INTRODUCTION 1. 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 can not be shortage is living labor, private production materials and labor subjects. In three factor, living labour plays the most important role. Because without workers it is impossible make material wealth, want a product whether its 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 companys 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 spend. On the contrary, it can also reduce labor productivity the production process slows down, ineffective if the salaries they receive not worth the labor they spend. On the whole economy, salaries are more specific of the process distribution of material wealth made by workers. Therefore, the construction of the salary scale, payroll, select the appropriate form of payment so that salary is the income for the employee to work better and be responsible more tasks than real work is needed. Recognizing that urgency, and passing time through practical research at Nhat Minh Business Management Consultant Limited Liability Company , continued I was exposed to the accounting work at my company that saw the importance of accounting salary and salary compensations should have been deeply studied and selected the theme for his graduation thesis is: “Completing salary and accounting salary compensations at onemember limited liability company for project exploitation Nhat Minh irrigation work
GENERAL THEOPRY OF ACCOUNTING FOR SALARY
Overview of salary and salary compensation
1.1.1 Labor concept, salary and salary compensation
Labor refers to the utilization of the workforce to fulfill societal needs through purposeful and conscious efforts It encompasses the creative activities of individuals aimed at producing goods and services essential for social life, highlighting its unique role in human development and productivity.
* Employees are those who work for salaries and labor or the mind that makes physical or mental products for others.
* Salary: labor cost is formed by agreement between employee and employer are in accordance with the relations and regulations laws in a market economy.
In Vietnam, during the era of central planning, salaries were viewed as a component of national income, designed to cover labor costs for officials and employees based on regulatory labor distribution laws Currently, under Article 55 of the Vietnam Labor Code, employee salaries are determined by mutual agreement in labor contracts and are linked to labor productivity, quality, and efficiency Salaries reflect the social product and are paid to employees according to their number and quality, effectively addressing labor costs This system not only ensures fair compensation for employees but also serves as a strong incentive for production, motivating workers to enhance their skills and adopt advanced techniques to boost labor productivity.
Labor is a unique commodity that generates products in exchange for salaries, which represent the price of this specialized good The labor market operates on the principles of supply and demand, where salaries fluctuate based on the value of labor and the agreement between employers and employees As a result, labor prices can vary, influenced by the availability of jobs and the demand for specific skills While salaries may rise or fall, they must always align with the value of labor and ensure a minimum standard of living for employees, allowing them to sustain their livelihoods and continue working effectively.
Salary compensaction include: Social Insurance, Health Insurance, Trade union funds, unemployment insurance
Under the current regime, social insurance is formed by appropriation The rate of 25.5% of the total salary must be paid to employees in each period math, where:
Employers must bear 17.5% of the total salary and salary included in operating expenses.
The employee must bear 8% of the total salary by compensation into their salaries.
Health insurance is a fund designed to cover medical examination and treatment costs for employees who contribute to it This fund is established by allocating 4.5% of the total salary paid to employees, with employers responsible for 3% of this amount, which is incorporated into the business's production costs.
Workers incur 1.5% by deducting from their salaries.
Trade union funds are essential for supporting union activities across all levels As per existing regulations, these funds are sourced from a 2% deduction of the total salary for each accounting period This deduction is categorized as a business and production expense, with 1% allocated to grassroots trade unions and the other 1% directed to higher union organizations.
Unemployment insurance provides financial support to workers who have lost their jobs, funded by businesses According to regulations, employers must contribute 2% of each employee's total salary for every accounting period, with 1% absorbed as a production cost and the remaining 1% deducted from employees' wages.
Enterprises are required to establish and fully collect funds for their social insurance, which must be paid quarterly These funds are managed by authorized agencies based on original documentation, with a final settlement due when submitting quarterly reports The allocated expenses primarily provide minimum support for workers facing sickness or labor-related accidents.
Labor is a crucial element in production and business activities, significantly influencing both the quantity and quality of a company's products Salaries play a vital role in aligning the interests of workers with the goals of the business, serving as a motivating force that enhances creativity and labor consciousness, ultimately leading to increased productivity Fair and equitable salary payments not only affirm an employee's position within the company but also drive the production process, resulting in improved product quality and higher revenues Consequently, adequate compensation contributes to the overall profitability of the business.
Management requirements for labor, salary, salary compensation :
Salary serves as the primary income source for workers, while businesses leverage it to promote a strong work ethic and enhance productivity By incentivizing employees with competitive salaries, companies can boost labor efficiency and foster a culture of hard work and dedication.
