2 ACCOUNTING FOR REVENUE, EXPENSES AND DETERMINING BUSINESS RESULTS AT VIET THANH TRADING TECHNOLOGY AND CONSTRUCTION JOINT STOCK COMPANY

MINISTRY OF FINANCE ACADEMY OF FINANCE - - NGUYEN THI MAI LE CQ55/21.01 GRADUATIO N THESIS TOPIC: ACCOUNTING FOR REVENUE, EXPENSES AND DETERMINING BUSINESS RESULTS AT VIET THANH TRADING TECHNOLOGY AND CONSTRUCTION JOINT STOCK COMPANY Major Code Instructor : Corporate Accounting : 21 : M.r Nguyen Ba Linh HA NOI – 2021 DECLARATION I would like to assure that the graduation dissertation " Accounting for revenue, expenses and determining business results at Viet Thanh trading technology and construction joint stock company " is my own research project All the references used in this dissertation are clearly cited in the references section The data and results presented in the dissertation are completely honest, I will take the responsibility and discipline of the academy if there is any problem Graduation thesis author Student Nguyen Thi Mai Le ACKNOWLEDGEMENT First of all, i would like to express my gratefulness to all the teacher of Academy of Finance, especially the teachers of Accounting Faculty, who have instructed useful knowledge to me about social as well as my major Those knowledge are the important basis for me to orient the career path in the future In particular, i would like to express my gratitude to Mr Nguyen Ba Linh for giving me the valuable guidance and suggestions during the process of writing this dissertation Moreover, i would like to thank the Board of Directors, and all employees at Viet Thanh trading technology and construction joint stock company for helping me to learn about the actual working environment of a company and give me a chance to accumulate actual experiences about accounting Thanks to the accounting department, i could collect enough data and information to accomplish my graduation dissertation successfully Hanoi, May 22th, 2020 Student Nguyen Thi Mai Le LIST OF ABBREVIATIONS Acc Account BOD Board of director Cr Credit Dr Debit VND Viet Nam Dong COGS Cost of goods sold LIST OF DIAGRAMS Diagram 1: Account 511 - Revenues Diagram – Revenue deduction Diagram 3: Account 632 – Costs of goods sold Diagram 4: Account 642 – business administration expense Diagram 5: Account 635- Financial expenses Diagram 6: Account 515 – Financial Income Diagram 7: Account 711 – Other Income Diagram : Account 811 – Other expenses Diagram 9: Account 821- Income tax expenses Diagram 10: Account 911- Income summary Diagram 11: Organizational Structure Diagram 12: Accounting Organization Diagram 13: Processing order LIST OF TABLES TABLE 2.1: GENERAL JOURNAL TABLE 2.2: LEDGER BOOK OF ACC.5111 TABLE 2.3: LEDGER BOOK OF ACC 131 TABLE 2.4: LEDGER BOOK OF ACC 632 TABLE 2.5: LEDGER BOOK OF ACC 642 TABLE 2.6: LEDGER BOOK OF ACC 515 TABLE 2.7: LEDGER BOOK OF ACC 635 TABLE 2.8: LEDGER BOOK OF ACC 711 TABLE 2.9: LEDGER BOOK OF ACC 911 TABLE 2.10: INCOME STATEMENT CONTENTS INTRODUCTION 1.Rationale of the study In the light of the development of global economy, especially since Viet Nam became an official member of WTO which has brought to Viet Nam economy a lot of opportunities to develop To develop and maintain the business activities efficiently, commercial enterprieses must conduct some measures to manage all processes from production to sale and comsumption of goods, ensuring the maintenance and speed of capital turnover, fulfilling all obligations to the state, enhance the living standard as well as spirit for staffs, ensuring that profits to accumulate business expansion Therefore, the management of revenue and expense become an vital factor that has a significant impacts on business activities, and this can help the board of director to make a business plan that reasonable in time, quantity and quality to boost the advantages and overcome obstacles and difficulties of enterprises In order to have an effective plan, the role accounting for revenue, expenses nd business results must be the first priority Because the accounting for revenue , expenenses and determination of business results is to accurately, promptly and fully reflect the information on expenses ,revenue, revenue deductions, determine the results of supply,… and providing information to report on analytical criteria to express on financial reports Company owners can base on these data to control the business operation and orient the development in the future effectively Recognizing the importance of revenue , expenenses accounting and determining business results, applying theoretical knowledge learned and researched at Acedemy Of Finance, combined with the actual experiences at the Viet Thanh trading technology and construction joint stock company and under the guidance of lecturers Nguyen Ba Linh and employees in the accounting department at the company,i decide to chose to study the topic "Revenue, expenses accounting and determination of business results in Viet Thanh trading technology and construction joint stock company 2.The aims of the study • The research is conducted because of these following purposes: Systematizing and clarifying the basic theoretical issues on revenue, • expenses accounting and determining business results Surveying and presenting the current situation of the accounting work and determine business results in Viet Thanh trading technology and construction • joint stock company Analyzing and suggesting some solutions to perfect the accounting of revenue, expenses