ACKNOWLEDGEMENT I would like to express my deep gratitude to all those who have given me the possibility to complete this graduation thesis In preparing this graduation thesis, I have had generous help and advice from my teachers, my colleagues, my family and my friends I would like to express my great thanks to all of them First of all, I would like to express my deepest gratitude to my supervisor, Nguyen Thi Thanh Thanh , lecturer of Academy of Finance, for all her experienced guidance, valuab.
ACKNOWLEDGEMENT I would like to express my deep gratitude to all those who have given me the possibility to complete this graduation thesis In preparing this graduation thesis, I have had generous help and advice from my teachers, my colleagues, my family and my friends I would like to express my great thanks to all of them First of all, I would like to express my deepest gratitude to my supervisor, Nguyen Thi Thanh Thanh , lecturer of Academy of Finance, for all her experienced guidance, valuable suggestions and advice throughout this thesis Second, I wish to show my sincere thanks to all my teachers at Academy of Finance, who have provide me with worthy lessons throughout years of study Moreover, I have furthermore to thank the staffs at Thien SonConstruction and Trading Company for their valuable supports during the internship period Finally, I am thankful to my family who constantly gave me support and encouragement during the time my study was carried out ABSTRACT This study investigated the factual state of Sales Accounting and Determining Business Results at Thien Son Construction and Trading Company from the viewpoint of a fourth year student of Faculty of Foreign Language, Academy of Finance The paper aims at finding out the drawbacks in the company”s sales accounting and determining business results, and the reasons, and more importantly suggesting main methods to improve the efficiency of accounting management and determining business results in the company In achieving these aims, the graduation paper surveys the current situation of sales accounting and determining business results and assess that whether it is effective or not From received results, the study argues the most practical implications at Thien Son Construction and Trading Company to improve the efficiency of sales accounting and determining business results of the company in the year to come TABLE OF CONTENTS DECLARATION ii ACKNOWLEDGEMENT iv TABLE OF CONTENTS .v TABLE FLOWCHART viii INTRODUCTION .1 CHAPTER 1: BASIC THEORIES ABOUT SALES ACCOUNTING AND DETERMINING BUSINESS RESULTS 1.1 Scientific basis of sales accounting and determination of the business result 1.1.1 General issues of sales and determining business results 1.1.2 Sales accounting content .5 1.1.3 Sales accounting 1.1.4 Trade discounts 11 1.1.5 Cost of sales accounting 13 1.1.6 Accounting of financial revenues and expenses 17 1.1.7 Accounting of selling and administrative expenses 20 1.1.8 Accounting of other income and expenses .25 1.1.9 Corporate income tax expense accounting .29 1.1.10 Accounting identified business results 32 1.2 Document review of sales accounting and determining business results in the business 35 1.2.1 Studies related to sales accounting and sales determination 35 1.2.2 Demand for further research of sales accounting topics and determining business results 36 CHAPTER 2: THE STUDY OF SALES ACCOUNTING AND BUSINESS RESULTS AT THIEN SON CONSTRUCTION AND TRADING COMPANY 37 2.1 Overview of Thien Son Trade and Constroction Joinstock Company 37 2.1.1 The formation process and development of the company 37 2.1.2 Functions and duties of the company .39 2.1.3 The corporate management organization 40 2.1.4 Characteristics of accounting department 41 2.1.5 Accounting bookkeeping applied at the company 42 2.2 Actual situation of sales accounting and determination of business results at Thien Son Construction and Trading Joint Stock Company 44 2.2.1 Methods of sale and payment at the enterprise 44 2.2.2 Sales and service provision accounting 45 2.2.3 Accounting for sales deductions 58 2.2.4 Cost of sales accounting 58 2.2.5 Selling expenses .65 2.2.6 Business administration expenses .68 2.2.7 Accounting financial activities revenue 70 2.2.8 Financial contract cost accounting 78 2.2.9 Other income accounting 84 2.2.10 Other costs 86 CHAPTER 3: COMMENTS AND SUGGESTIONS TO IMPROVE SALES ACCOUNTING AND DETERMINE BUSINESS RESULTS AT THIEN SON TRADE AND CONSTRUCTION JOINSTOCK COMPANY 89 3.1 Evaluate current sales accounting and determine business results at Thien Son Trade and Construction Joinstock Company 89 3.1.1 General assessment of accounting work 89 3.1.2 Evalution of sales accounting and determination of business results at the company .90 3.2 Several solutions to improve sales and determine results 91 3.2.1 Apply information technology to sales .91 3.2.2 Assignment of work 92 3.2.3 Sales policy .92 3.2.4 Sales method .93 3.3 Development direction in the future 93 CONCLUSION……………………………………………………………… 96 TABLE FLOWCHART Flowchart 1.1 : Accounting entry for direct sales for company 11 Flowchart 1.2: Accounting for revenue deductions 13 Flowchart 1.3: Cost of goods sold at the inventory accounting enterprise 16 Flowchart 1.4: Accounting entry for financial income 18 Flowchart 1.5: Accounting entry for