Characteristics of the Accounting Organization of Forestry Companies in Tuyen Quang Province

+ The planning and finance department has the function of advising and assisting the Director on the production plan and financial work of the Company. The main tasks of the department are as follows: Develop financial plans according to the short-term and long-term production and business plans of the Company; Organize accounting and statistical activities of the entire Company; Guide and inspect the implementation of accounting and statistical regimes issued by the State at the unit; Manage and use production and business capital sources in accordance with regulations and achieve efficiency; Inspect and supervise the management and use of assets and capital of the Company; Develop and direct the implementation of financial plans, make accounting and statistical reports according to regulations; Prepare and direct the implementation of economic contracts, conduct market research and propose business strategies in each period; Organize and manage the management of goods and product consumption; Monitor joint venture and association contracts.

+ The production teams under the company are dependent accounting units, implementing production and business plans assigned by the Company, operating according to the Company's charter and under the direct management and direction of the Company.

+ Nursery team: The task of this unit is to provide seedlings according to the Company's forest planting plan for production teams.

The survey results in Appendix 1E show that 100% of CTLN in the province are organized according to the online model. This is a popular management model among CTLN in Vietnam because the scale of the companies is small and medium, the head of the company is the person who directly directs and operates all activities and is responsible for the entire production and business results of the enterprise. Accordingly, the direct production departments (including production teams, nursery teams) only receive direct orders from superiors according to the online mechanism. The functional departments (including the organization - administration department, planning - technical department, planning - finance department) are responsible for advising and assisting the Board of Directors on assigned professional issues. The functional departments under the company are not allowed to issue orders and instructions to production units to ensure the concentration of business management.

The actual survey results also show that enterprises in Tuyen Quang province have not applied ERP - Enterprise Resource Planning software in business administration.

Maybe you are interested!

With the online management organization model, companies have clear decentralization, managers have the right to make decisions and take responsibility within their management level, facilitating the provision of management information to management levels and the organization of responsibility centers.

2.2.3. Characteristics of the accounting organization of forestry companies in Tuyen Quang province

The survey results of accounting staff ( Appendix 1E ) show that 100% of the respondents of the CTLN organize the accounting apparatus in the form of a centralized accounting apparatus. Accordingly, the accounting apparatus is organized centrally in the company's accounting department and performs all tasks from receiving, checking, processing documents, to recording accounting books, preparing accounting reports, organizing, preserving, storing accounting records and providing financial and accounting information to administrators and other subjects according to regulations. Accounting tasks are assigned to accountants to be responsible for implementation.

The actual survey results show that the number of accounting staff at most of the current CTLNs is from 1 to 5 people, which is relatively suitable for the characteristics and management requirements in the new situation as well as suitable for the characteristics of forestry production and business activities. However, accountants have to take on many tasks and duties, causing overload of the accounting apparatus, and lack of time and personnel to carry out control and evaluate work efficiency.

Regarding the model, the survey results of accounting staff showed that 100% of the companies responded that the accounting apparatus was a combination of financial accounting and management accounting(Appendix 1E) . The application of this model has helped the accounting apparatus of the companies to be quite compact, suitable for the characteristics of organization and operation, on the other hand, it also saves costs for operating the accounting system. However, the downside of this model is the large workload, if the financial manager does not have a clear division of labor, it will easily lead to overlapping work and low work efficiency. In order to operate both the financial accounting and management accounting departments, the company's accounting staff must have professional qualifications, good analytical and evaluation skills and the ability to apply information technology to support accounting work.

2.2.4. Awareness and interest in management accounting of management levels in forestry companies in Tuyen Quang province

The author conducted a survey to assess the perception and concern about KTQT of management levels in forestry companies using a Likerts scale with 5 levels: 1- Very low; 2- Low; 3- Average; 4- Good; 5- Very good. The survey results are presented in Chart 2.5 below.

90%

80% 76.6%

70% 68.8%

60%

50%

40%

30%

21.9%

20%

18.8%

10%

9.3%

4.6%

0% 0%

Managers are trained in international economics.

