Tax accounting services

Vietnam’s tax system is complex and constantly changing, creating a high compliance burden and the risk of administrative fines or tax arrears. Instead of wasting internal resources on risky administrative tasks, it is time for businesses to seek a professional, reliable solution. Tax accounting services Professional is a bridge solution, helping to ensure all accounting and tax work is done accurately, in compliance with the law and helping businesses focus on core business strategies.

Definition, importance and suitable audience

To properly assess value, we need to understand the nature and differences of tax accounting services compared to traditional internal accounting.

What is tax accounting service? Distinguishing it from internal accounting

Tax accounting services is a form of entrusting all or part of the accounting, declaration and tax settlement work of an enterprise to an outside specialized company. These units have a team of experts with certificates and practical experience, and are legally responsible for the work performed.

For a visual overview, please refer to the detailed comparison table below:

Criteria	Internal Accountant (Permanent Staff)	Outsourced tax accounting services
Scope of responsibility	Directly responsible to the board of directors for organizing the accounting apparatus.	Be legally responsible and compensate according to the contract if errors occur due to professional errors.
Expertise/Update	Depending on individual ability, training costs are required.	Highly specialized, the team regularly updates the latest circulars and decrees.
Expense	Total personnel costs (Salary, insurance, bonuses, benefits, software costs…).	Fixed monthly/quarterly costs according to contract, more optimal than total internal personnel costs.
Continuity	Prone to disruption when employees leave or change.	Ensure continuity and stability because it is managed by an organization.

Note after table: Tax accounting services Outsourcing is often the optimal choice in terms of cost and risk control, especially for small and medium-sized enterprises (SMEs) and businesses that want to focus on operational efficiency.

Strategic benefits of using external tax accounting services

Usage full package tax accounting services brings three core strategic benefits to businesses:

• Optimize operating costs: Businesses eliminate large fixed costs related to human resources (salaries, insurance, benefits), paying only a service fee according to demand, thereby improving cash flow and optimizing overall costs.
• Ensuring legal compliance: The service unit has a system to monitor and update legal documents promptly, ensuring that all records, vouchers and tax reports comply with the latest State regulations.
• Risk transfer and control: The service provider commits to take legal responsibility and compensate according to the contract if any errors arise from their professional errors. This helps the business transfer the burden of risk and have absolute peace of mind.

Who is best suited for outsourced tax accounting services?

Solution tax accounting services Especially suitable for the following subjects to achieve maximum effectiveness:

• Startup: It is necessary to set up a standard bookkeeping system from the beginning with limited resources.
• Small and medium enterprises (SMEs): Want to streamline the apparatus, optimize administrative costs and focus resources on core business.
• Companies with complex transactions: Import-export enterprises, Foreign Direct Investment (FDI), or enterprises with related transactions require high expertise that individual internal accountants find difficult to meet.
• Businesses want to focus 100% on core business: Management does not want to spend time dealing with tax authorities or internal audits.

Scope and detailed work of the full package tax accounting service

A supplier full package tax accounting services Reputation must clearly demonstrate the scope of work, covering all aspects from periodic to year-end settlement, to demonstrate professional competence.

Core work items: From tax declaration to year-end settlement

The main tasks are divided into three specific task groups:

1. Periodic tax declaration and accounting services (Monthly/Quarterly): Specialists will perform the following tasks to ensure day-to-day compliance of the business:

• VAT: Check the validity of invoices, prepare VAT declarations and submit electronically on time.
• Personal Income Tax (PIT): Calculate, declare and temporarily pay personal income tax, register tax codes for employees (if necessary).
• Bill management: Report on the use of electronic invoices, printing and storing documents.
• Accounting: Record, classify and account for economic transactions arising in accounting books according to regulations.

2. Year-end tax and accounting work (Financial reports): This is the most complex task, requiring high expertise to compile data and prepare reports:

• Prepare Financial Statements (FS): Including Balance Sheet, Income Statement and Notes to Financial Statements.
• Corporate Income Tax (CIT) Finalization: Review expenses, calculate taxable income and prepare year-end settlement documents.
• Personal Income Tax Finalization: Synthesize income from salaries and wages to prepare personal income tax settlement records for the entire company.

3. In-depth consulting and representation in working with tax authorities: This is the service part that creates the most added value:

• Consulting on electronic invoice issues, new regulations on tax management, and corporate income tax optimization solutions.
• Business representatives work with Tax Authorities, explain data when there is an inspection, audit or tax refund is needed.

Cost and criteria for choosing a reputable supplier

When searching tax declaration services, cost is the primary concern. However, understanding the cost components and reputation assessment criteria is key to avoiding risks.

Current tax accounting service costs: Reference price list

In fact, there is no one price that is common to all businesses. The cost will be calculated based on the actual volume of work.

Factors directly affecting service costs:

1. Number of invoices and documents: The number of monthly input and output invoices is the biggest deciding factor.
2. Personnel size: Impact on salary calculation and personal income tax settlement.
3. Business lines: Specialized industries (Construction, Manufacturing, Import and Export) have more complex operations.
4. Transaction complexity: Whether or not there are related party transactions, foreign investment, large fixed asset transactions.
5. Current book status: New businesses or businesses need to review and complete books from previous years.

