Bookkeeping in Cambodia

TL;DR

• Every company registered in Cambodia must keep books under CIFRS (or CIFRS for SMEs), retain records for 10 years, and prepare annual financial statements — it is a legal obligation, not an option.
• The regulator is ACAR (Accounting and Auditing Regulator), under the MEF: it sets the standards, licenses accountants/auditors, and receives the annual filing of financial statements through its e-filing portal.
• Books are in principle kept in Khmer and in riel (KHR); USD remains usable in practice, but annual financial statements must be in Khmer and KHR (or in dual currency).

Legal framework: the Law on Accounting and Auditing

Corporate bookkeeping in Cambodia is governed by the Law on Accounting and Auditing (Royal Kram No. NS/RKM/0416/008 of 11 April 2016). It applies to enterprises, public institutions, not-for-profit organisations, and to accountants and auditors (art. 3).

Four obligations underpin all bookkeeping:

• Keep accounting records backed by valid accounting vouchers (art. 20).
• Follow a 12-month accounting period, 1 January to 31 December by default — or from the formation date to 31 December for a new company (art. 21).
• Prepare the financial statements within 3 months of year-end (art. 17).
• Retain records for at least 10 years (art. 23).

The regulator: ACAR

ACAR (Accounting and Auditing Regulator, acar.gov.kh) is Cambodia’s regulatory authority for accounting and auditing. Sitting under the Ministry of Economy and Finance, it replaced the National Accounting Council (NAC) in 2021 as the profession’s regulator.

Its role spans three areas:

• Standard-setting: ACAR adopts and publishes the accounting standards (CIFRS, CIFRS for SMEs), the auditing standards, and the code of ethics. Standards are formally approved by MEF Prakas on the regulator’s proposal (art. 11 of the law).
• Licensing of professionals: nobody may practise as an accountant or auditor without being registered with the professional body and holding a licence issued by the regulator (art. 27 and 29). There are two distinct licences: accounting services on one hand, audit services on the other (art. 30).
• Filing of financial statements: ACAR receives the annual filing of every enterprise’s financial statements through its portal efiling.acar.gov.kh.

Which standards: CIFRS or CIFRS for SMEs

Cambodia adopted the IFRS Standards without modification, renamed CIFRS (Cambodian International Financial Reporting Standards), and the IFRS for SMEs Standard, renamed CIFRS for SMEs — applicable to periods beginning on or after 1 January 2012.

In practice almost all expat companies (a Co. Ltd., a Single Member Co. Ltd.) fall under CIFRS for SMEs, materially lighter than the full set. The chosen framework drives the structure of your financial statements — your firm fixes it when the books are opened.

Language and currency: Khmer and riel by default

This is the point expats most often misunderstand. Article 22 of the law sets the rule: accounting records and financial statements must be kept in Khmer language and expressed in riel (KHR).

An exception exists for enterprises with regular transactions with foreign entities: they may be allowed to keep their records and statements in English and to use a foreign currency — but that version must accompany the Khmer/KHR version, not replace it (art. 22, under conditions set by MEF Prakas).

Implementation was clarified by ACAR Circular 009 (1 September 2021, effective 1 January 2022):

• Annual financial statements must be prepared in Khmer and in KHR, or in dual currency (foreign currency + KHR), at the National Bank of Cambodia rate.
• Internal supporting documents must be in Khmer; English documents may support them.
• English-language accounting software is tolerated if no Khmer-capable software is available, provided you notify ACAR (name and source of the software used).

Chart of accounts and how records are organised

The law defines accounting records as the set of books used to record transactions: journals (general journal), ledgers (general ledger) and acceptable documentary vouchers. In practice, compliant bookkeeping rests on:

• A chart of accounts aligned with the CIFRS / CIFRS for SMEs framework (the Cambodian chart follows IFRS logic, by account classes).
• Journals (purchases, sales, bank, cash, miscellaneous) kept chronologically.
• A general ledger centralising balances by account.
• A set of vouchers, numbered and filed (invoices, contracts, bank statements, payslips), each entry resting on a valid voucher (art. 20).

Many small businesses run this on QuickBooks, Xero or a structured spreadsheet, with Khmer/KHR output produced at close. Larger companies move to a local ERP configured for the Cambodian chart of accounts.

The monthly close feeds the GDT returns

Bookkeeping is not just an annual obligation: it is a monthly rhythm that directly feeds your tax returns. Under the self-assessment regime, the GDT expects a monthly return bundling notably:

• VAT (10%) on taxable sales,
• withholding tax,
• employee salary tax (ToS),
• the prepayment of income tax (1% of turnover).

Filing is due by the 20th of the following month (paper filing) or the 25th via e-filing. A clean monthly close — bank reconciliation, matching, VAT-account checks — is what makes these returns reliable and fast.

In-house, outsource, or software

Three approaches, by size:

• Outsourcing to a firm — the expat default. Count USD 50 to 200 / month for a small Co. Ltd. (1-2 employees, simple accounting): data entry, monthly closes, GDT returns, patent tax and annual financial statements included. Same order of magnitude as in the patent tax guide.
• In-house salaried accountant — relevant from around ten employees or a high transaction volume. The employee should work under the supervision of a firm or a licensed accountant for producing the financial statements.
• Software + light supervision — a disciplined founder can keep entries on QuickBooks/Xero and hand the close and filing to a firm. Economical, but demands discipline on vouchers and KHR conversion.

Whichever option, producing and filing the financial statements goes through an ACAR-licensed professional.

Common pitfalls

FAQ

Must I keep books if I am a small company with no audit?

Yes. The obligation to keep records (art. 20), prepare financial statements (art. 17) and retain them for 10 years (art. 23) applies to every enterprise, audit or not. The statutory audit is only an additional obligation above the thresholds.

Can I keep all my accounting in English and dollars?

For day-to-day bookkeeping and software: yes, subject to notifying ACAR if the software does not support Khmer. For annual financial statements: no — they must be in Khmer and KHR, or dual currency (foreign currency + KHR at the NBC rate), per article 22 and Circular 009.

Which accounting framework applies to my Co. Ltd.?

Most often CIFRS for SMEs, lighter than the full CIFRS set. The full set is reserved for publicly accountable entities (banks, insurers, listed companies). Your firm fixes the framework when the books are opened.

How long must I keep my accounting records?

10 years from the creation date of each record (art. 23). Audit evidence follows the same rule, i.e. 10 years from the issuance of the audit report (art. 26).

How much does a firm charge to keep the books?

Count USD 50 to 200 / month for a small Co. Ltd. at a local firm (closes, GDT returns, patent tax, annual financial statements). USD 300 to 1,000 / month at an international firm (DFDL, Acclime, KPMG, PwC) with audit and advisory. See also the patent tax guide.

Who files my financial statements, and where?

The annual filing is done online on the ACAR e-filing portal (efiling.acar.gov.kh), after obtaining a Financial Reporting Identification Number (FIN). In practice, your licensed firm does the filing for you.