HM&P lawyer continued to share with HTV about the difficulties and solutions of business households in the current period

In recent years, the business model in Vietnam is changing very quickly under the impact of e-commerce, social networks and cross-platform business trends. From traditional small stores, many business households have now expanded significantly, selling nationwide, operating a collaborator system, livestreaming, online advertising and generating large revenues through digital platforms. However, business growth is in many cases faster than internal management, especially financial and tax management.

Recently, Senior Associate Nguyen Nhat Duong, representing HM&P Law Firm ("HM&P"), had an in-depth discussion with Ho Chi Minh City Radio and Television (HTV) about the difficulties that business households are facing in the current period.  from the management of revenue, cash flow, transaction data to changes in the tax management mechanism towards more digitalization and transparency. At the same time, Lawyer Duong also gave many practical recommendations to help business households limit legal risks, improve governance capacity and develop more sustainably in the modern business environment.

In fact, if the money arises from the sale or provision of services, it can still be considered business revenue, whether received through personal accounts, e-wallets, COD, or intermediary platforms.

Many business households are growing faster than their internal management capacity

According to Lawyer Duong, it is a fairly common fact that many business households have a very fast revenue growth rate but the operation is still manual. Many cases started from small sales via social networks, but in a short time they have expanded to many platforms, hired more personnel, promoted advertising and generated a large number of orders. However, the management of revenue, cash flow and documents has not been standardized accordingly.

When the scale is small, the inadequacies in governance may not be obvious, but when the business expands across multiple channels, not fully tracking revenue, not separating personal and business expenses, not storing documents, or not managing cash flow by platform can lead to tax risks.  financial and legal, especially when online activities leave more and more electronic data such as order history, transfers, e-wallets, e-commerce platforms, delivery units and advertising platforms.

Cash flow transparency and data are fundamental to reducing risk

One of the problems noted by Lawyer Duong is that many business households are still confused about taxation and cash flow management. Some people think that small business will not be noticed; Some people think that money transferred to personal accounts is not related to business revenue; there are also cases of identifying revenue with profit, thereby misassessing their tax obligations.

In fact, if the money arises from the sale or provision of services, it can still be considered business revenue, whether received through personal accounts, e-wallets, COD, or intermediary platforms. The use of many personal accounts or relatives' accounts to receive sales proceeds not only makes cash flow difficult to explain, but also makes it difficult for householders to accurately control their business situation. Lawyer Duong said:

"Transparency is not only a tax compliance requirement, but also a platform to help business households prove their financial capacity, access capital, work with large partners and develop more sustainably in the long term."

Standardization of operations is a necessary step in the new period

In the context of tax management increasingly associated with data and technology, business households need to gradually shift from an experience-based way of operating to a more methodical management model. Recording full revenue, separating business cash flow and personal cash flow, storing documents, order data and transaction information not only helps reduce risks when working with tax authorities but also supports householders to effectively control business performance. For households that already have large revenues, many sales channels, many personnel or the need to cooperate with large partners, standardizing the governance model, reviewing the legal structure and considering upgrading the operating model is a necessary step for more stable and sustainable development in the new period.

Concluding the discussion with HTV, Lawyer Duong affirmed that business households will continue to be an important component of Vietnam's economy thanks to their flexibility, low cost and high adaptability. However, in the modern business environment, sustainable development will no longer depend solely on sales ability, but is increasingly closely associated with data management capacity, cash flow transparency, proper understanding of tax obligations, and proactive standardization of business activities from the early stages.

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