Regulations on accounting in accordance with Vietnamese law

1. Who is the chief accountant?

According to Article 53 of the 2015 Accounting Law, the regulations on chief accountants are as follows:

“Article 53. Chief Accountant

1. The chief accountant is the head of the unit’s accounting apparatus, responsible for organizing the implementation of accounting work in accounting unit.

2. Chief accountants of state agencies, organizations, public service units using the state budget and enterprises in which the State holds more than 50% of charter capital, in addition to the duties specified in Clause 1 of this Article, also have the responsibility to help the legal representative of the accounting unit monitor finances at the accounting unit.

3 Legal representation of the accounting unit; in case there is a superior accounting unit, it must also be subject to the direction and inspection of the chief accountant of the superior accounting unit in terms of expertise and operations.

4. In case the accounting unit appoints a person in charge of accounting to replace the chief accountant, the person in charge of accounting must meet the standards and conditions specified in Clause 1, Article 54 of this Law and must exercise the responsibilities and rights prescribed for the chief accountant. prescribed in Article 55 of this Law.”

Accordingly, the Chief Accountant is the head of the accounting apparatus of the unit and is responsible for organizing the implementation of accounting work in the accounting unit. Chief accountants of state agencies, organizations, public service units using the state budget and enterprises in which the State holds more than 50% of charter capital, in addition to the duties specified in Clause 1 of this Article, are also responsible for helping the legal representative of the accounting unit monitor finances at the accounting unit.

2. What is in charge of accounting?

According to Article 20 of Decree 174/2016/ND-CP regulates in charge of accounting as follows:

– Accounting units must arrange chief accountants, except for units specified in Clause 2 of this Article. In case the unit cannot immediately appoint a chief accountant, arrange a person in charge of accounting or hire a service to be the chief accountant according to regulations. The maximum time to arrange a person in charge of accounting is 12 months. After this time, the accounting unit must arrange a person to be the chief accountant.

– In charge of accounting:

Accounting units in the state sector include: Accounting units with only one accountant or one concurrent accountant; The budget accounting and finance units of communes, wards and towns do not appoint chief accountants but only appoint accountants.

Micro-enterprises according to the provisions of law on supporting small and medium-sized enterprises are assigned to be in charge of accounting without being required to arrange a chief accountant.

– The term of appointment of chief accountants of accounting units in the field of state accounting, the term of appointment of chief accountants of the units specified in Point a, Clause 2 of this Article is 5 years, after which the procedures for re-appointment of chief accountants and in charge of accounting must be carried out.

– When changing the chief accountant, in charge of accounting, the legal representative of the accounting unit or the manager or operator of the accounting unit, it is necessary to organize the handover of work and accounting documents between the chief accountant, in charge of old accounting and the chief accountant, in charge of new accounting, and at the same time notify relevant departments in the unit and the agencies where the unit opens transaction accounts of the full name and sample signature of the new chief accountant, in charge of accounting. The new chief accountant, in charge of accounting, is responsible for his or her own accounting work from the date of work handover. The former chief accountant, in charge of accounting, must still be responsible for accounting work during his/her time in charge.

– The Ministry of Home Affairs guides job responsibility allowances, authority, and procedures for appointment, reappointment, dismissal, and replacement of chief accountants and in charge of accounting of accounting units in the field of state accounting.

3. How much is the penalty for the person in charge of accounting who is in charge but does not organize the handover of accounting work to the chief accountant?

According to Article 17 of Decree 41/2018/ND-CP stipulates as follows:

Penalties for violations of regulations on organization of accounting apparatus, arrangement of accountants or hiring accountants

– Fine from 5,000,000 VND to 10,000,000 VND for one of the following acts:

+ Hire organizations and individuals that do not meet the standards and conditions to practice accounting to provide accounting services for your unit;

+ Failure to re-appoint the chief accountant and in charge of accounting within the prescribed time limit;

+ Not organizing the handover of accounting work when there is a change in the accountant, chief accountant, or in charge of accounting;

+ Failure to notify according to regulations when changing chief accountant or in charge of accounting.

– Fine from 10,000,000 VND to 20,000,000 VND for one of the following acts:

+ Failure to organize the accounting apparatus of the accounting unit; Do not arrange people to work as accountants or chief accountants or do not hire organizations or individuals providing accounting services to work as accountants or chief accountants according to regulations;

+ Arranging accountants who are not allowed to act as accountants by law;

+ Arranging an accountant, chief accountant, or person in charge of accounting who does not meet the prescribed standards and conditions;

+ Appointing chief accountant and in charge of accounting without following the prescribed order and procedures.

– Fine from 20,000,000 VND to 30,000,000 VND for one of the following acts:

+ Arrange people to be responsible for managing and operating the accounting unit and working as an accountant, warehouse keeper, treasurer or buying and selling assets, except for private enterprises, limited liability companies owned by an individual, other types of enterprises that do not have state capital and are micro enterprises according to the provisions of law on supporting small and medium enterprises;

+ Arranging a person as chief accountant who does not meet the prescribed standards and conditions;

+ Hiring someone as chief accountant who does not meet the prescribed standards and conditions.

– Remedial measures:

Appoint or hire an accountant, chief accountant, or person in charge of accounting who meets the prescribed standards and conditions for the cases specified in Points a and b, Clause 1; Points b, c Clause 2; Points b and c, Clause 3 of this Article.

Accordingly, Point c, Clause 1 above stipulates a fine from 5,000,000 VND to 10,000,000 VND for failure to organize the handover of accounting work.