Interest and support of NQT for KTQT

Figure 2.5. Survey results on awareness and interest in KTQT of management levels in forestry companies in TQ province

Source: Author's data analysis results. Chart 2.5 shows that only 9.3% of managers at all levels are trained at the level

4 on management accounting, this number is concentrated in middle-level managers, specifically heads of planning and finance departments, with 21.9% of managers trained at level 3 and concentrated in senior managers who have worked as heads of planning and engineering departments or have attended business administration courses, thus, this is a relatively low rate of in-depth training leading to managers at all levels, especially senior managers, having incorrect perceptions of management accounting. This result is further confirmed when only 4.6% of managers are interested in and support management accounting at level 4. This leads to the application of management accounting not being interested and focused on by managers, especially in the context of transforming business models and operating structures.

2.2.5. Competency and qualifications of accountants in forestry companies in Tuyen Quang province

The results of the field study at the CTLNs show that the accounting staff in the CTLNs in the province all have college degrees or higher (72.7% have university degrees or higher, the rest have college degrees). However, to better assess the capacity and qualifications of this team in the work of international accounting, the author conducted a survey to assess the capacity and qualifications of accountants in the CTLNs according to the scale

Accountants are trained in depth in management accounting. Accountants' awareness of the business field.

Accountant's experience in management accounting in the field of forestry production and business

54.5%

83.3%

36.4%

58.3%

16.7%

18.2%

41.7%

Likerts with 5 levels: 1- Very low; 2- Low; 3- Average; 4- Good; 5- Very good. Survey results are presented in Chart 2.6 below.

0.0%

Chart 2.6. Survey results on the capacity and qualifications of accountants in forestry companies in Tuyen Quang province

Source: Author's data analysis results. Chart 2.6 shows the in-depth training in international economics at level 4.

of accountants only accounts for 18.2%, leading to accountants' awareness of international accounting is also not yet

high. Accountants' awareness of the company's field of operation at level 4 accounts for 41.7% of the survey opinions, this is a very positive result, however, this number is concentrated in non-state-owned enterprises, while accountants in state-owned enterprises only have awareness of the company's field of operation at level 3, which means they do not have interest and attachment to the enterprise, going to work is only to ensure monthly income. In addition, no accountant has experience at level 4 in management accounting in the forestry production and business sector, most are only at level 2 with a rate of 83.3% of the survey opinions, only 16.7% of the survey opinions answered at level 3, this number is concentrated in enterprises that are highly appreciated for the results and efficiency of production and business activities. These factors have led to the limited application of international accounting in the production and business activities of enterprises. Accountants have no motivation to improve accounting work in general and apply and adjust international accounting work in particular to bring about suitability with the specific characteristics of the industry as well as the operational characteristics of enterprises.

2.2.6. Information technology level

According to the survey (Appendix 1E), 100% of the surveyed accounting staff responded that the company uses accounting software, equips computer systems, and the internet to support the work quite well for accounting, especially the information on international accounting will be provided promptly. However, the CTLN in the province has not applied specific software for international accounting, therefore, the international accounting work is done entirely manually on Excel, the level of data synthesis and analysis is limited, taking a lot of time. Therefore, the norms, estimates, and plans have not been established scientifically and systematically, so they have not met the information requirements of the management levels in CTLN.

2.3. Current status of management accounting in forestry companies in Tuyen Quang province

2.3.1. The current status of management accounting associated with the control and evaluation functions of managers in forestry companies in Tuyen Quang province

2.3.1.1. Current status of establishing economic indicators system associated with the control and evaluation functions of administrators in forestry companies in Tuyen Quang province

The survey results in Appendix 1E show that the CTLNs in Tuyen Quang province have not yet established a system of economic indicators associated with the control and evaluation functions of administrators. However, to better understand this issue, the author conducted a survey of the administrative levels in the above CTLNs regarding the information needs for control and evaluation according to the following levels: 1- No need; 2- Low need; 3- Medium need; 4- High need; 5- Very high need. On that basis, it will be possible to determine the interest of the administrative levels in establishing a system of economic indicators associated with the control and evaluation functions.

