The accounting department carries out accounting work, issues and applies the accounting system according to Decision No. 48/2006/QD-BTC of the Minister of Finance.
Statement on compliance with accounting standards and accounting regime: the director ensures full compliance with the requirements of the accounting standards and accounting regime applied by the company.
Document system applied at the company: based on the document system according to the pre-printed form issued by the Ministry of Finance.
Financial reporting system:
Balance sheet.
Business performance report.
Cash flow statement.
Financial statement explanation.
3.4.2.2. Characteristics of used documents:
Accounting documents include: Receipts, payment vouchers, checks, receipts, sales invoices, and other required documents. Accounting document forms are prescribed by competent State agencies.
Accounting documents have all of the following elements:
Name and number of accounting document.
Date, month, year of accounting document creation.
Name and address of the unit or individual preparing the accounting documents.
Name and address of the unit or individual receiving the accounting document.
Content, arising economic and financial operations.
Quantity, unit price and amount of economic and financial transactions are recorded in numbers, total amount of accounting documents used for collection and payment are recorded in numbers and words.
Signature, full name of the person who prepared, approved and those related to the accounting voucher.
3.4.2.3. Accounting form:
Based on actual requirements and business characteristics, Chau Thien Nhu Company Limited is currently using the Voucher accounting form. The basic feature is that all arising transactions are reflected in original documents, then the original documents are classified and summarized.
The company applies parallel accounting procedures in the form of accounting vouchers and accounting on computers.
Organizational chart of the document system
* Procedure for recording
Diagram 3.3. Sequence of recording according to accounting form Recording vouchers
Original document
Cash book
Summary of documents
Detailed accounting books/cards
Register of accounting vouchers
Document
record
Total table
detailed
Ledger
Balance sheet of arising numbers
Financial report
Note:
Record daily or periodically. Record at the end of the month.
Correlative relationship.
* Interpretation:
Every day, the accountant in charge of each section will prepare accounting documents based on the original documents that have been checked.
For economic transactions that arise frequently and frequently, the original documents after being checked are recorded in the original document summary book. At the end of the month or periodically, based on the original document summary table, the accounting documents are created.
After the vouchers are completed, they are sent to the chief accountant (or the person authorized by the chief accountant) for approval and then sent to the general accounting department with all the original documents attached so that this department can record the vouchers in the book and enter them into the general ledger. At the end of the month, the accountant closes the books to find the total amount of the economic transactions that occurred during the month in the vouchers register and the total debit and credit of each account in the general ledger. Based on the general ledger, the accountant makes a balance sheet of the transactions.
each summary account. The total debits and total credits of all summary accounts on the balance sheet must match and must match the amounts in the journal voucher register.
The total debit balance and total credit balance of the accounts on the balance sheet must match and the balance of each account (debit balance, credit balance) on the balance sheet must match the total balance (debit balance, credit balance) of the detailed summary table of the detailed accounting section.
After checking and comparing the figures on the balance sheet, the generated numbers are used to prepare the balance sheet and other accounting tables.
For accounts that have opened detailed accounting books or cards, the original documents after being used to create accounting vouchers and enter them into the general accounting books are transferred to the detailed accounting department to record in the detailed books and cards. At the end of the month, the accountant adds the detailed books and cards to create a detailed summary table and from this table, compares it with the corresponding summary account in the general ledger.
The detailed summary tables after being checked and compared with the general ledger are used as the basis for preparing financial statements.
In addition to accounting for transactions using manual accounting methods to store and process documents and books stored in warehouses, businesses are gradually updating to use computerized accounting in a more complete way. The software that accountants use is Mekong Soft. The software is designed according to the principles of the form of bookkeeping documents. The software does not fully display the accounting process but can print full accounting books and financial reports according to regulations.
* Process of using machine accounting in the company:
Step 1: Create and circulate documents.
Step 2: Organize and process documents. Organize and classify documents, arrange related documents into a set for easy processing.
Step 3: Based on the processed documents, enter data into the machine.
Step 4: The computer calculates, classifies, and systematizes information according to the set program to have information summarized into detailed information accounts and financial reporting system... This information is displayed on the computer screen and printed on paper and saved in the company's file.
At the end of each accounting period, based on the synthesis of data, documents, detailed accounting voucher books, the accounting departments compile reports.