Businesses must allocate salaries as a key component of the production costs associated with the value of their products or services To optimize expenses, it is essential for companies to utilize their workforce efficiently, thereby reducing labor costs per unit of product, service, or goods flow.
Effective salary management is crucial for enhancing productivity and maintaining order within businesses By implementing structured labor and salary accounting systems, enterprises can motivate employees, ensure adherence to labor discipline, and optimize productivity Additionally, a well-organized salary management system serves as a foundation for equitable salary calculations based on labor distribution principles.
Accurate calculation and timely payment of labor remuneration are essential for motivating employees and enhancing the quality of their work Furthermore, precise labor cost calculations play a crucial role in determining the overall business expenses and product pricing.
Effective management and monitoring of employee mobilization and utilization in production and business activities are essential for enterprises Proper labor mobilization is achieved when various types of labor are managed with tailored strategies and applications Therefore, classifying labor is crucial for every business, as it varies according to the specific needs of different industries and labor types.
Effective salary accounting and compensation management are crucial for businesses to optimize their salary funds, ensure timely payment of salaries and social insurance allowances, and motivate employees to fulfill their responsibilities By implementing reasonable salary policies, companies can reduce labor costs without compromising employee wages A well-organized payroll system enables accurate allocation of labor costs to product pricing, ultimately supporting the overall financial health of the organization.
Duties of salary accounting and salary compensations
Salary accounting tasks include the following basic tasks:
To effectively manage employee data, it is essential to systematically record, reflect upon, and synthesize information regarding the number of employees, labor hours, salary calculations, and compensation This approach ensures that labor costs are aligned with employment categories, promoting accuracy and efficiency in financial reporting.
Forms of salary and salary compensation
Employee compensation is determined by factors such as working hours, salary level, and salary scale, making it particularly relevant for indirect workers and those in stable positions, as well as for direct workers who do not have specific product norms.
In enterprises, time-based salary structures are commonly utilized for office staff, including roles in administration, labor organization, statistics, and accounting This compensation method is directly linked to the actual hours worked, as well as the employee's industry, level of expertise, and technical skills.
Salaries vary across different jobs due to the specific nature of each role within an enterprise Organizations implement various salary scales based on professional and technical expertise, categorizing employees into distinct levels that reflect their qualifications Additionally, salaries can be adjusted over time, allowing for flexibility in compensation based on performance and market trends.
Is the salary compensation for employees based on daily salary and number of days actual work for the month
As salary paid to employees by month, the salary level is calculated over time is 1 month.
Monthly Salary = salary per day x the number of working days in a month
+ Weekly Salary: are salaries for employees based on weekly salary and number of days work for the month
Hourly rates can be calculated directly to pay hourly rates or based on day rate for overtime allowances for employees
Direct hourly pay is the same as hour after hour for lecturers.
Overtime allowances are calculated on a daily salary basis
Example: Daily salary is VND 40,000
An employee works overtime 5 hours
The time-based salary regime with a limited presence is neutral military, sometimes do not match the actual labor results of workers
It is simple time salary
Salary based on bonus period
Time-based payment is a straightforward compensation method where workers receive salaries based on their individual salary levels and the duration of their work This system reflects the variation in pay depending on the hours worked, whether more or less.
Salary based on bonus period: It is the salary calculated according to simple time plus the bonus they are entitled to
1.2.1.2 Form of salary by product:
Different from salary form over time, salary form the product performs the payroll calculation for employees according to quantity and quality number of completed work products
Total salary payment = Unit salary/Number x the number of finished good
Form of salary based on direct product:
Salary paid to employees is calculated directly based on quantity completing products in accordance with quality specifications and unit salary specified, not subject to any restrictions
For the Company, this salary is not applicable because it is public trading company.
Total salary payables = Actual number of completed products * unit price of salary
Indirect workers in the production department, such as those maintaining machines and equipment, play a crucial role in enhancing direct labor productivity Although they do not directly create products, their contributions significantly impact overall efficiency Consequently, their salaries are determined based on the performance outcomes of direct labor, reflecting the essential support they provide in the production process.
In general, this form of compensation based on indirect products is not allowed exactly, there are many limitations, and not practical work.
+ Salary based on bonus products:
In this form, salary according to the direct product if labor is also rewarded in production, bonuses for increasing labor productivity, material saving.
