Characteristics of the Company's Management Organization

3.1.2. Characteristics of the Company's management organization

3.1.2.1. Management organization

The company implements a regime in which one Director is directly responsible. The department assisting the Director is responsible for reporting work, proposing issues related to production and business efficiency, and each individual is directly responsible for the results of his or her work.

Organizational chart of Hieu Nhan Food Processing Trading Company Limited.

Manager

Sales Department

Human Resources Department

Quality Control Department

Technical Department

Accounting Department

Diagram 3.1. Organizational structure of Processing Business Company Limited

Food of Kindness.

3.1.2.2. Functions of departments

- Director: Is the person with the highest authority and is responsible to the state management agency and partners. Manages and operates all production and business activities of the Company in accordance with the law. The Director monitors the general work of the entire Company, closely supervises the implementation of accounting, and issues regulations to promote the production and business process.

- Sales Department: The Sales Department is a department that advises and assists the director in selling the company's products and services, product research and development, market development; building and developing customer relationships. Responsible to the director for such activities within assigned tasks and authority.

- Accounting Department: Directly perform financial accounting work in accordance with the State's regulations, advise the Director on the State's accounting regulations, and account for the unit's production and business processes. Record, calculate and accurately, honestly, promptly and fully reflect the situation of assets, materials, labor, capital and production and business results of the unit.

Manage the Company's finances, calculate and pay in full and on time the amounts payable to the State Budget, to superiors and set aside funds for the Company.

- Human Resources Department: The Human Resources Department is a staff department, assisting the Director in the organization, personnel, administration, legal, communications and public relations (PR) of the Company. Responsible to the Director for those activities within the assigned tasks and authority. The Human Resources Department also sets out and resolves policies within the scope of the enterprise to achieve the organization's goals. Human resources policies are implemented through advising the head of the organization in setting out and resolving issues related to people in the enterprise.

- Quality control department: Responsible for checking the quantitative standards and product quality of the production workshops at the Company, including input materials and output products.

- Technical department: The function of the department is to manage the production technology process such as researching, manufacturing products, developing standards for raw materials, managing technical advancement topics and applying technical advances to production, advising the Director on expertise, helping the Director make accurate and appropriate decisions in production and business.

3.1.3. Characteristics of the Company's accounting organization

3.1.3.1. Organization of accounting department at the Company

To ensure that the process of recording transactions into books is accurate, complete, timely and suitable for centralized accounting, the accounting department is organized in a form where all employees work under the direction and management of the chief accountant and general accountant.

Organizational chart of accounting department at Hieu Nhan Food Processing Trading Company Limited.

Chief Accountant



General Accounting

Bank Accounting

Treasurer

Warehouse Accounting

Accounts Receivable

Accounting Payment

Granary Accounting

Rice Warehouse Accounting


Diagram 3.2. Organization of accounting apparatus at Hieu Nhan Food Processing Trading Company Limited.

Tasks and functions of each department

- Chief Accountant:

The Chief Accountant is decided, appointed, dismissed by the Director and is responsible to the Director for the performance of assigned responsibilities. The Chief Accountant has the following duties and powers:

Responsible for managing all daily operations within the functions and duties of the accounting department.

Responsible for general management, supervision (control) of all activities related to finance and accounting. The Chief Accountant must grasp the entire financial situation of the Company to advise the Director on decisions on the Company's financial policies and plans.

Organize and implement the work of the accounting department according to the plan approved by the Director, account for and record the economic situation arising each month, each quarter, each year. Regularly report the operation situation of the Department to the Company Director, receive, disseminate and promptly implement the Director's instructions. Pay and fulfill the unit's obligations to the State.

Make recommendations to the Director on changes and additions to the accounting department's personnel to suit the volume and requirements of the accounting department at appropriate times for the Director to decide.

- General accounting:

Check and compare data between internal units, detailed and summary data.

Check that the ending balance is reasonable and matches the detailed reports.

Accounting for income, expenses, depreciation, fixed assets, debts, other transactions, VAT and tax reporting.

Monitor sales costs and business management costs.

Prepare documents, account for salary deductions, social insurance, health insurance, and union contributions. Prepaid expenses, prepaid expense allocation.

Prepare financial reports by quarter, 6 months, year and detailed explanatory reports.

Provide data to the Board of Directors or functional units upon request.

- Accounts receivable accounting:

Monitor customer payment status, when customers pay, separate debts according to contract, according to sales invoice.

