Long-outstanding balances in cash on hand (111), other receivables (138) and advances (141) may contain unresolved accounting issues. Examples include cash balances that do not agree with physical counts, amounts withdrawn by owners but recorded as receivables, and employee advances that have not been settled. If these balances are carried forward without review, the supporting records and explanations may be harder to obtain when an audit, tax inspection, due diligence review or succession handover begins.
Issues to check in each account
| Account | Typical pattern | What a reviewer will ask |
|---|---|---|
| 111 – Cash | Large book balance with no count record; payments recorded without supporting documents; cash used to "balance" missing invoices | Is there a physical count signed at period end? Does the balance exist? |
| 138 – Other receivables | Amounts paid to owners, related companies or third parties outside any loan agreement; old deposits; disputed claims | Is this a loan, a distribution or an expense? Is it recoverable? Is it a related-party transaction? |
| 141 – Advances | Advances to employees or directors outstanding for years, often for purchases already consumed but never documented | Was the cost incurred? Is it deductible? Is the employee still with the company? |
A sequence that holds up to review
- Establish facts before entries. Count cash, confirm balances with counterparties, collect whatever documents still exist. Nothing is written off on the basis of "we believe".
- Classify by substance. Each item is one of: recoverable, a cost of a past period, a distribution or loan to an owner, or unexplained. The classification drives both the accounting and the tax treatment.
- Decide current-period or prior-period. Where the item is a material prior-period error, VAS 29 generally requires retrospective correction – restating comparatives, with the effect usually taken to opening retained earnings (account 4211 under Circular 99/2025/TT-BTC) – rather than a charge in the current year, subject to the standard's impracticability provisions. Changes in estimates are prospective.
- Assess tax consequences separately. A correction in the accounts is not automatically deductible. Costs without valid documents remain non-deductible; amounts benefiting owners may carry PIT; amended tax returns follow the Law on Tax Administration No. 108/2025/QH15, which from 1 July 2026 limits supplementary filing to five years and applies late-payment interest of 0.03% per day.
- Document the decision trail. A memorandum for each material item should record the evidence, classification and approval. This gives the next auditor or buyer a clear basis for reviewing the treatment.
- Fix the process. Cash limits, advance settlement deadlines and a rule that no payment to an owner is made outside a documented agreement.
Resolve long-outstanding balances while supporting documents and responsible staff are still available, and assess the relevant tax filing deadlines separately.
Relevant capability: Capital Advisory, Restructuring & Accounting (CARA)
General information as at October 2026. It is not legal, tax or accounting advice for any specific situation; check the law in force and your own facts before acting.
