A Practical Checklist for Foreign Companies
In Vietnam, accounting compliance is continuous, not annual.
Even companies with no revenue, no invoices, or minimal activity are still required to complete monthly accounting tasks. Missing or mishandling these obligations is one of the fastest ways foreign companies accumulate penalties and audit risk.
This guide explains what must be done every month, who is responsible, and how foreign companies manage monthly accounting efficiently in Vietnam.
Why Monthly Accounting Matters in Vietnam
Vietnam’s tax system is:
- Transaction-based
- Invoice-driven
- Inspection-oriented
Authorities expect companies to:
- Record activity monthly
- File required declarations on time
- Maintain inspection-ready records
📌 Annual compliance cannot “fix” poor monthly accounting.
Who Must Perform Monthly Accounting?
Monthly accounting applies to:
- Wholly foreign-owned companies
- Joint ventures
- Vietnamese subsidiaries
- Branches
- Representative Offices (limited scope)
📌 Obligations begin from the date of incorporation, not from first revenue.
Core Monthly Accounting Tasks in Vietnam
1️⃣ Recording All Financial Transactions
Companies must record:
- Revenue (if any)
- Expenses
- Payroll
- Bank transactions
- Capital contributions (if applicable)
Records must:
- Follow Vietnamese Accounting Standards (VAS)
- Be maintained in Vietnamese
- Use VND as the accounting currency
📌 Backdated or reconstructed records are a major audit red flag.
2️⃣ VAT Invoice Management (If Applicable)
For VAT-registered companies:
- Issue VAT e-invoices for taxable sales
- Receive and validate supplier invoices
- Classify invoices by VAT rate
- Match invoices with payments
📌 Invalid or late invoices often lead to disallowed VAT and penalties.
3️⃣ VAT Declaration (Monthly or Quarterly)
Even if:
- No sales occurred
- No VAT is payable
➡️ VAT declarations must still be filed on time.
📌 “Zero declaration” is still a declaration.
4️⃣ Payroll Accounting & PIT Withholding
Monthly payroll accounting includes:
- Salary calculation
- Personal Income Tax (PIT) withholding
- Social, health, and unemployment insurance contributions
- Payslip and payroll records
📌 Payroll errors quickly cascade into tax and labor law violations.
5️⃣ Bank Reconciliation
Each month, companies must:
- Reconcile bank statements with accounting records
- Identify discrepancies
- Explain unusual transactions
📌 Unreconciled bank balances are a common audit trigger.
6️⃣ Expense Deductibility Review
Monthly review ensures:
- Expenses are business-related
- Supporting invoices are valid
- Payments meet non-cash requirements
- Expense caps are respected
📌 Waiting until year-end often results in irreversible disallowances.
7️⃣ Accounting Ledger & Document Retention
Companies must maintain:
- General ledger
- Subsidiary ledgers
- Supporting documents
- Electronic invoice records
Documents must be:
- Stored locally
- Readily accessible
- Retained for statutory periods
Monthly Tasks for Representative Offices
Although ROs do not generate revenue, they must still:
- Record operating expenses
- Process payroll and PIT
- File required declarations
- Prepare monthly accounting records
📌 ROs are often penalized for assuming no accounting is required.
Monthly Accounting Timeline (Typical)
| Task | When |
|---|---|
| Transaction recording | Ongoing |
| Invoice review | Monthly |
| VAT & PIT filing | By statutory deadline |
| Payroll & insurance | Monthly |
| Bank reconciliation | Month-end |
| Ledger closing | Month-end |
Consistency matters more than volume.
Common Monthly Accounting Mistakes
❌ No accountant after incorporation
❌ Late invoice processing
❌ Missing “zero” declarations
❌ Cash payments without documentation
❌ No bank reconciliation
❌ Treating accounting as quarterly or annual
These issues often surface only during inspections.
Monthly Accounting: Outsourced vs In-House
Outsourced Accounting (Most Common)
✔ Lower cost
✔ Local compliance expertise
✔ Scalable
✔ Audit-ready records
In-House Accounting
❌ Higher fixed cost
❌ Management overhead
❌ Requires strong internal controls
📌 Most foreign SMEs outsource monthly accounting in Vietnam.
Monthly Accounting vs Employer of Record (EOR)
If you operate only via EOR:
- No monthly corporate accounting
- No VAT or CIT filings
- Payroll handled by EOR
📌 Monthly accounting begins only after entity setup.
Monthly Accounting Compliance Checklist
✔ All transactions recorded
✔ Valid VAT invoices collected
✔ Payroll & PIT processed
✔ Insurance contributions paid
✔ Bank accounts reconciled
✔ Declarations filed on time
✔ Records archived properly
Missing any item increases compliance risk.
How BusinessPartner.vn Supports Monthly Accounting
BusinessPartner.vn helps foreign companies with:
- Monthly bookkeeping under VAS
- VAT & PIT filings
- Payroll and insurance accounting
- Bank reconciliation
- Expense review and compliance checks
- Audit-ready accounting records
- Ongoing accounting & tax outsourcing
👉 Speak with our Vietnam accounting specialists to review or outsource your monthly accounting.
Recommended Reading
Timeline & Cost to Set Up a Company in Vietnam
Vietnam Corporate Income Tax (CIT) Explained
VAT in Vietnam: Rates, Filing & Common Errors