This salary-based salary form has the advantage of being a promotion encourage enthusiastic workers to work, increase labor productivity and benefit businesses as well as employees' lives improved.
+ Salary according to accumulated products:
In addition to direct product pay, bonuses are calculated based on increased unit salary rates at high productivity levels This salary structure effectively stimulates advanced workers' labor productivity, ensuring maximum labor intensity and addressing performance challenges.
While this salary structure can enhance worker stability during challenging production phases, it inevitably raises labor costs within the overall product pricing for businesses Therefore, it should only be utilized when essential to fulfill specific orders or support employees during critical periods.
The traditional time-based salary structure has significant limitations, as it does not effectively link compensation to labor outcomes and quality, resulting in a lack of motivation for workers To address these issues, it is essential to implement a comprehensive tracking system for employee working hours, alongside a reasonable reward system In contrast, a performance-based salary model offers distinct advantages by directly correlating compensation with the quantity and quality of work produced, thereby aligning workers' income with their production results.
Stimulating labor productivity, encouraging workers to promote creativity improves production techniques, so this form is used quite spacious.
1.2.2 The form of salary compensation
The salary fund refers to the total amount allocated for all employees, both internal and external to the enterprise As outlined in Proposal No 235/ĐBT dated September 19, 1985, by the Council of Ministers (now the Government), this fund encompasses various forms of compensation for laborers.
- Monthly, daily salary based on the salary scale coefficient of the State.
- Daily remuneration for off-pay workers
- Salary paid to employees when making defective products inside rule.
- Salary paid to employees during the work stoppage due to equipment the machine stopped working for objective reasons.
- Salary paid to employees during the time of work assignment or doing the obligations of the State and society.
- Salary paid to employees taking periodical leave, vacation leave regime of the State.
- Salary paid to people who go to school but still on the payroll.
- Allowances according to the prescribed regime and other allowances are recorded in salaries
In the business production industry, employee compensation is categorized into two types: main salary and extra salary The main salary is the payment employees receive for their primary tasks, encompassing their base salary along with various allowances such as responsibility, area, and overtime pay Conversely, extra salary refers to compensation for duties outside of their primary responsibilities, including leave benefits for vacations, paid time off, training, meetings, and other absences Additionally, salaries for workers producing defective products, as per established regulations, are also classified as extra salary.
The distinction between main and supplementary salaries is crucial for effective accounting and salary analysis in export production costs Main salaries for production workers are directly linked to the production process and are included in the costs of each product type In contrast, supplementary salaries are not tied to specific products and require indirect accounting based on established attribution criteria To optimize salary fund management, it is essential to align spending with the unit's production and business plans, ensuring both economic efficiency and the achievement of production targets.
The International Labor Organization (ILO) defines social insurance as a protective mechanism for its member societies, implemented through various public measures This system aims to alleviate socio-economic challenges arising from income loss or reduction due to factors such as illness, disability, old age, or death.
Social insurance is a system of 3 levels:
The first level of support is designed for all individuals participating in the community festival, particularly those with low income who may not be able to contribute to social insurance Although these individuals have limited financial resources, the government will provide subsidies when necessary to ensure their participation.
2nd level: A mandatory floor for people with stable jobs.
3rd level: Is voluntary for those who want to contribute high social insurance
Social insurance, which was previously limited to state businesses, is now applicable to all economic sectors as per Decree No 45/CP This policy extends to all members of the Commune Association and individuals with high incomes who wish to participate in social insurance for enhanced benefits Additionally, the regime mandates contributions from those entitled to preferential treatment, with the contributions from social members forming the social insurance fund.
The social insurance fund, established under No 43 / CP of June 22, 1993, is primarily financed through contributions from employers, employees, and state support Management and utilization of the fund must adhere to state regulations and independent accounting principles Currently, enterprises contribute a total of 25.5% to the social insurance fund each month, which includes 17.5% from employers This employer contribution comprises 3% for the maternity sickness fund, 1% for the labor accident and occupational disease fund, and 14% for the pension and survivorship fund.
Accounting of salary and salary compensation
The role of labor accounting in an enterprise is crucial for effective labor management and ensuring accurate salary payments for employees It encompasses the tracking of labor force quantity, working hours, and the quality of work performed.
Accounting of the number of employees:
To effectively manage workforce quantity, enterprises utilize "Labor Monitoring Books," typically overseen by labor departments These records track the number of employees across various occupations, job roles, and skill levels The Labor Department can compile a comprehensive register for the entire organization while also creating specific sections that detail the current labor allocation and employment status within each firm.
