Job services financial reports Year-end tax audits are a crucial solution to help businesses ensure legal compliance and financial transparency before regulatory authorities. According to statistics from the General Department of Taxation, every year 15-201 businesses encounter significant errors in their tax return documents. This leads to unnecessary late payment penalties or tax arrears. Decree 125/2020/ND-CP.
Establishing a standardized accounting system is not only an obligation but also a measure of a business's financial health. In the context of constantly updated tax regulations, finding a reputable provider of year-end financial reporting services helps business owners reduce personnel pressure and optimize economic benefits. Let's explore the process and legal regulations in detail below.
The importance of year-end financial reporting services for businesses.
Financial reporting services The year-end financial report serves as the final "checkpoint" to control all economic data generated during the year. According to Article 3 of the Accounting Law No. 88/2015/QH13, financial statements reflect the asset status, capital sources, and business results of an enterprise. This is a mandatory document that must be submitted to the Tax Authority, the Statistics Authority, and the Bank.
If a business fails to comply or complies incorrectly, the penalty can amount to tens of millions of VND. Specifically, according to Article 12. Decree 41/2018/ND-CPIn addition, the act of preparing reports that do not conform to the prescribed format can be fined from 10 to 20 million VND. This highlights the urgent need to use professional accounting services to protect businesses.
Comply with the regulations in Circular 200 and Circular 133.
Depending on the size of the business, accountants must apply the appropriate accounting system. Using year-end financial reporting services helps ensure consistency in accounting policies throughout the tax period. A team of experts will help you make accurate journal entries, avoiding confusion between specific accounting systems.
- Circular 200/2014/TT-BTC: Applicable to businesses in all sectors and economic components.
- Circular 133/2016/TT-BTC: This applies primarily to small and medium-sized enterprises (SMEs).
Optimizing corporate income tax costs.
Using year-end financial reporting services helps businesses thoroughly review legitimate and valid expenses. Accountants will check input invoices and provisions to ensure they are not disallowed during tax settlement. This helps businesses optimize their tax payments within the legal framework.
According to the regulations at Circular 96/2015/TT-BTCExpenses related to production and business activities that have sufficient invoices and supporting documents will be included in deductible expenses. Professional services will help businesses complete the documentation proving these expenses in the most thorough manner before inspections.
Why should businesses hire a service to prepare their year-end financial statements instead of doing it themselves?
In reality, many in-house accountants lack the experience to handle complex transactions such as exchange rate differences or related-party transactions. Hiring a service to prepare year-end financial statements allows businesses to access a team of experienced professionals, ensuring absolute accuracy and timely updates on the latest regulations.
Below is a comparison table between doing it yourself and using a professional service:
| Criteria | Internal Accountant (Little Experience) | Year-end financial reporting services |
| Accuracy | The risk of errors is high due to a lack of updated legislation. | Ensure the accuracy of 100% according to the new tax law. |
| Expense | High monthly salary, social insurance, and bonuses. | Low cost, only incurred when necessary. |
| Responsibility | Businesses are responsible for any penalties if they are at fault. | The service provider commits to assuming legal responsibility. |
| Up-to-date | Slow to update new regulations. | Get instant updates on legal changes. |
Minimize the risk of being subject to tax arrears.
Our year-end financial reporting service includes a health check before official submission. This helps detect early errors such as illegal invoices or overspending. In the event of an audit, our experts will directly explain the figures based on solid legal grounds.
Saves time and management resources.
The end of the year is a time when businesses need to focus on operations and debt collection. Dealing with a chaotic pile of paperwork can disperse management resources. Our year-end financial reporting service handles all paperwork and completes the entire process, freeing business owners to focus on planning for the new year.
The process for providing expert-standard year-end financial reporting services.
To ensure quality, a reputable provider of year-end financial reporting services typically employs a closed-loop process. This helps control errors from the data reception stage to the submission of the official report to the General Department of Taxation's system.
