Lack of Professionalism:
Issue: When an individual works part-time (in a sporadic manner), they may not handle tasks during regular working hours, resulting in difficulties reaching them for issue resolution.The accounting records may not be processed promptly due to working on them only in the evening, leading to inaccuracies.
Consequences: This may lead to errors in the accounting process. The sporadic nature of work can cause delays in responding to urgent requests or sudden changes.
Time Allocation for Work:
Issue: Part-time individuals may split their time between their primary job and part-time accounting work, with the time allocated for accounting being only during spare moments.
Consequences: Difficulty concentrating and delivering high-quality work in accounting and taxation tasks. Adaptability:
Issue: Part-time individuals may struggle to quickly adapt to changes in tax and accounting regulations.
Consequences: This could lead to the risk of errors or violations of regulations.
Information Security: Issue: If part-time individuals use personal devices, there is a risk of data loss.
Consequences: Loss of important information and difficulty in recovery.
Abrupt Contract Termination:
Issue: Part-time individuals may terminate contracts abruptly due to personal reasons or job transitions.
Consequences: Causes instability and difficulties in maintaining continuity in accounting work.
Service Warranty:
Issue: When tax authorities conduct audits without sufficient notice, mainly providing records upon request rather than protecting the business. There might even be abrupt contract termination without conducting explanations or safeguarding a business’s accounting data before tax audit inspections.
Consequences: Failing to warranty services may result in additional costs for error correction and information supplementation after completing the accounting service. Errors in accounting reports can lead to incorrect tax submissions, posing the risk of tax penalties.
Issue: When an individual works part-time (in a sporadic manner), they may not handle tasks during regular working hours, resulting in difficulties reaching them for issue resolution. The accounting records may not be processed promptly due to working on them only in the evening, leading to inaccuracies.
Consequences: This may lead to errors in the accounting process. The sporadic nature of work can cause delays in responding to urgent requests or sudden changes.
Time Allocation for Work:
Issue: Part-time individuals may split their time between their primary job and part-time accounting work, with the time allocated for accounting being only during spare moments.
Consequences: Difficulty concentrating and delivering high-quality work in accounting and taxation tasks.
Adaptability: Issue: Part-time individuals may struggle to quickly adapt to changes in tax and accounting regulations.
Consequences: This could lead to the risk of errors or violations of regulations. Information
Security: Issue: If part-time individuals use personal devices, there is a risk of data loss.
Consequences: Loss of important information and difficulty in recovery. Abrupt Contract Termination: Issue: Part-time individuals may terminate contracts abruptly due to personal reasons or job transitions. Consequences: Causes instability and difficulties in maintaining continuity in accounting work.
Service Warranty:
Issue: When tax authorities conduct audits without sufficient notice, mainly providing records upon request rather than protecting the business. There might even be abrupt contract termination without conducting explanations or safeguarding a business’s accounting data before tax audit inspections.
Consequences: Failing to warranty services may result in additional costs for error correction and information supplementation after completing the accounting service. Errors in accounting reports can lead to incorrect tax submissions, posing the risk of tax penalties.
Expenses Not Related to Business Operations:
Consequence: May lead to inaccurate financial reporting and undermine the credibility of financial information.
Expenses with Insufficient Supporting Documentation:
Consequence: Tax authorities may request additional documentation, exposing the risk of tax penalties.
Expenses Not Recorded in the Correct Accounting Period:
Consequence: Causes misunderstanding of the actual financial situation of the business.
Improperly Accounted Depreciation Expenses:
Consequence: May require adjustments to the depreciation schedule and a revision of financial reports.
Expenses without Proper Origin and Valid Documentation:
Consequence: Creates difficulties when auditors or tax authorities demand verification.
Duplicate Recognition of Expenses:
Consequence: Results in inaccurate financial reporting and diminishes the credibility of the business.
Expenses Not Verified According to Regulations:
Consequence: May face legal issues and the risk of tax penalties.
1.Account balances do not reconcile with detailed ledgers.
2.Offsetting debit and credit balances of accounts receivable and accounts payable lead to discrepancies in the financial statement figures.
3. Balances on value-added tax deductions differ from the amounts reported on line 43 of the value-added tax declaration without proper reconciliation documentation.
4. Errors related to inventory.
5. The company provides services in month N, recognizes revenue in month N+1 but does not carry forward the corresponding expenses.
6. Failure to clearly distinguish between short-term and long-term accounts.
7. Incorrect recognition of corporate income tax obligations.
8. Balances of insurance payables (3383, 84, 89, 86) do not match the December insurance statement, but accounting fails to provide a reconciliation statement.
9. Inappropriate recognition of expenses by the accounting department.
10. Relating to the appendix on loss carryforwards.
11. Relating to items B1-B14.
12. Incorrectly identifying or failing to identify item M – outstanding payments exceeding 20% by the deadline for submitting the Corporate Income Tax Settlement
13. Relating to the Personal Income Tax Settlement declaration.
The tax authority’s audit period typically follows a cycle and may last from 3 to 5 years, with businesses being audited once during this time frame, except in cases where there is a high tax risk. During this process, G8 will appoint a representative to work with the tax authority from the announcement of the audit decision until the issuance of the final minutes. With extensive experience in tax settlement, G8 is committed to safeguarding the legal rights of businesses to the maximum extent.