and determining business results inViet Thanh trading technology and construction joint stock company 3.Research methods In order to accomplish this topic, i used the following reaserch methods: • Document reference method: read, refer, learn the textbook compiled by lecturers, documents in the library such as books, newspapers, magazines, dissertations on sales accounting topics and determine business results to find the fundament for topic And seeking opinions • from instructors if the problem has not been resolved yet Interview method: This method is used during all the internship time Asking ans consulting my collegues in the company to answer my questions and understand better about accouting and determine business results at the company Besides,this method helping me to accumulate • practical experience for myself Data collection and processing method: collecting raw data of the enterprise, then all raw data are processed and selected to be accurately, scientifically and included in the topic to give readers the most effective information • Statistical method: Basing on the statistical data as evidence to analyze, comparison between the reality and theoretical basis or accounting regime and then point out the advantages and disadvantages in business activities to find the causes and solutions for the company in general and in particular to the revenue, expenses accounting and determining business results 4.The subject and scope of the study 4.1: Research objects The thesis goes into researching the theoretical issues and current situation of revenue, expenses accounting and determining business results in Viet Thanh trading technology and construction joint stock company 4.2: Research scope - Focusing on the actual accounting for revenue, expenses and business results in terms of financial accounting at Viet Thanh trading technology and construction joint stock company - Regarding specific address: research is performed in accounting department in Viet Thanh trading technology and construction joint stock company - Regarding time: studying theoretical issues and surveying actual situation in Viet Thanh trading technology and construction joint stock company Structure of the thesis The gratuation dissertation consists of chapters: Chapter 1: General theory of accounting for revenue, expenses and business results in enterprises 10 CONCLUSION OF CHAPTER 77 Chapter of the thesis has briefly reflected the characteristics and business situation of the company and focused on reflecting the actual situation of revenue, expenses accounting and determining the company's business results Through the actual situation of accounting department at Viet Thanh trading technology and construction joint stock company, readers can understand about the accounting system and system of accounts used of this company CHAPTER 3: SOLUTIONS TO IMPROVE ACCOUNTING FOR REVENUE, EXPENSES AND BUSINESS RESULTS AT VIET THANH 78 TRADING TECHNOLOGY AND CONSTRUCTION JOINT STOCK COMPANY 3.1 Development orientation of the company (Em xin phép bổ sung sau ạ) 3.2 Requirements for improving accounting for revenue, expenses and business results at Viet Thanh trading technology and construction joint stock company 3.2.1: Requirements for improving accounting for revenue, expenses and business results In the new economic management mechanism, to meet the requirements under the current conditions, perfecting the sales accounting and determining business results must ensure the following requirements: - Requirements on conformity: The policies and measures proposed by the enterprise must be consistent with the characteristics of the business activities as well as the financial capacity of the company - Requirements for accuracy and timeliness: + Accounting data must be accurately and timely reflected This reflection is essential and important for the authorities such as the tax authorities, banks and company management to provide specific directions and plans for the next business period + Data must ensure clarity, transparency and publicity This is a special concern of both businesses and partners contributing capital - Savings and efficiency requirements: Ensuring savings and effective practicality to achieve the best business results Any business has a desire to minimize costs and maximize profits for the company to thrive 79 - Requirements on unity: Ensuring to combine and implement new proposals consistently in terms of content and methods throughout the accounting apparatus throughout the company This requirement is not necessarily maintained throughout the operation of the enterprise, but the change needs to be reasonable and acceptable 3.2.2 Principles for perfecting the accounting of revenue, expenses and determining business results In the new economic management mechanism, in order to meet the requirements under the current conditions, perfecting the revenue, expenses accounting and determining business results must ensure the following requirements: - Requirements on conformity: The policies and measures proposed by the enterprise must be suitable with the characteristics of the business activities as well as the financial capacity of the enterprises - Requirements for accuracy and timeliness: + Accounting data must be accurately and timely reflected This reflection is essential and important for the authorities such as the tax authorities, banks and company management to provide specific directions and plans for the