Bank Reconciliation in Vietnam and How to Avoid Month-End Errors in 2026

Bank reconciliation in Vietnam means comparing the balance and each transaction in the accounting books with the bank statement, finding the cause of any difference and resolving it before the monthly close. Circular 99/2025/TT-BTC, applicable from 1 January 2026, requires enterprises to check bank documents against the source documents, notify the parties concerned when there is a difference and resolve it promptly. If the cause is still unknown at month end, the enterprise records the bank’s figures and carries the difference in other receivables or other payables.

This article is for business owners and finance managers who want to know whether the cash in their reports really matches their bank accounts. It covers the rules, a monthly process, common differences, foreign currency accounts, the records to keep and the errors to avoid in bank reconciliation in Vietnam. The scope is enterprises applying the accounting regime under Circular 99, in Ho Chi Minh City or elsewhere in Vietnam. Sources were checked on 04/11/2026.

Why Bank Reconciliation in Vietnam Should Be Done Every Month

Bank deposits are the easiest figure on the financial statements to verify, because the bank keeps an independent record. If this figure does not match, the figures linked to it, such as receivables, revenue collected and expenses paid, also need review. Bank reconciliation in Vietnam is therefore one of the first controls a monthly close should have.

From a legal perspective, the guidance on Account 112 in Circular 99/2025/TT-BTC sets out four points that bear directly on bank reconciliation in Vietnam. The account is now called Demand Deposits.

Aspect	Rule	What it means in practice
Basis for recording	Bank credit notes, debit notes or bank statements, with source documents such as payment orders, collection orders and cheques	Do not record deposits from an internal spreadsheet alone
Checking on receipt	Documents must be checked against the source documents; any difference is notified so that both sides can verify and resolve it promptly	Bank reconciliation in Vietnam is a routine task, not only a year-end task
Unexplained difference at month end	Record the bank’s figures; if the books show more, debit Account 138; if the books show less, credit Account 338; continue to verify the next month	Do not leave the books out of line with the statement, and do not push the difference into expenses
Detail by account	Keep detailed records for each account at each bank	Each account has its own reconciliation

One more point is easy to miss: an overdraft is not recorded as a negative balance on the deposit account but is reflected in the same way as a bank loan. A negative Account 112 balance in the books is a sign that needs review at once.

Final responsibility stays with the company. Article 50(3) of the Law on Accounting keeps the legal representative directly responsible for organising the accounting work, even when the work is outsourced. More on the scope of outsourcing is on our accounting services page.

Monthly Process for Bank Reconciliation in Vietnam

The law requires a result, not each step. The process below is our professional view of how bank reconciliation in Vietnam can work for a small or medium company.

Step	What to do	Output
1. Collect data	Download full-month statements for every account, including accounts with few transactions	Statement for each account
2. Close the period	Record all receipts and payments with documents up to the last day of the month	Account 112 sub-ledger
3. Compare balances	Compare the opening and closing balances in the books with the statement	Amount of the difference
4. Compare transactions	Match each line by date, amount, description and counterparty	List of unmatched lines
5. Find the cause	Classify: missing in the books, wrong in the books, cash in transit, unknown	Reconciliation with explanations
6. Adjust	Record missing items and correct errors with documents; handle unexplained items under Circular 99	Approved adjusting entries
7. Review	A second person checks and signs the reconciliation	Approved reconciliation

Step 7 of bank reconciliation in Vietnam should be done by someone who does not record the entries. A small company can assign it to the chief accountant, the person in charge of accounting or the business owner. Set a fixed date, for example finishing bank reconciliation in Vietnam before the 10th of the following month, so the figures are ready for tax returns and management reports.

Common Differences in Bank Reconciliation in Vietnam

Most differences fall into a few familiar groups. The table below is based on professional experience; only the treatment through Accounts 113, 138 and 338 follows Circular 99.

Difference	Common cause	How to handle it
Bank charges not recorded	Transfer fees, account maintenance fees, SMS fees	Record from the debit note or statement; obtain the fee document if needed
Deposit interest not recorded	The bank pays interest at month end	Record from the credit note
Money sent but no credit note yet	Cash deposited at the bank or transferred to another party but not yet completed	Track on Account 113, Cash in Transit, until documents arrive
Customer payment without a clear description	Missing invoice number, one payment for several invoices, payer name different from the customer	Confirm with the customer before offsetting receivables
Wrong amount or wrong account	Typing error, wrong bank recorded	Correct the entry with approval
Duplicate entry	Imported from the statement and also entered by hand	Remove it under the correction procedure, keeping an audit trail
Exchange rate difference	Books use a rate different from the bank’s rate	Compare the original currency first, then handle the translation
Unknown cause	Not enough information by month end	Record the bank’s figures; put the difference in Account 138 or 338 and keep verifying

Amounts held in Account 138 or 338 should not stay there long. We suggest listing them as open items in the monthly report, with the date, amount and person responsible. A list that grows month after month shows that bank reconciliation in Vietnam is being done only for form.

