including: COGS, insurance costs, management costs, financial operating costs, other costs, current corporate income tax costs and expressed through the profit (or loss) indicator on consumption.
1.10.2. Accounting principles
• Business performance results must be accounted for in detail for each product, good, and service performed by different production departments in the enterprise.
• Must ensure a proportional relationship between revenue and deductible expenses. Expenses incurred in this period but related to revenue received in the next period must be transferred to operating expenses of the next period. Only when the expected revenue has been realized can the related expenses be deducted to calculate business results.
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• The following items are not included in the cost of business operations:
Financial operating expenses and unusual expenses.
Damages are subsidized by the state or allowed to reduce capital and damages are compensated by the party causing the damage and the insurance company.
Overseas business expenses exceed the limit prescribed by the state.
Expenses covered by other sources such as: career expenses, expenses for collective cafeterias...
1.10.3. User account
- Account 911 “Determining business results”
- Account 911 has no ending balance.
1.10.4. Account structure
➢ Debtor:
- Carry over cost of goods sold
- Carry forward financial expenses
- Carry forward selling expenses
- Carry over business management costs
- Carry forward other operating expenses
- Carry forward corporate income tax expenses
- Carry forward of business results (Profit)
➢ The party with:
- Total net sales revenue during the period
- Total net sales revenue of internal sales consumed during the period
- Total net revenue from financial and other activities
- Carry forward of business results (Loss)
1.10.5. Accounting diagram
Account 632 Account 911 Account 511
(5)
(1)
Account 635,811
Account 512
Account 641,642
Account 515
Account 821
Account 711
Account 421
Account 421
(9b)
(3)
(2)
(4)
(6)
(7)
(8)
(9a)
Diagram 1.13: Accounting for account 911
Note:
(1) Transfer of net revenue from sales of goods and provision of services
(2) Transfer of internal sales revenue
(3) Transfer of financial activity revenue
(4) Carryover of other net operating income
(5) Carryover of cost of goods sold
(6) Carryover of financial operating expenses; other operating expenses
(7) Carryover of selling expenses; business management expenses
(8) Carry forward corporate income tax expenses
(9) a. Interest carryforward
b. Loss carryover
1.11. Assess the business performance of the enterprise
1.11.1. Business performance report
The income statement is a consolidated financial statement that reflects the business situation and results of operations in an accounting period of an enterprise, detailed according to each production, business and other activities.
The income statement is also an important financial report for many different users to help evaluate the business performance and profitability of the enterprise.
1.11.2. Evaluation method
To evaluate the business performance of the company, to analyze the performance indicators, we mainly use the method of comparison by relative numbers . Using the comparison method in analysis is to compare the indicators, the economic phenomena that have been quantified with the same content, a similar nature to determine the trend and level of fluctuation of those indicators .
➢ The comparison standard is the indicator selected as the basis for comparison, called the period.
Comparison base. The comparison base can be: Previous year's documents; planned targets; industry or regional averages or customer demand and orders.
➢ Comparison conditions: for this method to be meaningful, the conditions are:
The indicators used for comparison must be consistent. In practice, we need to pay attention to both the time and space of the indicators.
- About time: Reflects the same economic content; indicators use the same calculation method; same unit of measurement.
- About space: The indicators are the same size and business conditions are similar.
➢ Comparison technique:
- Difference amount = Comparison period index – Base period index
- Difference percentage = Difference amount / Base period index
Chapter 2: GENERAL INTRODUCTION AND CURRENT STATUS OF ORGANIZATION OF ACCOUNTING WORK TO DETERMINE BUSINESS RESULTS AT THU SANG CONSTRUCTION, TRADE, TRANSPORTATION SERVICES PRIVATE ENTERPRISE
2.1. General introduction of Thu Sang Construction-Trading-Service-Transportation Private Enterprise
2.1.1. General introduction
2.1.1.1. History of formation and development
Thu Sang Transport Service Trading Construction Private Enterprise was established under business license number 4101012764 issued by the Department of Planning and Investment of Ho Chi Minh City on August 4, 2006. It is a private enterprise operating mainly in the fields of civil and industrial construction and trading of construction materials.
