How to Choose Your Accounting Firm in Thailand

Introduction

Finding the right accounting firm in Thailand presents a significant challenge for businesses. The market is polarized between premium international firms charging high fees and local practitioners who may not even perform basic tasks like bank reconciliations. This leaves many companies struggling to find a mid-sized firm that offers professional service, business understanding, and English communication at a reasonable price point.

Choosing the right accountant is particularly important as Thailand continues to digitize its systems, with the Revenue Department enforcing stricter compliance standards for accounting and taxation.

While many accountants in Thailand limit their scope to bookkeeping and financial records, businesses need partners who can understand their operations and provide strategic tax guidance.

Understanding the Pricing of the Accounting Services Offered

When selecting an accounting firm, it’s important to have a clear understanding of their pricing structure. Most firms will offer a monthly service package that includes bookkeeping, which tracks your expenses and revenue. These services will also include monthly tax filings because tax filings, such as withholding tax and VAT (if your company is VAT-registered), must be submitted on a monthly basis. In addition to these monthly services, there are also annual compliance requirements and tax reports to consider.

Payroll is another service offered on a monthly basis, so it’s important to confirm how these fees are structured. Given the number of filings and reports required throughout the year, it’s important that the firm’s quote is detailed, transparent, and comprehensive, so all obligations are covered without hidden costs.

Understanding how the Bookkeeping is Done

Another important thing to consider when selecting an accounting firm, is to have a clear understanding of how the firm does the bookkeeping. Bookkeeping is a monthly task that must be handled with precision to ensure accurate financial records. It is highly recommended to make sure that the accounting firm you choose follows the appropriate chart of accounts for your company, and book all the expenses correctly. 

This is important because some expenses can fall into multiple categories, and how they are classified may affect the taxes your business pays. Larger companies may also have a standardized chart of accounts used across their global operations. Therefore, it is important to make sure that the accountant is familiar with this kind of practice and be able to book accordingly and also advise on tax consequences.

For any assets your company may own, proper depreciation processes must be applied. Additionally, all transactions must be fully reconciled, which involves matching entries with the bank statement and requesting supporting documents for each transaction.

Failure to follow these standards can result in incomplete accounting records. Unfortunately, many firms in Thailand take shortcuts by booking unreconciled amounts as loans to directors, avoiding the effort of chasing supporting documentation. This can lead to serious issues, including incorrect financial records, tax implications, and potential liabilities for directors.

Understanding How the Communication With Your Accountant Works

Foreign business owners should also check how their chosen accounting firm deals with communication and their responsiveness. As a business owner, you may have questions about invoices, or suppliers and clients might request specific company documents or information. If your accountant is not active, doesn’t speak English fluently, or is difficult to reach, it can quickly become a significant issue and potentially cause delays and issues.

It’s important to understand how accessible the accountants are. Do they only communicate via email, or are they available on messaging platforms like LINE or WhatsApp for quicker responses? This is a very important consideration as foreign businesses often complain that contacting their assigned accountant is often very difficult, with no responses to their emails being a common occurrence. In Thailand, accountants often only reply to questions during a certain time period, for example, when they are beginning to work on your monthly filings and may need to contact you for additional information. In order to avoid this, it is highly recommended to ensure you have access to your accountant via WhatsApp or Line in order to receive info quicker. 

Another key point is whether their service package includes any monthly advisory time, allowing you to get quick answers to basic questions without having to pay extra fees. 

Does your Accountant Offer Advisory Services?

For many businesses, an accountant’s role is limited to bookkeeping and tax filings. However, when it comes to running a business, there are many complex factors to consider that may require professional advice. It’s not uncommon for clients to ask their accountant quick tax-related questions.

This is why it’s essential to check whether your accounting package includes advisory services. Ideally, your accountant should offer a minimum amount of advisory time each month and be available to respond to basic queries and questions. For more complex issues, a good accounting firm should be able to provide specialized tax advisory services or coordinate with tax experts or accountants in other countries.

Does the Accountant Handle Payroll?

Payroll is often an additional service offered by accounting firms. There are two key reasons why using your accountant for payroll management is recommended.

Firstly, outsourcing payroll ensures confidentiality. Sensitive information like employee salaries remains secure, preventing internal leaks that could lead to workplace tensions or disputes.

Secondly, in Thailand, payroll involves specific tax obligations that employers must fulfill. Employers are responsible for withholding personal income tax at the source and filing monthly tax returns. 

In addition to handling tax filings, accounting firms can assist with the entire payroll process. This includes calculating monthly salaries, incorporating bonuses, overtime, and expense reimbursements, preparing detailed payslips, and even managing payment reimbursements if a payroll system is in place.

Understanding Document Ownership

Establishing whether you have ownership of your accounting documents and software is an important question to address when working with an accounting firm. Many firms prepare documents monthly using their chosen software, but it’s essential to ensure that you, as the client, retain ownership of the software access and all related documents. Without this, you risk losing control of your accounting records.

