Chart of Accounts for Swiss SMEs: How to Set It Up Correctly

A well-maintained chart of accounts is the foundation of every SME's accounting — and yet it's the area most often set up carelessly at the outset. If you create the wrong accounts at the beginning or simply adopt a standard framework unchanged, you'll struggle for months with unclear reports and tedious year-end closes. This article shows you how to build a chart of accounts that fits your business — not the other way around.

What is a Chart of Accounts, and Which Framework Do Swiss SMEs Use?

A chart of accounts is the organized list of all booking accounts in your company. Every transaction lands on one of these accounts — income, expense, asset, or liability.

In Switzerland, the SME Chart of Accounts (also known as the Käfer framework or the newer "Swiss GAAP FER" framework) is widely used. For small sole proprietorships and simple LLCs, the lean SME framework — recommended by audit associations like Fiduciaire Suisse — often suffices. It's structured in ten classes:

Class	Content
1	Assets (current assets)
2	Assets (fixed assets)
3	Liabilities (external capital)
4	Liabilities (equity)
5	Operating revenue
6	Operating expenses — materials/goods
7	Operating expenses — personnel
8	Other operating expenses
9	Non-operating expenses/revenue
0	(Reserved / not always used)

For a small service business without inventory, a chart of accounts with 50–80 active accounts usually suffices. A manufacturing SME with multiple cost centres needs more — but rarely more than 200 accounts.

The Most Important Accounts Many SMEs Forget

Set Up VAT Accounts Correctly

If you're VAT-liable, you need separate accounts for the taxes to be settled. The most common mistakes:

• A single "VAT account" for all rates: This leads to settlement errors because turnover at the standard rate (8.1%), at the special hotel rate (3.8%), and at the reduced rate (2.6%) must be reported separately. For detailed information on these rates and the associated obligations, see Swiss VAT basics 2026 — rates, duties and special rules.
• Input VAT and output VAT on the same account: Always book input VAT (for example, account 1170) and VAT payable (e.g. 2200) separately.

Keep Debtors and Creditors Clean

Outstanding customer receivables belong on a debtor account (Class 1), open supplier invoices on a creditor account (Class 3). If you book both to "miscellaneous accounts," you lose track of outstanding payments — and your dunning process suffers.

Private and Business Accounts for Sole Proprietorships

Sole traders book private withdrawals to a private account (often 4900), not as an operating expense. This error distorts operating results and is a classic mistake audit firms encounter.

Accrual Accounts for Period-Based Allocation

Prepaid insurance premiums, services not yet invoiced, or customer advance payments don't simply belong in the expenses or revenue of the current year. Accounts for active and passive accruals (accrued assets/liabilities) ensure your year-end accounts are period-correct.

How Lean Should Your Chart of Accounts Be?

Less is often more — but not always. Rule of thumb:

• Freelancers and sole traders: 40–60 accounts suffice. Too many sub-accounts create more work than value.
• LLC or AG with multiple staff: 80–150 accounts, depending on business model complexity.
• SME with inventory and multiple product lines: Extend the chart of accounts by cost centres or add project accounting.

The key is that your accounting software supports the structure and that you (or your accountant) intuitively find the accounts when posting.

When and How to Adapt Your Chart of Accounts

Adjusting an existing chart of accounts is legitimate, but shouldn't happen mid-year without consultation. Recommendations:

1. Make adjustments on 1 January — this keeps prior-year figures consistently comparable.
2. Deactivate accounts instead of deleting them: Most accounting programs allow you to disable accounts rather than delete them. This keeps historical transactions traceable.
3. Always consult your accountant when adding new accounts, especially if your SME is VAT-liable — incorrectly assigned rates can be costly during an audit.
4. Maintain descriptions: An account reads "8100 Room costs" — what goes in there? Ancillary costs yes, cleaning service maybe, office furniture probably not. Brief account notes save a lot of discussion.

Chart of Accounts and Digital Accounting

When working with a Swiss accounting solution today, you often import a predefined framework. Check:

• Are VAT codes provided for all three tax rates?
• Are there separate debtor and creditor accounts (or does the system work with personal accounts)?
• Can the plan be expanded by cost centres as your business grows?

If invoices are to be imported directly from a tool like SnapBill into your accounting software, it makes sense to decide in advance which revenue and VAT accounts each invoice position should be posted to — this saves considerable time in monthly posting.

At a Glance

• Choose the SME Chart of Accounts as your base and adapt it to your business model — not the other way around.
• Create separate VAT accounts for each tax rate (8.1%, 3.8%, 2.6%).
• Keep debtors, creditors, and private withdrawals on their own accounts.
• Use accrual accounts for period-based allocations.
• Adjust your chart of accounts on 1 January, never arbitrarily during the year.
• Deactivate unused accounts instead of deleting them.
• Discuss changes with your accountant — especially if VAT-liable.