Financial reporting services serve as the "backbone" of a company's financial management system, especially as tax regulations become increasingly stringent. Accounting Law 2015 and Circular 200/2014/TT-BTCPreparing the report is not only a legal obligation but also serves as a basis for tax authorities to conduct inspections.
The number of businesses subject to tax arrears due to financial reporting errors increased by approximately 151 TP3T. An inaccurate data system poses significant financial risks. Utilizing reputable financial reporting services is key to protecting business interests and building trust with partners.
Financial reporting services and the current legal framework in Vietnam.
For sustainable operation, businesses need a thorough understanding of the legal framework. Financial reporting service providers must adhere to the Vietnamese Accounting Standards (VAS) and guiding circulars from the Ministry of Finance.
Accounting Law 2015 and guiding documents
The Accounting Law No. 88/2015/QH13 clearly stipulates the required documents, accounting books, and deadlines for submitting reports. According to Article 29, financial reports must truthfully and objectively reflect the financial situation of the entity. Outsourcing financial reporting services is permitted by law for businesses that do not have a complete accounting department.
Circular 200 and Circular 133: The fundamental differences
Depending on their size, businesses will apply different accounting systems. This is specialized knowledge that financial reporting service providers need to thoroughly advise clients on to avoid errors in applying accounts.
| Criteria | Circular 200/2014/TT-BTC | Circular 133/2016/TT-BTC |
| Applicable subjects | All types of businesses (usually large businesses) | Small and medium-sized enterprises (SMEs) |
| Mandatory | A rigorous and detailed process. | Flexibility and simplification of some accounts. |
| Mandatory reporting | Balance Sheet, Income Statement, Cash Flow Statement, Notes to the Financial Statements | Balance Sheet, Income Statement, Notes to Financial Statements (optional) |
Regulations regarding digital signatures and online report submission.
Currently, businesses are required to submit reports through the electronic tax system. (Service) financial reports Modern technology helps businesses manage digital signatures and handle technical errors when transmitting data to tax authorities in a timely manner.
Why do businesses need professional financial reporting services?
In practice, outsourced financial reporting services have proven to deliver exceptional added value. Businesses benefit from high levels of confidentiality, in-depth expertise, and significant optimization of operating costs.
Minimize the risk of data errors.
Accountants at financial reporting service firms typically have multidisciplinary experience. They quickly grasp changes in tax policies and minimize confusion between reasonable and unreasonable expenses according to Circular 96/2015/TT-BTC.
Save on personnel and operating costs.
Instead of maintaining a highly paid chief accountant, businesses can use financial reporting services at only one-third the cost. This is extremely beneficial for startups or businesses undergoing organizational restructuring.
Optimizing data for bank loan applications.
Transparent financial documentation facilitates businesses' access to loan capital. Professional financial reporting services support the explanation of data, ensuring that financial indicators (ROE, ROA, liquidity) always remain within safe limits.
Standard financial reporting service implementation process at MAN
The financial reporting service process at MAN is standardized through five rigorous steps. We combine manual document review and data processing technology to ensure absolute accuracy.
Step 1: Collect and classify documents
The financial reporting service provider receives input and output invoices and bank documents. Experts will check the validity and legality of the invoices in accordance with the regulations in Decree 123/2020/ND-CP.
Step 2: Review and reconcile accounting records.
We reconcile the balances between the subsidiary ledger and the general ledger. Using financial reporting services helps detect accounting errors or data duplication that internal accountants often overlook.
Step 3: Prepare the allocation and depreciation schedules.
Experts perform the allocation of tools and equipment (CCDC) and calculate depreciation of fixed assets (TSCĐ) according to Circular 45/2013/TT-BTC. Accrued expenses are also accurately provisioned to reflect the true financial situation.
Step 4: Prepare the tax return.
This is the most important part of our financial reporting service. We handle corporate income tax and personal income tax settlements, and prepare the balance sheet and income statement for timely submission to the relevant authorities.
Step 5: Explain the financial statements.
The explanatory notes detailing significant fluctuations in revenue and expenses help tax authorities understand the nature of the business operations. Financial reporting services will prepare these documents in a logical, professional, and comprehensive manner.
Required components of a financial report
When using financial reporting services, businesses need to check the delivered documents. A complete report must include all forms as prescribed by the Ministry of Finance.
