In the context of ongoing administrative reforms and digital transformation in public finance, mastering legal regulations on accounting is a prerequisite for every accountant. One of the most important documents directly affecting the operations of public institutions today is the relevant legal document. Circular 24/2024/TT-BTC This article will provide a comprehensive overview, in-depth analysis, and detailed guidance on implementing this circular for the 2026 fiscal year, ensuring compliance and optimizing management processes within the unit.
Circular 24/2024/TT-BTC and the landmark changes.
Circular 24/2024/TT-BTC on the accounting regime for administrative and non-business entities, issued by the Ministry of Finance on April 17, 2024, officially came into effect and applies to the fiscal year beginning January 1, 2025. Entering 2026, this has become a mandatory guideline for all state agencies; public non-business units; socio-political organizations and other organizations using state budget funds.
Which regulations does this document replace?
The issuance of Circular 24/2024/TT-BTC on the accounting regime for administrative and non-business entities marks an effort to consolidate previously fragmented regulations. Specifically, this circular completely replaces:
- Circular No. 107/2017/TT-BTC: The old accounting regime for administrative and non-business entities.
- Circular No. 108/2018/TT-BTC: Accounting regime for public investment projects.
- Circular No. 76/2019/TT-BTC & 79/2019/TT-BTC: Accounting guidance for specialized units.
By consolidating all regulations into a single document, Circular 24/2024/TT-BTC on administrative and non-business accounting creates a unified accounting system, eliminating overlap between unit accounting and investment project accounting, thereby making it easier for chief accountants to manage overall resources.
Detailed analysis of the components of the Accounting System according to Circular 24/2024/TT-BTC
Accountants need to clearly understand the structure of Circular 24/2024/TT-BTC on the accounting regime for administrative and non-business entities, which includes four main pillars: Documents, Accounts, Accounting Books, and Reports.
Accounting Documentation System
According to Circular 24/2024/TT-BTC on the accounting regime for administrative and non-business units, entities are allowed to design their own document templates to reflect economic transactions. However, these documents must ensure that they contain at least the minimum content as prescribed by the Accounting Law.
- Legal validity: Documents must have complete signatures, dates, and clear details of the transaction.
- Electronic documents: By 2026, the use of electronic documents will be mandatory. Circular 24/2024/TT-BTC on the accounting regime for administrative and non-business entities affirms the legal value of electronic documents as equivalent to paper documents if their integrity and security are ensured according to regulations.
Accounting Account System
The accounting system in Circular 24/2024/TT-BTC on administrative and non-business accounting has been redesigned to accurately reflect the nature of assets and capital.
- Account types 1 and 2 (Assets): Clearly distinguish between tangible and intangible fixed assets and specific assets of the public service unit.
- Accounts type 5 and 6 (Revenue and Expenses): This is the most important accounting point to note. The accounting for revenue from the State Budget (Account 511) must be clearly separated from revenue from service activities (Account 514) for settlement and tax purposes.
- Off-balance sheet account system: Circular 24/2024/TT-BTC on the accounting regime for administrative and non-business entities continues to use off-balance sheet accounts (type 0) to track budgets, payment orders, and various foreign currencies and leased assets.
Accounting System
The entity must open accounting books at the beginning of the fiscal year or immediately after the establishment decision. Circular 24/2024/TT-BTC on accounting regime for administrative and non-business entities clearly stipulates:
- Each transaction should only be recorded in a single set of accounting books.
- The accounting books must be closed at the end of the period before preparing financial statements.
- Correction of accounting records (if errors occur) must strictly adhere to the following methods: recording negative numbers, making supplementary entries, or making direct adjustments in the software, leaving a log.
Reporting System
The ultimate goal of Circular 24/2024/TT-BTC on the accounting regime for administrative and non-business entities is to create an accurate set of reports. The current reporting system includes Financial Statements (reflecting financial health) and Settlement Reports (reflecting the budget utilization situation).
Instructions for accounting for certain key transactions.
The implementation of Circular 24/2024/TT-BTC on the accounting regime for administrative and non-business entities requires accountants to change their accounting mindset, especially for the following transactions:
Accounting for funding sources and budget expenditures.
