Accounting for joint-stock companies is a specialized type of accounting with complex operations related to charter capital, share issuance, and dividend payments. According to the latest updates from the amended Accounting Law 2024 and Circular 99/2025/TT-BTC, joint-stock companies need to pay special attention to the process of digitizing documents and the new financial reporting standards applicable from the 2026 fiscal year. This article provides a comprehensive overview of the organizational structure, accounting system, and key operations to help accountants in joint-stock companies understand the nature of their work, minimize legal risks, and proactively comply with current regulations.
Overview of accounting for joint-stock companies in the current economy.
In the context of the digital economy of 2025, joint-stock companies remain the most popular business model due to their strong capital raising capabilities. However, this also places significant pressure on the role of accountants in joint-stock companies.
- Characteristics of capital sources: The charter capital of a joint-stock company is divided into many equal parts called shares. The company has the right to issue many types of shares to raise capital from the public, leading to extremely complex management of shareholder lists and capital fluctuations for accounting in joint-stock companies.
- Limited liability: Shareholders are only liable for debts and other financial obligations to the extent of their contributed capital. This helps separate personal assets from business assets, but requires the accounting of a joint-stock company to be transparent about all cash flows.
- High transparency: Compared to other types of businesses, accounting in joint-stock companies is subject to stricter oversight from state management agencies, shareholders, and potential investors. Timely disclosure of financial reports is not only a legal responsibility but also reflects the company's reputation in the market.
Distinguishing features of accounting in joint-stock companies compared to other types of companies.
To help you better understand the differences in financial management, let's look at the quick comparison table below between accounting practices in joint-stock companies and limited liability companies.
| Comparison criteria | Joint stock company accounting | Accounting for a limited liability company |
|---|---|---|
| Capital scale | Divided into shares, with no limit on the number of shareholders. | Divided according to capital contribution ratio, with a limit on the number of members (maximum 50). |
| Capital raising capacity | It is possible to issue shares publicly on the stock exchange. | It is not permitted to issue shares to raise capital broadly. |
| Core business operations | Monitor capital surpluses, treasury stock, and large dividend payouts. | Keep detailed records of each member's individual capital contribution. |
| Audit request | Mandatory for listed companies or those with a public interest. | It is only mandatory in certain specific scale cases. |
Note: The above comparison table is for general purposes only, to help accounting personnel in joint-stock companies quickly identify key tasks depending on the type of business they work for.
Capital structure and shares
Accounting for equity capital in joint-stock companies is significantly more complex. Accountants in joint-stock companies need to use account 411 to track the details of common and preferred stock contributions. A crucial point is the share premium (Account 4112). This is the difference that arises when the actual issuance price of shares is higher than the par value. This premium is not considered revenue but rather a portion of the owner's equity; accountants in joint-stock companies need to manage it carefully to use for capital increases or to offset losses as required by regulations.
Dividend and profit distribution operations
Unlike capital withdrawal in limited liability companies, dividend distribution in joint-stock companies must adhere to strict legal procedures. Before distributing profits, the accountant of a joint-stock company must perform the following tasks:
- Allocate financial reserve funds and development investment funds from after-tax profits according to the rates stipulated in the company's charter.
- The liability should be recorded immediately upon official approval from the General Meeting of Shareholders. Accurate accounting practices in joint-stock companies ensure that financial statements accurately reflect the company's debt obligations to shareholders.
Specific monitoring mechanism
The accounting system of a joint-stock company is always subject to the supervision of the Supervisory Board. This team has the right to inspect books and documents at any time. Therefore, the chief accountant of a joint-stock company needs to build a robust internal control system, ensuring that all transactions have valid original documents and are approved by the appropriate authority.
Optimal accounting system structure for joint-stock companies in 2025
An efficient accounting system for a joint-stock company doesn't necessarily need a large workforce, but rather clear division of responsibilities and strong technological applications. Depending on the size of the business, it can be implemented according to the following diagram:
- Chief Financial Officer (CFO): The person at the helm of the financial system, responsible for reporting to the Board of Directors and tax authorities.
- General accountant: The link connecting data from various departments, directly handling closing entries and preparing financial statements.
- Specialized accounting roles:
- Tax Accountant: Specializes in electronic invoices, tax declarations, and tax settlements.
- Equity and Shareholder Accounting: Specializes in the accounting of joint-stock companies, including detailed tracking of shareholder lists, stock price changes, and dividend payments.
- Accounts Payable and Inventory Accountant: Manages the cash inflow and outflow and physical assets of the business.
The emergence of ERP and cloud-based accounting solutions in 2025 will allow data from various departments to flow automatically to the accounting department of a joint-stock company, minimizing errors caused by manual data entry.
