Swiss SME chart of accounts: structure, obligations and common mistakes
Swiss SME chart of accounts 2026: the 8 account classes, obligations under the CO and common mistakes found during an inspection. Complete guide for SME leaders.
Swiss SME chart of accounts: structure, obligations and common mistakes
The essentials in 3 points:
- Swiss law does not prescribe a single chart of accounts, but the Code of Obligations (Art. 957 et seq. CO) requires structured accounting for every SME exceeding CHF 500'000 in annual turnover. The reference SME chart of accounts (Walter Sterchi) serves as the de facto standard.
- Eight account classes — from assets (1) to non-operating income (8) — form the financial backbone of every business. Understanding this structure enables you to produce a compliant balance sheet and income statement.
- Three structural mistakes account for most corrections requested during a tax inspection or audit: insufficient granularity, confusion between operating and non-operating expenses, and incorrectly used accrual and deferral accounts.
The Swiss SME chart of accounts is the backbone of every business's accounting. It organises each transaction — every invoice sent, every salary paid, every purchase of materials — into a logical structure that enables you to prepare a balance sheet, an income statement and notes compliant with Swiss law. Yet many SME founders in French-speaking Switzerland inherit a chart of accounts without really understanding it, often configured by a fiduciary years ago and rarely reviewed since. This guide is designed to put that right.
Whether you are setting up a limited liability company in Geneva (GE) or running an SME with 30 employees in the canton of Vaud (VD), this article gives you the tools to understand, adapt and maintain a chart of accounts that genuinely supports your management — not just your legal obligations.
What is a chart of accounts and why do Swiss SMEs need one?
A chart of accounts is an ordered list of all the accounts a business uses to record its financial transactions. Each account has a number and a label: “1020 — Bank”, “4200 — Purchases of raw materials”, “6000 — Rent expenses”. Together, they form a classification system that allows financial data to be grouped, sorted and presented consistently.
For a Swiss SME, the chart of accounts serves three functions:
- Legal compliance: the Code of Obligations requires businesses to keep accounting records and present annual financial statements. A structured chart of accounts is the means of achieving this.
- Management oversight: a well-designed chart of accounts allows you to track margins by activity, compare expenses from one year to the next and produce useful reports — not just documents for your fiduciary.
- External communication: bankers, investors, auditors and tax authorities read your accounts. A standard chart of accounts makes this easier and strengthens your credibility.
The reference standard in Switzerland is the SME chart of accounts developed by Walter Sterchi, which is regularly updated (latest edition published by Verlag SKV). It is not strictly mandatory, but it is so widely adopted that departing from it without a reason creates confusion — for your fiduciary, your auditor and yourself.
The structure of the Swiss SME chart of accounts: the 8 account classes
The Swiss SME chart of accounts is organised into 8 main classes, numbered from 1 to 8 (class 9 is reserved for closing accounts, rarely used by SMEs). Here is the logic:
| Class | Name | Function | Examples of accounts |
|---|---|---|---|
| 1 | Assets | What the business owns | 1000 Cash, 1020 Bank, 1100 Trade receivables, 1500 Machinery |
| 2 | Liabilities and equity | What the business owes | 2000 Trade payables, 2100 Bank (debt), 2800 Share capital |
| 3 | Operating income | Revenue from the main activity | 3000 Sales of goods, 3200 Income from services |
| 4 | Materials and goods expenses | Direct production or purchasing costs | 4000 Purchases of materials, 4200 Purchases of goods |
| 5 | Personnel expenses | Salaries, social security contributions, occupational pensions | 5000 Salaries, 5700 Social security contributions AHV/IV/EO |
| 6 | Other operating expenses | Business overheads | 6000 Rent, 6500 Insurance, 6800 Depreciation and amortisation |
| 7 | Non-operating income and expenses | Income/expenses unrelated to the main activity | 7000 Financial income, 7500 Property income |
| 8 | Exceptional expenses and income | Extraordinary, non-recurring items | 8000 Exceptional expenses, 8500 Exceptional income |
The logic behind the numbering
Classes 1 and 2 feed into the balance sheet (assets, liabilities and equity). Classes 3 to 8 feed into the income statement (income and expenses). Within each class, accounts are subdivided into groups (tens), then into individual accounts (hundreds). For example:
- 1 = Assets
- 10 = Current assets — Cash and cash equivalents
- 1000 = Cash
- 1020 = Bank (current account)
This tree structure allows you to move from the general to the detailed. An SME with 5 people might use 40 to 60 accounts. An SME with 40 employees and several activities could have 150 to 200. What matters is that the level of detail suits your management needs — neither too fine (unreadable) nor too broad (useless).
To understand how these classes translate into a balance sheet in practice, see our balance sheet guide for non-financial founders.
What are the legal obligations under the Code of Obligations?
The Swiss legal framework for accounting is set out in Articles 957 to 963b of the Code of Obligations (CO), substantially revised in 2013 (new accounting law, in force since 01.01.2013). Here is what every SME leader needs to know.
