What does a chief accountant do? Learn: chief accountant job description, chief accountant functions and duties, conditions & standards for corporate chief accountants.
What is a chief accountant?
According to Article 53 of the 2015 Accounting Law, the chief accountant is the head and has the highest responsibility for organizing and managing the accounting work of the accounting unit.
In addition, the Law also specifies a number of other characteristics of the position of chief accountant such as:
- To assist the legal representative in financial supervision of state agencies, organizations, public service units using the state budget and enterprises in which the state holds more than 50% of the charter capital;
- Directly led by the legal representative of the accounting unit and subject to professional supervision from the superior chief accountant (if any);
- The accountant in charge can replace the chief accountant in some cases, however this person must fully meet the standards and conditions of the chief accountant position.
Chief Accountant Job Description
The role of the chief accountant in a business is extremely important to ensure the accuracy and legality of the books, advise the board of directors on financial issues… Therefore, the amount of work of the chief accountant is not small.
Below are some of the work items that the chief accountant is responsible for.
1. Manage accounting department activities
The chief accountant may not be the person directly responsible for the accounting work of the enterprise, but is the person directly responsible for all accounting and tax activities, such as:
- Take full responsibility for work items to operate the accounting department;
- Manage internal accounting departments such as: accounts receivable accounting, warehouse accounting, sales accounting, revenue and expenditure accounting, salary accounting, etc.;
- Plan and assign work to each subordinate accounting position;
- Provide training orientation and evaluate accountants’ capacity.
In addition, chief accountants may also work with tax authorities, auditors, banks and other partners.
2. Supervision of settlement
The Chief Accountant is responsible for year-end tax settlement (or at any time when requested) to report the financial situation to superiors, specifically:
- Check the recording, summarizing and reporting of financial transactions;
- Ensure compliance with accounting and tax laws;
- Coordinate and liaise with tax authorities;
- Ensure the accuracy and legality of accounting books:
- Product cost calculation, tax accounting;
- Calculate salary and insurance for employees;
- Control the process of bookkeeping, documentation and asset inventory process for the business…
- Conduct any internal audits.
3. Prepare financial statements
- Prepare monthly, quarterly and annual financial reports for businesses such as business performance reports, financial status reports, etc.;
- Analyze and interpret financial data for management;
- Resolve issues in reports.
4. Financial analysis & forecasting
The Chief Accountant will be the one to analyze, evaluate and report on finances to provide optimal solutions, helping businesses grow sustainably and avoid risks. Including:
- Budgeting: Develop annual budgets and cost estimates, ensuring expenditures do not exceed approved budgets;
- Financial forecasting: The chief accountant will rely on current financial data to analyze, forecast financial trends and business forecasts to help businesses plan operations and operate effectively.
5. Advise leaders on financial situation
- Provide accurate and timely financial information to support management decision making;
- Propose financial solutions to optimize profits and minimize risks;
- Participate in building business development strategies.
You may need:
>> Accounting services;
>> Internal accounting services for businesses;
>> Year-end corporate tax settlement service.
Conditions and standards to be a chief accountant
1. Conditions to become chief accountant
Based on Clause 1, Article 51 and Article 54 of the 2015 Accounting Law, the chief accountant of an enterprise must have the following standards and conditions:
- Have good moral qualities, be honest, incorruptible and always respect the law.
- Have professional qualifications and experience in accounting;
- Have chief accountant certificate;
- Work experience:
- At least 2 years for those with university degree or higher in accounting;
- At least 3 years for college or intermediate graduates in accounting.
- Have a university degree or higher when in charge of units using the state budget, central or provincial agencies, branches of foreign enterprises operating in Vietnam, cooperatives or cooperative unions with charter capital of over 10 billion…;
- Have intermediate level or higher when in charge of agencies/units at district – commune – town level, enterprises without state capital and with charter capital under 10 billion…;
- In addition to the organizations/units specified in sections (5) and (6), the person holding the role of chief accountant will be decided by the legal representative of the unit but must comply with relevant legal regulations;
- At least 5 years of experience as chief accountant of a parent company that is a state-owned enterprise or where state capital accounts for over 50% of charter capital.
Note:
1) The standards and conditions for being a chief accountant for each type of accounting unit will be specifically regulated by the Government.
2) The standards and conditions of chief accountants at units of the armed forces are prescribed by the Ministry of National Defense and the Ministry of Public Security.
2. Current chief accountant salary
Because the conditions to become a chief accountant are quite difficult, the salary for this position in Vietnam ranges from 18 million to 30 million VND/month.
However, for large companies or multinational companies, the salary of a chief accountant can be up to 50 million VND/month or higher. This is a not small expense for many businesses today.
To optimize your budget and salary costs, you can immediately refer to the internal accounting service for businesses at fdiinvietnam.com with some of the following popular services:
>> Warehouse accounting services;
>> Payroll accounting services;
>> Sales accounting services;
>> Accounts receivable accounting services.
Chief Accountant Skills Requirements
To take on the position of chief accountant, the person holding this position needs to have the following skills:
1. Extensive professional knowledge
- Master accounting principles from basic to advanced;
- Understand taxes, tax policies and tax declaration procedures related to business activities;
- Understand corporate law, especially regulations on capital, assets…
2. Analytical and evaluation skills
- Ability to analyze financial statements to identify trends in revenue, expenses and profits;
- Assess risks and provide appropriate solutions;
- Financial planning, budgeting and business forecasting.
