286. ACCOUNTING FOR SALARY AND SALARY COMPENSATIONS

ACADEMY OF FINANCE BUSINESS ACCOUNTING STUDENT: LE CHUNG KHANH LINH CQ54/21.04 GRADUATION THESIS TOPIC: ACCOUNTING FOR SALARY AND SALARY COMPENSATIONS AT NHAT MINH BUSINESS MANAGEMENT CONSULTANT LIMITED COMPANY Faculty : Accounting Faculty Major : Business Accounting Major code : 21 Instructor : Ms Nguyễn Thị Hồng Vân Ha Noi - 2020 Graduation thesis Academy Of Finance MY PLEDGE I assure you that this is my research The data, the result and the research results stated in the thesis are honest and come from the real situation fact of the internship unit and has never been used in any thesis Student Lê Chung Khánh Linh Student: Le Chung Khanh Linh i CQ54/21.04 Graduation thesis Academy Of Finance TABLE OF CONTENTS MY PLEDGE i TABLE OF CONTENTS ii LIST OF ABBREVIATIONS .viii THE LIST OF TABLES ix THE LIST OF DIAGRAMS x THE LIST OF PICTURES .xi INTRODUCTION CHAPTER 1: GENERAL THEOPRY OF ACCOUNTING FOR SALARY AND SALARY COMPENSATIONS IN BUSINESS 1.1 Overview of salary and salary compensation 1.1.1 Labor concept, salary and salary compensation .5 1.2.2 The form of salary compensation 13 Benefit allowance monthly unemployment = Average salary of consecutive months have paid UI before unemployment x 60% 18 1.3 Accounting of salary and salary compensation .18 1.4 Salary accounting and salary compensation 22 1.4.1 Vouchers used in accounting for salary and salary compensation .22 1.4.2 Accounts used in salary accounting and salary compensation .23 1.5 Accounting book used in salary accounting and salary compensation 26 1.6 Information about salary accounting and salary compensation 30 1.6 In the balance sheet 30 1.6.2 In the income statement 31 1.6.3 In the cash flow statement 31 1.6.4 On the notes to the financial statements .31 CHAPTER 2: ACCOUNTING FOR SALARY AND SALARY COMPENSATION AT NHAT MINH BUSINESS MANAGEMENT CONSULTANT LIMITED COMPANY .32 2.1 General information about Nhat Minh Business Management Consultant Limited Liability Company 32 Student: Le Chung Khanh Linh ii CQ54/21.04 Graduation thesis Academy Of Finance 2.1.1 The information of internship company : .32 2.1.2 Internship company’s basic features and operating activities: .32 2.2 Company structure 34 2.2.1 Function of each department: 35 2.2.2 Organizational characteristics of the accounting apparatus at Nhat Minh business management consultant co., ltd 39 2.2.3 Form of accounting applied at the company .42 2.2.4 Organizing the accounting reporting system: .45 2.3 Actual salary accounting and salary compensation at NHAT MINH BUSINESS MANAGEMENT CONSULTANT CO .46 2.3.1 Characteristics of salary, salary compensation at NHAT MINH BUSINESS MANAGEMENT CONSULTANT CO .46 2.3.2 Salary accounting at Nhat Minh Business Management Consultant Limited Liability Company 50 2.3.3 Calculate salary and payables for employees 52 2.3.4 Accounting of salaries and salary compensations .66 2.4 Review the status of salary accounting and salary compensations at Nhat Minh Business Management Consultant Limited Liability Company 83 CHAPTER 3: SOLUTIONS OF ACCOUNTING WORK STATE AT NHAT MINH BUSINESS MANAGEMENT CONSULTANT LTD.CO 87 3.1 The need to improve salary accounting in the company 87 3.2 Requirements and principles of finalizing eel accounting at the company 89 3.2.1 Requirements of completing salary accounting and compensations Salary at Nhat Minh Business Management Consultant Limited Liability Company .89 3.2.2 Principle of finalizing salary and salary compensations at Nhat Minh Business Management Consultant Limited Liability Company 91 Student: Le Chung Khanh Linh iii CQ54/21.04 Graduation thesis Academy Of Finance 3.3 Some ideas to improve the organization of salary accounting in the company 91 3.4 Conditions for implementing salary accounting finishing solutions at the company 93 Student: Le Chung Khanh Linh iv CQ54/21.04 Graduation thesis Academy Of Finance LIST OF ABBREVIATIONS STT Explanation Acronym Financial statements FS BS P&L UI 9 10 SI HI BD OD FM PAT PBT Acc Note Balance sheet or statement of financial position Profit and loss statement Unemployment insurance Social insurance Health Insurance Business Department Office Department The finance ministry Profit after tax Profit before tax Account THE LIST OF TABLES Table 2.1: Timesheets in May of 2019 (excerpts) 51 Table 2.2: General salary sales in May of 2019 (excerpt) .54 Tabe 2.3: Voucher for enjoying social insurance benefits .61 Student: Le Chung Khanh Linh v CQ54/21.04 Graduation thesis Academy Of Finance Tabe 2.4: Payment voucher of social insurance benefits .62 Table 2.5: Payment schedule of social insurance 63 Table 2.6: Salary and social insurance payment table in May of 2019 at Nhat Minh Business