Who must keep accounting records?
Under Art. 957 CO, the following are required to keep accounting records and present financial statements:
- Sole proprietorships and partnerships with turnover exceeding CHF 500'000 per year
- All legal entities (public limited companies, limited liability companies, associations, foundations, cooperatives) — regardless of their size
Below CHF 500'000 in turnover, a sole proprietorship may use simplified accounting (receipts and payments). In practice, however, even small businesses benefit from keeping double-entry accounts with a structured chart of accounts — if only to obtain a bank loan or prepare an accurate VAT return.
What must the annual financial statements contain?
Art. 958 CO stipulates that the annual financial statements comprise:
- The balance sheet (financial position at a given date)
- The income statement (financial performance over the financial year)
- The notes (additional information: valuation principles, off-balance-sheet commitments, etc.)
Large businesses (subject to an ordinary audit) must also provide a cash flow statement and an annual report.
Deadlines to meet
The CO does not set a single explicit deadline for all SMEs, but the following rules apply:
| Obligation | Deadline | Source |
|---|---|---|
| Preparation of annual financial statements | Within 6 months of the end of the financial year (SMEs) | Art. 958 para. 3 CO (common practice) |
| Approval by the general meeting (public limited/limited liability companies) | Within 6 months of the year-end | Art. 699 para. 2 CO |
| Retention of accounting documents | 10 years | Art. 958f CO |
The 10-year retention period applies to the balance sheet, income statement, notes and supporting documents. Documents may be stored electronically if their integrity and legibility are guaranteed (source: Fedlex).
What about accounting standards?
The CO sets the legal minimum. Some SMEs voluntarily choose to apply Swiss GAAP FER (accounting and reporting recommendations) to provide a more faithful picture. This is common when an SME is seeking to raise funds or preparing for a sale. IFRS standards only concern listed companies — they are not relevant to most SMEs in French-speaking Switzerland.
Sequence monthly newsletter
Receive a practical monthly digest: accounting regulations, management tips and news for Swiss SMEs.
Subscribe to the newsletter →
How do you adapt the chart of accounts to your business?
Sterchi's SME chart of accounts is a framework, not a straitjacket. Every SME needs to adapt it to its operational reality. Here are the principles to follow.
Keep the standard structure, customise the detail
Never change the main classes (1 to 8). Instead, create sub-accounts relevant to your business. An architectural practice in Lausanne (VD) does not have the same needs as a retail shop in Fribourg (FR).
Practical example — engineering consultancy:
- Class 3: separate “3200 — Consultancy fees” and “3210 — Construction supervision fees” rather than using a single “Services” account
- Class 5: distinguish “5000 — Permanent employee salaries” from “5010 — External staff / freelancer salaries” to measure the subcontracting rate
- Class 6: create “6510 — Professional indemnity insurance” separately from general insurance
Practical example — online retail:
- Class 3: separate “3000 — Swiss sales”, “3001 — EU sales” and “3002 — Non-EU sales” for VAT returns
- Class 4: distinguish purchases of goods from postage and packaging costs (direct impact on gross margin)
- Class 6: create a “6600 — E-commerce platform fees” account separate from other IT expenses
Practical rules for adaptation
- Start with your management questions. What information do you want to extract from your accounts? If you need to know the margin by project type, structure accounts 3 and 4 accordingly.
- Do not create an account for fewer than 10 entries per year. An account used twice in twelve months creates noise without analytical value. Group entries together.
- Align the chart of accounts with your VAT return. If you have mixed rates (8,1% and 2,6%) or exempt services, your chart of accounts must allow turnover to be broken down by rate without manual reprocessing.
- Document your choices. A short internal document (“accounting policy”) explaining why a particular account exists and how to use it prevents inconsistencies when several people enter transactions.
Which structural mistakes cause problems during an inspection?
A poorly structured chart of accounts does not cause immediate problems. Difficulties emerge during a tax inspection, an audit or a business sale — when someone outside the business needs to read and understand your accounts.
Mistake 1: insufficient granularity in expenses
The most common case: tens of thousands of francs in expenses posted to a catch-all “6900 — Miscellaneous expenses” account. During an inspection, the tax inspector will request details of every entry. If those details exist only in the supporting documents and not in the chart of accounts, reconstructing them is costly — and the inspector will pay closer attention to the rest of your accounting.
Recommendation: the “Miscellaneous expenses” account should never exceed 5% of total operating expenses. Anything above that signals an unsuitable chart of accounts.
Mistake 2: confusion between operating and non-operating items
Posting financial income (class 7) to operating income (class 3), or vice versa. This distorts operating profit (EBIT) and gives a misleading picture of operational performance.
Common example: an SME renting out part of its premises posts the rent received to “3000 — Sales”. If property letting is not its main activity, this income belongs in class 7. The distinction has a direct impact on how a banker or potential buyer assesses profitability.
