Wilson
Hey there!

Here's a breakdown of the accounting and auditing requirements for different types of companies in Switzerland:

1. Einzelfirma (Sole Proprietorship)
   Accounting: If your Einzelfirma earns less than CHF 500,000 per year, you can stick to simple cash accounting. Once you cross the CHF 500,000 threshold, you’ll need to switch to double-entry bookkeeping and prepare financial statements (balance sheet, income statement, etc.).
   Auditing: Good news! Einzelfirmen aren’t required to undergo an audit, no matter the size. This keeps things pretty straightforward.
2. GmbH (Gesellschaft mit beschränkter Haftung, Limited Liability Company)
   Accounting: All GmbHs must do double-entry bookkeeping and prepare annual financial statements in line with Swiss GAAP.
   Auditing:
   Restricted Audit (Review Audit): This is usually required unless your GmbH qualifies for an ordinary audit or decides to opt out.
   Ordinary Audit: You’ll need to go through this if your GmbH meets two out of these three criteria over two consecutive years:
   Total assets ≥ CHF 20 million
   Revenue ≥ CHF 40 million
   ≥ 250 full-time employees
   Opting Out: If you have fewer than 10 full-time employees, you can skip the audit altogether if all shareholders agree.
3. AG (Aktiengesellschaft, Joint-Stock Company)
   Accounting: Like GmbHs, AGs need double-entry bookkeeping and annual financial statements. If your AG is publicly listed, you might also need to comply with IFRS or US GAAP.
   Auditing:
   Restricted Audit: This is the standard unless you meet the criteria for an ordinary audit.
   Ordinary Audit: Triggered if you meet two of the following for two consecutive years:
   Total assets ≥ CHF 20 million
   Revenue ≥ CHF 40 million
   ≥ 250 full-time employees
   Opting Out: Similar to a GmbH, you can opt out of any audit if you have fewer than 10 full-time employees and unanimous shareholder consent.
   Impact on Financial Reporting:
   Einzelfirma: With no audit requirements, reporting stays simple and low-cost.
   GmbH & AG: Transitioning to an ordinary audit means more scrutiny and detailed financial reporting. While it boosts transparency, it also ramps up compliance costs and complexity.
   Transition from Restricted to Ordinary Audit:
   If your GmbH or AG meets the criteria I mentioned (two out of three thresholds) for two years in a row, you’ll need to switch to an ordinary audit. This involves a much deeper dive into your finances, which can be both a good thing (more trust and transparency) and a challenge (higher costs, more work).

Hope this helps! Feel free to ask if you have more questions.