financial expenses 20 Flowchart 1.6 : Accounting entry for selling expenses 22 Flowchart 1.7: Accounting entry for administrative expenses 25 Flowchart 1.8: Accounting entry for other incomes 27 Flowchart 1.9: Accounting entry for other expenses 29 Flowchart 1.10: Accounting entry for income tax expense .32 Flowchart 1.11: Accounting entry for business result 35 Flowchart 2.1:Management apparatus .40 Flowchart 2.2: Organizational Chart of Accounting 41 Flowchart2.3:Accounting form 43 Flowchart 2.4 Sales accounting bookkeeping process .46 Flowchart : 2.5 Cost of goods sold accounting recording process .58 Flowchart 2.6: Accounting bookkeeping process of selling expensesd of the month 65 Flowchart 2.7: Enterprise management expense accounting recording process 69 Diagram 2.8: Accounting bookkeeping process of financial revenue .71 Flowchart 2.9: Accounting bookkeeping process of financial income 78 Flowhart 2.10: Other income bookkeeping process 84 Flowchart 2.11: Other expense bookkeeping process 87 INTRODUCTION Rationale of the study In the market economy, if an enterprise wants to survive and thrive, the quality of accounting information occupies a very important role in management with the function of systematically observing, recording daily business operations of economic that arise, reflecting the production, the business process, the organization of product and goods consumption by the enterprise Besides, accounting is also an important task of determining business results Information about business results is very important because, on that basis, managers know how effective the business production process is achieved and then make future development-oriented strategies In the current dynamic economic situation, the result of goods consumption is not only the implementation of sales transactions but also the result of the scientific and systematic recording of a set of economic services that arise to closely manage the sales process This has shown the extremely important role of accountants in organizing and managing sales activities To understand the importance of the accounting system in general and the accounting for determining business results in particular, I have chosen the topic: "Sales accounting and determining business results at Thien Son Construction and Trading Company ” to this graduation thesis with the desire to understand deeply about this accounting part and understand the reality of accounting work in the enterprise Thereby reinforcing the knowledge learned and complete well the essay Aims of the study - Synthesize and systematize general theoretical issues related to sales accounting and determine business results - Researching the actual situation of sales accounting and determining business results at Thien Son Construction and Trading Company - Evaluating the advantages and disadvantages of sales accounting and determine the business results of Thien Son Construction and Trading Company -Proposing solutions to perfecting the general accounting and sales accounting and determining business results at Thien Son Construction and Trading Company Methodology of the study - Collecting data from the balance sheet and the report of business results - Observing and conversational methods - Statistical methods - Research methodology, reference documents The scope of the study - In terms of space: the topic focuses on sales accounting research and the determination of product trading results at Thien Son Construction and Trading Company - Research period: internship from January 20, 2021, to May 20,2021 - Data source: The data is taken from 2018 – 2020 Organization of the study Besides the Contents, Introduction, Conclusion, and References, the thesis consists of chapters CHAPTER 1: Basic theories about sales accounting and determining business results CHAPTER 2: The real state of sales accounting and determining business results at Thien Son Construction and Trading Company CHAPTER 3:Comments and Suggestions to improve sales accounting and determine business results at Thien Son Construction and Trading Company CHAPTER 1: BASIC THEORIES ABOUT SALES ACCOUNTING AND DETERMINING BUSINESS RESULTS 1.1 Scientific basis of sales accounting and determination of the business result 1.1.1 General issues of sales and determining business results 1.1.1.1 Sales concept Selling is the process in which the seller transfers ownership of goods sold to a buyer to collect money or the right to collect money from the buyer Selling is the last stage of commercial activity, when the sale process takes place, the enterprise's capital changes from physical form to monetary form, the enterprise loses ownership of the goods but receives the rights possession of money, the right to collect money or possession of another commodity 1.1.1.2 The role of sales For the economy of producing goods, consuming products or selling goods is very important, it is seen on two aspects: the macro-level (that is, for the economy as a whole) and microscale (for enterprises) For businesses, selling plays an extremely important role in deciding the existence and development of the business When the product of the business is consumed that is accepted by the consumer, the consumer is then willing to pay for his choice The consumption of products shows the reputation of the