(Phnom Penh): Cambodia-based VCAT Professional Consultant Co., Ltd, a licensed accounting firm authorised by the Accounting and Auditing Regulator (ACAR), and also licensed as a tax service agent with Gold Tax Compliance status granted by the General Department of Taxation (GDT), represented by Sovitou Vandy, Senior Advisory, has entered into a partnership with Xero, a New Zealand-founded cloud-based accounting technology company.
The partnership aims to introduce and expand the use of Xero’s digital accounting technologies and solutions in the Cambodian market, particularly for small and medium-sized enterprises (SMEs).
Prior to entering into this partnership, VCAT spent nearly one year studying, testing and preparing an implementation plan. This included training its professional team in the use of cloud-based accounting systems, studying the technology and AI-enabled features incorporated into Xero, and holding regular discussions and meetings with Xero’s Singapore-based team responsible for the Southeast Asian region.
The partnership between VCAT and Xero is expected to contribute to the digital transformation of accounting and financial management among Cambodian SMEs, helping businesses establish more effective systems for recording and managing financial information while supporting their financial reporting and tax compliance obligations.
Sovitou Vandy said, “Through the partnership between VCAT and Xero, we want to help Cambodian SME owners transition from traditional financial management practices to a more digital approach that is easier, faster and capable of providing timely financial information to support better business decision-making.”
He added that some SMEs in Cambodia continue to face significant financial management challenges, including difficulty in accurately determining costs, understanding their actual profit or loss, properly managing inventory, recording employee payroll, managing expenses and payments, and collecting the necessary documents and information when preparing reports or responding to legal and regulatory compliance requirements.
These challenges can become particularly evident when the General Department of Taxation (GDT) issues a notification for a tax audit, or when the Accounting and Auditing Regulator (ACAR) notifies businesses of their obligations to submit financial statements.
In some cases, business owners may not yet have financial statements prepared in accordance with applicable standards, supported by sufficient and verifiable information, to respond to those obligations accurately and within the required timeframe.
In some businesses, expense requests, payment approvals and supporting documents are still managed through communication platforms such as Telegram or Messenger. As businesses grow, this can make it increasingly difficult to track transactions and maintain records in a systematic manner.
The use of online cloud-based accounting systems can help centralise accounting and financial information within a single platform, allowing authorised business owners and team members to access and monitor financial information and reports online, including through mobile devices.
Sovitou cited the experiences of New Zealand and Singapore as examples where cloud accounting systems have become an important part of financial management and business compliance.
In New Zealand, for example, businesses can use digital accounting systems to support the preparation and submission of information relating to GST (Goods and Services Tax, broadly comparable to VAT) and PAYE (Pay As You Earn tax) obligations to Inland Revenue (IRD).
Such systems can also provide controlled access to accountants, tax advisers or auditors, allowing them to review and work directly with the relevant financial data and reports.
He further noted that the ability to integrate systems through APIs (Application Programming Interfaces) is another important advantage, enabling Xero to connect efficiently with various applications and technology platforms.
These experiences may serve as useful case studies for Cambodia as it continues developing its digital financial ecosystem, with the potential to simplify business management, financial reporting and regulatory compliance.
Sovitou added, “If we want to build a stronger and more widespread culture of financial reporting and tax compliance among SMEs, fulfilling these obligations should become easier, more digital and more accessible to business owners at every level.”
He described the digital transformation of accounting and financial management as more than simply the adoption of new technology. It is also part of strengthening corporate governance, improving financial transparency and enhancing the capacity of SMEs to achieve sustainable growth.
Through this partnership, VCAT aims to continue strengthening the capabilities of its professional team, promoting greater awareness and understanding of cloud accounting, and supporting the implementation of Xero for businesses in Cambodia, with a focus on applying the technology in ways that are appropriate to the practical needs of Cambodian businesses.
=FRESH NEWS