next business period + Data must ensure clarity, transparency and publicity This is a special concern of both businesses and partners contributing capital - Savings and efficiency requirements: Ensuring savings and effective practicality to achieve the best business results Any business has a desire to minimize costs and maximize profits for the company to thrive - Requirements on unity: 80 Ensuring to combine and implement new proposals consistently in terms of content and methods throughout the accounting apparatus throughout the company This requirement is not necessarily maintained throughout the operation of the enterprise, but the change needs to be reasonable and acceptable 3.3 Evaluation of accounting for revenue, expenses and business results at Viet Thanh trading technology and construction joint stock company 3.3.1 Achievements Over 12 year experience, especially after applying accounting software since the first year of operation, the accountant department has always met the demand of manager about accounting management There are some achievements as follows:  Firstly, about the document system at the company The company used relatively sufficient documents according to the regulations of the Ministry of Finance, So the accounting vouchers always have all necessary information and ensure the legality and validity This facilitate the recording working of the accounting books and is easy to check, inspect and verify the accounting vourchers The document rotation process is conducted in accordance with regulations, ensuring the strict control of business activities After being used, monthly vouchers are gathered in volumes and archived in the accounting department Besides , accountants also make a list and analyze the original documents at the end of each month for each set of documents, effectively contributing to the checking and comparison  Second, the method of calculating ex-warehouse price The company used the weighted average method which is a simple method and easy to accounting work  Third, about the account system 81 • Over the internship period, I evaluate the system of accounting department that is streamlined and suitable for small company like Viet Thanh trading technology and construction joint stock company All accountants are ridiculous, responsible and reliable people, so accounting work in this enterprise is conducted promptly and exactly • Fourth, about organizing and applying accounting books The company chooses the general journal entry form which is a simple form of accounting book and this kind form is suitable for the size of the enterprise Thanks to that, the accounting workload has been reduced, making the recording process of information quickly, accurately and easily tracked Since the first year of operation, the company has applied FAST software for bookkeeping process The use of technology in accounting helps to reduce the manual workload of accountants in Viet Thanh company Therefore, the provision of financial information is quicker to meet the demands in the light of rising workload In terms of software accounting, the organization of accounting in the form of a General Journal is quite suitable, promptly meeting the information needs of relevant departments The accounting book system is carried out on the machine, so information is stored closely, the data is less confusing than manual accounting, it is easy to check the data when necessary, there is agreement between accounting practices together 3.3.2 Limitations and effects of limitations There are some weekness point in revenue, expenses accounting and determining business results at Viet Thanh trading technology and construction joint stock company: Firstly, Viet Thanh company is trading in various types of items such as household applicances, construction 82 equipments, … And offering construction service, so consumption situation and the business results of each commodity group are different in each period But the company uses only account 632 to reflect the general cost of goods sold of all items sold without opening the detailed accounts to track each product Therefore, cost of business operations in all the period are relatively same and not separate tracking results from trading of different items Effect of limitation: provide insuffient and detailed data about consumption situation and business activities of each group of goods This cause some difficulties for manager to track selling situation of the company The company will not know which product groups have good consumption situation, and stimultaneously not know which products are difficult to sell In addition, the company will not be able to determine the business results of each commodity group in the period when there are losses, items of interest If not separate the results of each item, business result of each item will compensate for each other, so this lead to an incorrect assessment of business results in the period Secondly, the company has not implemented payment discount policies for customers who pay ahead of time to encourage early payment and recover debts effectively or who buy in bulk to attract potential customers for the company Effects of limitations: discouraging customers to pay early an, so customers will tend to pay on the due date to get maximum benefit in capital appropriation, even late payment This situation raise the risk of increasing bad debts and have adverse impacts on the company's capital In