In some cases, firms may withhold information during disputes, using it as leverage to demand extra fees or other concessions. To avoid such issues, maintaining full ownership of your records is highly recommended. This ensures that if you decide to move your accounting processes in house or switch providers as your company grows, the transition will be smooth and hassle-free.

Another common issue is what happens when the accountant assigned to your account leaves the firm? If the firm does not have an established procedure for this then there may be delays or even loss of information during the handover. By maintaining control over your documents and access, you can control the impact of such disruptions and ensure your business isn’t affected by this.

Does Your Accountant Truly Understand Your Business?

This is a very important consideration when choosing an accounting partner. An accountant who is familiar with your industry and the specifics of your operations can provide much more relevant and practical advice. Especially if your business is subject to special accounting requirements, such as BOI promoted companies or those who work within real estate.

Understanding the Annual Closing

The annual closing is a mandatory requirement for every business in Thailand, regardless of whether the company has generated any revenue. Ensuring your accounting package includes annual closing services is essential, as this process involves preparing financial statements, a balance sheet, and other necessary documents. Starting the annual closing early allows plenty of time for review and making any necessary changes, ensuring accuracy and tax optimization.

In Thailand, it is important to note that an accountant cannot serve as the company’s auditor. However, a reliable accounting firm can recommend experienced auditors they have previously worked with. If your accounting is well-managed with accurate monthly closings, the annual audit should be straightforward.

Your accountant should assist with organizing the Annual General Meeting (AGM), a mandatory legal requirement in Thailand. Proper AGM preparation includes sending timely notices, collecting required signatures, and following specific requirements outlined in the Civil and Commercial Code. Additional requirements may also exist in your company’s Articles of Association and shareholders’ agreements. This attention to detail must not be overlooked, as improperly conducted AGMs can lead to disputes with minority shareholders and potential director liability issues.

Is Your Accountant Familiar with Transfer Pricing and Consolidations?

Transfer pricing compliance has become increasingly important for companies operating within multinational groups, as it requires thorough documentation justifying the pricing of all intercompany transactions. Companies need to demonstrate that these transactions are conducted at arm’s length prices and comply with both Thai and international transfer pricing regulations. Your Thai accountant must understand both local and international transfer pricing regulations, including the Revenue Department’s documentation requirements and annual transfer pricing disclosure obligations.

For subsidiary operations, your accountant should be capable of preparing financial statements that align with both Thai Accounting Standards (TAS) and International Financial Reporting Standards (IFRS), as most multinational groups follow IFRS for their consolidated reporting. This dual expertise is important since significant differences exist between TAS and IFRS in areas such as revenue recognition, leasing, and financial instruments. Your accountant must manage consolidation adjustments, prepare transformation packages, document intercompany transactions, and coordinate with group auditors while meeting both local and group reporting deadlines.

The expertise in group consolidation and transfer pricing is particularly important as Thai subsidiaries face increasing scrutiny from both local authorities and parent companies regarding their intercompany transactions and financial reporting quality.

Is Your Accountant Familiar with Tax Optimisation?

Tax management is a very important part of accounting, yet some local accountants still focus solely on bookkeeping without considering the tax implications. Some accountants may only record easily traceable income, such as credit card payments, while failing to properly document cash revenues and related expenses. This incomplete accounting practice is particularly concerning when they don’t reconcile transactions with bank statements. For example, if a restaurant’s credit card sales are recorded but cash sales and daily operating expenses are not properly tracked, this creates an artificially high taxable income. The business then faces excessive tax liabilities because revenues are partially recorded while their corresponding expenses are missing from the books.

Many accountants view taxes as something to declare and pay without considering optimization opportunities. However, with a proper understanding of tax law and proper planning, there are often ways to reduce tax liabilities. 

Your accountant should also actively monitor your revenue and help optimize your tax position. One of the key areas for this is to make sure that your business maximizes its deductible expenses, as this can significantly reduce your taxable income. However, not all expenses are deductible, so it’s important to have an accountant who can advise you on which expenses qualify and how to book them correctly.

Furthermore, by the last quarter of the year, your accountant should provide an estimate of your income tax liability. This estimation allows you to evaluate potential options for optimization, such as adjusting expenses or allowable deductions. With proper planning and advice, you can ensure your business minimizes tax burdens while remaining compliant with regulations.

Does Your Accountant Work with Lawyers?

Accounting firms often act as the primary point of contact for clients on a monthly basis, whereas lawyers are engaged on a one-off basis for specific cases. This dynamic can lead to situations where clients ask accountants for advice on matters like employment law or corporate governance, this is especially true if the accountant handles payroll or other administrative tasks.

While some accounting firms may try to address these legal questions themselves to secure additional business, this approach can be problematic. This could be an issue because you wouldn’t hire a lawyer to manage your accounting, therefore, you shouldn’t rely on an accountant for legal services. Accountants may have a basic understanding of the law, but this doesn’t mean they can provide accurate or reliable information based upon your specific needs.