Guidelines for accounting practices in joint-stock companies according to Circular 99/2025/TT-BTC
Circular 99/2025/TT-BTC introduces groundbreaking changes to the approach to the accounting system and recording principles. Accountants in joint-stock companies should take note of the following new points:
- Accounting system: Some account codes have been adjusted to more accurately reflect modern financial asset types. Accounting personnel in joint-stock companies need to update their software to match the new account categories before the circular comes into full effect.
- Specific capital contribution procedures: Contributing non-monetary assets requires valuation by a specialized organization, and the accounting department of the joint-stock company must accurately record the actual value at the time of contribution.
- The principle of substance over form: This is the guiding principle for accounting in joint-stock companies in 2025. If a transaction takes the form of a sale but is essentially a loan, the accountant must record it as a loan to ensure the accuracy of the financial statements.
The process of preparing and presenting financial statements for joint-stock companies.
The financial reporting system is the face of a business to the public. To prepare a standard set of reports, accountants in a joint-stock company need to follow this process:
- Compile data from subsidiary ledgers and general ledgers to prepare the Balance Sheet and Income Statement.
- Preparing a cash flow statement reflects the actual flow of cash in and out, helping investors assess the liquidity of a business.
- Drafting the explanatory notes to the financial statements: This is the most important part that helps accountants in joint-stock companies explain significant changes in equity, contingent liabilities, and related-party transactions.
Note: The deadline for submitting annual reports to tax and statistics authorities is usually 90 days from the end of the fiscal year. However, accounting personnel at listed companies are often required to disclose information earlier than stipulated.
Checklist of accounting tasks to be completed within the first 90 days of company establishment.
The initial period of establishment is when accounting in a joint-stock company is most prone to errors due to the instability of the organizational structure. Below is a list of important tasks that should not be overlooked:
- Register for a tax identification number and purchase a digital signature to facilitate electronic tax filing.
- Submit the business license fee declaration form and pay the business license tax into the state budget.
- Notification on the use of electronic invoices according to Decree 70/2025/ND-CP and establishment of a process for storing digitized documents for accounting in joint-stock companies.
- Open a company bank account and register the account with the business registration authority.
- Complete the capital contribution documents of the founding shareholders, ensuring that the capital is fully contributed within 90 days as required by the Enterprise Law.
Important considerations regarding taxation and risk management.
In the accounting operations of a joint-stock company, tax risk is always a top concern. To protect the business, accountants need to pay special attention to:
- Managing capital contribution deadlines: If shareholders fail to contribute the full amount of capital within 90 days, the accounting department of the joint-stock company must advise on procedures to reduce the registered capital. Maintaining a fictitious capital figure on the books can lead to very heavy administrative penalties.
- Personal income tax on dividends: Businesses are responsible for deducting personal income tax when paying dividends to individual shareholders. Accountants of joint-stock companies need to retain this tax payment receipt for annual tax settlement purposes.
- Validity of input invoices: With stricter management of e-commerce invoices from 2025, accountants in joint-stock companies need to check the operational status of partners on the tax portal before recording expenses.
Digital transformation trends in accounting for joint-stock companies in 2025
Accounting is no longer just a job of "keeping records" but is becoming a department that analyzes financial data in joint-stock companies.
- AI application: Artificial intelligence algorithms assist accounting departments of joint-stock companies in automatically reconciling bank transactions and alerting to signs of financial fraud.
- Real-time accounting: Instead of waiting until the end of the month for reports, the 2025 company accounting support system allows you to view business results immediately.
- Cloud data security: Storing documents on the cloud helps accounting departments of joint-stock companies ensure that data is not lost in unforeseen circumstances.
Frequently Asked Questions about Accounting for Joint Stock Companies
Does a newly established joint-stock company with no revenue have to file reports? Yes. Accountants of a joint-stock company must still file periodic tax returns and prepare annual financial statements even if no revenue is generated.
Can share premium be used to pay dividends? In principle, share premium is the capital contributed by shareholders, and the accounting of a joint-stock company records it as an increase in charter capital, not as a direct dividend payment like after-tax profit.
Does the chief accountant of a joint-stock company need a professional certificate? According to the Accounting Law, the chief accountant of a joint-stock company is required to have a chief accountant training certificate and sufficient years of practical experience.
Conclude
Accounting in joint-stock companies is a profession that demands meticulousness, honesty, and the ability to continuously update legal knowledge. In 2025, with the support of technology and new regulations from Circular 99, accounting in joint-stock companies will become more transparent and efficient. Hopefully, this article has provided you with useful information to help you be more confident in your profession.
Source of reference:
- Circular 99/2025/TT-BTC of the Ministry of Finance provides guidance on the accounting regime for enterprises.
- Decree 70/2025/ND-CP provides detailed regulations on electronic invoices and documents.
- Accounting Law No. 88/2015/QH13 and its amendments and supplements in 2024.
- PwC Vietnam's "Doing Business in Viet Nam 2025" survey report on accounting and auditing regulations.
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Content production by: Mr. Le Hoang Tuyen – Founder & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