A Hypothetical Example of Bank Reconciliation in Vietnam

Hypothetical example: on 31/10/2026, the Account 112 sub-ledger of a service company in Ho Chi Minh City shows VND 1,250.0 million, while the statement shows VND 1,237.4 million. The accountant performs bank reconciliation in Vietnam as follows.

Line	Amount (VND million)	Treatment
Book balance before reconciliation	1,250.0	Starting point
Less bank charges not recorded	(0.6)	Record from the statement
Add deposit interest not recorded	0.2	Record from the statement
Book balance after adjustment	1,249.6	Sum of the lines above
Statement balance	1,237.4	The bank’s figure
Temporary difference pending verification	12.2	Temporarily debit Account 138 and credit Account 112 so that the Account 112 balance matches the statement; this does not yet conclude that it is an actual receivable. Once the cause is identified, adjust according to the documents.

After the entry, the Account 112 balance equals the statement and bank reconciliation in Vietnam for October is complete. The VND 12.2 million sits in Account 138 and is verified further in November. The figures only illustrate the presentation.

Foreign Currency Accounts in Bank Reconciliation in Vietnam

Foreign-invested companies often hold foreign currency accounts, and this is where bank reconciliation in Vietnam goes wrong most often. The simple rule is to compare the original currency first. If the USD amounts match, the remaining difference is usually a translation issue rather than a missing transaction.

The guidance on Account 413 in Circular 99/2025/TT-BTC requires enterprises to track both the original currency amount and the translated value of cash accounts in the sub-ledgers. When preparing financial statements, demand deposits in foreign currency are revalued at the average transfer buying and selling rate of the commercial bank where the enterprise holds the account, at the end of the accounting period. The difference goes to financial income or financial expenses.

A capital account, if any, also needs its own bank reconciliation in Vietnam like every other account, because Circular 99 requires detailed tracking of each account at each bank. Keeping it separate makes it faster to match capital contributions and payments with their documents.

Records to Keep After Bank Reconciliation in Vietnam

Good bank reconciliation in Vietnam lets someone else check the work without asking the preparer. In our professional view, the monthly file should include:

• Full statements for each account, for the right period and in the company’s name.
• The Account 112 and Account 113 sub-ledgers for the month.
• The reconciliation showing the book balance, the statement balance, each difference and its treatment.
• Documents for the adjusting entries.
• A list of open items in Accounts 138 and 338, with the verification status.
• Signatures or electronic confirmation of the preparer and the reviewer.

On retention, Article 41(5) of the Law on Accounting requires at least 10 years for documents used directly for bookkeeping and preparing financial statements, accounting books and annual financial statements, and at least 5 years for documents used for management and operation, unless another law provides otherwise. Statements used for bookkeeping and bank reconciliation in Vietnam should therefore be kept for the longer period. At year end, Article 40(2)(a) of the law requires a physical count of assets, and the deposit balance is the part worth confirming with the bank when closing the annual report.

6 Errors to Avoid in Bank Reconciliation in Vietnam

In our professional view, these are the errors in bank reconciliation in Vietnam most worth checking.

• Comparing only the closing balance. Two errors in opposite directions can cancel out, so check each transaction.
• Missing rarely used accounts, foreign currency accounts or accounts at a second bank.
• Putting unexplained differences into other expenses to make the books match, instead of using Account 138 or 338 under Circular 99.
• Leaving a negative Account 112 balance instead of reflecting the overdraft as a loan.
• Comparing translated amounts without comparing the original currency.
• Letting one person prepare payment orders, record entries and perform bank reconciliation in Vietnam with no reviewer.

FAQs About Bank Reconciliation in Vietnam

Does the law require bank reconciliation in Vietnam every month? Circular 99 requires checks when bank documents are received and treatment of unexplained differences at month end, so reconciling within the month is a suitable way to comply. The enterprise designs its own reconciliation template.

When there is a difference, which figure goes in the books? If the cause is still unknown at month end, the enterprise records the figures on the bank’s debit note, credit note or statement, puts the difference in Account 138 or 338 and continues to verify the next month.

Does a company with no transactions in the month need bank reconciliation in Vietnam? It should still be done. The bank may charge fees or pay interest even when the company has no business transactions.

Who should sign the reconciliation? There is no specific rule. We suggest that the preparer and an independent reviewer both confirm each bank reconciliation in Vietnam.

If accounting is outsourced, what must the company still do? The company needs to provide complete statements on time so that bank reconciliation in Vietnam can be finished. Article 56(3) of the Law on Accounting requires the party hiring the service to provide relevant information and documents fully, promptly and truthfully.

How Pham Consult Supports Bank Reconciliation in Vietnam

Pham Consult provides accounting services and outsourced bookkeeping from Ho Chi Minh City. If your deposit books do not match your statements, or you want to make bank reconciliation in Vietnam part of your monthly close, ask for a written scope that states who does what. The actual scope is confirmed in the service contract.

To discuss, please book a scope call or call +84 909 660 105. Let us know how many bank accounts the company uses, whether it has foreign currency accounts and the latest period that has been closed.

Legal sources were checked on 04/11/2026. This article is for general information only and does not constitute legal, tax or accounting advice; regulations may change after the date of publication, so please seek professional advice for your specific situation before making any decision.