Hiring an Accountant vs. Outsourced Accounting in Vietnam: A Guide for Small Businesses and Entrepreneurs

Accounting and Outsourcing for Small Businesses in Vietnam

When you're building a small business, it's tempting to push accounting and finance to the back of the line. But here's the truth: poor financial management is one of the fastest ways to lose control of your growth.

To help ensure your company's long term prospects, we've prepared this guide that walks you through the critical differences, common mistakes, and practical solutions that apply specifically to Vietnam accounting services, including how to decide if outsourced bookkeeping in Vietnam is the right fit for your company. In this article, you will learn:

• The pros and cons between hiring an accountant vs outsourcing accounting functions
• Common financial mistakes early-stage companies make in Vietnam
• The key components of a reliable accounting setup under Vietnamese compliance laws
• A real-world case study showing how outsourced support helped a growing business
• Practical questions you can ask to guide your finance decision-making

Signs That Your Business Needs Accounting Help

Whether you’re running a small cafe in Hoi An, a growing e-commerce business in Hanoi, or launching a SaaS platform from a co-working space in Ho Chi Minh City, it’s easy to get caught up in product development, sales, and hiring, only to realize too late that your financial foundation is shaky.

Vietnam’s regulatory landscape is compliance-heavy. From monthly tax declarations and e-invoicing regulations to strict requirements on bookkeeping, licensing, and cross-border transactions, as well as ensuring your employee social insurance is paid.

Many entrepreneurs assume they can handle their early-stage finances themselves, or pass them off to an intern, assistant, or junior hire. At first, it may seem manageable. But as soon as you begin issuing VAT invoices, dealing with multiple revenue streams, or preparing quarterly tax filings, things can unravel fast.

In Vietnam, this is especially risky. The regulatory environment is strict, paperwork is often only available in Vietnamese, highly time-sensitive, and those compliance expectations from the Tax Department leave little room for error. You might need help with accounting if you're already experiencing the following:

• You’ve registered your company, but still manage finances through personal bank accounts or Excel.
• Invoices are going out, but there’s no system to track what’s been paid or followed up.
• You’re handling different transaction types (e.g. retail, wholesale, export) with no clear categorization.
• You’re juggling between MISA, Excel, and Odoo, unsure if the reports are even accurate.
• You’re unsure which expenses are tax-deductible or what records need to be submitted monthly.

Misconceptions About Hiring Accountants in Vietnam

For many first-time business owners in Vietnam, the idea of hiring a junior accountant or administrative assistant can seem like a smart, affordable way to stay on top of finances. After all, early-stage companies need to be scrappy, and having someone in-house who can issue invoices, chase payments, and manage receipts might seem like enough.

This approach is common, especially among startups and SMEs who are just starting to see growth and want to manage costs. But while the intention is good, the execution often backfires. 

Most founders quickly discover that the complexity of Vietnam’s tax and compliance environment demands far more than just basic data entry. Without the right oversight and experience, internal hires may struggle to meet statutory deadlines, misclassify financial records, or fail to reconcile accounts properly, mistakes that can spiral into legal and financial headaches later. Some common misconceptions include:

• It’s cheaper to hire someone full-time – On paper, maybe. But when junior staff make errors in VAT filings, invoice classification, or payroll, it can take months (and penalties) to fix.
• Interns or admin staff can handle the basics – They might be able to input data, but they likely can’t handle compliance, reconciliation, or government reporting.
• We’ll train them over time – Possible, but who’s training them? Do you have the capacity to manage a growing finance function in Vietnamese and English?
• I’ll hire when it gets more complex – By then, it’s usually too late (or too costly) to undo what wasn’t done right from the start.

Full-time hiring often means fixed monthly payroll, probation or contract terms you can't get out of easily, and limited experience across systems or industries.

In short: hiring in-house too early often locks you into cost without solving the actual problem.

Getting lost in the woods of entrepreneurship is common. We've prepared another guide on common mistakes when setting up a company in Vietnam, to help you get back on track.

What Accounting Support in Vietnam Should Cover

A reliable accounting setup in Vietnam needs to go beyond just recording transactions. It should help your business stay compliant, informed, and financially healthy. 

It’s essential that your systems don’t just “get the job done”, they must hold up under government audit and allow your business to scale. At a minimum, your accounting support in Vietnam should include:

• Bookkeeping and general ledger management – Accurate tracking of income, expenses, and journal entries, all aligned with Vietnamese Accounting Standards (VAS).
• Accounts payable and receivable – Timely payment and collection tracking, complete with documentation and balance reconciliation.
• Tax reporting and compliance – Monthly VAT declarations, quarterly and annual PIT/CIT filings, and year-end financial statements.
• Cost accounting and inventory tracking – Especially important for businesses importing goods, managing warehouses, or manufacturing.
• Licensing and compliance filing – Including cost sheets, customs documentation, and paperwork needed for business licenses.

Beyond these core compliance tasks, a strong accounting function should also contribute to strategic growth. That means implementing the right software (such as MISA or Odoo), generating timely internal financial reports, tracking key performance metrics, and supporting investor discussions or expansion planning.

While a junior hire may be able to input data or process invoices, few have the experience to design scalable systems or anticipate compliance pitfalls. 

An outsourced accounting partner not only fills the skill gap but often brings tested processes, bilingual support, and a higher level of accountability that a small business can rarely afford in-house.

Why Outsourced Accounting in Vietnam Makes Sense for Startups

Outsourcing gives small businesses access to experienced professionals at a fraction of the cost of full-time hiring. Especially in Vietnam (where regulatory and tax requirements are both dense and fast-changing), having someone who already understands the system can save you months of confusion and avoid expensive compliance mistakes.

