For foreign-invested enterprises (FDI) operating in Vietnam, establishing and maintaining an accurate and transparent financial record system is not only a mandatory legal requirement but also a fundamental basis for effective internal governance. It serves as a reliable bridge with tax authorities and auditors. However, in practice, the question of what accounting books and records include is often accompanied by concerns regarding the parties primarily responsible and the potential legal risks arising from errors or non-compliance.
In this article, KMC provides a comprehensive overview updated for 2026, specifically designed for FDI business managers and Japanese enterprises — organizations that consistently place strong emphasis on accuracy and strict compliance.
Accounting Books and Records and Their Foundational Role in Enterprises
In simple terms, accounting books and records are a collection of templates and documents used to record, classify, and retain all economic and financial transactions in accordance with statutory accounting standards and regulations. They serve as the financial memory of an enterprise, enabling management to monitor business performance and make strategic decisions. Particularly for FDI enterprises, transparency in financial records plays a vital role in strengthening the long-term confidence of shareholders and foreign investors.
- Providing management information: Assists management in monitoring the company’s financial position and business performance, thereby supporting strategic decision-making.
- Basis for preparing financial statements: All figures presented in the financial statements are compiled from accounting books and records.
- Supporting inspection and audit activities: Serves as important legal evidence when tax authorities, state audit agencies, or competent authorities conduct inspections or audits.
- Safeguarding investors’ interests: Especially important for FDI enterprises, transparent accounting records help reinforce the confidence of shareholders and foreign investors.
Detailed Guidance: What Do Accounting Books and Records Include Under Current Regulations?
The mandatory accounting record system is specifically prescribed under the 2015 Law on Accounting and its guiding regulations. To answer the question of what accounting books and records include, enterprises must consider their operational scale and the accounting regime currently applied. Below are the core types of accounting books and records:
1. General Journal
The General Journal is a general accounting book used to record financial transactions in chronological order. All arising transactions must first be recorded in this journal before being posted to the General Ledger.
2. General Ledger
The General Ledger records transactions by individual accounting accounts within an accounting period. It serves as the primary basis for preparing year-end financial statements. The General Ledger is a mandatory component when identifying what accounting books and records include.
3. Detailed Accounting Books and Subsidiary Ledgers
This group of records is used to monitor detailed information relating to specific items such as materials, inventories, fixed assets, receivables, and payables with customers and suppliers. Detailed accounting books are an indispensable part of determining what accounting books and records include, particularly for enterprises requiring in-depth management and financial control.
Accurately identifying what accounting books and records include enables FDI enterprises, especially Japanese companies, to comply simultaneously with Vietnamese legal regulations and the detailed reporting requirements imposed by their parent corporations.
Recommended Accounting Records for Management Purposes
In addition to the core items included in the accounting books and records system, professionally managed companies should consider maintaining the following supplementary records:
- Cash Book and Bank Deposit Ledger: Used to monitor cash flow movements in detail.
- Accounts Receivable and Accounts Payable Ledger by Invoice: Helps closely manage each outstanding receivable and payable balance.
- Fixed Asset and Tools & Equipment Register: Supports asset management and depreciation calculation.
- Internal Management Reports (such as revenue and expense reports by department or project): Supports business analysis and managerial decision-making.
Regulations on Format, Language, and Document Retention
Understanding what accounting books and records include alone is not sufficient. FDI enterprises should pay particular attention to the following technical requirements to ensure the validity and compliance of their accounting records:
- Format: Accounting books and records may be maintained in either paper form or electronic data format. Electronic accounting records must ensure integrity, security, and data confidentiality, and must be printable upon request by competent authorities.
- Language Used in Accounting Records: Accounting books and records in Vietnam must be prepared in Vietnamese. In cases where foreign languages are used, the financial statements submitted to state authorities must be translated into Vietnamese.
- Currency Unit: Vietnam Dong (VND) is the official accounting currency. Transactions arising in foreign currencies must be converted into VND based on the applicable exchange rates prescribed by regulations.
- Document Retention Period: The minimum retention period is 05 years from the end date of the annual accounting period. However, for certain important documents, such as labor and payroll records, the retention period may extend up to 75 years or permanently.
Who Is Responsible for Managing Accounting Books and Records?
This is a critical issue that many FDI business owners should clearly understand. Under the Law on Accounting, the Chief Accountant (or the person in charge of accounting, where the enterprise is not yet required to appoint a Chief Accountant) bears primary responsibility for the following duties:
- Organizing and managing the accounting function and accounting operations within the enterprise.
- Reviewing and signing accounting documents, accounting books and records, and financial statements before submission to the General Director for approval.
- Ensuring the accuracy, integrity, timeliness, and completeness of accounting figures and financial information.
- Assuming legal responsibility before the law and the General Director for the legality of the approved contents and records.
- Coordinating with independent auditors during the financial statement audit process.
Therefore, appointing a qualified and competent Chief Accountant with in-depth knowledge of both Vietnamese regulations and the operational characteristics of FDI enterprises is a key factor in minimizing legal and financial risks.
Legal Risk Warnings and Administrative Penalties
Failure to clearly understand what accounting books and records include and to comply with the relevant regulations may expose an enterprise to serious consequences:
- Administrative penalties: Violations such as incorrect bookkeeping, omission of transactions from accounting records, or destruction of documents and accounting books before the required retention period may result in fines of up to hundreds of millions VND, in accordance with Decree 41/2018/ND-CP (as amended and supplemented).
- Criminal liability: Applicable in cases involving large-scale fraud or tax evasion.
- Risks during audit and inspection: Incomplete or non-transparent accounting records may prolong audit processes, increase compliance costs, and potentially lead to unfavorable tax adjustments.
- Loss of credibility with partners and investors: This is particularly sensitive for multinational corporations that place strong emphasis on transparent governance and compliance.
Optimal Solution: Expert Consulting and Full-Service Accounting Solutions
KMC provides an optimal solution to help enterprises clearly understand what accounting books and records include and ensure full regulatory compliance from the very first days of establishment. With extensive experience supporting hundreds of Japanese enterprises, we are committed to:
- Absolute compliance assurance: A team of experts with deep knowledge of Vietnamese regulations and international practices will help enterprises establish and operate a compliant accounting system from the outset.
- Cost and resource optimization: Instead of incurring the costs of recruiting, training, and managing a complex in-house accounting department, enterprises only need to pay a fixed fee for professional services.
- Minimization of legal risks: All issues related to accounting books, tax reporting, and financial statements are handled by experts with clearly defined legal responsibility.
- Focus on core business activities: Management can dedicate full attention to market expansion strategies and product development.
When using our services, you do not need to worry about what accounting books and records include or how to handle complex audit processes. KMC’s expert team ensures all figures are accurate and fully transparent.
A clear understanding of what accounting books and records include is a foundational step toward building a sustainable enterprise, a transparent working process, and a well-defined accountability mechanism—especially regarding the role of the head of the accounting function. This not only helps FDI enterprises “survive” inspections and audits but also becomes a driving force for sustainable growth in the Vietnamese market.
To receive a detailed analysis and an in-depth financial management roadmap, please contact KMC via hotline 081 489 4789 today.