business, the quality of demand adaptation, the perfection of services, which is the basis for evaluating the organization's ability to manage the efficiency of production and business of the business Across the entire economy, sales have a special role, both as a condition for social reproduction and as a bridge between producers and consumers, reflecting the meeting of supply and demand goods, thereby orienting production and consumption 1.1.1.3 Business result concept Business result is the final result of normal production and business activities and the results of other business activities of an enterprise over a certain period expressed as an amount of profit or loss 1.1.1.4 Significance of the sales process accounting and determining business results a Meaning Accounting in general, sales accounting, in particular, is an indispensable management tool It provides essential information for business executives, who have direct and indirect economic interests in the business, helps them know the consumption situation and sales results of the business, check inspect, supervise and make timely decisions for their goals Sales accounting and sales determination not only provide information about general indicators, through which information users also recognize detailed information, specific about sales and prices capital, results of each type of goods sold State agencies and tax agencies know about the implementation of their quotas and obligations to the State Sales accounting and determining business results help businesses use costs more economically and effectively, increase sales revenue to maximize profits b Sales accounting tasks and determining business results Sales accounting and business result determination play a very important role in acquiring, processing, and providing information about sales activities of the enterprise to check and supervise all activities that motion To fulfill that role, sales accountants and business result determination must perform the following tasks: + Monitoring, reflecting, and closely monitoring the sales process, fully recording sales revenues, selling expenses, sales deductions + Closely monitor and manage customers' debt payments, urge them to collect enough money for sales Accurately determine sales results, reflect and urge the performance of state obligations 2.2.9 Other income accounting 2.2.9.1 content Other incomes of the company include: liquidation of fixed assets, taxes integrated by the state budget 2.2.9.2 User account - Accountants use account 711 to reflect other income 2.2.9.3 Recording vouchers - Receipt slip, credit note, Record of sale of fixed assets 2.2.9.4 Accounting method Original documents Recording vouchers (Receipt note, credit Account 711 note, ) Book entry voucher Detail book of account 711 Ledger of Note: Record daily Record at the end of the month Flowhart 2.10: Other income bookkeeping process - From the record of liquidation of fixed assets accountant, write check to pay the liquidation cost of printer Conan LBP 3500 Thien Son Trading and Construction Company Limited 042, Nhac Son, Kim Tan, Lao Cai RECEIPT December 29, 2014 Book number: 01 No: PC1215 Dr: 811 Cr: 111 Full name: Pham Thi Hoa Address: Staff Reason for spending: The cost of liquidating the printer Conan LBP 3500 Amount: 275,000 Written in words: Two hundred seventy five thousand dong Attached with original documents: December 29, 2018 Director (Signature, full name) Chief Accountant (Sign, full name) Receiver (Sign, full name) Voters Treasurer (Sign, full name) (Sign, full name) - Based on vouchers such as payment checks the accounting documents are recorded on bookkeeping No 14- Other expenses Thien Son Trading and Construction Company Limited 042, Nhac Son, Kim Tan, Lao Cai RECORDING VOUCHERS Number 13: Other expenses December 2018 Account number Credit Debit Abstract A Liquidation of fixed assets Liquidation cost VAT Total Enclose original documents B 811 811 133 Bookkeeper C 211 111 111 Amount money 2.385.296 250.000 25.000 2.660.296 of Note D BBTLTSCĐ BBTLTSCĐ BBTLTSCĐ December 31, 2018 Accountant - At the end of the period, the accountant is based on the 14-entry voucher on other expense ledgers 2.2.10 Other costs 2.2.10.1 content Other expenses include: - Expenses for disposal, sale of fixed assets, and a residual value of fixed assets liquidated or sold - Fines for breaches of economic contracts - Being fined tax retrospective payment - The accounting expenses are mistaken or omitted when recording the accounting books 2.2.10.2 User account Accountants use account 811 to record other expenses incurred in the month 2.2.10.3 Use vouchers - Payment slip, bank debit note, Minutes of the liquidation of the sale of fixed assets 2.2.10.4 Accounting method Original documents (Payment slip, debit Recording vouchers note, ) Detail book of account 811 Book entry voucher Ledger of Account 811 Note: Record daily Record at the end of the month Flowchart 2.11: Other expense bookkeeping process Thien Son Trading and Construction Company Limited Model No S03a - DN 042, Nhac Son, Kim Tan, Lao Cai (Issued under Decision No 15/2006 / QD Tax Code: BTC On 20/06/2006 of the Minister of Finance) GENERAL LEDGER Account: 811 Account name: Other income Account: Other costs December 2018 Date of entry Vouchers entry No Date