Bookkeeping and Accounting activities differ in many countries around the world. The reason is that the accounting system is formed as a result of the interaction of factors from the economy, politics, history and culture of each country. Therefore, accounting for foreign direct investment enterprises (FDI) will have particular activities that require a lot of experience in the accounting system in both countries.
That is why FDI enterprises are facing many difficulties in finding partners to perform accounting financial consulting services to ensure strict requirements for their accounting in Vietnam.
What bookkeeping and accounting service for FDI company need?
Bookkeeping and Accounting service for FDI enterprises is often complicated and includes more operations compared to accounting for domestic businesses. Bookkeeping and accounting service for FDI enterprises include normal tasks in accordance with current regulations such as: tax reporting and declaration, making tax finalization reports, making monthly and annual financial statements and year-end settlement, accounting,.. Besides, they typically will include the following outstanding activities:
- Accounting: Enter accounting vouchers into the software
- Preparing monthly and annual financial statements,:
- Translating books into Japanese – including ledgers and diaries
- Synthesize and classify financial statements related to the consolidated financial statements between the company in Vietnam and the parent company in Japan
- Reporting internal transactions between member companies related to consolidated financial statements
- Management accounting related to price management, corporate governance for businesses in Vietnam and Japan according to reporting standards of Japanese enterprises
- Other related activities such as accounting, tax, insurance, salary consulting in specific activities of Japanese enterprises.
Common problems in bookkeeping and accounting activities for FDI company
Currently, making reports related to accounting, finance or tax, enterprises in general and FDI businesses in Vietnam is usually done by accounting firms. However, choosing an unreputable accounting service provider has many serious consequences and long-term troubles for businesses.
Especially FDI enterprises operating in Vietnam because they often have many legal barriers and complicated financial relationships between Vietnam and other countries. Therefore, to ensure the company’s stable operation, what are the important issues that FDI enterprises need to pay attention to when choosing bookkeeping accounting service FDI enterprises in Vietnam.
- Errors in business information such as address, account
- Mistakes in tax declaration with tax authority
- The financial statements do not follow accounting regime and accounting standards
- Failure to properly identify payable taxes, high risk of tax arrears
- Appointing unqualified chief accountant
- Documents in foreign language are not translated into Vietnamese
- Issues related to invoices when buying and selling goods such as: lack of signatures, lack of tax rates, failure to report the use of invoices, incorrect columns of items, inconsistency between invoices and books, lack of declaration of goods…
In addition, there might be some errors related to documents and internal transactions between businesses in the same system.
Those above errors will create many troubles and heavy damage to the process of business’s operation. In addition to heavy financial penalties, the business will possibly be confiscated license and suspended. Besides, small problems can cause to lose many important opportunities for business and take a lot of resources to solve.
Firms that perform unprofessional bookkeeping and accounting service for FDI company in Vietnam usually make mistakes and the damage that occurs, in fact, will be borne by the business. Especially for FDI enterprises they need a special consultant and service provider that is knowledgeable about accounting between countries and has a lot of experience in implementing bookkeeping and accounting Service For FDI company in Vietnam.
Should FDI enterprises hire outsourced accounting services or in-home accountants:
To choose the right accounting department, FDI enterprises should carefully consider the following criteria:
Salary and other expenses:
The salary paid to the accountants of a foreign-invested enterprises is on average 20 – 25 million per month, excluding allowances such as insurance money, periodic bonuses, while the rental of bookkeeping and accounting service for FDI company in Vietnam, depending on the service packages that company wants to use.
Moreover, in order to have a complete accounting department, it is not only essential to have good employees but also need to invest in equipment such as accounting software, good data processing computers.
At the company, human resources are often unstable, which will consume time and costs in handing over work and retraining human resources. In contrast, for outsourced accounting services, service providers always ensure to arrange fixed person in charge accounting operations for customers
If any errors occur, the company deploying bookkeeping and accounting service for FDI company in Vietnam will stand responsible to the Competent Authority and compensate for the damage. As for the in-home accountant, if the employee makes a mistake, the business will be fined.
