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Income-Expenditure Statement: Template & Guide

The simplified bookkeeping method for Swiss sole proprietorships under CHF 500,000 revenue: What the income-expenditure statement is, how to set it up and what to watch out for.

e
einzly Redaktion
Tax & Finance Editorial
7 min read
20 Nov 2025

01What Is an Income-Expenditure Statement?

The income-expenditure statement (Einnahmen-Ausgaben-Rechnung, or EAR) is a simplified form of bookkeeping that the Swiss Code of Obligations provides for smaller businesses in CO Art. 957. It is the simplest and at the same time legally compliant way to document your business figures.

In contrast to double-entry bookkeeping (with balance sheet and profit and loss statement), the income-expenditure statement records only cash flows: what comes in (income) and what goes out (expenses). The result is your profit or loss -- and that is exactly the figure you need for your tax return.

The income-expenditure statement is intended for sole proprietorships with annual revenue under CHF 500,000. Anyone above this threshold must use double-entry bookkeeping. For the vast majority of freelancers, consultants and small business owners, however, the income-expenditure statement is perfectly adequate.

Legal basisCO Art. 957 para. 2 stipulates: Sole proprietorships and partnerships that achieve annual revenue of less than CHF 500,000 are only required to keep records of income, expenses and their financial position.

02Who Is Allowed to Use the Income-Expenditure Statement?

Simplified bookkeeping via the income-expenditure statement is not available to every business. Eligibility depends on the legal form and revenue.

CriterionIncome-expenditure allowed?Double-entry bookkeeping?
Sole proprietorship under CHF 500,000 revenueYesVoluntary
Sole proprietorship from CHF 500,000 revenueNoMandatory
GmbH (LLC) or AG (corporation) (any size)NoMandatory
General/limited partnership under CHF 500,000YesVoluntary
Association (not registered in Commercial Register)YesVoluntary

Important: The CHF 500,000 threshold refers to annual revenue (gross income), not profit. If you earn CHF 500,000 or more in revenue as a sole proprietor, you must switch to double-entry bookkeeping from the following financial year.

Most self-employed people qualify for the income-expenditure statementIn Switzerland, the vast majority of sole proprietorships generate less than CHF 500,000 in revenue. If you are a freelancer, consultant, designer, therapist or tradesperson, the income-expenditure statement is most likely the right approach for you.

03Structure of an Income-Expenditure Statement

An income-expenditure statement consists of three core parts: income, expenses and the result (profit or loss). The categories are chosen to match your activity and provide the tax office with a clear overview.

Typical income categories:

  • Fees / service revenue
  • Sale of goods / product sales
  • Ancillary income (e.g. course fees, licences)
  • Interest income from business accounts

Typical expense categories:

  • Office / rent / coworking
  • Materials and goods procurement
  • Software and IT services
  • Telephone and internet
  • Insurance (professional liability, daily sickness allowance)
  • Travel and commuting costs
  • Continuing education
  • OASI/DI/IC contributions (AHV/IV/EO)
  • VAT payment (if subject to VAT)
  • Depreciation (office equipment, laptop, etc.)

The result is simply: Total income minus total expenses = Profit (or loss). This profit is simultaneously your taxable income from self-employment.

04Practical Example

Here is a realistic example of an income-expenditure statement for a freelance designer with annual revenue of CHF 82,000:

ItemAmount (CHF)
Income: Graphic design contracts72,000
Income: Branding workshops8,500
Income: Stock photo licence revenue1,500
Total income82,000
Expenses: Office (coworking subscription)4,800
Expenses: Adobe Creative Cloud780
Expenses: Figma, Canva, tools540
Expenses: Laptop (depreciation over 3 years)1,000
Expenses: Telephone / Internet1,440
Expenses: Professional liability insurance480
Expenses: Continuing education / courses1,200
Expenses: Travel costs (client visits)2,800
Expenses: Office supplies / printing costs650
Expenses: OASI/DI/IC contributions7,210
Total expenses20,900
Profit (taxable income)61,100

This result of CHF 61,100 is declared in the tax return as income from self-employment. The income-expenditure statement itself is submitted as an attachment.

05Tips for Managing Your Income-Expenditure Statement

An income-expenditure statement is only as good as the data and receipts in it. To ensure your year-end closing goes smoothly and the tax office has no questions, follow these proven tips:

Tip 1: Update monthlyRecord income and expenses at least monthly. Anyone who pushes everything to the year-end closing loses track and forgets receipts. Weekly is even better.
Tip 2: Keep all receiptsEvery income and every expense needs a receipt. Scan paper receipts and store them digitally. The retention obligation is 10 years under CO Art. 958f.
Tip 3: Separate business accountMaintain a separate bank account for your business. This makes bookkeeping enormously easier and avoids mixing with personal expenses. Many banks offer affordable business accounts.
Do not forget private use portionsIf you also use your business vehicle, phone or office space privately, you must deduct the private portion from your business expenses. The tax office pays particular attention to this.

06Create Your Income-Expenditure Statement with einzly

einzly was developed specifically for self-employed people who need simple, legally compliant bookkeeping -- without prior knowledge and without an accountant.

  • Automatic categorisation: Income and expenses are automatically assigned to the correct category when recorded. You do not need to know which account number goes where.
  • Real-time income-expenditure statement: Your income-expenditure statement is updated in real time. You can see your current profit and expense structure at any time.
  • PDF export for the tax office: At the end of the year, you export your income-expenditure statement as a neatly formatted PDF -- ready to submit with your tax return.
  • Receipt upload: Photograph receipts directly in the app and link them to the relevant booking. Everything is digitally archived, fulfilling the 10-year retention obligation.
Try free for 30 daysCreate your first income-expenditure statement free with einzly. No subscription needed, no credit card. Simply register and get started.

07Frequently Asked Questions About the Income-Expenditure Statement

Only if your annual revenue exceeds CHF 500,000. Below that, simplified bookkeeping in the form of an income-expenditure statement is sufficient under CO Art. 957. As a sole proprietor below this threshold, you are fully legally compliant with the income-expenditure statement.
Yes, Excel is suitable in principle. You need a spreadsheet with columns for date, description, category and amount. It is important that you record all entries without gaps and in chronological order. However, Excel lacks features such as automatic categorisation, receipt linking and PDF export -- this is where a specialised tool like einzly is worthwhile.
The income-expenditure statement records only cash flows -- what comes in and what goes out. Double-entry bookkeeping additionally records assets, liabilities and equity via a balance sheet and profit and loss statement. Each transaction is posted to at least two accounts (debit and credit). For sole proprietorships under CHF 500,000 revenue, the income-expenditure statement is sufficient and considerably simpler.
Yes. The income-expenditure statement is submitted as an attachment to the tax return and forms the basis for taxing your business profit. The tax office accepts the income-expenditure statement for sole proprietorships under CHF 500,000 revenue. Your profit from the income-expenditure statement is taxed as income from self-employment.
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