Explain Reciprocal account Opening balance Liquidation of fixed assets 31/12/2018 14 31/12/2018 Amount of money Credit Debit 2,385,29 211 - Surplus Credit Debit Expenses for machine 31/12/2018 31/12/2018 14 17 31/12/2018 31/12/2018 250,000 liquidation Transfer expenses to 911 111 account Add the number incurred 911 Ending balance 2,635,29 2,635,29 2,635,29 - December,2018 Scheduler Chief accountant Director (sign, full name) (sign, full name) (sign, full name) CHAPTER 3:COMMENTS AND SUGGESTIONS TO IMPROVE SALES ACCOUNTING AND DETERMINE BUSINESS RESULTS AT THIEN SON TRADE AND CONSTRUCTION JOINSTOCK COMPANY 3.1 Evaluate current sales accounting and determine business results at Thien Son Trade and Construction Joinstock Company 3.1.1 General assessment of accounting work 3.1.1.1 Advantages - In general, the sales accounting and the determination of business results at the company has complied with the State's accounting principles, standards, and regimes, the accounting data reflects honestly reasonable, clear, and complete Revenue and expenses are accurately accounted for, creating conditions for providing information to the Board of Directors of the Company to make timely business decisions - Accounting staff training is focused, the company is constantly creating conditions for them to study more to improve their professional knowledge - Accounting vouchers are used in the correct form issued by the Ministry of Finance, economic information on the arising economic operations is fully and accurately recorded in the accounting vouchers - The company applies the voucher-entry accounting form This form is suitable for the company's operating characteristics and management requirements - The booking system is organized reasonably, specifically, and appropriately The organization of the rotation of documents is scientific and reasonable Inspection and control are conducted regularly Fully implementing the collection and payment targets applicable to the state budget - Staff: With the advantage, the company's staff has many young people This represents dynamism, creativity, enthusiasm at work, a high sense of responsibility, not afraid of difficulties 3.1.1.2 Disadvantages - Firstly, although the accounting work at the company has tried a lot and complied with the current accounting laws, regimes and standards Constantly improving and improving his accounting organization However, the company's accounting apparatus cannot avoid its shortcomings and limitations, the company has not used accounting software in management as well as in accounting and accounting, to contribute to more savings save costs, time, reduce workloads, facilitate the collection, processing, and provision of accounting information quickly and promptly about the financial situation of the company Second, in the market economy, business risks are inevitable Customers have all kinds of different ingredients, the problem of selling is inevitable To forecast potential risks in the future, the company needs to set up a reserve fund for bad debts 3.1.2 Evalution of sales accounting and determination of business results at the company 3.1.2.1 Advantages - Because the unit performs monthly settlement, therefore, the economic transactions are less likely to avoid risks and errors - Regarding inventory accounting, the company applies the regular method of declaration to account for inventories is reasonable, goods accounting has reflected the situation of changes in goods on the report of goods import and export This method ensures regular accurate information about the fluctuation of the goods in the Company at all times - For the debt situation, the Company opened a detailed book for each customer, monitoring the payment status of the value and form of payment - Regarding the depreciation method of fixed assets: The Company depreciates assets according to the straight-line depreciation method which is reasonable and suitable for the asset size and this is simple and easy to In general, the accounting work has ensured compliance with the accounting regime issued by the Ministry of Finance, and at the same time, there is creativity to suit the actual conditions of the company 3.1.2.2 Disadvantages In addition to the successes in the organization of sales accounting and determining the business results that the enterprise achieves, there are also disadvantages that enterprises need to be improved and improved to satisfy all requirements for more business development - Firstly, because the business characteristic of the enterprise is to import goods to the warehouse and then sell them slowly, so it is inevitable that there is a constant loss or decrease in prices of inventories without making a provision prevention of inventory price reduction makes businesses vulnerable to capital losses - Second, about how to assign work: Organizing data, preparing business results report is the first stage of the process of preparing business results report Performing this stage well will contribute to making the business results report more quickly, conveniently, and effectively Although there was an assignment in the collection of data to prepare the report, most of the preparation was done by the chief accountant, moreover as a general accountant, the work of the chief accountant is quite heavy