Management Consultant Limited Liability Company 64 Table 2.7: Summary of salary compensations in May 2019 65 Table 2.8: Salary accounting information on financial statements .83 Student: Le Chung Khanh Linh vi CQ54/21.04 Graduation thesis Academy Of Finance THE LIST OF DIAGRAMS Diagram 1: Accounting for payroll .25 Diagram 2: Accounting for payroll related compensation 25 Diagram 3: Diagram showing salary accounting and salary compensations in the form of general diary: 26 Diagram 4: Diagram showing salary accounting and salary compensation recorded ledger in the form of ledger diary 27 Diagram 5: Diagram showing salary accounting and salary compensations in the form of bookkeeping vouchers 28 Diagram 6: Diagram showing salary accounting and salary compensations in the form of Journal – Document 29 Diagram 7: Diagram showing salary accounting and salary compensations in the form of machine accounting 30 Diagram 8: The structure of accounting sysytem 37 Diagram 9: Organization chart of bookkeeping system: .44 Student: Le Chung Khanh Linh vii CQ54/21.04 Graduation thesis Academy Of Finance THE LIST OF PICTURES Figure 2: Interface for importing other business documents 67 Figure 3: List of accounts 68 Figure 4: Account list 642 .70 Figure 5: Interface for importing other business documents 71 Figure 6: Interface for selecting working time 72 Figure 7: Salary accounting for employees in May 2019 .73 Figure 8: Interface for accounting of account payables 75 Figure 9: Payroll accounting for employees 77 Figure 10: Accounting of payment of reduction insurance 78 Figure 11: Interface for performing an ledger view of an account 79 Student: Le Chung Khanh Linh viii CQ54/21.04 Graduation thesis Academy Of Finance INTRODUCTION Urgency of the subject In our country the appearance of a market economy has created opportunities for many companies However, it also forces companies to want to develop stably in the market In order to manage production and business, it is necessary to make maximum efforts In this new trend, companies must mobilize on their own, must operate on their own production and business on the principle of revenue and expenditure and profitable business but not subsidies of the State as before From there, the top target of the company is increasing profits within the prescribed legal framework In the production process, three factors cannot be shortage is living labor, private production materials and labor subjects In three factors, living labour plays the most important role Because without workers it is impossible make material wealth, want a product whether it's a physical product or a production intellectual property is in addition to the cost of materials, the cost of fixed assets The company must also take into account labor costs (living costs) Expenses this fee is not small in the price of the product, it is also directly determined quality products Because the employee is the one who directly decides to the quality of the company's products, which the company operates effectively whether or not there is competition in the market or not, it needs to be created the products are of good quality For employees, salaries have an extremely important meaning because it is the main source of income to help them ensure their own life and family Therefore salaries are the driving force for employees to pay attention labor time, labor productivity if they are paid according to the labor force they Student: Le Chung Khanh Linh CQ54/21.04 Graduation thesis Academy Of Finance The next drawback is that in Nhat Minh Business Management Consultant Limited Liability Company, the case of salary and salary ranks combined with working time for jobs that not require high technology Therefore, leading to the loss of labor which means that the salary paid to the employees, does not reflect the nature and extent of work that the employees spend to ensure saving labor costs, increasing production and business efficiency and spending The salary is paid according to the intellectual position and strength of the laborers, in addition to the organization of labor and organization Service, strengthening, inspecting and controlling the Company should apply the salary method according to the working time in combination with the score First of all, it is bonus regime Bonuses mean a lot to workers If using appropriate remuneration, it will be an effective tool to help the Company encourage employees to develop their full potential and be creative in their work, increasing the efficiency of production business At the Company, the bonus has not been fully exploited There are two forms of bonus: regular and periodic bonuses, but the Company only regular bonuses should not be used for