Pursuant to Article 49, Law on Accounting No. 88/2015:
1. Every accounting unit must organize the accounting apparatus, appoint accountants, or purchase external accounting services.
2. The organization of the accounting apparatus, appointment of accounting, the chief accountant, accounting practitioners, or purchase of accounting services or chief accountant’s services shall comply with regulations of the Government.
Pursuant to Article 26 Law on Accounting No. 88/2015: Businesses must open accounting books and record in a clearly, completely and timely manner according to the books’ content.
Pursuant to Article 29 Law on Accounting No. 88/2015: Accounting unit must issue Financial statement at the end of the annual accounting period and the annual financial statement of the accounting unit shall be submitted to the competent authority within 90 days from the end of the annual accounting period as prescribed by law.
In addition, enterprises must comply with several regulations regarding accounting and bookkeeping, invoices, records and storage of accounting books.
Therefore, enterprises need to correctly evaluate the roles and tasks of accounting and accounting services to abide by the law, mitigate legal risks, financial risks and most importantly, serve business management purpose.
For foreign enterprises operating in Vietnam, hiring accounting services also plays a role of an independent consulting third party to fulfil businesses’ accounting jobs.
CHIEF ACCOUNTANT SERVICES
Chief accountant is the head of the accounting department of the unit organization, who has the responsibility to organize and conduct accounting procedure in the unit organization.
The accounting unit is allowed to contract with accounting companies or accounting households to hire accounting services or chief accountant services in accordance with the laws.
The main responsibilities of a chief accountant are:
- Organize and maintain the accounting department at the unit organization
- Recruit, train and operating the accounting department
- Inspect, review and report accounting activities as required by the laws and support management activities
- Consult, support and provide information in a timely manner to the board of directors for the purpose of business management.
BOOKEEPING SERVICES
The accounting unit must base on the accounting book system stipulated by the Ministry of Finance to choose an accounting book system applicable in the unit organization.
Each accounting unit only uses one accounting system for an annual accounting period.
Accounting books are used to record, organize and store all of the arising economic and financial operation related to the accounting unit.
As such, the enterprise must organize an accounting department and adequately record accounting books based on the content and chronical order of the arising operations.
The accounting unit must close the accounting books at the end of the accounting period before generating the financial report and other cases stipulated by the laws.
Adequately recording and accurately calculating accounting figures will serve as a base for tax declaration and tax payment duties.
ACCOUNTING REVIEW SERVICES
Accounting review is checking, inspecting accounting books, financial reports, calculating accounting figures to identify mistakes, misinformation…
The purpose of accounting review for most enterprises is to be proactive in the event of tax inspection and examination at the unit organization.
Reviewing and hiring review services are not compulsory, but always draw great attention from enterprises. The reasons are:
- Reviewing method needs to be synchronous to inspection method of tax authorities and 100% operations.
- Reviewing helps enterprises timely supplement and complete their documents before being inspected.
- Evaluating the imminent risks at present and giving projections for the future.
WHY CHOOSING VINASC ACCOUNTING SERVICES?
- Vinasc is a unit experienced in providing accounting consultation for foreign enterprises.
- Experienced in handling accounting risks and working with accounting inspection authorities.
- Offering multiple services that create holistic values for enterprises.
- Our services are effective and timely for customers
- Service fees are reasonable given the tasks and service quality.
FAQ:
Having more questions?
Penalties for administrative violations in the fields of accounting and independent audit are stipulated in Decree 41/2018/NĐ-CP as of March 12th, 2018.
Henceforth, in addition to being penalized for violations, enterprises need to resolve consequences and return illegal profits earned by administrative violations.
Pursuant to Article 6 of this Decree:
- The maximum fine for an administrative violation regulated by this decree committed by an individual is VND 50.000.000; the maximum fine for an administrative violation committed by an organization is VND 100.000.000.
- The maximum fine imposed upon an organization for the same violation is twice the maximum fine imposed on an individual.
We shall emphasize that these penalties are applied for accounting, excluding penalties for violations of tax
Pursuant to Clause 10, Article 13, Law on accounting No. 88/2015, prohibited acts in accounting include:
Establishing two or more accounting book systems or providing, publishing financial statements that contain inconsistent data in the same accounting period.
Pursuant to Clause 2, Article 25, Law on Accounting: Each accounting unit shall use only one accounting book system for an annual accounting period.
Pursuant to Clause 4, Article 9, Decree 41/2018, administrative penalties for violations in accounting and independent audit range from 20 million to 30 million VND for the acts of omitting accounting information. This penalty has not included fraudulence, tax evasion and business fouls that can lead to criminal offences.
From all the above-mentioned regulations, enterprises are not allowed to generate multiple accounting book system
This matter depends on the agreement based on the requirements of both parties. According to the laws, enterprises only need to generate financial reports before tax declaration (except for special enterprises, companies listed on stock exchange).
Henceforth, generation of financial reports on a monthly, quarterly or a specified period is decided by the enterprise. This will affect the scope of tasks and service fees
To run an effective accounting department, enterprises should concern the following matters:
- Sufficient human resource to take up task allocation
- Employees need to be qualified to satisfy job requirements, knowledge standards and regular checkup are necessary.
- There must be personnel in charge of compliance and quality control.
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We are an entity specializing in providing services for foreign investors and enterprises, so all of our accounting book system and reports are bilingual. Investors can choose between Vietnamese (compulsory) and one of the other languages such as: English, Japanese, Korean, Chinese (Simplified or Traditional)