1. Financial Statement Review:
Financial Statement Review is an activity aimed at providing an opinion on whether there is (or is not) any significant event that the reviewer believes makes the Financial Statements not prepared in accordance with Vietnamese accounting standards or accepted accounting standards, in all material respects. Conducting a Financial Statement Review does not provide all the audit evidence and does not provide reasonable assurance like a Financial Statement audit. Therefore, the accuracy level and requirements for a Financial Statement Review are lower than those for an audit.
2. Financial Statement Review from a Tax Risk Perspective:
From a tax risk perspective, conducting a Financial Statement Review is absolutely necessary. This review helps accountants identify potential risks in the company’s Financial Statements early, allowing for timely adjustments before tax settlement. This aids the company in avoiding inspections and tax audits in the subsequent period. Conducting a review from a tax risk perspective involves examining figures in the Financial Statements and the balance sheet for potential tax-related risks. This helps the company prevent unjustifiable violations in the tax settlement period.
3. Criteria for Financial Statement Review from a Tax Risk Perspective:
When accountants perform a Financial Statement Review before each tax settlement period, they typically review with the following criteria:
+ Cash: Is there an excessive amount of cash in the fund? Are cash accounts reconciled? Are promissory notes written but not sent via mail classified as accounts payable? Is there any transfer adjustment between companies?
+ Receivables:
Is there a sufficient reserve for suspicious accounts?
Are any receivables pledged or discounted?
Are there any long-term receivables?
+ Inventory: Is the actual inventory quantity determined? Are consigned goods reviewed during the inventory check? What cost elements are included in the cost of inventory?
+ Revenue and Expenses:
What is the revenue recognition policy?
Are expenses accurately recorded in the reporting period?
Have the results of discontinued operations been reported correctly in the Financial Statements?
+ Investments:
How is a reasonable value determined for investments?
How is profit and loss recorded after liquidating an investment?
How is investment income calculated?
+ Fixed Assets:
How is profit and loss from the liquidation of fixed assets recorded?
What are the criteria for capitalizing expenditures?
What depreciation methods are used?
+ Intangible Assets:
What types of assets are recognized as intangible assets?
Is depreciation applied appropriately?
Have impairment losses been recorded? + Accrued Expense Notes:
Are there enough accumulated expense accounts?
Are loans classified correctly?
+ Provisions and Commitments:
What guarantees has the entity committed to?
Are there any tangible contractual obligations?
Is there responsibility for environmental processing?
If accountants believe that there is a significant error in the Financial Statements, additional procedures need to be performed, collecting evidence to avoid having to correct the report. If the report does indeed have a significant error, accountants must choose between explaining that error in the accompanying report with the Financial Statements or withdrawing from the examination process.
‘- Reviewing the Financial Statements helps businesses minimize tax risks and avoid being inspected or audited by tax authorities in the subsequent financial accounting period. Although the Financial Statements and the figures on the balance sheet always “balance,” there are still inherent tax risks. Based on the indicators in the company’s Financial Statements, tax authorities will analyze and identify potential risks, compiling a list of businesses at high risk of taxation for inspection or audit, either at the office or headquarters.
– Therefore, accountants always need to carefully and seriously review the Financial Statements from a tax perspective to minimize risks for the business, avoiding the possibility of inspection or tax audit in the next period.
– Conducting a review of the Financial Statements helps businesses save time and costs for hiring independent review units. Additionally, it enables accountants to proactively control all risks and confidently explain the figures to tax authorities. Accountants can independently perform the Financial Statements review procedure from a tax risk perspective if they have a solid understanding of Tax Law and Accounting Standards.
Tax accounting is responsible for issues related to tax declaration within a business, making it easier for the state to manage the economy. In simple terms, tax accounting involves tasks such as collecting, processing information, monitoring, recording, and reporting various taxes in accordance with government regulations. Businesses can choose to use their in-house tax accounting staff or hire external Tax Agency services to assist with tax filing and reporting.
‘- In-house Accountant is a position responsible for controlling, storing, auditing, and summarizing actual occurrences within the business. This may involve transactions with or without supporting documents, invoices, to determine the profit or loss of the business. This position focuses on collecting, processing, and analyzing financial and economic information of the business. The data and information collected are used to make decisions regarding the investment, capital, costs, and profits of the business.
– In large enterprises, this accounting position is often divided into various areas to ensure effective workflow, including: Expense accounting, inventory accounting, sales accounting, payment accounting, payroll accounting, accounts payable accounting, general accounting, and chief accounting.
When receiving a question from a customer during business hours, G8 will respond immediately (if the question does not require in-depth legal research). Additionally, we will provide assistance in resolving any issues within 72 business hours for matters that require thorough and unconventional research.
