The annual financial statements close out one financial year of bookkeeping. The balance sheet shows, at a cut-off date, assets on one side and liabilities and equity on the other; the income statement contrasts revenue and expenses and reports the profit or loss. Larger companies add notes with explanations. The legal basis is the Swiss Code of Obligations (Art. 957 ff.) with the principle of orderly accounting.
The process: first all transactions are booked and accounts reconciled. Then come the closing entries: accruals and deferrals, provisions, depreciation on fixed assets, valuation of inventory and receivables. From the adjusted accounts the balance sheet and income statement are produced. Corporations (AG) and limited liability companies (GmbH) have the statements approved by the general meeting; depending on size, an audit (ordinary or limited) is required.
Who needs what: sole proprietorships and partnerships with less than CHF 500,000 turnover may keep simplified accounts of income, expenses, and net assets. From CHF 500,000 turnover, and for all legal entities (AG, GmbH), full double-entry bookkeeping with annual statements applies. The statements are usually prepared within a few months of the balance-sheet date, often in parallel with the tax return.
What to watch for: valuation offers latitude (hidden reserves, level of depreciation and provisions) and directly affects profit and therefore taxes, so it must be documented cleanly and with justification. Continuity with the prior period, correct cut-off across the year-end, and plausible receivables/payables balances also matter.
A fiduciary prepares the statements from the bookkeeping, optimises the tax position within the legal framework, and supplies the documents for the tax return. As a guide, the annual statements of a small GmbH including the tax return cost around CHF 1,500–4,000 per year, depending on document volume and complexity (no guarantee).