regular rewards - Number 4: Vouchers and books for accounting At the end of each month, the accountant prepares a salary distribution table and social insurance But on that table, the accountant only records column "minus social insurance" and the total column So looking at the table will not know salaries, allowances, the other expenses, trade union fees, social insurance, and health insurance in the quarter much This makes it difficult to check and compare data and the calculation and distribution of these amounts for related users will be very complicated and inconvenient Student: Le Chung Khanh Linh 89 CQ54/21.04 Graduation thesis Academy Of Finance CHAPTER 3: SOLUTIONS OF ACCOUNTING WORK STATE AT NHAT MINH BUSINESS MANAGEMENT CONSULTANT LTD.CO In the current growing economic situation, the development of accounting, especially accounting of salary and salary compensations are not only salary, bonuses but also salary allowances, but also the rights of employees, which is a condition for them to feel secure in their work So I would like to have some comments and suggestions to further improve this work of the company 3.1 The need to improve salary accounting in the company Salary is a very important and complex economic category, it has an interaction with the factors: economy, politics - society of each country in each period In the process of transition from subsidy mechanism to business autonomy, enterprises shall conduct accounting by themselves, get revenues and expenditures and must ensure profits and the State does not compensate for losses The purpose of salary accounting is to ensure salaries for employees, creating material and spiritual interest in the results of their labor In order to this, businesses must always improve salaries, because any form of salaries has certain limitations and these limitations are only revealed after the implementation time so it depends on the type of business, the business characteristics that result in the application of appropriate salaries The ultimate goal of salaries is to accurately reflect the results of labor and outcomes business results, ensuring fairness and ensuring the growth rate of salaries Student: Le Chung Khanh Linh 90 CQ54/21.04 Graduation thesis Academy Of Finance However, in order to meet these requirements, the first step in determining salary fund must be scientific Distributing reasonable salary fund is hard work, between managerial labor and direct labor, among employees in the same department , each individual will ensure fairness and encourage workers The use of salaries requires flexibility, how not to violate the law with high efficiency On the other hand, a method, a form of compensation is only suitable for a certain object So the methods need that it is applied scientifically and accurately, but it also needs to be flexible and with appropriate adjustments depending on each condition to increase business efficiency, thus contributing to saving salaries and reducing product costs Salary and salary compensations are one of the major and fairly large expenditures in many businesses related to business costs and as the price of the product Therefore, the completion of it brings efficiency to business production Labor is the most important factor in the production and business process along with other factors to create products and services for the market Currently, the main goal of businesses is to seek profit, the specific issue that businesses are concerned about is how to lower production costs, reduce salary costs is one of the three factors to lower cost product Salary paid by enterprises to employees is based on the law of supply and demand, the price of labor market and the current laws of the State So businesses cannot keep paying low salaries for employee is okay Labor market is a complex labor market, requiring people, the manager must know how to choose the reasonable salary for employees to ensure good production process Salary is a major source of income to ensure stability and improve the lives of workers Student: Le Chung Khanh Linh 91 CQ54/21.04 Graduation thesis Academy Of Finance For employees, salaries are the main motive for them to decide to work for businesses Salary is the main economic benefit of workers The higher the needs of life, the more economic benefits of money The larger the salary, the more the workers decide to work for the business, and at the same time determine their benefits But it is not nominal salaries but real salaries As we know in any labor contract, even though initially the agreed salary is the nominal salary, the employee also calculates his actual salary If there is a price collapse, the employee and the employer must negotiate to get a reasonable