Annual Financial Statements

Business Services

A carefully prepared annual financial statement provides a reliable overview of your company's financial situation. From the balance sheet to the income statement to the notes - solid figures are the basis for strategic decisions and long-term success.

What Documents Does an Annual Financial Statement Contain

An annual financial statement usually includes at least the following elements:

Balance Sheet: Shows assets, liabilities, and equity at a specific date.
Income Statement (Profit and Loss Statement): Shows revenue and expenses as well as the profit or loss achieved.
Notes: Provides supplementary information to the balance sheet and income statement.

Small businesses and freelancers are often less strictly regulated and only need to submit a simple profit and loss statement to the tax office.

Balance Sheet

The balance sheet provides a snapshot of your company's financial situation at a specific point in time. It shows:

Assets: Cash, inventory, equipment, real estate, etc.
Liabilities: Loans, accounts payable, and other debts.
Equity: Capital contributed by owners and retained earnings.

By comparing assets and liabilities, the balance sheet enables a quick assessment of your company's financial stability and liquidity.

Income Statement

The income statement (profit and loss statement) is a central tool for evaluating your company's profitability. It shows:

Revenue: Sales from the sale of goods and services.
Expenses: Costs for materials, personnel, infrastructure, marketing, etc.
Profit or Loss: Difference between revenue and expenses.

With its help, management decisions can be made on a well-founded basis and cost structures as well as pricing can be optimized.

Notes (Art. 958 Para. 2 OR)

The notes are an integral part of the annual financial statement and deepen the information from the balance sheet and income statement. They explain accounting principles, significant estimates, and other information relevant to understanding the company's financial position and performance.

The notes thus provide a transparent information basis for making well-founded financial decisions, better assessing risks, and making the annual financial statement more meaningful for external stakeholders.

Tax

Your company's tax situation depends heavily on its location. In Switzerland, the canton and municipality determine the specific tax rates. However, a low tax rate is not always the best choice - depending on the company's purpose, low taxes and insurance for vehicles, for example, can be crucial.

Careful choice of location and well-founded tax planning make it possible to optimize the cost-benefit ratio for your company and create competitive conditions in the long term.

What to Consider When Preparing Annual Financial Statements

When preparing your annual financial statements, several factors should be considered:

Legal Form & Size: Sole proprietorships, SMEs, or publicly traded companies have different requirements for annual financial statements.
Location & Legislation: Different countries and regions have their own regulations and accounting standards.
Accounting Standards: Make sure your statements comply with applicable principles (e.g., GAAP, Swiss GAAP FER, or IFRS).

The audit, i.e., the review of your statements by an independent auditor, is an important step to ensure accuracy and reliability. The notes to the annual financial statement should be carefully reviewed and clearly formulated to provide transparency and meaningfully supplement the balance sheet and income statement.