Besides, between accounting work and management accounting is not separated Management accounting work is mainly done by experienced accountants Therefore, data provision is only available upon request and not regularly analyzed 3.2 Several solutions to improve sales and determine results 3.2.1 Apply information technology to sales As a sales company, many transactions are arising in the month that needs to be recorded, but the accounting work is mainly done on excel so the calculation formulas when copied from sheet to sheet are available The company should apply accounting software, which can lead to erroneous lines leading to financial statements The advantage of using software is to reduce accounting errors and reduce accounting workload, facilitate the quick and timely processing and provision of accounting information The use of software brings more accuracy of data than manual accounting The security of the software is also very high, so it is difficult to happen information confidentiality Therefore, the need to use accounting software will reduce the volume of recording and calculation 3.2.2 Assignment of work Multiple tasks will easily lead to errors or confusion Therefore, in my opinion, the Company should assign this general accounting task to an accountant, who will help the chief accountant synthesize the figures and report to the financial statements, then transfer to the chief accountant for review and verification investigation Thus, to limit errors, the work of the chief accountant will be less difficult and more efficient Also, it is necessary to separate between accounting work and management accounting A management accountant should be assigned to provide data and analysis regularly 3.2.3 Sales policy To encourage the purchasing power of customers, the Company should develop a reasonable discount policy for customers such as payment discounts for customers who commit to early repayment or commercial discount policy for customers to buy with large quantity to encourage customers to pay for the purchase ahead of time so that the capital of the business will not be stagnant in one place, speeding up capital turnover, avoiding prolonged debt situation, and capital backlog for businesses This will contribute to increasing the company's ability to recover debt, increase revenue When making a discount policy and for this policy to be accepted, both the company and the customer base on some bases to determine the discount rate as follows: + The condition for the customer to accept the discount is that the profit from the discount is greater than the opportunity cost of capital that the customer spends + On the company side, the discount cost must be less than the benefit the company can receive All are to create comfort for customers when approaching the company, and looking for more potential customers to increase the company's profits and create a competitive advantage for the company 3.2.4 Sales method The company's selling method is mainly wholesale and retail, so we need to expand the method of selling through agents to increase the consumption of products in the market 3.3 Development direction in the future Continue to maintain and consolidate business activities to create a reputation for customers, strengthen management measures, implement savings to improve business efficiency Pay attention to gradually improve the material and spiritual life of the employees of the enterprise, in the condition that it is allowed to build united solidarity in the company by implementing the title "Democratization building facilities and building a healthy business culture environment ” Step by step invest reasonably in training and fostering staff about business knowledge in the market to continue improving the human factor in all aspects of the company's production and business activities Conclusion With the development of today's society, many new companies and businesses are sprouting up and the competition is getting fiercer, so to stabilize and develop, each business and company needs to build a strategic plan direction for sustainable development It is important to have highly qualified and disciplined staff and in addition to having the guidance and encouragement of superiors Through the process of analyzing sales accounting and determining business results at the company, it shows that sales accounting and determining business results play an indispensable role in business management Proper accounting of business results is one of the most effective and positive measures, contributing to the completion of capital and facilitating business expansion Accounting for sales and determining business results is an important stage that affects the general operation of the company, and determines the existence and development of the company With not much practice time, limited personal knowledge, little exposure to accounting work, so my thesis cannot avoid shortcomings Therefore, I look forward to the guidance and suggestions of teachers to improve my thesis REFERENCES 1.Prof.Dr.Ngo The Chi, Dr.Truong Thi Thuy (Ed) ,“Financial accounting curriculum”, 2010, financial Publishing company Documents of Thien Son Trade and Construction Joinstock Company Some websites about accounting: Webketoan.com, ketoanthienung.com, www.vneconomy.vn , www.danketoan