realistic salary Because of the salaries the employee receives to buy birth materials activities, essential services for their daily life and their families Salary is a means for employees to ensure their daily necessities and, above all, spiritual needs And anyone desires to pay a high or at least satisfactory salary to the labor they spend Salary workers who are perceived to be satisfactory will be the motivation to stimulate their creativity to create a community of workers with the goals and profits of the business The opposite is true if the employer pays no rational or purely for-profit purposes does not pay attention to people's interests labor force, that human resource will be exhausted, reduce quality, limit the motivation for labor supply 3.2 Requirements and principles of finalizing eel accounting at the company 3.2.1 Requirements of completing salary accounting and compensations Salary at Nhat Minh Business Management Consultant Limited Liability Company Student: Le Chung Khanh Linh 92 CQ54/21.04 Graduation thesis Academy Of Finance The completion of the salary scheme requires the following basic requirements: - Comment 1: Completion must conform to economic and financial policies, current accounting regime and taking into account future development directions The accounting staff of the enterprise must be highly qualified, knowledgeable about laws, financial management mechanisms on jobs, accounting practice, especially salary and salary compensations It is necessary to complete the initial accounting stage for the purpose of checking the legality and legality of vouchers At the same time, finishing measures must follow the general principles and rules of accounting standards issued by the Ministry of Finance, uniformly applied throughout the country and industry-wide - Comment 2: Salary accounting must ensure efficiency, savings, and income for employees, while ensuring cost savings for enterprise Every business when entering into production and business activities all must consider the number of labor, the quality of labor because the human resources of the enterprise are limited, if not effectively used karma will be in trouble On the other hand, the competitive environment is increasingly demanding ask businesses to constantly improve the efficiency and economy - Comment 3: The completion must be suitable to the characteristics of production and business and management requirements of the business Based on the characteristics of production and business and technological processes of construction and accounting enterprises appropriately apply the account system, based on the accounting account system, the State accounting rules, scale of characteristics of the construction process, management requirements to select the appropriate accounting form Student: Le Chung Khanh Linh 93 CQ54/21.04 Graduation thesis Academy Of Finance - Comment 4: Completion must ensure the feasibility and effectiveness Therefore, when applied in practice, these additions must be implemented, not causing much disturbance in the general accounting system, as well as production cost accounting, business and costing of construction products Must be compatible with the way of thinking and is accepted by everyone 3.2.2 Principle of finalizing salary and salary compensations at Nhat Minh Business Management Consultant Limited Liability Company Completing the accounting of salary and salary compensations must comply with the provisions of the labor code, salary policies and regimes promulgated by the State Completing the accounting of salaries must ensure proper implementation of the accounting regime current and does not break the uniformity of accounting regime 3.3 Some ideas to improve the organization of salary accounting in the company First of all, improve the company's apparatus, improve accounting efficiency, calculate salary costs at Nhat Minh Business Management Consultant Limited Liability Company From my perspective, improve the management apparatus at the company, most from the company to the parts In addition, enhancing the professional qualifications of each accountant, accounting software, to improve the accounting capacity of the accountants, and improve the accounting skills on the accounting software, helping the apparatus corporate accounting, homogeneous, compact, effective cost Moreover, the accountants should agree on the part of work they will perform show, avoid duplication, or omit business Improve the foreign language skills and informatics skills for each accountant, so that accountants can have easier access to international accounting policies and regimes, and give suitable Student: Le Chung Khanh Linh 94 CQ54/21.04 Graduation thesis Academy Of