Balance Sheet (Form B01-DN)
This report provides an overview of the company's assets and liabilities at a specific point in time. Financial reporting professionals must ensure the principle of balance: Total Assets must always equal the total Liabilities of the business.
Business Performance Report (Form B02-DN)
Present actual revenue, expenses, and profits. This is the basis for calculating corporate income tax. Financial reporting service experts help review excluded expenses, ensuring the most accurate tax payment.
Cash Flow Statement (Form B03-DN)
Providing information on cash flow from business operations, investments, and financing. Transparent cash flow through financial reporting services helps investors accurately assess liquidity and financial strength.
Explanatory notes to the financial statements (Form B09-DN)
Use detailed analysis of the presented data and indicators. In financial reporting services, the explanatory notes are a crucial part that helps readers gain a deep understanding of the accounting policies and estimates being applied.
Analyzing common mistakes that businesses make and are easily subject to tax audits.
MAN's experience providing financial reporting services to thousands of clients has helped it identify common mistakes. Understanding these errors allows businesses to proactively avoid legal risks.
Invoice from a company that has absconded.
This is a serious mistake. Without using financial reporting services to regularly check the operational status of partners, businesses risk having expenses disallowed and facing heavy penalties under tax administration laws.
Discrepancies between inventory records and actual stock.
Poor inventory management can lead to "negative inventory" or discrepancies in quantities. Professional financial reporting services will conduct inventory checks and adjust figures to reflect the actual production and business operations of the company.
Failure to make provisions as required.
Circular 48/2019/TT-BTC provides clear guidance on the provision for bad debts. Many accountants overlook this step, leading to inflated profits. Financial reporting services will advise on proper provisioning to optimize tax cash flow.
Reference price list for financial reporting services.
The cost of financial reporting services typically depends on the number of invoices and the size of revenue. We offer flexible service packages to suit the budget of each type of business.
| Business size | Number of invoices/year | Service Fee (VNĐ/Year) |
| Newly established businesses | < 20 invoices | 2.000.000 – 3.500.000 |
| Medium-sized enterprises (Trade) | 50 – 200 invoices | 5.000.000 – 10.000.000 |
| Manufacturing and construction businesses | > 200 invoices | From 15,000,000 |
| Foreign direct investment (FDI) enterprises | By scale | Contact us for a separate quote. |
Note: The above price list is for reference only. The actual financial reporting service fee will be agreed upon after MAN reviews the specific case file.
See the detailed article here: Price list for financial statement audit services
Application of technology in financial reporting services at MAN
In the 4.0 era, financial reporting services are no longer done manually on Excel. MAN applies advanced accounting software such as MISA, FAST, and modern AI systems to tightly control data.
Automated data entry from electronic invoices
The system automatically synchronizes data from the General Department of Taxation. This helps to speed up the financial reporting service process, minimize human errors, and achieve an accuracy rate of up to 99.91%.
Early tax risk warning system
Through advanced analytical algorithms, MAN's financial reporting service will alert you if your business shows signs of tax risk. This helps business owners make timely adjustments before the tax filing period.
Conclude
Financial reporting services are not just about completing numbers on paper, but a process of analyzing a company's financial health. A transparent set of reports helps you feel confident before tax authorities and appear more professional in the eyes of investors.
If you are looking for a reliable partner, contact MAN – Master Accountant Network today. In addition to accounting services, we also provide high-quality financial statement auditing services, ensuring the integrity of your data. With a dedicated team of experts, MAN is committed to providing complete peace of mind to all our clients.
Service contact information at 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 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.
Frequently Asked Questions about Financial Reporting Services
What is the deadline for submitting annual financial reports?
For private businesses, the deadline is 30 days from the end of the fiscal year. For other types of businesses, it's 90 days. Late submission will be penalized according to Decree 41/2018/ND-CP, so use a financial reporting service to ensure compliance.
Do businesses with no revenue need to prepare financial statements?
Yes. Even without generating revenue, businesses are still required to submit financial reports and tax returns. Financial reporting services for businesses that haven't generated any revenue are often offered at very competitive rates at MAN.
Is hiring a financial reporting service safe in terms of information security?
MAN is committed to protecting information through a clear legal contract. All customer data when using financial reporting services is stored in the cloud with encryption, ensuring absolute security.
