At present, the demand for services for preparing corporate financial statements is becoming increasingly common, especially among small and medium-sized enterprises (SMEs), newly established enterprises, and foreign-invested enterprises. However, in practice, many service providers still fail to satisfy all statutory conditions for providing accounting services, resulting in risks and errors that may adversely affect business operations.

I. Current situation regarding services for preparing corporate financial statements

For a rapidly increasing number of new enterprises, demand for services for preparing corporate financial statements has also risen significantly. Engaging external service providers to prepare financial statements helps reduce personnel costs, ensure timely submission of reports, and satisfy the requirements of tax authorities, business registration authorities, business partners, and financial institutions.

However, in practice, there remain service providers that do not fully meet professional accounting practice requirements, lack professional certificates, have insufficient experience, or prepare financial statements merely as a formality. These shortcomings may create risks of inaccurate financial data and violations concerning signatures, seals, and digital signature usage, and may lead to administrative sanctions, tax reassessments, or reputational damage to enterprises.

II. Overview of services for preparing corporate financial statements

1. What is a corporate financial statement preparation service?

Clause 1, Article 3 of the Law on Accounting 2015 (as amended by Clause 1, Article 2 of the Law amending the Law on Securities, Law on Accounting, Law on Independent Audit, Law on State Budget, Law on Management and Use of Public Assets, Law on Tax Administration, Law on Personal Income Tax, Law on National Reserves, and Law on Handling Administrative Violations 2024) defines a financial statement as a system of economic and financial information of an accounting entity presented in accordance with prescribed accounting standards and accounting regimes.

Accordingly, a service for preparing a corporate financial statement refers to an activity conducted by an organization or an individual satisfying statutory accounting practice requirements to support an enterprise in preparing and finalizing its financial statement in compliance with applicable laws. Financial statements generally include Statement of Financial Position (Balance Sheet), Statement of Profit or Loss and Business Results, Cash Flow Statement, and Notes to the Financial Statements.

2. What is the purpose of services for preparing corporate financial statements?

The purpose of services for preparing corporate financial statements is to ensure that financial figures are compiled accurately, truthfully, and in compliance with accounting standards, thereby enabling enterprises to fulfill obligations toward tax authorities, regulatory authorities, and related stakeholders. 

In addition, financial statements serve as an important basis for:

  • Evaluating financial performance and business efficiency;
  • Assessing liquidity and solvency;
  • Supporting bank loan applications;
  • Facilitating fundraising and investment activities;
  • Meeting independent audit requirements.

3. How are services for preparing corporate financial statements different from full-package accounting services?

Services for preparing corporate financial statements and full-package accounting services differ mainly in terms of scope of work, timing of performance, and degree of responsibility.

Financial statement preparation services generally focus on reviewing existing accounting data, consolidating information, and preparing end-of-period financial reports (monthly, quarterly, or annually) in accordance with the Law on Accounting 2015. Such services are suitable for enterprises that already maintain accounting records internally but require professional review and completion of reports in accordance with accounting standards.

By contrast, full-package accounting services encompass the entire accounting process, including:

  • Receiving and processing accounting documents;
  • Recording accounting books;
  • Preparing periodic tax declarations;
  • Conducting tax finalization;
  • Preparing financial statements.

III. Legal regulations related to services for preparing corporate financial statements

1. When should enterprises use services for preparing corporate financial statements to achieve maximum effectiveness?

Enterprises should engage financial statement preparation services at the end of the annual accounting period or before filing financial statements with competent authorities, especially when accuracy and legal compliance are critical. Accordingly, under Article 29 of the Law on Accounting 2015 (guided by Article 6 of Circular No. 71/2024/TT-BTC), accounting entities must prepare financial statements at the end of each annual accounting period. In addition, Article 30 of the Law on Accounting 2015 requires financial statements to truthfully and objectively present financial position and operating results.

Accordingly, using professional services at this stage helps enterprises ensure completeness and accuracy, such as preparing for tax finalization, applying for bank financing, raising investment capital, undergoing independent audits, and conducting internal restructuring.

For enterprises lacking a chief accountant or having limited accounting experience, outsourcing financial statement preparation at critical stages helps reduce errors, lower administrative sanctions, and enhance financial transparency.

2. Is corporate financial statement preparation considered an accounting practice activity under the Law on Accounting?

Corporate financial statement preparation is considered an accounting practice activity if the individual or organization providing the service satisfies all statutory conditions under Clause 1, Article 58 of the Law on Accounting 2015, including possession of an accounting practicing certificate and registration for practice. Furthermore, Article 59 of the same Law specifies that accounting services include performing accounting-related tasks under agreements, which encompasses preparing financial statements for enterprises.

In addition, accounting service enterprises may only legally operate if they satisfy statutory business conditions and obtain a Certificate of Eligibility for Accounting Service Business.

Therefore, services for preparing financial statements may only be lawfully provided where both the practitioners and service providers fully comply with Articles 58 and 59 of the Law on Accounting 2015.

3. How does the law regulate signatures and seals on financial statements prepared through financial statement preparation services?

Pursuant to Article 19 of the Law on Accounting 2015 (as amended), accounting vouchers and records must contain all required signatures according to prescribed positions. For financial statements, the law requires signatures from:

  • The preparer of the statements;
  • The chief accountant (or person in charge of accounting);
  • The legal representative of the enterprise.

Where accounting services are outsourced, the accounting practitioner from the service provider may sign in the capacity of preparer or accounting supervisor depending on the service agreement. In addition, financial statements must bear the signature of the enterprise’s legal representative and be affixed with the company seal (if applicable).