When choosing an accounting firm, it’s best to find one that collaborates with or is linked to a reputable law firm. This ensures that any legal questions are promptly forwarded to qualified professionals, allowing you receive accurate and reliable advice without unnecessary risks.

Is Your Accountant Familiar with the BOI?

Companies operating under promotion du BOI face heightened regulatory scrutiny and specific reporting obligations. Your accountant must have detailed knowledge of BOI requirements and your specific promotion certificate conditions, including:

• Minimum spending thresholds in specific categories (such as research and development, machinery, or environmental protection)
• Tax exemption eligibility for certain goods and services
• Special accounting procedures for BOI-promoted activities
• Periodic reporting requirements and deadlines
• Proper documentation of eligible revenue and expenses under BOI promotion

Accurate accounting affects BOI audits, as authorities will examine your financial records in detail to verify compliance. Your accountant should regularly review your BOI promotion certificate and Foreign Business License conditions to help maintain your benefits and compliance status. Poor accounting practices can lead to:

• Delayed approvals and permits
• Tax audits and penalties
• Suspension or loss of BOI privileges (tax exemption and work permit renewals)
• Risk of promotion cancellation

For more detailed information about BOI accounting in Thailand,
please see our article Exigences du BOI en matière de comptabilité, de rapports et de conformité des entreprises.

Is Your Accountant Familiar with Accounting for Real Estate Companies?

Real estate companies in Thailand or companies holding real estate assets are subject to the same accounting and tax filing rules as other commercial entities. Even if a real estate company has few or no transactions, it must adhere to the same requirements as operating commercial companies. Such as Withholding tax filings, half year and annual corporate income tax filings, les assemblées générales et l’ audit annuel etc.

Important considerations for real estate accounting include:

Asset Booking and Depreciation: When a real estate company acquires property, it is mandatory to properly book the assets in the company’s accounts.

Avoiding Undervaluing Assets: A common practice is to undervalue assets to reduce transfer fees when purchasing real estate. However, this practice can have unforeseen consequences, such as higher tax liabilities when selling the property.

VAT Registration: Real estate companies whose sole purpose is to hold real estate and do not plan to hire foreign employees may choose not to register for Value-Added Tax (VAT). However, if the company’s annual turnover meets the ฿1.8 million threshold or plans to hire foreign employees, VAT registration is required. 

Business Activities and Company Purpose: As Thailand does not have a statute for dormant companies, companies should have a minimum level of activity. 

Nominee Shareholder Risks: While it is not the duty of the accountant to verify the legitimacy of shareholders, there is a risk for companies owning real estate with foreign shareholders to be investigated for using Thai nominee shareholders

Proper accounting for real estate companies is essential for protecting assets and avoiding unnecessary taxes or penalties. Accurate bookkeeping ensures correct property valuations on your books, preventing undervaluation that could lead to higher taxes during asset sales or transfers.

Complete records also protect your business during audits, nominee shareholding investigations, or due diligence in company sales. This helps avoid fines, asset seizures, or potential criminal liability for directors.

For more detailed information about accounting for real estate companies in Thailand,
please see our article Comptabilité pour les sociétés détenant des biens immobiliers en Thaïlande

How To Switch To A New Accounting Firm?

Cost and service quality are the main drivers when choosing to change accounting providers. The transition process is straightforward, as your new accounting firm will manage the handover by directly coordinating with your current provider to collect all necessary information and documentation. In practice, the onboarding process takes between a few days to two weeks, depending on your business complexity, transaction volume, and the current state of your bookkeeping and tax filings. Most accounting firms require a one-month notice period, and once the transition is decided, the new accountant usually takes over from the following month.

The ideal time to switch is at the beginning of a new fiscal year, allowing your previous firm to complete the year-end closing properly. However, if you have concerns about your current provider’s competence or thoroughness, don’t hesitate to make an immediate change. The transition process often becomes an opportunity for the new firm to identify previous errors and propose solutions, ultimately improving your financial management and compliance.

Before switching providers, assess your business needs and ensure your new accounting firm can provide comprehensive services including bookkeeping, tax compliance, financial reporting, and business advisory. A professional firm should handle the entire transition process while ensuring complete transfer of all financial data and documents, with minimal disruption to your business operations. Their expertise and fresh perspective can often uncover opportunities for tax optimization and improved financial practices that benefit your business.

Nos réflexions

An accountant’s role should go further than just basic bookkeeping and tax filings to include advisory services that address the real needs of your business. A reliable accounting partner should provide responsive communication in English or your preferred language, demonstrate competence in your industry’s specific requirements, and help navigate both local and international compliance matters. Whether dealing with BOI requirements, transfer pricing documentation, group consolidation, or standard tax filings, their expertise should help you maintain compliance while optimizing your business operations.