3. Communication and behavioral skills
- Ability to communicate clearly and coherently with superiors, colleagues and partners;
- Present reports in a compelling and understandable manner.
4. Management skills
- Manage time effectively to complete work on time;
- Personnel management or training includes: leading, guiding and evaluating the work performance of the accounting team.
5. Proficient in office software and foreign languages
- All checking and management are done directly on computers or calculation software, so this skill is a basic thing that a chief accountant needs to have;
- Foreign language skills, especially English, are becoming increasingly important for the position of chief accountant in the global business environment, for some reasons such as:
- Access international financial news and information;
- Communication with foreign partners;
- Working in a multinational environment;
- Use international accounting software;
- Participate in international training courses.
6. Other skills
Some other skills or abilities that a chief accountant should have are:
- Risk management skills;
- Improve workflow;
- Ability to make decisions and strategies;
- Honesty and carefulness, meticulousness;
- Ability to withstand high work pressure;
- Good thinking ability;
- Problem solving skills, situation handling…
The role of chief accountant in business
1. Functions and duties of chief accountant
The chief accountant has an extremely important role and function for a business. They are the ones who balance and maintain the financial health of an organization’s operating system.
Accordingly, the chief accountant has the duty and role in managing and monitoring the financial situation of the enterprise. For operations requiring specialized accounting knowledge, the chief accountant’s responsibility is to propose the most appropriate strategy for the enterprise at each stage.
In addition, the person holding this position must also monitor and check all types of business contracts to ensure their legality and handle any damages (if any).
For financial operations, the chief accountant will advise superiors on how to manage and handle financial issues promptly, and at the same time be the manager to help the business use capital most effectively.
2. Powers and responsibilities of chief accountant
According to Article 55 of the Law on Accounting, the chief accountant will have the following powers and responsibilities:
➧ Responsibility
- Ensure compliance with legal regulations in the field of accounting and finance;
- Organize and operate the accounting department according to regulations;
- Prepare financial statements in compliance with accounting standards and regulations.
➧ Authority
- Have autonomy in professional and accounting matters;
- For chief accountants of state agencies or units/public service units using the state budget, enterprises in which the state holds more than 50% of charter capital will have other rights such as:
- Have the right to propose changes in personnel and benefits for accounting staff based on actual work results;
- Being provided with transparent and timely financial information is a prerequisite for the chief accountant to perform his/her duties well;
- Reserve opinions in writing when having different opinions from the decision maker;
- Report in writing to the legal representative when seeing violations of financial and accounting laws in the organization.
Frequently asked questions about chief accountant
1. What is a chief accountant?
According to Article 53 of the 2015 Accounting Law, the chief accountant is the head and has the highest responsibility for organizing and managing the accounting work of the unit.
>> Learn more: Concept of chief accountant.
2. What is the required chief accountant certificate?
According to Article 54 of the 2015 Accounting Law, to become a chief accountant, you must have a chief accountant training certificate. This is a type of certificate issued by the Ministry of Finance, used to certify that the learner has completed the certification tests of the training course for this position.
Conditions for being granted an accounting training certificate include:
- Have professional qualifications in accounting, auditing and finance;
- 2 years of experience for those with university degrees and 3 years for those with intermediate degrees in accounting;
- The certificate is valid for 5 years from the date of issue. After 5 years, you must retake the course if you want to reissue it.
In addition to training certificates, some types of international accounting certificates should be available such as:
- CMA – certificate of management accounting;
- CPA – certified public accountant;
- CIA – internal audit certificate…
>> Learn more: Conditions & job standards of chief accountant.
3. Job description of chief accountant
The role of the chief accountant in a business is extremely important to ensure the accuracy and legality of the books, advise the board of directors on financial issues… Therefore, the amount of work of the chief accountant is not small, including:
- Accounting department manager;
- Monitor settlement;
- Prepare financial reports for businesses;
- Financial analysis & forecasting;
- Advise management on financial situation.
>> Learn more: Chief accountant’s job.
4. What are the responsibilities of a chief accountant in a business?
The Chief Accountant has the following responsibilities to the business:
- Ensure compliance with legal regulations in the field of accounting and finance;
- Organize and operate the accounting department according to regulations;
- Prepare financial statements in compliance with accounting standards and regulations.
5. What skills does a chief accountant need?
To become a chief accountant, the required skills will include:
- Extensive professional knowledge;
- Analytical and evaluation skills;
- Communication and behavioral skills;
- Management skills;
- Proficient in office software and foreign languages;
- And some other skills.
6. How many stages does the path to becoming a chief accountant go through?
To become a chief accountant you will have to go through the following path:
- Start as an accounting intern: After graduation, you can start as an intern to gain experience. At the same time, in this position, you can apply the knowledge you have learned to practical work, developing the skills needed for accounting;
- Advance to accountant: In this position you will be able to be a tax accountant, accounts receivable accountant, warehouse accountant, sales accountant, revenue and expenditure accountant, payroll accountant… As an accountant you will be able to hone the skills and experience needed for higher positions in the future;
- Advance to general accountant: After having experience and skills in different accounting positions, you can start to move to the general accountant position. This position will directly support the chief accountant, so you need to have professional skills, the ability to synthesize and cover the accounting activities of the accounting unit;
- Become a chief accountant when you have enough skills and experience to take on this position.
Note:
The time it takes to advance through the ranks will depend on each person’s skills and experience.
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