Accounting tasks hold a vital position within a business, thus they need to be held sufficiently in order to sustain the company. Handling accounting services can be a challenging task because there are so many things to consider, such as managing payroll, accounts receivable, and accounts payable. Therefore, the perfect solution to focus on the fundamentals of the business and to ensure the accounting services are completed is accounting outsourcing in Vietnam.
In today’s vigorous business environment, there are many aspects to consider when setting up and running a company in Vietnam. For startup companies, the main goal is to focus on the core business to kickstart successfully and achieve their goals in the business market.
Assumptions, confusion, and mistakes can lead to negative outcomes for startup companies when figuring out the system in Vietnam. Hiring a qualified team to do this job for you can turn these undesirable points into success within your company.
What is Outsourcing Accounting Services in Vietnam?
Accounting is the organized process of gathering, compiling, evaluating, and communicating both financial and non-financial data about a company’s operations. It entails keeping track of adjustments to resources, workflows, and the results of commercial and production operations. Accounting has the function of offering useful information for decision-making, assessing the efficiency of business operations, and assuring compliance with pertinent laws.
Outsourcing accounting services in Vietnam involves hiring a third-party service provider or accounting firm to handle various financial and accounting tasks on behalf of a business. This outsourcing arrangement allows companies to delegate accounting responsibilities to experts outside of their organization, often for reasons such as cost-efficiency, expertise, and time-saving.
Which Accounting Services Are Prioritized to Be Outsourced?
Your business will perform better when you outsource your company’s payroll. Payroll in Vietnam requires a certain level of knowledge and expertise, especially when the Vietnamese Laws are constantly changing. An accounting outsourcing provider is familiar with all governmental requirements, payroll essentials, and HR nuances.
Related Read: Payroll Update 2023: Minimum Wage in Vietnam
The payroll process can be complicated and time-consuming for untrained HR personnel especially when the payroll involves leave credits, benefits, timesheets of different locations, etc. Having a professional consultant to oversee your payroll processing in Vietnam provides you with more time and resources to perform more valuable tasks for business growth.
General Accounting and Bookkeeping
Bookkeeping and general accounting need to complement each other to deliver the best result.
However, it is sometimes hard to achieve. This is because bookkeeping is often considered one of the most laborious tasks and thus human errors are common. And the bad news is, a slight mistake in bookkeeping can jeopardize the entire accounting process.
You can avoid this type of problem by outsourcing this particular function. An accounting outsourcing partner ensures that they properly record each of your business transactions, enabling easy tracking and tracing. Your accounting services partner also has the right accounting software for bookkeeping and general accounting automation.
Financial Report and Management Report
Investors and clients can get a better understanding of your business’s financial condition through a financial report and management report. Therefore, these reports are vital. You need to generate the recorded data carefully from bookkeeping on a daily basis.
If you have already outsourced the main accounting and bookkeeping functions to an outsourcing firm, you should just delegate the financial report and management report writing to the same professional, since the same provider has all the important data in one place.
The chief accountant holds full responsibilities, including overseeing daily operations, signing essential financial documents, collaborating with tax authorities and auditors, ensuring statutory compliance, and managing communications with local tax authorities, while also supporting the annual audit process.
Pros of Accounting Outsourcing in Vietnam
Any wrong calculations can cost the company, so it is important to ensure that the departments that hold this responsibility are qualified and professional.
When you opt for outsourcing, a professional provider assumes this role, delivering ample service to complete the job. While there is an initial payment for the outsourcing team, it reduces the likelihood of incurring penalty charges due to internal mistakes.
Related Read: Why SMEs in Vietnam Should Consider Payroll Outsourcing
Focusing on the core business within your company that involves profits and clients holds more importance in comparison to the administrative tasks that involve accounting.
Having a provider that takes care of the accounting tasks, so you can spend more time on a high-level service within the organisation, could potentially be the motive behind increasing profits.
Directing your energy to the clients, in the beginning, leads to an increase in profits in the long run.
Frequent errors and mistakes may result in the company losing clients or, in the worst-case scenario, completely shutting down the business.
To address this, outsourcing an accounting team in Vietnam takes responsibility. The skilled and professional team minimizes risks to safeguard the company’s reputation.
Business decisions are made faster
A professional accounting team ensures punctual payments, reducing stress. Errors in various accounting areas can impact business performance. Outsourcing ensures timely payments and precise decision-making, meeting deadlines. Because we have the advantage of operating in this field, we can support your company with the appropriate accounting staff to fulfill this goal.
Cons of Accounting Outsourcing in Vietnam
The cons of accounting outsourcing are not common and can be overcome quite easily.
The lack of communication is one of the cons because you’re unable to communicate with the provider frequently and minor misunderstandings may occur. So, it will sometimes give business owners a false sense that they are losing control or oversight of their accounting matters.
How to Outsource Accounting Services in Vietnam?
- Identify Your Motivation: Determine the key reasons driving your decision to outsource, which may include cost reduction, improved business performance, or access to specialized skills.
- Select the Right Partner: Choose an outsourcing partner aligned with your business goals, considering factors like cultural compatibility, communication capabilities, technology infrastructure, and track record.
- Choose the Outsourcing Model: Decide on the outsourcing model that best suits your needs, whether it’s freelancers, project-based, business process outsourcing (BPO), or the build-operate-transfer model.
- Involve Your Local Team: Communicate openly with your local team about the outsourcing strategy, addressing any concerns and empowering them with your firm’s vision.
- Prepare an Implementation Plan: Develop a comprehensive outsourcing implementation plan that outlines project specifications, guidelines, and communication strategies. Collaborate with your outsourcing provider to bridge any gaps.
InCorp Vietnam is a leading provider of global market entry services. We are part of InCorp group, a regional leader in corporate solutions, that encompasses 8 countries in Asia-Pacific, headquartered in Singapore. With over 1,100 legal experts serving over 15,000 Corporate Clients across the region, our expertise speaks for itself. We provide transparent legal consulting, setup, and advice based on local requirements to make your business perfectly fit into the market with healthy growth.
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