* Procedure for recording
ACCOUNTING DOCUMENTS
SUMMARY TABLE OF ACCOUNTING DOCUMENTS OF THE SAME TYPE
GENERAL ACCOUNTING BOOK
-FINANCIAL REPORT
-MANAGEMENT ACCOUNTING REPORT
Diagram 3.4. Sequence of bookkeeping in computerized accounting form
ACCOUNTING SOFTWARE |
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COMPUTER
Note:
Enter data daily
Print books, reports at the end of the month, end of the year. Compare and check.
* Interpretation:
a. Daily work:
Every day, accountants base on accounting vouchers or summary tables of accounting vouchers of the same type that have been checked, used as a basis for bookkeeping, determine debit accounts, credit accounts to enter data into the computer according to tables and forms designed in advance on the accounting software.
According to the accounting software process, information is automatically entered into the general accounting book (General Ledger or Journal-Ledger...) and related detailed accounting books and cards.
b. End of month work:
At the end of the month (or at any necessary time), the accountant performs the closing operations (addition of books) and prepares the financial report. The comparison between the summary data and the detailed data is done automatically and always ensures accuracy and honesty according to the information entered during the period. The accountant can check and compare the data between the accounting books and the financial report after printing it on paper.
Perform operations to print financial reports according to regulations.
At the end of the month and year, the general accounting books and detailed accounting books are printed on paper, bound into books and legal procedures are carried out according to regulations on handwritten accounting books.
* Inventory accounting method:
Periodic inventory method.
Value of goods sold during the period = Value of inventory at the beginning of the period + Total value of goods imported - inventory at the end of the period
Ending inventory.
Documents: warehouse receipt, warehouse delivery note, inventory record.
Check and classify accounting documents.
3.5. Company situation in recent years:
To understand the company's development and position in the market, let's look at the business performance report for the past 2 years:
Table 3.1. Business performance results of Chau Thien Nhu Company Limited
2014-2015
BUSINESS PERFORMANCE STATEMENT
Unit: VND
Target
MS | Theory bright | This year | Last year | |
1 | 2 | 3 | 4 | 5 |
1. Sales revenue and supply service level | 01 | IV.08 | 21,060,118,630 | 3,938,793,480 |
2. Deductions | 02 | 0 | 0 | |
3. Net revenue from sales and service provision (10=01-02) | 10 | 21,060,118,630 | 3,938,793,480 | |
4. Cost of goods sold | 11 | 17,635,253,040 | 3,352,608,518 | |
5. Gross profit on sales and service provider (20=10-11) | 20 | 3,424,865,590 | 586,184,962 | |
6. Financial operating revenue | 21 | 531,688 | 29,147 | |
7. Financial costs | 22 | 29,589,625 | 0 | |
In which: Interest payable | 23 | 29,589,625 | 0 | |
8. Business management costs | 25 | 1,815,317,350 | 379,997,195 | |
9. Net profit from operations business activity {30=20+(21- 22)-(24+25)} | 30 | 1,580,490,303 | 206,216,914 | |
10. Other income | 31 | 174.193.182 | 217,229 | |
11. Other costs | 32 | 0 | 0 | |
12. Other profits (40 = 31- 32) | 40 | 174.193.182 | 217,229 | |
13. Total profit before tax (50=30+40) | 50 | IV.09 | 1,754,683,485 | 206,434,143 |
14. Corporate income tax expense career | 51 | 0 | 0 | |
15. Profit after tax (60 = 50 -51 ) | 60 | 1,754,683,485 | 206,434,143 |
(Source: Company documents)
Through the business performance table, we can see that the company's total revenue is growing higher and higher. Although still quite young, the company has proven its strength through its business results. In 2015, the company increased its sales revenue and service provision by 17,121,325,150 VND compared to 2014 (an increase equivalent to about 4.347 times the revenue in 2014). The cost of goods sold also increased significantly due to the influence of the supply and demand market and production, which led to the company having to apply many forms to attract customers such as promotions, sales advertising, ...
Business management costs also increased rapidly in 2015. Specifically, in 2015, business management costs increased by VND 1,435,320,155 compared to 2014. The increase in business management costs depends on many factors such as the company's organizational costs, office supplies costs, payment of fees, etc. This indicator is one of the major influences on the company's business results, reducing gross profit during the business process. In addition, this is also an issue that the company must pay close attention to, limiting the use of unnecessary activities in business management to reduce the impact on profits.
Although still young in terms of years of operation, but operating in a scientific working mechanism, experienced staff and the dynamism of the Director, the company has initially succeeded in business. Right from the first days of establishment and operation, the company has affirmed itself by making profits. And more happily, the company's profits increased in the second year of operation. At the same time, with the measures taken to build and suit the business characteristics, it will help the company exploit and develop all of its potential and strengths.