Finance advice to manage enterprise The next comment may give to solve is that completing policies and regulations on labor, salary, improving the efficiency of salary accounting Because the company's timekeeping system is still manual, businesses can consider automatic timekeeping to minimize time spent on accounting, and help accountants calculate the correct labor for each worker Additionally, the company may consider to arrange more accounting staff, especially accountants at the construction teams, when the company has a work item to be constructed to capture accounting transactions at the same time Ensure correct on time Therefore, the accounting of the Company can only ensure quality And then, set up a reward system (in kind, money or a certificate of merit) for the children of officials and employees with high academic achievements Since then, students who have high achievements in all grades and after completing vocational training will graduate from the company arrange suitable jobs to feel secure for employees in the company, shown the interest of the company Accounting in company needs to make a detailed table of payment of social insurance, health insurance and unemployment insurance, Union Funds for easy tracking, avoid confusion, for departments I would like to mentioned that salary accountant at Nhat Minh Business Management Consultant Limited Liability Company should open more detailed accounts for salary and salary compensation From my side, it is an optimal method to control the payables and receivable of workers which is useful and convenient in comparing among individual and among department at the same time or at the same volume Moreover, with this way it is very effect to review the upgrade of productivity and performance in all the company in the background researching Student: Le Chung Khanh Linh 95 CQ54/21.04 Graduation thesis Academy Of Finance The next one, salary expense should allocate for administration expense and sale expense obviously I think for management salary expense can accounted in account 154 I mean with this accounting, manager department and accounting department in Nhat Minh Company can control the expense of each contract and adjust reasonably Furthermore, it can be one of the optimal ways for them to minimize expense and maximize profit Last but not least, this present, in Nhat Minh Business Management Consultant Limited Liability Company, accounting software is offline – MISA.NET It is more flexible for accountant to use online version With many applicable uses, accountant can work everywhere and every time to increase their productivity and their performance Many accounting reports upgraded is an advantage to accounting system, especially salary accounting system to boost their accuracy and their security To save time for salary calculation every month, Nhat Minh Company should ask for design the salary module which is for their specialities With this suggestion, salary accountant can solve better and more effective and even more accuracy 3.4 Conditions for implementing salary accounting finishing solutions at the company On the Company's side, to be well - implemented the complete solutions on the Company, it is necessary to monitor the changes of legal documents on accounting to make appropriate changes more active in getting out decision Organizing the training and recruitment of good personnel, consider the possibility exam and try some of the solutions mentioned above Should invest more in better technical facilities for the accounting department to apply the Accounting software into the accounting work more effectively Student: Le Chung Khanh Linh 96 CQ54/21.04 Graduation thesis Academy Of Finance From the State side: The State must base on the legal documents to decide and guide the implementation of economic organizations First of all the system of legal regulations, the system of documents must be drafted and issued in a uniform, timely, simple, understandable manner and especially in accordance with actual conditions of enterprises At present, enterprises can follow the guidance of the Government In addition, businesses also expect the assistance from the State to enable businesses to be assured of their business operations and implement the State's regulations in presenting financial information The State should create equality and equality among businesses in implementing the policies that they have issued Besides, it is necessary to create a clear policy for businesses to fulfill their obligations to the State In parallel with that, the State must also have a policy of strict inspection and management of those subjects Student: Le Chung Khanh Linh 97 CQ54/21.04 Graduation thesis Academy Of Finance