Accounting and Financial Management

Financial Reporting Standards in Lao PDR

Enterprise in Laos is required to prepare their financial statements in accordance with their applicable financial reporting standards as outlined in the guidance number 531/MoF, dated 26 February 2016 as shown in the below chart.

Government entities shall apply the Cash Basis International Public Sector Accounting Standards (IPSAS), Financial Reporting under the Cash Basis of Accounting in order to be prepared to move towards the accrual basis International Public Sector Accounting Standards, the decree number 529/MoF, dated 26 February 2016 on adoption and implementation of the cash basis IPSAS.

Accounting and Financial Management

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Accounting System Set Up

Bookkeeping and Reporting

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Budgeting and Financial Management

Accounting and Financial Management Services

Accounting is simple as long as a proper system is set up at the start!

We provide comprehensive package of accounting services for both enterprises and government agencies as below:

Accounting system set up

The accounting system set up is the first step of accounting tasks. Without proper accounting system in place, accounting functions will not smoothly run and will affect to organisation operation as a whole. our package for accounting set up include:

System review and assessment to identify weaknesses
Develop and design accounting manual procedures which describe all accounting procedures and practices.
Develop and design tools: Online or web based accounting system for government agencies or set up an accounting software:
- Lao accounting software or
- QuickBooks Online and Xero see Overview of QuickBooks Online.
- Lao Public Accounting System
Prepare training materials and provision of training to client staff on accounting procedure manual or accounting software and tools.
Follow up after initial training during 3-12 months of implementation of the system

Our main steps are outlined in the figure below:

For setting of accounting software, we will set up all required functions relevant to client business operation so that after set up, client can start their accounting tasks immediately. Our set up will include:

Company/Organization profile and information
Enable functions relevant to company/organization operation
Create and customize forms for invoices, quote, purchase order, data entry forms...
Create Chart of accounts which align with Lao accounting system for both enterprises and government agencies
Review and import list of customers, suppliers, products and services

Basic accounting set up

We normally provide basic accounting set up in Lao accounting software. Though the list of chart of accounts are automatically set, a detailed breakdown of accounts are required to meet a specific type of business. In order to ensure that all sub account codes are adequate and appropriate, we need to review some initial documents and our approach is outlined below:

Review business operation procedures and consider to map accounting codes which are appropriate to the nature of business. The review will cover: (1) review of internal policy and regulation if any, (2) agreements with related parties, (3) head quarter reporting requirement (4) Review existing expenses codes in the existing accounting software/list of expenditure and identify any additional codes may requires for better disclosure and reconciliation according to the list of allowed and non allowed expenditure as specified in the Lao tax law.
Create detailed chart of accounts and modify as appropriate to ensure that this chart of accounts cover both Lao accounting and client internal reporting requirement.
Provide advices and on the job training on the systems: chart of account, daily journal and booking preparation, filing of supporting documents in order to ensure that design sub account codes are correctly and properly assigned.

Bookkeeping and reporting

At the beginning of 2016, the Ministry of Finance just endorsed the application of International Financial Reporting Standards (IFRS) for companies operated in Lao PDR. Full IFRS will be applied for public entities: listed companies, banks, insurance companies etc., while Lao Financial Reporting Standards (LFRS) adopted from IFRS for SME is applied for non public entities. However the implementation is still a challenge. In this transition period to full application of LFRS and IFRS, existing Lao accounting system is still applied especially for annual tax filing. We provide comprehensive service of bookkeeping and reporting which include:

Review accounting transactions with supporting documents
Seeking clarification of accounting transactions from client if any
Assign proper account codes into each transaction
Enter accounting transactions into Lao accounting software, QuickBooks Online, Xero
Produce Monthly, Quarterly, Semi-Annually or Annually reports
Review expenditure and calculate allowed and non allowed expenditure according to percentage specified in the Lao tax law and re-calculate profit tax amount.

Budgeting and financial management

We offer technical assistance in budget preparation especially for new project proposal as well as technical assistance for project financial management on a short term basis.

Please contact us for quote price

Our Clients

Projects implementing by government agencies and funded by donors: The Swedish International Development Agency (SIDA), The Global Fund to Fight AIDS, Tuberculosis and Malaria, The World Bank, Swiss Red Cross.
Enterprises in mining, law and environmental consulting, food and beverage services, agriculture, manufacturing, representative offices, cosmetic import and export, advertising and automobile spare parts-supplies, hospital.
Public sectors/Government agencies: Ministry of Health (Sekong, Saravan and Attapeu provinces), National University of Laos

Our Service Fee

Our service fee is based on the staff qualification and the time spent on a particular service. Organisation size, structure, nature of activities and volume of accounting transactions are also parts of our consideration for our time input and team allocation. Please contact us for quote price