* For the need to control and evaluate information about production and business input factors

The survey results in Chart 2.7 show that management levels in the CTLNs have a need for management information on inventory at level 3 (accounting for over 39.1% of the survey responses), only 28.1% of the survey responses responded at level 4 regarding information on prices, purchasing costs and quantity of inventory used, the rest have low or no need for information on inventory. This result shows that information on inventory for control and evaluation purposes has not been of interest to managers. 18.8% of the survey responses responded that they were not interested in information on inventory, these responses were concentrated in the CTLNs with a very small scale, capital investment companies that do not organize their own forest production, so these companies do not have a need for information on inventory.

Information on prices and costs of purchasing raw materials Information on quantity of inventory used for production Information on inventory levels

Information on inventory ratio

18.8%

0.0%

14.1%

18.8%

25.0%

53.1%

39.1%

62.5%

56.3%

28.1%

0.0%

Figure 2.7. Survey results of management levels on inventory management information needs

Source: Author's data analysis results

The survey results in Chart 2.8 show that most enterprises do not have a high demand for information on human resources for control and evaluation. Only 35.9% and 28.1% of survey opinions are interested at level 4 in information on salary funds, number of employees and welfare costs, the opinions are all focused on enterprises that are currently having quite good business results, employees are interested in all aspects of work and life. Among the information on human resources given in the survey, information on recruitment costs is not of much interest to companies (with 81.3% of survey opinions at level 2), this is also consistent with the streamlining of the apparatus in accordance with the new business model at current enterprises.

Regarding information on labor efficiency and salary fund, the number of employees is of interest to managers at level 3 with the corresponding rates of 43.8% and 45.3% of survey opinions, which shows that managers of state-owned enterprises are interested in labor efficiency and salary efficiency at the enterprise.

Information on labor efficiency Information on payroll, number of employees Information on benefits costs

Information on recruitment costs

18.8%

0.0%

18.8%

37.5%

18.8%

53.1%

81.3%

43.8%

45.3%

0.0%

35.9%

28.1%

0.0%

Figure 2.8 Survey results of management levels on human resource management information needs

Source: Author's data analysis results

There is a group of CTLN (accounting for 18.8% of the survey) who answered at level 1, meaning that companies are not interested in information about human resources for control and evaluation. This comes from the fact that the scale of the company is very small, the need for human resource management of the companies is still very low. The survey results also show that the only information need about human resources that these companies are interested in is information about salary funds and number of employees to evaluate the effectiveness of salary use.

Chart 2.9 shows that most of the CTLNs are very interested in information on the structure of fixed assets and the current status of forestry land use (accounting for 73.4% and 81.3% of responses at level 4, respectively). Currently, the conversion of land and forest assets on land has been basically reviewed to determine boundaries, set landmarks and grant forestry land use rights to CTLNs. However, land disputes between CTLNs and households have not been completely resolved. From this issue, the need for information of administrators on fixed assets, especially forestry land, is quite high. For micro-scale enterprises, information on fixed assets mainly serves the purpose of preparing financial statements. On the other hand, these enterprises are not allocated land for production, so these companies have almost no need for information on fixed assets for control and evaluation (accounting for 18.8% of survey opinions at level 2 or below).

Information on fixed asset structure

Information on current status of forestry land use

Information on original price and depreciation value of fixed assets

0.0%

18.8%

0.0%

18.8%

0.0%

18.8%

7.8%

0.0%

56.3%

73.4%

81.3%

25.0%

0.0%

Figure 2.9. Survey results of management levels on fixed asset management information needs

Source: Author's data analysis results

CPNVLTT calculated for 1 hectare of planted forest CPNCTT calculated for 1 hectare of planted forest CPSXC for forest production

18.8%

81.2%

* For the need to control and evaluate information on costs, revenue and business results

0.0%

Figure 2.10. Survey results of management levels on production cost management information needs

Chart 2.10 shows that 100% of enterprises are interested in information on production costs, of which 81.3% of responses are at level 4, these responses are concentrated in small and medium-sized enterprises, and the remaining 18.8% of responses are at level 3, concentrated in micro-sized enterprises.

Comment