Mistake 3: accrual and deferral accounts used incorrectly (or not at all)
Accrual and deferral accounts (1300 — Prepayments and accrued income, 2300 — Accruals and deferred income) are used to allocate expenses and income to the correct financial year. Not using them means accepting that your annual result is inaccurate — sometimes by several tens of thousands of francs.
Typical case: an annual insurance premium of CHF 12'000 paid in March, but covering the period from March to February of the following year. Without a prepayment adjustment, the current financial year bears the entire expense even though 2 months relate to the following financial year.
Mistake 4: chart of accounts never reviewed since the business was established
An SME that has evolved — new activities, new VAT status, growth from 5 to 25 employees — but still uses its original chart of accounts. The result: accounts that no longer reflect the business's economic reality, missing management information and considerable reprocessing work at every year-end.
We recommend reviewing the suitability of your chart of accounts at least once a year, ideally before the year-end close.
Mistake 5: no separation between activities subject to VAT and those that are not
If your SME provides both services subject to VAT and exempt services (for example, training and consultancy), your chart of accounts must reflect this distinction. Otherwise, reconciliation with the VAT return becomes a risky exercise — and VAT errors are among the most costly during an inspection.
Chart of accounts and AI: what intelligent automation changes
A well-structured chart of accounts becomes a considerable asset when combined with an AI-enhanced financial platform. Here is why.
AI needs structure to be accurate
An AI agent that automatically categorises supplier invoices (OCR + classification) will be more reliable when the chart of accounts is clear and consistent. If your chart of accounts contains 15 expense accounts with ambiguous labels (“Miscellaneous costs 1”, “Miscellaneous costs 2”), the AI will hesitate — and you will need to make manual corrections.
Conversely, a chart of accounts with precise labels and documented posting rules enables AI to categorise more than 90% of recurring entries correctly. The capacity freed up is significant: at Sequence, we observe that automatic data entry substantially reduces the time spent processing accounting documents, allowing teams to focus on analysis rather than data entry.
Clean accounts for reliable dashboards
Real-time financial dashboards — cash flow, margins, expenses by category — are only useful if the underlying data is correctly classified. An inconsistent chart of accounts produces misleading charts. Structural rigour upstream determines the quality of information downstream.
For SMEs that also manage payroll in-house, consistency between the chart of accounts (class 5) and Swissdec declarations is critical. See our guide to payroll in Switzerland for details.
What AI does not replace
AI does not design your chart of accounts for you. Choosing the level of detail, adapting it to your industry, ensuring consistency with VAT obligations: these decisions remain human. AI increases execution capacity once the structure is in place. It is the combination of the two — a structure designed by a human and execution enhanced by technology — that makes the difference.
Frequently asked questions
Is the Sterchi SME chart of accounts mandatory in Switzerland?
No. The Code of Obligations (Art. 957 et seq. CO) requires businesses to keep accounting records and present annual financial statements, but does not prescribe a specific chart of accounts. Walter Sterchi's SME chart of accounts is a de facto standard, used by the vast majority of SMEs and fiduciaries in Switzerland. Departing from it is possible, but creates unnecessary complications when communicating with your fiduciary, your bank and the tax authorities.
How many accounts does a Swiss SME chart of accounts generally contain?
This depends on the size and complexity of the business. A micro-business (1 to 5 employees) typically uses 40 to 80 accounts. An SME with 20 to 50 employees and several activities or mixed VAT obligations may have 150 to 250 accounts. What matters is not the number, but relevance: every account must meet a management need or a legal obligation.
How long must accounting documents be retained in Switzerland?
Ten years. Article 958f of the Code of Obligations requires annual financial statements (balance sheet, income statement, notes) and supporting documents to be retained for 10 years from the end of the financial year. Electronic storage is permitted if the integrity and legibility of the documents are guaranteed.
When should you review your chart of accounts?
At least once a year, ideally before the end of the financial year. A review is particularly necessary when changing activities, moving above or below the VAT threshold (CHF 100'000 in turnover), significantly increasing headcount, or changing legal form (from a sole proprietorship to a limited liability company, for example).
What is the difference between the chart of accounts and the Swiss general chart of accounts?
The “Swiss general chart of accounts” refers to the overall reference framework (the 8 classes), applicable to any Swiss business. The “SME chart of accounts” is a version tailored to small and medium-sized businesses, with predefined accounts covering the most common situations. For most SMEs in French-speaking Switzerland, the SME chart of accounts is more than sufficient. Large businesses or those applying Swiss GAAP FER sometimes use a more detailed chart.
Can you change your chart of accounts during the financial year?
This is not recommended. Changing the chart of accounts during the financial year complicates data comparability and may create inconsistencies in the balance sheet and income statement. If a change is necessary, the appropriate time is the beginning of a new financial year. In that case, a mapping table (old number → new number) must be drawn up to ensure traceability and allow comparison with the previous financial year.
Sequence monthly newsletter
A practical monthly digest for Swiss SME leaders: accounting, regulations, financial tools. No unnecessary jargon.
Subscribe to the newsletter →
Last updated: 22 May 2026
Less time on admin, more on your business.
