Accounting

A Practical Guide to Recording Pre-Incorporation Expenses for Tax and Accounting Purposes Launching a business in Vietnam often requires founders to spend money before the company is officially established. These costs may include market research, legal consulting, office rental deposits, business registration fees, branding, software subscriptions, recruitment, and feasibility studies. A common question among entrepreneurs, foreign investors, and finance teams is: Can expens

Everything Businesses Need to Know About Company Seals Under Vietnamese Law A company seal has long been regarded as an official symbol of a business, representing its legal identity and authority when executing contracts and corporate documents. Although Vietnam's enterprise laws have become increasingly flexible regarding the use and management of company seals, they continue to play an important role in daily business operations. For newly established companies, foreign in

Everything You Need to Know Before Issuing Your First Electronic Invoice Starting a new company in Vietnam involves more than obtaining an Enterprise Registration Certificate (ERC) and Tax Identification Number (TIN). Before you can legally issue invoices to customers, your business must complete the electronic invoice (e-invoice) registration process in accordance with Vietnamese tax regulations. Since Vietnam has fully transitioned to mandatory electronic invoices, understa

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A Step-by-Step Guide from Legal Registration to Tax, Banking, and Accounting Setup Starting a business in Vietnam has become increasingly attractive thanks to the country's rapid economic growth, strategic location, expanding consumer market, and numerous free trade agreements. Whether you are a local entrepreneur, a foreign investor, or an overseas Vietnamese returning to invest, understanding the company formation process can save significant time, cost, and compliance risk

Everything You Need to Know Before Issuing Your First Electronic Invoice Starting a new company in Vietnam involves more than obtaining an Enterprise Registration Certificate (ERC) and Tax Identification Number (TIN). Before your business can legally issue invoices to customers, it must complete the electronic invoice (e-invoice) registration process in accordance with Vietnamese tax regulations. Vietnam has fully transitioned to mandatory electronic invoicing, making it esse

#ERP #invoice #automation

Introduction In today's digital business environment, automation is no longer a luxury—it is a necessity. One of the most impactful automations a company can implement is the automatic issuance of electronic invoices immediately after a sales transaction is completed. Instead of manually exporting sales data from an ERP system and re-entering it into an electronic invoice application, businesses can integrate both systems so invoices are generated automatically in seconds. Th

Introduction As businesses expand through acquisitions, mergers, and investments in subsidiaries, preparing a single set of financial statements becomes increasingly important. Investors, lenders, regulators, and other stakeholders need to understand the financial position and performance of the entire corporate group—not just each legal entity individually. This is where consolidated financial statements come into play. Consolidation is often considered one of the most chall

Introduction As Vietnam continues its journey toward international financial reporting convergence, the Ministry of Finance has introduced Circular 99/2025/TT-BTC ("Circular 99") to modernize financial reporting requirements and align Vietnamese accounting practices more closely with global standards. Although Circular 99 represents a significant improvement in financial reporting transparency, it is not equivalent to International Financial Reporting Standards (IFRS). Many V

Introduction As businesses become increasingly global, financial reporting standards have become more important than ever. Investors, lenders, regulators, and multinational corporations require financial statements that are transparent, reliable, and comparable across borders. Today, two major accounting frameworks dominate the world: US GAAP (Generally Accepted Accounting Principles) — primarily used in the United States. IFRS (International Financial Reporting Standards) —

Introduction Every successful business, regardless of its size or industry, needs one essential capability: understanding the true cost of producing its products or delivering its services. Without accurate cost information, companies cannot set competitive prices, control expenses, improve efficiency, or maximize profitability. Cost accounting is a specialized branch of accounting that collects, analyzes, records, and reports cost information for management. Unlike financial

Introduction Banks are the backbone of every modern economy. They facilitate payments, provide loans, safeguard deposits, support businesses, and enable international trade. However, because banks deal primarily with other people’s money and operate with high leverage, they face numerous risks every day. History has shown that poor risk management can cause catastrophic consequences. The 2008 Global Financial Crisis, the collapse of Silicon Valley Bank (2023), and numerous ba

Introduction Every accounting record starts with a document. Whether a company purchases inventory, pays salaries, receives customer payments, acquires fixed assets, or obtains a bank loan, each transaction generates supporting documents that eventually flow into accounting books and financial reports. Many people view accounting as merely recording journal entries. In reality, accounting is an information processing system that transforms business activities into financial i

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Design a Typical Department Chart for an Accounting Department of a Standard Company Introduction The accounting department is one of the most critical functions within any organization. It ensures that financial transactions are accurately recorded, financial statements are prepared in accordance with applicable accounting standards, taxes are properly reported, and management receives reliable financial information for decision-making. In most companies, especially in Asia

One of the most important accounting decisions during inventory production is determining whether a cost should be capitalized into inventory or expensed immediately. The treatment affects profitability, assets, taxes, key financial ratios, and management performance metrics. Under IAS 2 Inventories, costs directly attributable to bringing inventory to its present location and condition must be capitalized, while abnormal and period costs must be expensed. Overview Treatment

Introduction Sale and leaseback transactions have long been used by businesses as a financing tool to unlock cash tied up in assets while retaining the right to continue using those assets. Common examples include: Manufacturing companies selling factories and leasing them back Airlines selling aircraft and leasing them back Retailers selling store properties and leasing them back Logistics companies selling warehouses and leasing them back Although these arrangements can imp

Introduction Leasing is one of the most common financing arrangements used by businesses worldwide. Companies lease office spaces, warehouses, vehicles, machinery, equipment, and even data centers instead of purchasing them outright. Before IFRS 16, many leases were classified as operating leases and remained off the balance sheet. This often made companies appear less leveraged than they actually were. To improve transparency and comparability, the International Accounting S