All signatures and seals must be executed by authorized persons. enterprises must not allow unqualified individuals to sign on their behalf or use digital signatures contrary to legal requirements. Failure to comply may render the financial statements invalid and expose the enterprise to legal sanctions.

4. What criteria should enterprises consider when selecting reputable services for  lawfully preparing corporate financial statements?

To select a reliable financial statement preparation service provider, enterprises should consider the following criteria:

  • Compliance with accounting practice requirements: The provider must possess a Certificate of Eligibility for Accounting Service Business, and the professionals performing the work must hold accounting practicing certificates under the Law on Accounting 2015.
  • Practical experience and expertise: Preference should be given to providers experienced in the client’s industry and familiar with accounting, tax, and financial reporting requirements.
  • Clear and transparent process: The service agreement should clearly define the scope of services, responsibilities, timelines, and mechanisms for addressing errors.
  • Confidentiality commitment: The provider should ensure protection of financial data, internal information, and digital signatures.
  • Advisory capability and legal accountability: The provider should be prepared to support explanations before tax authorities and regulators and maintain compensation mechanisms for service-related errors.

IV. Questions regarding services for preparing corporate financial statements

1. How does the law regulate administrative sanctions for providing services for preparing corporate financial statements in violation of regulations?

Acts of providing services for preparing corporate financial statements in breach of legal requirements may be subject to administrative sanctions under Decree No. 41/2018/ND-CP (as amended and supplemented by Decree No. 102/2021/ND-CP). Specifically, under Article 28 of Decree No. 41/2018/ND-CP, a fine ranging from 5,000,000 VND to 10,000,000 VND may be imposed on enterprises that no longer satisfy the conditions for conducting accounting service business but fail to remove the phrase “accounting services” from their business name as required. Accordingly, regarding the provision of accounting services without satisfying the prescribed business conditions, violators may be subject to administrative fines ranging from 40,000,000 VND to 50,000,000 VND.

In addition to monetary fines, violating organizations and individuals may also be subject to remedial measures, including:

  • Revocation of the Certificate of Eligibility for Accounting Service Business;
  • Suspension of accounting service business activities for a definite period;
  • Recovery of unlawful profits obtained from the violation.

If the violation causes damage to an enterprise, the violating party may also be liable for compensation under the Civil Code 2015.

2. Are corporate financial statement preparation service providers allowed to use the enterprise’s digital signature?

Corporate financial statement preparation service providers may only use an enterprise’s digital signature where there is lawful authorization and such use complies with the authority requirements prescribed under Article 19 of the Law on Accounting 2015 concerning signatures on accounting documents and financial statements. Additionally, the digital signature used must satisfy the legal validity requirements applicable to electronic signatures under Article 24 of the Law on Electronic Transactions 2023.

Unauthorized use of a digital signature or signing under an improper title or authority may render the financial statements invalid and lead to legal liabilities.

3. Can services for preparing corporate financial statements be provided to foreign-invested enterprises (FDI enterprises)?

Services for preparing corporate financial statements may be lawfully provided to foreign-invested enterprises (FDI enterprises), provided that such services comply with the Law on Accounting 2015 and relevant implementing regulations. FDI enterprises operating in Vietnam remain subject to the Vietnamese accounting regime and are required to prepare and submit financial statements in the same manner as domestic enterprises.

In practice, FDI enterprises frequently engage these services to ensure compliance with Vietnamese accounting regulations, and satisfaction of internal governance requirements or financial consolidation requirements imposed by their overseas parent companies. However, service providers must satisfy all legal conditions for accounting practice and possess sufficient expertise relating to international cases.

4. In which cases are services for preparing corporate financial statements prohibited or restricted under the law?

Services for preparing corporate financial statements are prohibited or restricted in the following circumstances:

  • Providing accounting services without satisfying statutory practice conditions under Articles 58 and 59 of the Law on Accounting 2015, such as lacking an accountant’s practicing certificate, failing to register for practice, or operating without a Certificate of Eligibility for Accounting Service Business;
  • Employing individuals prohibited from practicing accounting under Article 52 of the Law on Accounting 2015 to provide financial statement preparation services;
  • Forging signatures, unauthorized signing, or unlawful use of digital signatures on financial statements in violation of Articles 19 and 54 of the Law on Accounting 2015;
  • Providing false information or manipulating accounting data affecting tax obligations or enterprise rights, which may result in sanctions under Decree No. 41/2018/ND-CP (as amended and supplemented).

V. Why should enterprises seek legal advice from NPLaw regarding services for preparing corporate financial statements?

When issues arise in connection with services for preparing corporate financial statements, obtaining advice from lawyers with expertise in accounting and corporate law is an important measure to minimize legal risks, ensure the legality and reliability of financial statements, and protect the enterprise’s legitimate interests before competent authorities.

NPLaw’s legal team offers practical experience in:

  • Reviewing compliance with conditions for accounting service business under the Law on Accounting 2015 and assessing the legality of financial statement service providers;
  • Advising on signature, seal, digital signature requirements, and legal liabilities of legal representatives, chief accountants, and accounting service providers;
  • Assisting with correcting errors in financial statements and advising on restatement or adjustment procedures in compliance with applicable accounting standards and legal requirements;
  • Supporting enterprises facing administrative sanctions arising from irregularities in the provision or use of financial statement preparation services;
  • Representing or accompanying enterprises in dealings with tax authorities and financial regulators during inspections and audits related to financial statements;
  • Advising and protecting enterprises’ rights in disputes with accounting service providers and compensation claims.

The information above is for reference purposes only. Should your enterprise require detailed or specialized advice regarding services for preparing corporate financial statements, please contact NPLaw for timely, accurate, and comprehensive legal support.