If hiring unqualified employees, it takes time to train, if recruiting professional accountants, the payment is not small. However, using accounting services, your business only needs to pay a specific fee and still ensure the work progress is completed quickly and transparently by a team of professional staff who have many years of experience and can easily handle arising problems.
Thus, for large-scale FDI enterprise that need to handle a large amount of work, they can design their own highly qualified accounting department at the company or choose a faster solution. That is hiring a reputable service provider to be in charge of accounting and tax reporting for the company.
For small and medium-sized FDI enterprises with limited resources and funding, it is not necessary to have in-home accountants. Moreover, the amount of work that needs to be done is not much while the monthly cost for staff is not cheap. Therefore, the optimal solution for these businesses is to hire outsourced bookkeeping and accounting service for FDI company in Vietnam.
Choosing service provider to deploy accounting service for FDI Enterprises/FDI Company
FDI enterprises often encounters language barriers and differences in management and business styles. They should choose a service partner who can play a role in implementing tasks, tax reporting in Vietnam and be a bridge in management activities and business cultures in Vietnam. Especially, having a lot of experience and high expertise in implementing bookkeeping and accounting service for FDI company in Vietnam.
The use of outsourced services is no longer a strange thing for foreign firms. However, there are many service providers currently, before making a decision, your company needs to find out and carefully evaluate the quality of the organizational unit, especially the accounting service for FDI businesses.
So what are the criteria for choosing a partner to implement bookkeeping and accounting service for FDI company in Vietnam? Based on those requirements, we suggest a number of criteria to help foreign-invested enterprises to choose suitable partners.
- Professionality: Professionalism is reflected in accounting, finance, tax majors. In addition, it is also the specificity to implement professional operations for particular enterprises operating in Vietnam.
- Experience: The personnel in service company should be those with extensive experience, especially bookkeeping and accounting service for FDI company in Vietnam.
- Certificates and licenses: Certificates and permits are not only a guarantee of prestige and capacity, but also show the service provider’s ability to take responsibility for its partners in the process of deploying service.
- Operation culture: Japan is famous for its special and professional corporate culture. Therefore, FDI enterprises’ partners would be professional service companies. Especially in the direction of FDI corporate culture, the parties will have a lot of consensus in cooperating.
- Prestige and reliability: Reputation and reliability are reflected in the reputation of the service company in its field and in the community, which ensure company has the ability to take responsibility for its activities.
Vina Bookkeeping – Bookkeeping and accounting Service For FDI company
Based on the criteria and analysis of accounting activities at FDI enterprise, you can refer to the firm specialized in providing accounting services for FDI company – Vina Bookkeeping Co.,Ltd.
Overview of Vina Bookkeeping – A company specializing in providing accounting service for FDI company in Vietnam
Vina Bookkeeping was established by I-Glocal, a top Japanese consulting company in Vietnam, and Mr. Vo Tan Huu – former Deputy General Director of I-Glocal to provide specialized services in accounting, tax and consulting for Japanese and FDI enterprises in Vietnam.
Our staff are experienced people in consulting for Japanese and FDI enterprises, fully licensed to practice as tax agents issued by the General Department of Taxation and bookkeeping by the Ministry of Finance. Quality service built is based on Japanese standards, we commit to satisfy our customers.
Vina Bookkeeping’s service standard (“VBK”):
At VBK, we apply the PDCA cycle in planning, implementing, testing and sending reports to customers. The service quality factors are associated with the interests of customers.
Because quality comes first while other standards as well as legal regulations in Vietnam are always changing, VBK is not satisfied with the achieved results, instead we are constantly improving (Kaizen) to exceed customer expectations.
Omotenashi embodies hospitality with absolute honesty and dedicated attitude to customers. With Omotenashi, VBK staff are not merely an external accountant, but also act as consultants, regularly exchanging, reporting, discussing and giving advices to help customers and improve internal management activities.