CONCLUSION After an internship at NHAT MINH BUSINESS MANAGEMENT CONSULTANT LTD.CO, which was studied and found out the actual accounting work at the Company, I got an overview of the organization status an accounting system of a company, the jobs and operations that need to be done by an accountant to better understand the theory learned while still in school and apply it in practice how Through that, it is also found that the completion of accounting is especially important, because in the market economy conditions, accounting is a management tool to help the company achieve economic efficiency It is essential for a good accounting system to work in any condition that is the qualification of accountants, in addition to the ability to flexibly apply accounting regulations to special requirements enemy of the unit, contributing to improving the quality of accounting I generalized the business situation of the Company as well as understood the organizational structure and accounting method of the Company The internship report I tried but due to the unavoidable limited experience, I hope to receive the comments of the teachers and officials of the Company I sincerely thank MSc Nguyễn Thị Hồng Vân and colleges in the Finance and Accounting Department of NHAT MINH BUSINESS MANAGEMENT CONSULTANT LTD.CO helped me Thank you sincerely! Student Lê Chung Khánh Linh Student: Le Chung Khanh Linh 98 CQ54/21.04 Graduation thesis Academy Of Finance REFERENCES Assoc Prof People’s Teacher Ngo The Chi, PhD Ngo Thi Thuy (2010) "Textbook of Financial Accounting", Finance Publishing Editor Assoc Prof People’s Teacher Ngo The Chi, Assoc.Prof.Dr Truong Thi Thuy (2015), "Curriculum of Accounting for commercial enterprises - services", Finance Publishing Editor Assoc Prof Doan Xuan Tien (2014), "Textbook of Accounting Principles", Finance Publishing Editor Ministry of Finance (2011) Vietnam Accounting Standards system, Labor Publishing Editor Ministry of Finance (2006) "Decision 48/2006 / QD-BTC" Ministry of Finance (2014) Circular 200/2014 TT-BTC Documents of Nhat Minh Business Management Consultant Limited Company Relevant accounting websites Final thesis of the previous courses with some circulars of the Ministry of Finance Student: Le Chung Khanh Linh 99 CQ54/21.04 Graduation thesis Academy Of Finance NHẬN XÉT CỦA ĐƠN VỊ THỰC TẬP Họ tên người nhận xét:……………………………………………… Chức vụ:…………………………………………………………………… Nhận xét trình thực tập tốt nghiệp Sinh viên :……………………… Khóa CQ54; Lớp CQ54/………… Nội dung nhận xét: Về tinh thần thái độ thực tập sinh viên ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… Về ý thức kỷ luật, tuân thủ quy định đơn vị thực tập ………………………………………………………………………… ………………………………………………………………………………… ……… ………………………………………………………………………………… Về kỹ giao tiếp, kỹ mềm ………………………………………………………………………… …… ……………………………………………………………………………… ………………………………………………………………………………… Về kiến thức chuyên môn …………………………………………………………………………… … ……………………………………………………………………………… ………………………………………………………………………………… Ngày… Tháng … Năm…… Người nhận xét Student: Le Chung Khanh Linh 100 CQ54/21.04 Graduation thesis Academy Of Finance (Kí ghi rõ họ tên) NHẬN XÉT CỦA NGƯỜI HƯỚNG DẪN KHOA HỌC Họ tên người hướng dẫn khoa học: ………………………… Nhận xét trình thực tập tốt nghiệp Sinh viên ……………… Khóa CQ54; Lớp CQ54/………… Đề tài: “………………………………………………….” Nội dung nhận xét: Về tinh thần thái độ thực tập sinh viên ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… Về chất lượng nội dung luận văn ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… Hà Nội, ngày… tháng……năm 2020 Điểm: + Bằng số: …………… + Bằng chữ: …… Người nhận xét (ký tên) Student: Le Chung Khanh Linh 101 CQ54/21.04 Graduation thesis Academy Of Finance Phục lục số 3: NHẬN XÉT CỦA NGƯỜI PHẢN BIỆN Họ tên người phản biện: ……………………………………………… Nhận xét trình thực tập tốt nghiệp Sinh viên………………………; Khóa CQ54; Lớp CQ54/……………… Đề tài: “…………………………………………………………” Nội dung nhận xét: ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… Điểm: + Bằng số:……………… + Bằng chữ: …………… Người nhận xét (Ký ghi rõ họ tên) Student: Le Chung Khanh Linh 102 CQ54/21.04 Graduation thesis Student: Le Chung Khanh Linh Academy Of Finance 103 CQ54/21.04 ... OF ACCOUNTING FOR SALARY AND SALARY COMPENSATIONS IN BUSINESS 1.1 Overview of salary and salary compensation 1.1.1 Labor concept, salary and salary compensation .5 1.2.2 The form... .18 1.4 Salary accounting and salary compensation 22 1.4.1 Vouchers used in accounting for salary and salary compensation .22 1.4.2 Accounts used in salary accounting and salary compensation... showing salary accounting and salary compensations in the form of Journal – Document 29 Diagram 7: Diagram showing salary accounting and salary compensations in the form of machine accounting