As a fresher in the business milieu, putting off accounting work might seem like a convenient option, but it could lead a businessman to run into the risk of quality control mishaps in terms of financing, or monetary emergencies if overlooked for the short or long term. Well-organized accounting services ensure your business runs efficiently on a daily basis as accounting & bookkeeping services support a firm in managing its records, which is not only a statutory requirement but also important from the point of view of planning company financial strategy and budget.
Accounting and bookkeeping in Vietnam can turn out to be a very time consuming and dynamic area of consent as Vietnam functions on a pre-defined set of accounting standards which cannot be violated at any cost. In order to work in accordance with these standards, a company must have a back support which has proper knowledge of the country’s accounting policies as it is a very challenging task and requires a lot of time, experience, and efficiency. Even if it’s not for the sake of law, accounting and bookkeeping is very beneficial anyway, it helps in keeping a track of all the cash inflow/outflow, payment of relevant taxes, tax filings, etc. which eventually gives a clear future outlook of the company as well as helps in planning better business strategies and ensures that a business runs more efficiently by striking off taxation hazards in future.
For any company established in Vietnam, issues related to taxes and other payments to governing authorities are subject to no exception as Vietnam strictly follows an accounting standards framework which is known as Vietnamese Accounting Standards (VAS) and all organizations must follow these standards in order to do business in Vietnam. The various factors of financial statements which falls under Vietnamese Accounting Standards are balance sheet, income statement, cash flow statement, and notes. These standards are implemented by The Ministry of Finance (MoF) of Vietnam through the Accounting and Auditing Policy Department and are based on International Financial Reporting Standards (IFRS). A total of 26 Vietnamese Accounting Standards have been published so far and all types of entities right from enterprises of all economic sectors which are established and are being operated under Vietnamese law including wholly foreign-owned enterprises, branches, and representative offices of foreign enterprise operating in Vietnam; individual business households and cooperation groups; accountants and other persons related to accounting to non-business units and organizations, are subject to VAS.
Also known as Vietnamese Accounting Standards System, VN GAAP comprises several legal documents. A brief description of these legal documents is given below:
The accounting law is the legal framework for the accounting profession which is issued by the National Assembly.
The 26 Vietnamese Accounting Standards explain the guidelines on the basic framework of accounting regulation applied in Vietnam which must be followed by all the organizations for carrying out a business in the country. These standards are issued in compliance with the International Financial Reporting Standards (IFRS).
The Financial Management Regime applies only to certain sectors and industries and is mainly issued for government’s examination purpose. This legal document is tax driven and explains the norms for expenditures and revenues of the business entities and their distributed profit.
The Accounting Regime comprises the major accounting principles with guidelines which contain a chart of accounts, forms of financial statements, prescribed accounting treatment, and supporting documents. It was published by the Ministry of Finance and the accounting regulations for credit institutions are issued by the State Bank of Vietnam.
Business Setup Worldwide provides the following accounting and bookkeeping services in Vietnam:
If the accounting systems of a company are in place, it leads to:
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As a business evolves, maintaining financial records can get complex in an overseas country. This is where Business Setup Worldwide comes into the picture by complementing your business objectives by tending to any and all support functions. We are diligent in our accounting and bookkeeping services so that you don’t have to worry about it. Our business advisors never fail to be there and help you with handling company finances and the other required formalities.