addition, not implemented payment discount policies for customers will lose some kinds of clients who buy in bulk, and this limit the opportunities to develop and enhance productivity Thirst , limitation about accounting software 83 The application of software to the accounting work brings a lot of utilities, but the application process of this software still has some limitations The accounting software of company has not been updated into the newest version Effects of limitations: This leads to occasional errors in comparing data with the publisher or the customer Fourth, limitation about invoice Viet Thanh company is using the paper invoice for selling activities and offering service while the government allow to use e-invoice Effects of limitations: this invoice form lead to some difficulties for customer as well as accounting department in the process of issusing VAT invoice because writing invoice by hand comsume a lot of time and is easy to make some mistakes about information 3.3.3: The cause of the weakness + The accountants are not really professional, highly specialized, not really understand thoroughly about the company's products, so they have not divided the different items clearly + The company lacks personnel in promoting goods to consumers + The company has not developed an effective sales policy and marketing plan for its products, as not known how to apply social media advertising tools + The company lacks a professional accountant, the work of the accountant is sometimes not clear, the assignment is not scientific 3.4 Solutions to improve accounting for revenue, expenses and business results at Viet Thanh trading technology and construction joint stock company 84 Base on the current situation of Viet Thanh company, i would like to propose some measures to handle the remaining limitations in the accounting of revenue, expenses and determining business results There are some solutions as follows: 3.4.1: Open detailed accounts, detailed books to manage accounting for cost of goods sold The company should open detailed accounts, open detailed books to monitor cost of goods sold for each group of goods to grasp the consumption situation as well as business results of each group of goods For example: Open a detailed account of the cost of goods sold for each group of goods as follows: Acc 6321: Cost of construction equiments,… Acc 6322: Cost of household applicants,… 3.4.2: Implementing payment discount policies : The company should consider to apply properly the payment discount policy to encourage customers to quickly liquidate and recover capital soon and attract new potential customers who buy in bulk On the other word, companies need to consider offering an appropriate discount rate when encouraging quick payment For example, the company may offer certain number of intervals and correspond to its discount rates The company needs to offer flexible payment discounts because the company now has to borrow bank loans and pay interest to maintain its business Developing payment discount rates based on the following factors: - Bank loan interest rate - The amount of interest the company must pay to the bank monthly - The solvency of customers with stable sales 85 - Payment term - Expenses for managing bad debts Based on the above parameters to set the appropriate discounts, ensure that the discount for customers at least compensates for the reduction in bank loan interest, reducing the cost of managing bad debts For overdue debt customers, the company should calculate interest rates accordingly (possibly by bank loan overdue interest rates) Beside, the Viet Thanh company also consider and calculate carefully the discount rate to maximize the profits of the company and enhance the competitiveness of the business compared to competitors This solution can help the company to rise the number of business contract and expand business scale in the future 3.4.3: Enhancing the FAST software system Company need to update accounting software ( FAST software) into newest version to have a better and faster accounting tool This solution aim to strengthen the management ability of BOD and accounting apparatus Applying high-tech software can enhance the working efficiency of the accounting department, this can bring a lot of benefits for the company in the future 3.4.4: Using e-voice in selling activities and offering service activities The company should use e-invoices to ease the work for accountants, especially in issusing VAT invoice for customers Using e-invoices will help company save more time and costs than using paper invoices To use paper invoices, businesses may need up to a week to register the invoice usage form, wait for the printing factory However, with the type of invoice, all procedures will be shortened In the comtemporary time, there are a lot of other business which decided to 86 use e-invoice proving the benefits of this kind of invoice form, so i think Viet Thanh company should change timely to intergrate with new technology 3.5 Conditions for implementing solutions In order to complete the sales accounting and determine the business results at Viet Thanh trading technology and construction joint stock company, it is necessary to have some measures for the remaining limitations In order to gain success in implementing such effective solutions, enterprises need to meet fully the following conditions: Firstly, the accounting staffs not only need to comprehend profoundly about