3.6. Advantages, difficulties, development directions:
3.6.1. Advantages:
The company started at a favorable starting point with very low costs. Being a small and young company, adaptability to change is an advantage - which is also very important in business. In addition, the company is not tied to any heavy bureaucracy and inertia, it is easier to respond to market demands and requirements quickly.
Due to the desire to understand customers and feel their needs directly and at the same time show friendliness, companies tend to be intimate with customers. They often have direct contact with customers, thereby receiving their thoughts, feelings, needs, and trends in order to have timely feedback and adjustments when necessary.
3.6.2. Difficulties:
Since the capital used for the company's operations is quite small, it is inevitable that the company will face a series of problems related to its size. Some of the reasons are often the inability to pay and difficulties in raising capital. However, the company is still able to meet its capital needs in many ways such as borrowing from banks, using capital contributions, etc.
Another problem for the company is the competitiveness of large enterprises and their overarching influence. Since it was only established and operated for 2 years despite being separated from
a large company but competition is still a concern for the company. Companies in the same industry with experience and relationships are one of the threats to the company, the company must apply policies to attract customers and create many different products to create a strong position and rapid development.
3.6.3. The company's development orientation in the next 5 years:
* Regarding financial work:
To implement the strategic business direction and goals, the financial work must solve the basic task of sourcing capital to meet the company's development needs and effectively organize and implement capital measures as follows:
Regularly monitor inventory, exploit the support of information technology systems to push reasonable inventory levels.
Strengthen debt monitoring and collection. Regularly check and actively improve the level of the debt department. Exploit the support of information technology to manage customer debt.
* Regarding human resources:
With the development of science and technology, improving qualifications, employee support policies, and maintaining stable human resources are essential issues to ensure increasingly effective business operations.
* About personnel training:
Develop specific policies on human resource use and development by 2020.
Develop specific policies for appropriate professional training for departments.
Improve marketing, sales and negotiation skills for related departments.
Training to improve management skills for staff.
Build a clear and specific salary and bonus structure for each department.
* Research and development:
To increase the company's competitiveness in the market, the technical department, marketing and sales department and the board of directors regularly coordinate to carry out the following measures:
Organize research on documents and acquire modern technology transferred from other countries.
From customer requests, the sales department conducts statistics, organizes research and proposes changes over time and market trends.
Research to improve technology, operations, increase productivity to reduce costs.
CHAPTER 4: CURRENT STATE OF ACCOUNTING WORK TO DETERMINE BUSINESS RESULTS AT CHAU THIEN NHU COMPANY LIMITED.
4.1. Characteristics of production and business organization, consumption and payment methods at the company:
4.1.1. Characteristics of production and business activities of Chau Thien Nhu Company Limited:
The company has mastered the strategy and ability to do business with market demand to build an effective business plan. The company always sets itself the goal of providing goods fully and promptly to customers, while always paying attention to and ensuring product quality.
The company's input market has guaranteed quality. Then it will distribute products to consumers through forms of buying and selling products and goods.
4.1.2. Product consumption methods:
Consumption methods are also an important issue in the sales process. It is important for the company to choose effective methods of consuming goods. The flexible application of consumption methods contributes to the implementation of the business's consumption plan. The following are some of the main consumption methods used by Chau Thien Nhu Company Limited.
* Consumption of goods by the method of the buyer coming to receive the goods directly or the company delivering the goods to the buyer's home:
Based on the signed sales contract, the buyer sends staff to receive the goods at the company's warehouse or can request the company to transport the goods to the customer's location - at this time, whether the service fee is applied or not depends on the agreement between the two parties. Upon receipt of the goods, the recipient signs the sales invoice and the goods are determined to be consumed and accounted for in revenue.
The document used is the warehouse delivery note and sales invoice, on which there is the signature of the customer receiving the goods.
* Consumption of goods by direct delivery method (not through warehouse):
During the process of purchasing in large quantities. When there are goods, the Company sells directly to customers without going through the warehouse, the goods are transferred directly during the delivery process. It can be said that the purchase and sale transactions occur simultaneously. In this method, the Company applies the case of three-way sales: that is, the supplier (seller), the company and the buyer deliver the purchased and sold goods together. When the buyer receives the goods and signs the sales invoice, the goods are determined to be consumed.
Sales documents in this method are sales invoices.
*Retail method:
This is a form of direct sales to consumers, goods will not participate in the circulation process, fully realizing the value and use value of the goods.