Home›Blog›Year-end closing
Year-end closing

Outstanding Invoices at Year-End: Do I Need to Accrue Receivables?

Do you need to accrue outstanding invoices on 31 December? Learn the difference between simple and double-entry bookkeeping and avoid double taxation.

e
einzly Redaktion
Tax & Finance Editorial
6 min read
1 Mar 2026

01Overview

December -- the year is drawing to a close. You have sent invoices that have not yet been paid. Do you need to accrue these outstanding receivables in your bookkeeping? The answer depends on which type of bookkeeping you use.

02Simple Bookkeeping (Cash Basis) = No Accrual Needed

With the income-expenditure method (cash basis accounting), the cash-flow principle applies. This means: income is only recorded when the money actually arrives in your account. Outstanding invoices on 31 December are not recorded as income -- they only appear in the new year, when they are paid.

Legal basis: CO Art. 957 Para. 2Sole proprietorships with less than CHF 500,000 in annual revenue may use simplified bookkeeping (cash basis). In this form of bookkeeping, there is no receivables accrual and no provisions.

This means: if you issue an invoice for CHF 5,000 on 20 December and the customer only pays on 15 January, this income appears in the new year -- not in the old one.

03Danger: Avoiding Double Taxation

A common mistake: some self-employed people still record outstanding invoices at year-end as income (because the service was already provided) -- and then again when the money arrives. This leads to double taxation.

Don't book it twice!If you use simple bookkeeping (cash basis), only record income when the money is received. Never at invoicing AND at receipt of payment -- otherwise you pay tax on the same amount twice.

04When Receivables Accrual Is Required

If you use double-entry bookkeeping (mandatory from CHF 500,000 in revenue), the situation is different. Here the accrual principle applies: income is recorded when the service is rendered -- regardless of when payment is received.

With double-entry bookkeeping, you must therefore do the following at year-end:

  • Record all outstanding invoices as receivables
  • Accrue advance payments already received for services in the new year as deferred income
  • Record services not yet invoiced as accrued income

For most sole proprietorships under CHF 500,000 in revenue, however, this is not relevant.

05Tips for the Year-End Transition

  • Issue invoices early: send large invoices as early as possible so that payment is received before 31 December
  • Consider payment terms: a 30-day payment term means that invoices from early December may only be paid in the new year
  • Send reminders before year-end: remind customers with overdue invoices -- this way you secure payment in the current year
  • Consistency: apply the same method (cash basis or accrual basis) consistently -- switching within the year is not permitted
Keep track of outstanding invoices with einzlyeinzly shows you at any time which invoices are still outstanding. This way you keep an overview -- even at year-end.

06Frequently Asked Questions

No, if you use simple bookkeeping (cash basis). In that case, you only record income when the money is received.
Cash basis (simple bookkeeping): recorded when money is received. Accrual basis (double-entry bookkeeping): recorded when the service is rendered.
From CHF 500,000 in annual revenue according to CO Art. 957 Para. 1.
With cash basis accounting, nothing happens -- you never recorded the income. You have no tax deduction for the unpaid receivable, but you also didn't pay any tax on it.
Share