Back-of-the-Envelope Accounting: Who Can Use It and When Is It Worth Switching?

What exactly is back-of-the-envelope accounting?

Think of back-of-the-envelope accounting as a simple plus-minus list: you just write down what comes in and what goes out. At the end of the year, you see how much money is in the account and what inventory (materials) you still have. Unlike “full” accounting, this approach skips the complicated structure of balance sheets and profit & loss statements.

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When sorting receipts, you often wonder whether the simple income-expense method (the “back-of-the-envelope”) is still enough. Legally, it’s allowed for sole proprietorships with revenue up to CHF 500,000, but in practice it often reaches its limits.

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Who can use it?

Sole proprietorships, partnerships with less than CHF 500,000 in revenue, and non-registered associations.

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When is an upgrade worthwhile?

Switching can make sense even before you reach the limit:

• VAT obligation: From CHF 100,000 in revenue, the simple calculation quickly becomes confusing.
• Record keeping: Receipts must be kept for 10 years. Digital systems make this much easier.
• Overview: With many customer or supplier invoices, it's easy to lose track of your liquidity using Excel.

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Our tip: Do it yourself with an expert check

You maintain your back-of-the-envelope records yourself, and we carefully review your year-end accounts afterward. This ensures everything is accurate, tax-relevant points are considered, and you save costs while avoiding mistakes and optimizing tax advantages.

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