To achieve and maintain those missions, we believe that the human aspect, in which qualifications, professional skills and customer service attitude are the key. Therefore, VBK regularly organizes internal training sessions for employees such as improving the process of providing services to customers, updating newly issued legal documents, especially training Omotenashi customer service spirit, Horenso culture, Kaizen culture and application of the PDCA cycle.
Bookkeeping and Accounting service for FDI company that Vina Bookkeeping provides
- Full bookkeeping services for FDI firms
- Monthly financial statement preparation service for foreign-invested enterprises
- Financial statement review service
- Specialized accounting financial consulting services
Advantages when using Vina Bookkeeping services
Time and cost savings: service prices for FDI company are affordable, transparently listed, and do not incur any other expenses outside the signed contract. With a professional working style, high level of staff, the process is executed on schedule and accurately. Not only saving time for administrative tasks such as data entries, checking reports, but also reducing investment costs in equipment for accounting operations.
Accurate and timely: With our experience and dedicated customer service, we are committed to providing accurate and timely reports that comply with the deadlines.
Legal compliance: We regularly update the latest legal regulations and provide professional advice so you can be assured of governance and compliance with the latest regulations.
Risk reduction: In case there is an error that affects the company, our service company will be responsible for compensating the business and explaining before the competent authority, responsible for the documents and administrative procedures.
In addition, we also provide related services such as: Tax service, payroll service, rental service for FDI business, management consulting service and online inspection.
Vina Bookkeeping achievements
Vina Bookkeeping was honored to receive a certificate of merit from the Vietnam Association of Accountants and Auditors for our outstanding achievements in the construction and development of the association in 2019.
Vina Bookkeeping was honored to receive the Certificate of Merit from VTCA for many achievements in building and developing the Association and supporting taxpayers to comply with tax laws in the period of 2018 – 2020.
Questions about bookkeeping and accounting Service For FDI company in Vietnam
1. Does Vina Bookkeeping have experience in providing bookkeeping and accounting service for FDI company in Vietnam?
Answer: Yes – We have currently provided more than 200 customers so far who are Japanese enterprises and FDI companies in Vietnam.
2.Does Vina Bookkeeping provide bookkeeping accounting services for FDI company listed on the stock exchange?
Answer: Yes – We do provide many services for FDI companies whose parent company is listed on a stock exchange.
3.Does Vina Bookkeeping provide bookkeeping services for Japanese enterprises?
Answer: Yes – We also implement services for Japanese companies.
4.Does Vina Bookkeeping apply Japanese culture in the business?
Answer: Yes – Currently, we apply Japanese cultures at the Enterprise such as Horenso, Omotenashi, PDCA, Kaizen culture.
5.Does Vina Bookkeeping apply Japanese service quality standards in the business?
Answer: Yes – we are always committed to Japanese quality when deploying bookkeeping service for Japanese company in Vietnam.
6.In addition to bookkeeping services, does Vina Bookkeeping provide other services for FDI company?
Answer: Yes – we provide services, tax agency services, payroll services, staffing services and in-depth management consulting.
7.Does Vina Bookkeeping have specialized personnel to provide accounting services for FDI company in Vietnam?
Answer: Yes – we have many senior staffs with many years of experience in implementing bookkeeping and accounting services for Japanese enterprises, in which Mr. Vo Tan Huu has more than 16 years of experience, used to hold the position of deputy
8.The process of implementing bookkeeping services
- Step 1: Receive the request and contact to perform basic support consulting for the business.
- Step 2: We will send personnel directly to the business to survey the actual situation of the business, evaluate the accounting records and advise the appropriate service on that situation.
- Step 3: Quote and sign a contract as a basis for implementation.
- Step 4: The service department will appoint personnel to perform accounting according to exact operations in accordance with the law and ensure to maximize economic benefits for your business.
Address in HCMC: 8th floor, Central Park Building, 208 Nguyen Trai street, Pham Ngu Lao ward, District 1, HCMC
Address in Hanoi: 12th floor, 148 Tower, 148 Hoang Quoc Viet street, Nghia Tan ward, Cau Giay District, Hanoi
Phone: (028) 3821 0375 – (028) 3821 0376
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