Accounting Standards, Accounting Regimes and legal documents but also need to spend their time to update daily information about market news, new economic policies of the state and new implementing documents to be able to cover more broadly the field which she/he is doing This can help them to have better responding competence to new events and operations On the basis, applying new policies properly and appropriately to the corporate accounting Secondly, the Directors needs to strengthen the direction, check and supervise closely the work of accountants, avoiding mistakes or inconsistencies with the business of the enterprise Thirdly, disseminate to all members of the enterprise to be albe to well aware of the important role in sales as well as accounting of sales operations On that basis, everyone will try their best to facilitate sales accounting throughout the enterprise Fourth, the company need to create a comfortable working environment to avoid stress for employees so that employees can complete the assigned tasks in the most effective way 87 CONCLUSION OF CHAPTER To ensure sales accounting content and determine business results, the thesis has given the requirements to orient specific content based on the assessment of revenue, expenses accounting and determine business results, based on the advantages and disadvantages to limit and promote the company Thesis researched and gave solutions to perfect sales accounting at the company 88 CONCLUSION In a market economy, competition is inevitable, so businesses that want to survive and thrive need to know how to promote their internal potentials as well as maximize the opportunities in the field, business lines bring One of the tools that help administrators to fully exploit all potentials of the enterprise is accounting work, especially revenue, expenses accounting and business results determination Because through accounting work, administrators can accurately and fastest capture information about the business situation of the enterprise, thereby making appropriate decisions with the actual situation All the content from theory to practice mentioned in this dissertation has proved the meaning and extremely important role of the work in general and the revenue, expenses accounting and the determination of business results business in particular As an accounting internship at the company operating in the field of sales, between the knowledge learned and through practical research, I would like to propose some personal opinions to contribute to improve accounting work about revenue, expenses and determines business results at the Company Through the practical internship at, with the enthusiastic help of the accounting sisters and especially the enthusiastic guidance of the instructor - Ph.D Dinh Thi Thu Ha helped me complete her thesis with the topic: "Sales accounting and determining business results" The thesis has raised the following issues: - Thesis systematized general theoretical issues about sales accounting organization and determination of business results in commercial enterprises Through an internship at Vietnam Megaway international trading services joint stock company, the thesis presented the real situation of sales accounting and determination of business results at the company Since then, given the 89 advantages and limitations in sales accounting and determining business results at the company - On the basis of existence, the thesis has given a number of recommendations to improve the sales accounting and determine the business results of Viet Thanh trading technology and construction joint stock company Although I have tried my best, but due to the short internship period and not much research experience, the thesis certainly cannot avoid certain shortcomings So I hope to receive the comments of teachers and all staff of Viet Thanh trading technology and construction joint stock company Once again, in my heart, I would like to say a deep thank you to the teacher – Mentor Nguyen Ba Linh and all the accounting staff of Viet Thanh trading technology and construction joint stock company helped me complete this thesis Thank you sincerely! 90 REFERENCES Financial Accounting textbook - Academy of Finance - Financial Publisher Lead author: GS.TS.NGND Ngo The Chi PGS.TS Truong Thi Thuy Textbook of organization of accounting in enterprises - Academy of Finance - Financial Publisher Lead author: TS Luu Duc Tuyen TS Ngo Thi Thu Hong Textbook of Corporate Finance Analysis - Academy of Finance - Financial Publisher Lead author: GS.TS.NGND Ngo The Chi PGS.TS Nguyen Trong Co System of Vietnamese accounting standards, circulars (TT 120/2003, TT 53/2006 ), Decisions (Decision 15/2006 / QD-BTC ) of the Ministry of Finance Vietnamese Accounting Regime Legal documents: Corporate law, Labor Law, Circulars and Decrees Other supporting documents 91 ... REVENUE, EXPENSES AND DETERMINE BUSINESS RESULTS AT VIET THANH TRADING TECHNOLOGY AND CONSTRUCTION JOINT STOCK COMPANY 2. 1 Overview of Viet Thanh trading technology and construction joint stock company. .. for revenue, expenses and determine business results at Viet Thanh trading technology and construction joint stock company Chapter 3: Solutions to improve accounting for revenue, expenses and business. ..DECLARATION I would like to assure that the graduation dissertation " Accounting for revenue, expenses and determining business results at Viet Thanh trading technology and construction joint stock