Distinguishing types of accounting service companies
Currently, the market has many types of accounting services provided by different organizations and individuals, especially serving small, medium, micro enterprises and business households. However, to choose the right service provider, it is necessary to clearly understand the types of accounting service companies operating.
1. What is service accounting? What is financial auditing? What does service accounting include?
Simply put, services are economic products including labor, professional skills, and organizational capabilities to meet the production, business or consumption needs of individuals and organizations. In a market economy, services are often intangible, do not create ownership and are often inseparable between production and consumption.
Accounting is the process of recording, collecting, processing and providing financial information to organizations, businesses, or state agencies. This is an essential element in economic management, supporting operations at all levels, from business units to the entire economy.
Providing accounting services is the responsibility of performing accounting operations for businesses or organizations, supporting financial work under accounting service contracts such as: Tax declaration, payment and various types of financial reports. Internal vs. external audits service providers must be licensed to operate by state management agencies.
What is financial auditing?
Basic tasks and operations of service accounting include:
- General consulting on legal regulations related to tax and accounting, along with policies and tax incentives for customers’ investment and business activities.
- Providing optimal tax and accounting solutions, helping customers prepare for expected transactions in the most effective way.
- Preparing documents and performing procedures on behalf of customers such as tax declaration, applying preferential tax rates, tax exemptions, and tax refunds according to regulations.
- Check invoices, documents and account for economic transactions arising during the operation of the enterprise.
- Prepare and submit tax declarations, financial reports, reports on invoice usage, etc. ensuring regulatory compliance.
- Notify customers of the amount of tax payable (if any) along with the payment deadline, avoiding delays.
- Complete and standardize accounting books according to regulations.
- Advise and work with tax authorities on behalf of customers to resolve arising issues when necessary.
- Perform other tasks depending on the specific profile and actual needs of the enterprise.
- Auditing & Compliance Services and types of accounting service companies on the market today not only help enterprises save time but also ensure that financial work complies with strict legal regulations.
Internal vs. external audits for companies in Vietnam
2. Types of accounting service companies and business conditions
Current law allows organizations and individuals who meet the conditions to establish an accounting service business. According to Clause 1, Article 59 of the Accounting Law 2015, types of accounting service companies include:
- Limited liability companies with two or more members
- Partnerships
- Private enterprises
This opens up opportunities for individuals and organizations to legally participate in the Auditing & Compliance Services market and diversify the types of businesses. In addition, the law stipulates that businesses are only allowed to provide accounting services when they fully meet the conditions under the Accounting Law 2015 and have been licensed through a Certificate of eligibility to provide accounting services. Specific conditions for each type of enterprise are as follows:
2.1 For LLCs with two or more members:
- Must have a Certificate of Business Registration, Certificate of Investment Registration, or equivalent documents as prescribed.
- At least two members contributing capital must be practicing accountants.
- The legal representative, director or general director of the company must be a practicing accountant.
- Ensure that the capital contribution ratio of practicing accountants and member organizations is in accordance with Government regulations.
2.2 For partnerships:
- Must have a Certificate of Business Registration, Certificate of Investment Registration, or equivalent documents as prescribed.
- At least two members of the partnership must be practicing accountants.
- The legal representative, director or general director of the company must be a practicing accountant.
2.3 For private enterprises:
- Must have a Certificate of Business Registration, Certificate of Investment Registration, or equivalent documents as prescribed.
- Have at least two practicing accountants.
- The owner of a private enterprise must be a practicing accountant and also the director of the enterprise.
3. Licensing conditions for different types of accounting service companies are different
This regulation aims to ensure professionalism and legal compliance in the operations of enterprises providing Auditing & Compliance Services. Therefore, business owners and business households can base on their specific conditions and accounting management needs to choose the most suitable service provider among the current types of accounting service companies. In addition, a modern accounting service platform, integrating smart AI tools is also a solution for medium, small, micro enterprises and business households today.
Meeting the legal requirements and completing the above procedures will help accounting Internal vs. external audits companies to be ready to operate effectively, meeting the needs of small and medium enterprises and current business households for accounting service needs. These are also the criteria for business owners to choose the most suitable accounting service provider. Contact S4B Vietnam for more details!
S4B Vietnam
- Address: Unit 701B – 701C, Tower A, Handi Resco 521 Kim Ma Street, Ba Dinh District, Hanoi, Vietnam.
- Tel: + 84 24 3974 4181
- Email: service@s4b.com.vn
——————————————–
We Will Show You The Way To Success!