Unlike hiring a full-time employee, outsourcing gives you flexibility and scalability. You can start small and increase support as your operations grow, without being locked into overhead costs. It also unlocks access to senior-level finance talent (like part-time Controllers) that most SMEs wouldn’t otherwise be able to afford.

The right outsourced accounting partner can:

• Implement essential software tools like MISA or Odoo, tailored to your needs
• Set up audit-ready systems and documentation from day one
• Ensure tax filings are correct and timely, reducing the risk of penalties
• Offer scalable advisory, from bookkeeping to strategic reporting
• Act as your liaison for licensing, compliance audits, and investor reporting

Perhaps most importantly, outsourcing provides structure and accountability that internal junior hires often can’t deliver. Reports are reviewed, errors are caught, and there’s always someone available who knows your business, systems, and legal obligations.

When to Shift from Outsourced Accounting to In-House (or Combine Both)

While it has a lot of upsides, Outsourced Accounting isn’t a permanent solution for every business. As your company scales, there will come a point where building internal finance capacity becomes both necessary and cost-effective. This typically happens when your financial workflows become too complex to manage through part-time or external support alone.

Key signals that it might be time to shift in-house include:

• High transaction volume – When you're processing large numbers of invoices, payroll entries, or vendor payments each month.
• Cross-department coordination – Finance needs to be embedded in daily decision-making across sales, operations, and purchasing.
• Licensing or regulatory needs – You’re required to appoint a full-time Chief Accountant or name someone on official filings.
• Desire for real-time reporting – You need immediate visibility into margins, cash flow, and projections without waiting on external updates.

When these needs arise, your outsourced partner can often help bridge the transition, supporting recruitment, onboarding, and even training of your first internal finance hire. This ensures continuity, avoids disruption, and allows your new staff to inherit clean, working systems.

In fact, many growing businesses choose to retain outsourced support even after hiring in-house. This hybrid model works well: internal staff manage the day-to-day operations, while external consultants handle strategic oversight, audits, and tax filings.

Case Snapshot: A Growing Beverage Company’s Accounting Challenge

Let’s take the real world example of a fast-growing beverage company based in Vietnam. They started with modest local sales, bottling craft drinks and distributing them to bars, restaurants, and events around Ho Chi Minh City. 

Initially (as with every startup), everything was tracked manually. They used spreadsheets to manage sales, a freelance designer, and an intern who helped follow up on payments. However, the business quickly gained traction with it's quality products, and began expanding through local distribution as well as export contracts. 

This meant they were now operating across multiple jurisdictions, issuing different types of invoices, and managing both local and export VAT requirements, along with managing inventory across dozens of locations. 

Their lean internal team couldn’t keep up with the increasing financial complexity. They had no unified accounting system, and managing books using Excel and disconnected workflows quickly became risky and unsustainable.

Initially, they considered hiring a junior accountant for around 10 million VND per month. But candidates either lacked bilingual ability or didn’t have experience with MISA, VAT, or the level of operational complexity the business had reached. 

Instead of committing to a full-time hire, they opted to bring in an outsourced accounting consultant two days per week.

The consultant helped restructure their books, cleaned up their reporting, and implemented MISA tailored to their transaction types. Over time, they expanded this support to include external tax filing, oversight on inventory reconciliation, and eventually introduced a part-time finance controller who helped them prepare for licensing audits and investor reporting.

The impact was clear. Instead of burning time on admin tasks and chasing invoices, the founders could focus on product, distribution, and growth. Their financial reporting improved dramatically, and they scaled confidently without locking themselves into a full-time cost too early.

Questions to Ask Before Getting Outsourced Accounting in Vietnam

Deciding whether to hire in-house or outsource your accounting support isn’t just about cost, it’s about fit, timing, and long-term strategy. 

Every small business in Vietnam eventually faces this decision as operations grow more complex and the pressure to stay compliant increases. If you’re still unsure which path is right for you, start by asking a few critical questions tailored to your current business model, growth stage, and internal capacity:

• What’s my monthly transaction volume?
• Do I need help with compliance and tax, or just bookkeeping?
• What accounting software will I use? (MISA, Odoo, Excel?)
• Do I need bilingual support (English/Vietnamese)?
• Will I experience seasonal spikes or steady growth?
• Can I train and manage a junior hire, or do I need a structured process from the start?
• What happens if my accountant quits? Do I have a backup or cross-check system?

Your answers will help determine whether it’s time to bring someone in-house or continue leveraging outsourced expertise.

Conclusion: Build Accounting Systems That Match Your Growth

You don’t need to hire a full-time accountant from day one, but you do need to treat finance seriously from the start. Vietnam is not a market where you can afford to ignore compliance, and the earlier you build a strong foundation, the easier it will be to grow.

Outsourced accounting gives you the structure, guidance, and flexibility to scale. It helps you avoid costly mistakes, improve decision-making, and prepare for the next stage, whether that’s fundraising, expansion, or acquisition.

Rather than scrambling to clean up later, invest in the right support early on. A well-structured finance function is not a luxury, it’s your launchpad.

Summary: What You’ve Learned

By now, you should have a clearer understanding of:

• The key differences between hiring an in-house accountant and outsourcing your accounting function in Vietnam
• Early warning signs that your business needs professional accounting support
• Common misconceptions about hiring junior staff or interns to handle finance
• What a complete accounting service should include, especially under Vietnamese compliance laws
• Why outsourcing often makes more sense for startups and SMEs in their early stages
• When and how to transition to an in-house finance team
• A real-world case study of how outsourced accounting supported a growing beverage business
• The right questions to ask before making your next finance-related decision

If you're starting a business in Vietnam and wondering how to manage your accounting without overcommitting, reach out to United Consulting for a free Business Health Check. We’ll review your structure, spot your gaps, and help you build a finance setup that grows with you.