Monitor the implementation of contracts for purchasing goods and services of departments.

Combine with bank and cash payment accounting to track customer debt.

Urge and directly participate in debt collection for bad debts, long-term debts, and prepaid debts to suppliers that are past the deadline for importing goods or receiving services.

- Payment accounting:

Coordinate with relevant accounting departments to check the completeness and legality of input and output invoices and documents to ensure compliance with State regulations.

Record entries related to cash receipts and payments, deposits. Timely reflect cash receipts and payments.

Conduct regular checks and reconciliations (end of each day and end of month) with the cashier to ensure close monitoring of cash funds.

Ensure tracking and updating of documents honestly, accurately and promptly. Archive documents related to work according to regulations. Provide reports related to the assigned administrative part as required by management.

- Bank accounting:

Responsible for monitoring loan deposits, guarantee deposits at the bank; Transactions with banks on loans and debt repayment. Reconcile and report to the chief accountant daily bank deposits, details of each source of cash, receipts, and subsidiary ledgers of the banks. Prepare reports for summary and settlement.

- Warehouse accounting:

Prepare import and export documents, purchase costs, sales invoices.

Calculate import and export prices of imported materials and goods, create import and export vouchers and transfer to relevant departments.

Make inventory reports, import and export inventory reports. Control import and export inventory.

Regularly check the warehouse keeper's inventory card entries, whether the goods and materials in the warehouse are properly arranged, check whether the warehouse keeper complies with the Company's regulations. Compare the import and export data of the warehouse keeper and accountant.

Directly participate in counting the quantity of imported and exported goods with the warehouse keeper, the delivery party, and the recipient if the imported and exported goods have large value or are required by competent authorities.

Submit accounting documents and reports as prescribed.

- Rice warehouse accountant: Has all the functions and duties of a warehouse accountant but specializes in rice.

- Rice warehouse accountant: Has all the functions and duties of a warehouse accountant but specializes in monitoring rice.

- Treasurer:

Monitor cash receipts and disbursements, manage the Company's cash fund, check documents, signatures, and legal, valid seals in the cash book in full accordance with the contents of the documents. Daily reconcile the cash book with accounting and actual cash balance.

3.1.3.2. Accounting method currently applied at the Company

In the current conditions, the application of information technology in accounting work of enterprises is very popular. Currently, the Company uses the form of computerized accounting with the accounting software EFFECT STANDARD. This software is designed according to the principles of the General Journal accounting form and applies the enterprise accounting regime issued under Decision 48/2006/QD - BTC dated September 14, 2006 of the Ministry of Finance. The recording sequence is shown in Diagram 3.3.


Detailed accounting books General accounting books

Accounting documents

Summary table of accounting documents of the same type

Financial report

Management accounting report

EFFECT STANDARD software

Computer

Diagram 3.3. Sequence of accounting entries on computer according to accounting software

EFFECT STANDARD

Note:

Enter data daily.

Print books, reports at the end of the month, end of the year...

Compare, check.

Every day, accountants base on the accounting documents that have been checked, used as the basis for recording, determine the debit account, credit account to enter data into the computer according to the tables and forms designed in the EFFECT STANDARD accounting software. According to the accounting software process, the information is automatically entered into the general accounting book (general journal) and related detailed accounting books. At the end of the month, accountants perform book closing operations, prepare financial accounting reports and management accounting reports. At the end of the accounting period, print reports, books and carry out legal procedures according to regulations on manual accounting books.

3.1.3.3. Accounting policies applied at the Company

- Accounting regime: The Company applies the accounting regime issued under Decision No. 48/2006/QD-BTC dated September 14, 2006 of the Ministry of Finance.

- Inventory accounting method: The company applies the perpetual inventory method.

- Method of calculating VAT payment: The Company applies VAT calculation according to the deduction method.

- Accounting year: From January 1 to December 31 (1 year)

- Fixed asset depreciation method at the Company: Deducted by straight-line method.

- Applied accounting form: The company uses the general journal accounting form.

3.1.4. Characteristics of production process


Fresh rice


Peel

Drying



Dry rice


Rice husk

Brown rice


Bran


White rice


Drum island catch plate

Polish

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Characteristics of the Companys Management Organization


Plate

Finished rice

Whitewash

Net bag 50kg


Finished product packaging


Diagram 3.4. Rice production process at Hieu Nhan Food Processing and Trading Company Limited

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