When receiving budget allocations from the State Budget, the accountant records the transaction in off-balance sheet account 008. When actual expenditures are made, the accountant simultaneously records the expense in account type 6 and reduces the budget allocation in account 008. This is a crucial point for matching data with the State Treasury according to Circular 24/2024/TT-BTC on the accounting regime for administrative and non-business entities.
Handling receipts, disbursements, and advances.
Advances (Account 141) must be fully settled within the accounting period. Circular 24/2024/TT-BTC on accounting for administrative and non-business entities emphasizes the need for periodic reconciliation of accounts payable to ensure the accuracy of year-end financial statements.
Procedures for preparing financial statements and final accounts according to Circular 24.
As we enter 2026, units have become familiar with the new forms; however, the risk of errors still exists if the following procedures from Circular 24/2024/TT-BTC on administrative and non-business accounting are not followed:
Prepare financial statements
According to Circular 24/2024/TT-BTC on accounting for administrative and non-business entities, financial statements must accurately reflect the asset situation.
- Financial Statement (B01/HCSN): Note the presentation of long-term receivables and fixed assets after depreciation.
- Report on operational results (B02/HCSN): Clearly analyze the sources of revenue (State budget, aid, fees and charges) and corresponding expenses.
- Cash flow statement (B03/HCSN): Particularly important for financially autonomous entities to manage cash flow.
- Notes to the financial statements (B04/HCSN): Any changes in accounting policies must be clearly explained.
Prepare a financial settlement report.
According to Circular 24/2024/TT-BTC on administrative and non-business accounting, the final settlement report serves as the basis for state agencies to approve the level of budget completion. Accountants must ensure that the final settlement expenditure does not exceed the allocated budget and matches the data confirmed by the State Treasury (Form B01/BCQT).
Practical experience in transformation and operation.
Below are practical insights from MAN – Master Accountant Network to help organizations smoothly implement Circular 24/2024/TT-BTC on accounting regulations for administrative and non-business entities in 2026:
- Review opening balances: Ensure that balances carried over from 2024 to 2025 and continuing into 2026 have been correctly classified under the new account codes. Many units often confuse account 421 (Surplus/Deficit) with specific funds.
- Application of information technology: Accounting according to Circular 24/2024/TT-BTC on the accounting regime for administrative and non-business entities on software such as MISA Bamboo or DAS needs to be checked periodically to avoid formula errors when generating automatic reports.
- Document archiving: According to Circular 24/2024/TT-BTC on administrative and non-business accounting regulations, accounting records must be archived for a minimum of 10 years. Units should have a plan for periodic electronic data backup to avoid information loss.
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Conclude
Strict adherence to Circular 24/2024/TT-BTC on administrative and non-business accounting regulations not only helps units avoid legal violations but also enhances public financial management capacity. Hopefully, this article on Circular 24/2024/TT-BTC on administrative and non-business accounting regulations will be a useful resource for the Vietnamese administrative and non-business accounting community.
For any questions, please contact MAN – Master Accountant Network for advice and support!
Contact information MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
Content is moderated by: Mr. Le Hoang Tuyen – Founder & CEO of Man, CPA Vietnam Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
Frequently Asked Questions about Circular 24/2024/TT-BTC on accounting regime for administrative and non-business entities
No. The unit must follow the accounting forms and chart of accounts prescribed in Circular 24/2024/TT-BTC on administrative and non-business accounting. However, the unit may design additional detailed columns to serve its internal management needs.
Accountants need to compare the current regulations on the criteria for identifying fixed assets. If the asset does not meet the criteria for fixed assets, the unit should account for it as tools and equipment and gradually allocate it to expenses according to the guidance of Circular 24/2024/TT-BTC on accounting regime for administrative and non-business entities.
All of this has been integrated into Circular 24/2024/TT-BTC on the accounting regime for administrative and non-business entities, replacing the previous Circular 108/2018/TT-BTC. Can the unit use the old accounting ledger template from Circular 107?
How should fixed assets with an original cost of less than 10 million VND be handled under the new regulations?
Which circular currently governs the final settlement of public investment projects?
