What Is a 'Milchbüchlein'? Swiss Simplified Accounting Explained

If you’ve researched accounting for the self-employed in Switzerland, you may have come across the German term “Milchbüchlein” (literally “little milk book”). It comes up constantly in German-speaking Switzerland, but it describes a concept that applies equally to sole proprietorships across the whole country.

Where does the term come from?

The name refers to the small notebooks Swiss farmers once used to record their daily milk deliveries to the dairy – date, quantity, nothing more. No chart of accounts, no double-entry bookkeeping, just a simple chronological list. That’s exactly the principle behind today’s simplified accounting (income-and-expenditure method), which Swiss law allows for most sole proprietorships.

Who does this method apply to?

Swiss law allows sole proprietorships with annual turnover under CHF 500,000 to keep simplified accounting instead of full commercial bookkeeping with a balance sheet and income statement. That covers the vast majority of Swiss sole proprietorships and self-employed professionals.

Note: VAT liability starts at CHF 100,000 turnover regardless of this threshold. Between CHF 100,000 and CHF 500,000, you’re VAT-liable but can still keep simplified accounting.

What simplified accounting actually contains

• Income – every invoice, every payment received, recorded chronologically
• Expenses – receipts for materials, rent, insurance, vehicle costs, and similar
• One receipt per entry – every line item must be traceable to a supporting document
• A running total – income minus expenses gives you your profit or loss

No balance sheet, no asset register, and no depreciation schedule required as long as you stay under the threshold.

Why a plain spreadsheet often isn’t enough

Many people start with a spreadsheet – understandable, but limited: receipts have to be filed separately, VAT calculations are done manually, and during a tax audit, the traceability between an entry and its receipt is often missing. That’s exactly where dedicated software makes a difference.

What to look for in accounting software for this method

• Automatic receipt linking – every receipt directly connected to the matching entry
• VAT support – both the flat-rate and effective methods, if you’re VAT-liable
• Simple to use – usable without accounting knowledge, in plain language
• Export for your tax return – your numbers should be ready to prepare for your tax filing directly

Effizo was built exactly for this use case: simple bookkeeping that mirrors this method digitally, with AI-powered document capture and automatic VAT calculation.

Conclusion

The “Milchbüchlein” method isn’t outdated – it’s the pragmatic, legally recognized solution for the vast majority of Swiss sole proprietorships, regardless of language region. The term might sound old-fashioned, but the right software turns it into a digital, automated process that saves you time and gives you confidence at tax time.

Learn more: Simple Bookkeeping, or read our article on getting an overview of your finances.