The Chief Accountant is an important position within the organizational structure of each enterprise, being as the head of the accounting department, responsible for managing and directing the strategic financial operations of the enterprises. This article provides an overview of the regulations on the appointment of Chief Accountants, including definitions, requirements, appointment procedures, and essential considerations.

What is a Chief Accountant? What is a Responsible Accountant?

According to Clause 1, Article 53 of the 2015 Accounting Law, the Chief Accountant is defined as the head of the accounting apparatus of an entity, tasked with organizing and implementing accounting tasks within the enterprise. The Chief Accountant's duties involve not only managing accounting records but also overseeing cash flow to ensure smooth financial operations. If the enterprise does not have a Chief Accountant, Clause 4 of Article 53 allows for the appointment of a responsible accountant, who will perform as the Chief Accountant's duties without an official title.

Is it mandatory for a company to have a Chief Accountant?

According to Clause 1, Article 20 of Decree 174/2016/ND-CP, all enterprises must have a Chief Accountant, except for micro-enterprises as defined in Article 5 of Decree 80/2021/ND-CP.

So, what is a micro-enterprise? This type of enterprise has no more than 10 employees and total capital not exceeding 3 billion VND. Or revenue under 3 billion VND for enterprises operating in agriculture, forestry, fisheries, industry and construction; and revenue under 10 billion for enterprises operating in trade and services.

According to Clause 1, Article 20 of Decree 174/2016/ND-CP, businesses are required to have a chief accountant. If a qualified individual for the position of chief accountant cannot be found, the business may use accounting services or appoint a person in charge of accounting for a period of 12 months. After this period, a chief accountant must be appointed.

Conditions to Become a Chief Accountant or Responsible Accountant

To become a Chief Accountant, individuals must meet the following conditions according to Article 52 of the 2015 Accounting Law and Article 19 of Decree 174/2016/ND-CP:

  • Good ethical professional qualities, honesty, and integrity.
  • Minimum professional qualifications of an intermediate level, along with a Chief Accountant training certificate.
  • Work experience: at least 03 years for those with intermediate or college qualifications; at least 02 years for those with university qualifications.
  • Not belonging to groups prohibited by law from holding the position of Chief Accountant.

What Can Chief Accountants and Responsible Accountants Do? What Are They Prohibited From Doing?

According to Article 55 of the 2015 Accounting Law, Chief Accountants and Responsible Accountants have the right to:

  • Implement legal regulations on accounting and finance.
  • Organize and manage the accounting department.
  • Prepare financial reports according to accounting regulations and standards.

However, they are prohibited from committing certain acts such as forgery, falsifying accounting documents, or performing tasks not in accordance with legal regulations.

Appointment Procedure for Chief Accountants in Enterprises

  • Step 1: Select a qualified candidate.
  • Step 2: The legal representative signs the Appointment Decision.
  • Step 3: Update information in the enterprise's profile at the Department of Planning and Investment or the bank.

Penalties for Violating Chief Accountant Appointment Regulations

According to Article 17 of Decree 41/2018/ND-CP, if an enterprise violates regulations on the appointment of Chief Accountants, fines may range from 5 million to 20 million VND depending on the severity of the violation. Violations include failing to appoint in a timely manner, not notifying changes, or assigning unqualified individuals.

Notes When Appointing Chief Accountants or Responsible Accountants

  • The enterprise may only have one Chief Accountant.
  • The Responsible Accountant can only replace the Chief Accountant when a qualified candidate has not been found.
  • An individual may serve as Chief Accountant for multiple enterprises if they meet the requirements.

The appointment of a Chief Accountant is an important process that requires strict compliance with legal regulations. Enterprises need to be aware of related regulations to avoid legal risks and ensure effective financial management. For more information or detailed consultation, please contact legal and accounting experts.

When considering the regulations on the appointment of Chief Accountants, we recognize the importance of this position in the financial operations of the enterprise. With stringent requirements regarding ethics, professional qualifications, and experience, finding and appointing a suitable Chief Accountant becomes a significant challenge for many enterprises, especially small and micro ones.

At KMC, we understand that not every enterprise can afford to hire an internal Chief Accountant. Therefore, we provide professional accounting  and consulting services to help your business meet legal accounting requirements without the stress of finding suitable employees.

We specialize in offering flexible accounting services, from managing ledgers and preparing financial reports to advising on accounting regulations and providing chief accountant services. KMC's team of experienced experts will accompany you to ensure that accounting tasks are performed accurately and efficiently.

Let KMC be your trusted partner in financial accounting management, helping your business develop sustainably and fully comply with legal regulations.