Receiving and classifying original documents
Our team providing year-end financial reporting services will collect invoices, bank statements, and payroll records. We will verify the validity of the invoices according to Decree 123/2020/ND-CP. Any missing documents will be immediately flagged so that businesses can supplement them promptly, avoiding future risks.
Review the accounting records and correct any incorrect entries.
After data entry, our year-end financial reporting service will reconcile accounts payable and inventory balances. We check depreciation allocation entries according to Circular 45/2013/TT-BTC. If errors from previous periods are found, the accountant will make adjustments according to Accounting Standard No. 23 to ensure accuracy.
Perform the closing entries and prepare the financial statements.
At this stage, the year-end financial reporting service closes the books and transfers profit and loss. Modern software systems will prepare the Balance Sheet, Income Statement, and Notes to the Financial Statements. The linked formulas are thoroughly checked to ensure there are no mathematical or logical errors.
Corporate Income Tax and Personal Income Tax Settlement
In parallel with the financial statements, our year-end financial reporting service also prepares corporate income tax and personal income tax returns. We calculate the adjustments for increasing/decreasing profits to determine the exact amount of tax payable. Applying the correct tax incentives helps businesses save money and avoid penalties for underpayment.
Printing, delivery, and archiving of documents.
After submitting the report online, our year-end financial reporting service will print and bind the books professionally. We advise businesses on how to store records in accordance with the Accounting Law (10-year term). All electronic data is also handed over to allow businesses to proactively manage their internal operations.
Important legal considerations when preparing year-end financial statements.
When providing year-end financial reporting services, experts always adhere strictly to current legal regulations. Three key issues to note are: Inventory must match actual figures, Cost of Goods Sold must match revenue, and Salary Expenses must have complete insurance documentation. These are points that tax authorities frequently inspect.
Regulations regarding deadlines for submitting reports
According to Circular 200, the deadline for submitting annual financial statements is 90 days from the end of the fiscal year. Using year-end financial statement preparation services helps businesses ensure timely submission and avoid late payment penalties that can amount to millions of VND as stipulated in Decree 125/2020/ND-CP.
Handling related-party transactions according to Decree 132
If a business has affiliated companies, the service provider preparing the year-end financial statements must declare the forms according to Decree 132/2020/ND-CP. Experts will analyze profit margins and market prices to ensure that the transaction does not violate transfer pricing regulations, helping the business to be safe from inspections.
Reference price list for year-end financial statement preparation services.
The fee for our year-end financial reporting service is flexible, depending on the size and number of invoices. We are committed to delivering exceptional value for your business's investment.
| Business Group | Number of invoices/year | Estimated fee (VND) |
| New business | < 20 invoices | 2.000.000 – 3.000.000 |
| Commerce | 50 – 200 invoices | 4.000.000 – 6.000.000 |
| Manufacturing / Construction | 100 – 300 invoices | 7.000.000 – 10.000.000 |
See the detailed article here: Price list for financial statement audit services
Conclude
Year-end financial reporting services are more than just submitting data; they're a process of optimizing a company's financial health. A clean set of accounting records enhances credibility with banks and partners. Collaborating with a professional firm is a smart move towards digital transformation and improved management efficiency.
Our year-end financial reporting service is committed to providing complete peace of mind through our dedicated team of experts. Specifically, to meet the requirements of financial institutions, MAN – Master Accountant Network offers... financial statement auditing services Professional. Contact us today for comprehensive and sustainable solutions.
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 Year-End Financial Reporting Services
Do businesses that don't generate revenue need to prepare financial statements?
Yes, businesses are still required to submit annual financial statements and tax returns. Our year-end financial reporting service will assist in preparing blank reports in accordance with regulations to avoid tax code suspension or administrative penalties.
Is the service provider liable if the report is inaccurate?
Reputable service providers are always committed to taking responsibility under the contract. If the error lies with the service provider preparing the year-end financial report, they will compensate for the penalty costs and make the adjustments to the figures free of charge for the business.
