Professional Accounting Services
Our Core Accounting Services Include:
- Bookkeeping: We ensure your daily financial transactions are properly recorded, categorized, and reconciled in a timely manner. Our bookkeeping services help maintain clean, up-to-date financial data that forms the backbone of effective decision-making and reporting.
- Accounting Review: We perform periodic reviews of your financial records to identify discrepancies, ensure compliance with accounting standards, and improve the accuracy of your internal reporting. This is particularly useful for businesses with in-house accounting teams that need expert oversight or external validation.
- Accounting and Policy Set-Up: We assist in designing and implementing accounting systems, chart of accounts, and internal policies tailored to your business model. This service ensures that your accounting framework aligns with Cambodian regulations and international best practices, while also being practical and scalable for your operations.
- Compilation of Financial Statements (for ACAR Submission): We compile financial statements in accordance with Cambodian Accounting Standards and the requirements of the Accounting and Auditing Regulator (ACAR). This service is especially valuable for entities that are obligated to submit annual financial reports but do not require an audit or review.
Overview of Accounting Obligation in Cambodia
Accounting plays a crucial role in Cambodia’s economic landscape by promoting financial transparency, ensuring regulatory compliance, and supporting sustainable growth.
As the country continues to expand and integrate into regional and global markets, the demand for consistent, high-quality financial reporting aligned with Cambodian Financial Reporting Standards (CIFRS and CIFRS for SMEs) has become increasingly essential. Reliable accounting practices not only strengthen investor confidence but also contribute to effective governance and economic resilience.
Accounting practices in Cambodia are primarily governed by the Law on Accounting and Auditing (2016), which establishes the legal framework for regulating accounting and auditing activities across all sectors.
The law aims to enhance financial transparency, ensure the reliability of financial information, and promote alignment with international standards.
Oversight and enforcement are carried out by the Accounting and Auditing Regulator (ACAR), formerly known as the National Accounting Council, operating under the Ministry of Economy and Finance (MEF).
Under the law, the following key requirements apply:
- All enterprises, public institutions, and not-for-profit organizations must maintain proper accounting records and prepare financial statements annually.
- Financial statements must be prepared in accordance with accounting standards approved by MEF upon ACAR’s recommendation.
- Financial records must be maintained for at least 10 years from the date of creation.
- Language: Khmer is mandatory for all records and financial statements.
- Currency: Khmer Riel (KHR) is required, though English and foreign currencies may be used as supplementary, with approval.
- The fiscal year is set from January 1 to December 31, unless a different period is approved.
- Financial statements must be completed within three months after the end of the financial year.
Entities that fail to comply with these obligations may face administrative or legal penalties as detailed in Sub-Decree No. 79 ANKR.BK (2020).
Accounting Standards Us in Cambodia
Cambodia has adopted the Cambodian International Financial Reporting Standards (CIFRS) and CIFRS for Small and Medium-sized Entities (CIFRS for SMEs), which are adapted from the globally recognized IFRS and IFRS for SMEs.
All entities, excepted Not-for Profit Entities, are required to use these standards based on their own entity characteristic.
These frameworks promote consistency, comparability, and transparency in the preparation and presentation of financial statements across all sectors, supporting sound financial reporting and investor confidence.
Non-profit organizations are required by law to use the cash basis financial reporting standard call Cambodian Financial Reporting Standard Accrual for Not-for Profit Entities (CFRS for NFPEs)
Compliance and Recordkeeping
The law mandates that every accounting transaction be supported by valid source documentation and recorded accurately in accounting books. These records are essential for both tax compliance and audit readiness.
Entities must retain:
- General ledgers, journals, and vouchers
- Invoices, receipts, and tax documents
- Financial statements and supporting schedules
All records must be kept for a minimum of 10 years, and in a format and language compliant with the law.
Enforcement and Penalties
A) Penalties for Enterprises
1) Large Taxpayers
Violations and corresponding fines include:
| Offense | Penalty |
| Using a fiscal year different from Jan 1 – Dec 31 without approval | 2,000,000 KHR |
| Not using Khmer language in accounting records/financial statements | 2,000,000 KHR |
| Not using Khmer Riel (KHR) in financial reports | 2,000,000 KHR |
| Late submission of financial statements to NAC | 2,000,000 KHR |
| Not maintaining proper accounting records (e.g., missing ledgers, sales records) | 10,000,000 KHR |
| Not applying standard accounting practices | 10,000,000 KHR |
| Failing to submit an independent audit report as required | 20,000,000 KHR |
| Not having an audit report in accordance with tax law | 10,000,000 KHR |
| Failing to retain accounting documents properly | 10,000,000 KHR |
2) Medium Taxpayers
Fines are slightly lower but cover similar violations:
| Offense | Penalty |
| Using non-standard accounting without permission | 1,500,000 KHR |
| Not using Khmer language | 1,500,000 KHR |
| Using foreign currency without permission | 1,500,000 KHR |
| Late or non-submission of accounting/financial statements | 2,000,000 KHR |
| Not using financial reporting templates | 10,000,000 KHR |
| Submitting financial statements in incorrect format/order | 8,000,000 KHR |
| Not submitting to an auditor as required | 16,000,000 KHR |
| Failing to properly retain accounting documents | 8,000,000 KHR |
3) Penalties for Non-Profit Organizations (NGOs)
| Offense | Penalty |
| Using non-standard financial statements without approval | 800,000 KHR |
| Not using Khmer language | 800,000 KHR |
| Using foreign currency without approval | 800,000 KHR |
| Late or non-submission of statements to MEF/GDT | 1,200,000 KHR |
| Failing to submit statements | 6,400,000 KHR |
| Submitting disorganized or non-standard reports | 6,400,000 KHR |
| Failing to submit financial statements for audit when required | 1,600,000 KHR |
| Using non-standard accounting methods | 4,800,000 KHR |
| Improper storage of accounting documents | 8,000,000 KHR |
Why Choose VSD?
VSD is a trusted audit and assurance firm built on integrity, quality, and client commitment. Led by a partner with over 13 years of experience at international firms, we combine deep industry knowledge with a risk-focused, top-down audit approach.
Our work goes beyond compliance—delivering practical insights that support informed decisions and drive sustainable growth. With VSD, you can expect professionalism, efficiency, and consistently high-quality service.
We proudly serve clients across a wide range of sectors, including:
- Insurance Broking
- Manufacturing
- Property Development
- Trading
- Logistics
- Tourism, Hotels, and Resorts
- Telecommunications
- Event Management
- Gambling
- Retail and Marts
- Non-Governmental Organizations (NGOs)
What Sets us apart:
- Trusted Expertise
- Industry-Focused Insight
- Client-Centric Solutions
- Proven Performance
- Direct Access to Leadership
By choosing VSD, you are choosing a dedicated partner who values ethics, excellence, and your organization’s sustainable growth.