Bookkeeping services in Vietnam

Being one of the top most well known brands providing excellent Bookkeeping services for Foreign Invest Enterprises (FIE) operating in Viet Nam, VINASC – with a strong multidisciplinary experienced consultant team – proudly introduce to you. ( Bookkeeping services in Vietnam)

Despite the fact that Vietnam is turning to be an open environment for which draw upon attractive foreign investment and economic development incentive policies in lately, it is always there those difficulties in understanding and complying with the law in Vietnam for FIE.

Bookkeeping services was born to be an independent third party to help businesses carrying out procedures, control risks better and limit financial losses in the business process.

It is true that ASV have been developing and a part of fullfil domestic demands, but it is necessary for foreign investors in possession of Vietnamese law confusion, must be in want of a higher requirements and demands – including language, law and legal support.

Those are basically groups of work VINASC are specialized in:

1. Initial business form:
Business establishment: Business Registration Certificate; Investment Registration Certificate; Business license.

• Form for seal and seal announcement.
• Initial form for tax, labor and insurance.
• Form for invoicing, issuing and using invoices.
• Form for banking and investment capital contribution.

2. Form for tax during operating activities of business.

• Annual tax prescription: License tax; CIT.
• Calculating and making annual tax clearing payment.
• Incurred tax prescription (if any): Foreign contractor tax; another related tax.
• Monthly, quarterly tax prescription: VAT, PIT; incurred tax (if any): Foreign contractor tax and other related ones.

3. Accounting transactions:

• Accounting books.
• Allocating and calculating cost of products, cost of sale.
• Carrying out procedures for Financial statements auditing as prescribed.
• Monthly, quarterly (if any) and annual Financial Statement (acc. Vietnam fiscal year).

4. Procedures for other reports:

• Labor.
• Investment.
• Monthly, quarterly and annual statistic.

Within the scope of this article, we will present about content related to Bookkeping services in Vietnam.

Bookkeeping services in Vietnam are understood as accounting for businesses which are service groups 3 according to the above classification.

Which businesses and investors are using bookkeeping services?

• The reason for which most of the domestic enterprises use accountant service is because of the weakness in organization and management which leads to an ineffective accounting that cannot meet the management
• Requirements and comply with the law.
• Foreign and foreign-invested enterprises – who always focus on legalization, profit and loss efficiency are using bookkeeping services too. Therefore, bookkeep services are considered as an independent consulting unit outside the current accounting system and an auditing unit according to regulations.
• Group of businesses and investors have the need to be advised and control operations according to management requirements.

What is the method implement bookkeeping services in Vietnam?

Bookkeeping services in Vietnam are mostly considered as mere service providers, not providing personnel services. Therefore, services will be performed mainly at the service provider.

At Vinasc, we will negotiate with customers a monthly schedule base on the most favorable for both parties. As follows:

• Accounting books will be sent to clients for checking.
• Journalizing, accounting and reporting are carried out at Vinasc’s office.
• At the beginning of the month, we will receive information, dossiers and documents of the business;
• After the client agree on the data, the next procedures with state agencies will be implemented by Vinasc according to the Law.
• We will work with the client about issues that have been discovered, additional documents, and things to be resolved to complete the report.

So, which dossiers and documents do businesses need to provide for Vinasc?

In Vietnam, the strict compliance with the regulations on invoices and documents is one of thoes difficult requirements for businesses.

However, this is businesses obligations and rights in simultaneously. Enterprises have rights when they comply with the invoice as well, this is the basis to protect the right of enterprises to tax authorities.

• Payroll.
• Output invoices.
• Bank transaction documents.
• Contracts, other documents (if any).
• Input and output inventories receipts.
• Input invoice: Invoices for purchasing materials, goods, other operating expenses …
• Import declarations and documents: Import of goods, materials, machinery, asset…

Do customers feel secure when handing over dossiers and documents to an Bookkeeping services provider?

• Enterprises can agree to hand over in the forms such as: Copy, scanned …
• Enterprises are always committed to confidentiality of information and comply with professional ethical standards.
• At Vinasc, if the form of handing over documents is copy, scan .., periodically, at least at the end of the year, the originals will be checked and compared.

What are the monthly and quarterly service results?

• Mistakes, errors need to be corrected, added review report.
• Accounting books journalizing, accounting software data update.
• Cost allocating and carrying forward in order to calculate cost of products, cost of sale…

What are year-end service results?

• Accounting books
• Statistical reports
• Financial statement
• Investment, industrial zone reports…
• Personal income tax clearing payment reports
• Corporate income tax clearing payment reports
• Working with an auditing company on financial statements. (Excluding issuing audit reports).

Some contents about risks or procedures that need to consider additional beside traditional bookkeeping services:

• Enterprises should proactively determine the non-deductible expenses when calculating CIT.
• Enterprises need to collect enough information about dependents, records about dependents so that there is no risk to the enterprise in the future.
• Enterprises need to consider whether they are in the case required to submit the market price determination in associated transactions document?
• Please note that bookkeeping services are provided in accordance with agreements of the contract, that means there are no guarantee that the enterprise’s obligations have been fulfilled according to the law.
• Enterprises should proactively carry out procedures for year-end audit to have no negative audit opinion, procedures such as: inventory, assets, cash; Debt reconciliation, investments and other financial obligations in particular.
• PIT clearing payment for individuals who have another income sources outside the enterprise, or individuals who did not authorize but got deducting PIT at enterprise. In the second case, it is necessary to issue PIT deducting receipts for individuals rightly to the Law.

Reasons why you should choose Vinasc’s bookkeeping services in Vietnam:

• We apply an affordable policy fee;
• We always respect and adhere to the commitment;
• Strong multi disciplinary experienced accounting team;
• We always commit and comply with information security;
• We are specialized in providing and serving foreign businesses, so we can use and communicate in different languages;

What another service does Vinasc offer?

In addition to bookkeeping services, now Vinasc is also able to provide customers with services such as:

• Office services…;
• Auditing service;
• Legal advisory services;
• Investment advisory services;
• Consulting services and carrying out licensing procedures;

Vinasc bookkeeping services other important contents notes:

1. Tax refund:

– Subjects to be entitled tax refund are the input sales tax on exports and the input sales tax of new investment projects.
– Circumstances that lead to enterprises not being entitled to tax refund even though they are eligible for tax refund:

• The accountant does not have sufficient dossiers and documents as prescribed.
• New investment projects do not comply with commitments on progress, declaration form is incorrect as prescribed.

For new investment projects: Enterprises should carefully consider the progress of project implementation, the roadmap for timely monitoring and tax refund.

2. Transfer profits abroad

• According to regulations, businesses are guaranteed and entitled to transfer profits abroad when they have fulfilled their tax, financial obligations … according to the law.
• Dossiers to transfer profits abroad: The minutes and decisions on profit distribution are submitted to the tax authority and this same file is submitted to the licensed bank where the enterprise opens the investment account.

Circumstances that an enterprise has difficulty in transferring profits abroad is because enterprise does not comply with investment procedures, such as opening a capital account, making capital contribution …