Accounting service is understood as a service activity, that service does accounting for the Enterprise. In Vietnam, this activity appears a lot, but the service providers are those who must have the consent of the State management agencies to be allowed to perform.
- The process of performing accounting services (also known as accounting for hire) includes many steps including:
- Consulting on accounting and tax related issues when new legal documents are issued;
- Tax registration for businesses;
- Organizing the process of accounting records for businesses;
- Reporting in accordance with the Tax Laws (Value Added Tax, Corporate Income Tax, Personal Income Tax, and other taxes if the business has activities related to that tax);
- Fulfill obligations related to compulsory social insurance, compulsory labor registration. The labor law and the social insurance law clearly stipulate and require enterprises to report and deduct funds. Including Social Insurance Fund, Health Insurance Fund, Unemployment Insurance Fund.
- Comply with the accounting reporting regime as prescribed.
- On behalf of the legal representative of the enterprise, explain the data collected, including: data on various types of tax reports; figures on the set of financial statements submitted to the tax authorities
Accounting service is a type of service that is both legal and technical. It requires compliance with technical factors (how to prepare reports, how to calculate) and legal factors (on what legal bases to make those reports). Combined with the fact that the service is a third party, the process is quite complicated, because how to satisfy customers while not violating service standards that are based on legal and certain technical standards! To perform accounting services (or tax services too), service providers must have a “Certificate of Accounting Practice” or “Certificate of Practicing Tax Procedures[“. Holders of Tax Practitioners Certificate are entitled to work as tax preparation services and Tax Agents but are not entitled to practice as accountants.
Regulations on conditions for practicing accounting services
a) Having a business registration for accounting services;
b) There are at least 2 people holding the Certificate of Auditor/Certificate of Accounting Practice issued by the Ministry of Finance, of which the Director of the enterprise must be the holder of the Accounting Practice Certificate or the Auditor Certificate from 2 years or more.
Accounting services performed
- Do accounting;
- Acting as chief accountant;
- Specifically setting up the accounting system for the accounting unit;
- Providing and consulting on application of information technology in accounting;
- Fostering accounting profession, updating accounting knowledge;
- Finance support;
- Tax declaration;
- Other accounting services as prescribed by law.