For easy visualization, you can refer to the following cost classification table:

Business classification	Number of invoices/month (estimated)	Reference fee/month (VND)
Super small	Under 20 bills	800,000 – 1,500,000
Small business	20 – 50 bills	1,500,000 – 3,000,000
Medium enterprises	50 – 150 invoices	Negotiable (From 3,000,000 VND or more)

Note after table: The above prices are for illustrative purposes only and may vary depending on the size and complexity of each business. The selection tax accounting services quality and legal commitment should be prioritized over lowest price.

6 golden criteria for choosing a reputable tax accounting service company

Choosing the right partner is a decisive factor for the financial security of the business. You should rely on the following 6 criteria to evaluate the reliability of the supplier:

1. Expertise and Certifications: The team must have specialized qualifications such as Chief Accountant, Certified Public Accountant (CPA), or Certified Public Accountant (CPL).
2. Practical experience: Does the unit have experience successfully serving businesses in the same industry as yours?
3. Transparent working process: The process of receiving documents, processing business, reporting and handing over data must be clear, with a regular reconciliation mechanism.
4. Confidentiality and Commitment (NDA): The contract must clearly stipulate the confidentiality of financial information and a commitment to take responsibility and compensation if tax arrears occur due to professional errors of the service.
5. Cost transparency: The quote should be detailed, clearly listing the work included, and ensuring there are no “hidden fees”.
6. Ability to use accounting software: The unit must have experience in proficiently using popular software such as MISA, FAST, Bravo, or specialized ERP systems, ensuring synchronization and efficiency in data management.

Risks and tips to avoid mistakes when hiring cheap services

When renting tax accounting services With costs too low, businesses can face great risks. Even a small error in corporate income tax or VAT declaration can lead to long-term consequences and be collected many years later.

• Lack of experience handling complex transactions: Cheap services often only cover basic operations, and do not have enough expertise to optimize taxes or handle specific transactions.
• Failure to update laws in a timely manner: Unprofessional teams can easily miss or misapply new circulars and decrees, leading to false declarations and administrative fines.
• Data loss or information disclosure: Lax security systems can lead to leaks of your critical business data.

Real life situation: A small Trading and Service company hired a full-package tax accounting service for 800,000 VND/month. When the tax authority conducted an inspection, it discovered that the company had under-declared sales revenue through e-commerce platforms and recorded many unreasonable input costs. As a result, the company was charged with corporate income tax and value-added tax up to 150 million VND, and was also subject to an administrative fine. The old service provider did not commit to compensation in the contract, forcing the company to bear all the losses.

Transfer and cooperation process

A clear cooperation process will ensure transparency and efficiency, helping businesses feel secure when transferring accounting work.

Guide for businesses to start cooperating with tax accounting services

The standard cooperation process usually includes the following four steps:

Step 1: Assessment and survey

• The service unit conducts a comprehensive review of the accounting situation, invoice system and tax obligations of the enterprise.
• Identify potential risks (if any) and propose solutions.

Step 2: Sign the contract and non-disclosure agreement (NDA)

• A detailed agreement on the scope of work, fees, and required non-disclosure agreements (NDAs).
• Clearly define the service party's compensation responsibilities in the contract.

Step 3: Data handover and system setup

• Enterprises hand over documents, books, accounting software data (if any).
• Service unit sets up a secure data storage and management system on a technology platform (cloud, specialized software).

Step 4: Set up communication channels and regular reporting

• Appoint a chief accounting officer to work directly with the business.
• Agree on a regular reporting schedule (weekly/monthly) on tax status, emerging issues and optimization recommendations.

Frequently Asked Questions (FAQ) about tax accounting services

If you hire a tax accounting service, do you still need an internal accountant?

Normally, for SMEs, hiring a full-package tax accounting service can completely replace the position of general accountant. However, the business should still keep an administrative staff/internal accountant in charge of managing invoices, original documents, cash receipts and disbursements and coordinating work with the service unit.

Who is legally responsible when there is a mistake?

According to the law, the final legal responsibility still belongs to the legal representative of the enterprise. However, if the error arises due to technical errors (late submission, data errors) of the service party, they must be responsible for compensation according to the terms signed in the contract.

How is accounting data stored and secured?

Reputable units will use professional accounting software and store data on a secure cloud computing platform, with regular backups. Absolute confidentiality commitment is demonstrated through an NDA agreement.

Should a newly established business hire immediately or wait until it has revenue?

Newly established businesses should hire tax accounting services immediately. The first task is to submit initial tax records, register accounting forms and declare business tax. If not done on time, businesses can be fined even if they have no revenue yet.

Conclude

Working with a professional tax accounting firm helps businesses maintain compliance, minimize errors, and optimize operating costs. When the financial and tax system is operating stably, businesses can focus resources on core business strategies. If you need to evaluate the status of your books or want to find a tax accounting solution suitable for your scale of operation, please contact us for detailed advice.