What mistakes can enterprises make when organizing the accounting system?

Each enterprise needs to organize an accounting system with professional accountants from the enterprise itself or hire accountants from another entity. Violations in terms of organization and allocation in the accounting system can cause the enterprise to be fined pursuant to Article 17, Decree 41/2018/ND-CP:

1. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed for one of the following violations:

a) Hiring entities that fail to meet all standards and conditions for practicing accounting;

b) Failure to reappoint chief accountants and accounting managers before the specified deadline;

c) Failure to transfer accounting works when changes of accountants, chief accountants and accounting managers occur;

d) Failure to announce change in chief accountants or accounting managers.

2. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for one of the following violations:

a) Failure to organize the accounting unit’s accounting apparatus; failure to appoint accountants, chief accountants or purchase accounting services or chief accountant’s services;

b) Appointing accountants who are forbidden to work in accounting as specified in the law;

c) Appointing accountants, chief accountants and accounting managers who do not meet all standards and conditions;

d) Appointing chief accountant and accounting manager against established procedures;

3. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed in the following cases:

a) Appoint the accounting unit’s manager or operator as its accountant, warehouse-keeper, or treasurer, or assign that person to buy and sell products (except for private enterprises, any limited liability company owned by a single individual, enterprises belonging to other types with no state capital and are micro-enterprises in accordance with regulations of law on providing assistance for small and medium-sized enterprises);

b) Appointing chief accountants who do not meet all standards and conditions;

c) Hiring chief accountants who do not meet all standards and conditions;

4. Remedial measure:

Appoint or hire accountants, chief accountants and accounting managers who meet all standards and conditions for the cases specified in Points a and b, Clause 1; Points b and c, Clause 2; Points b and c, Clause 3 of this Article.

As an established company in the field of tax and legal consulting, Vinasc hopes to adequately inform our customers to help them mitigate the risk during operation in Vietnam. Should there be any further concern, please contact Vinasc’s Customer Care department for timely support.