+ Name: Thu Sang Private Enterprise Construction Trade Service Transportation
+ Address: 78 Street No. 4, Ward 5, Truong Tho Ward, Thu Duc District, Ho Chi Minh City
+ Director/ legal representative: Ms. Nguyen Thi Trung Thu
+ Charter capital: 2,000,000,000
+ Tax code: 0302011946
2.1.1.2. Business characteristics Business lines:
- Construction of large, medium and small scale civil and industrial works.
- Trading in construction materials: iron, steel, sand, stone, cement...
- Trading in interior decoration products: wood formwork, lime, paint, brushes...
- Trading in spare parts for cars and motorbikes
- Providing transportation services: transportation, garbage transportation, site leveling, vehicle rental, labor rental...
Main business areas:
- Registered to do business in many industries, but currently Thu Sang Construction - Trading - Service - Transport Private Enterprise is mainly operating in the field of trading in construction materials and constructing civil and industrial works (large, medium and small scale).
2.1.2. Management organization
2.1.2.1. Organizational chart
MANAGER
Organization Department Business Department
business administration
Accounting Department
finance
Part
warehouse
Construction team
Transport team
Delivery team
Diagram 2.1: Management apparatus
2.1.2.2. Functions and duties of the Director :
- As the legal representative, leader of the entire company and has the greatest responsibility for business activities, has the highest authority and decides all management and operation issues of the enterprise's production and business activities.
- The Director also directly directs the work and operations of the following departments: planning-administration department, business department, and accounting-finance department.
Administrative Department:
- Advise the director on personnel organization, transfer, acceptance, and termination of employees, implement policies and regimes prescribed by the state for employees, and ensure working conditions for the company office.
- Develop job descriptions, work instructions, and a system of standards to evaluate work results and employee performance.
- Plan and organize the implementation of plans to improve professional skills for workers.
Sales Department:
- Actively seek partners to develop distribution network. Research and advise the Director on business orientation.
- Conduct marketing, market research, select key products and build development strategies; seek partners, conduct joint ventures and partnerships.
- Proactively draft economic contracts related to the business activities of the enterprise; organize the proper implementation of signed business contracts.
- Coordinate with the financial accounting department in the operations of collecting money from the sale of goods and paying for the purchase of goods and services related to business activities.
- Develop and implement business plans after approval by the Director. Compile statistics and report business activities according to schedule and regulations.
Financial accounting department:
- Responsible to the leadership for organizing, managing, monitoring, analyzing and reporting on the business performance of the enterprise, providing business performance results so that the leadership can develop better business policies and plans.
- Make a financial plan for the business's revenue and expenditure and consult the director for approval as a basis for implementation.
- Perform the tasks of collecting, spending, monitoring and checking the spending of capital, using materials, monitoring and reconciling debts, fixed assets, employee salaries and regimes according to current laws.
- Prepare financial reports and tax reports according to current financial regulations of the State, honestly reflecting the business's operating results.
Warehouse department:
- Responsible for checking imported, exported goods, inventory at the beginning and end of the period. Then report to the sales department to have a reasonable warehouse import plan, avoid too much inventory. Report to the accounting department to compare the inventory balance at the end of the period.
Construction level :
- Including employees responsible for implementing and completing civil and industrial construction works according to service contracts for customers assigned by the administrative organization department.
Transport :
- Including employees responsible for implementing transportation contracts such as garbage transportation rental, soil transportation, site leveling, roller rental, excavator rental, etc.
Delivery time :
- Includes workers responsible for transporting interior decoration goods or construction materials to customers.
2.1.3. Organization of accounting apparatus
Chief Accountant
General Accounting
Customer debt collection
Payment of debt to suppliers
Employee salary calculation
Inventory and fixed assets management
Treasurer
2.1.3.1. Organizational chart
Diagram 2.2: Accounting system