Obligations: Articles 957 and 957a on bookkeeping; Articles 959a and 959b on balance sheet and income statement presentation; Article 958f on retention.
- VAT Act: Articles 26 and 28 on invoicing and input tax deduction.
The French article’s sources and parameters were checked on 27 September 2026.
Romain Prieur is a Swiss certified public accountant and the founder of Entreprendre.ch. With more than ten years of experience in auditing and supporting businesses in Switzerland, he advises entrepreneurs on company formation, accounting and taxation.