Effective working time accounting is essential for accurately recording employees' actual working days and hours, including off days and job stoppages, which directly influences payroll The timesheet serves as a crucial document for labor time accounting within businesses, capturing the actual working hours and absences of employees across various teams and departments on a monthly basis Each production group and department must maintain separate timesheets, ensuring that the recorded employee data aligns with the labor book The production team leader or department head is responsible for updating the timesheet based on employee attendance at the start of each workday, and it is important to clearly indicate holidays, such as Tet, Saturdays, and Sundays, in the timesheet.
To ensure accurate tracking of employee work hours, a public timesheet must be maintained At the end of each month, both the team leader and gym manager review the timesheets for the accountant Employees are responsible for verifying their daily entries on the timesheets Subsequently, data is compiled and reported to the labor division The finalized timesheets are then sent to the payroll department for salary calculations In cases of absences due to illness or accidents, employees must provide medical certificates from authorized health facilities Any leave must be documented, specifying the reason and responsible party, which serves as a basis for salary adjustments and damage settlements These records are submitted to the accounting department to facilitate subsidy calculations, which are then verified by the social insurance agency for proper documentation in the work grading table.
Accurate accounting of labor results is essential for effective management in manufacturing enterprises It involves timely recording of both the quantity and quality of products, as well as the completed work volume of individuals and teams, which serves as the foundation for fair compensation and payroll.
The initial documents used to account for labor results vary based on the type and production characteristics of each enterprise These documents serve to record labor outcomes and confirm the completion of work products or contracts Certification of completed work products acts as a digital acknowledgment of the finished products by the employee unit or individual This certification is prepared by the assignor and requires signatures from the assignor, job recipients, product quality inspectors, and approvers.
Ballots are transferred to salary accounting for salary calculation applied in the form salary paid by product.
A work contract serves as the foundational agreement between an employer and contractors, outlining workload, working hours, responsibilities, and mutual interests This document is essential for processing labor payments to the contractor In cases of product damage, a quality control officer and the responsible department must complete a broken report to facilitate proper handling The quantity and quality of completed tasks are documented in accounting vouchers, which businesses utilize to record labor results Once signed and approved, these vouchers are forwarded to the payroll department to calculate salaries accurately.
Payroll accounting for employees relies on accurate documentation from labor time tracking, including timesheets and records of completed work It involves verifying these documents before processing salaries, bonuses, and other payments The payroll system at the enterprise systematically organizes salary payments, which encompass base salary, performance-based pay, and additional benefits such as insurance and bonuses for each employee.
A salary payment table is a crucial document that serves as the foundation for employee salary payments and allowances within an organization It outlines the salary and accounting system managed by the labor force accountant, detailing the policies regarding salaries, allowances, benefits, and insurance for each employee Additionally, it includes information on dynamic bonuses, ensuring a comprehensive overview of compensation structures.
The salary payment table serves as a crucial document for processing salary payments and allowances for employees in production and business units It is organized by department and aligns with timesheets, allowing for individual entries that reflect each employee's grade, salary, and working hours Subsequently, payroll accounting consolidates this information into a comprehensive monthly salary payment table for
Salary payment for employees is usually divided into 2 periods in month:
+ Term 2: Pay the rest after deducting deductible amounts deducting salaries from laborers according to the prescribed regime
Salary is paid in the hands of an employee or a mass collective on behalf of the cashier, when receiving the income, the employee must sign salary payment table.
Employees on paid leave have their salaries included in production and business costs Since unexpected leave varies throughout the year, it's essential to account for salary compensations and leave expenses in each accounting period This approach ensures that product prices remain stable and do not experience sudden fluctuations.
In a nutshell, labor accounting is both about managing employer mobilization this is the basis for calculating salaries to be paid to employees.
It is clear, accurate, timely that labor costs can be calculated correctly and fully salaries for employees in the enterprise.
Salary accounting and salary compensation
1.4.1 Vouchers used in accounting for salary and salary compensation
- Form No 01a- LĐTL: “Time Attendance Table” This is a voucher basis
Salary based on the actual working time of each employee This table is Set up monthly by time department (production group, department)
- Form No 01b-LDTL: Time table for overtime work
- Form No 02-LDTL: Salary payment table
- Form No 03-LDTL: Bonus payment table
- Form No 04-LDTL: Road travel paper
- Form No 05-LDTL: Confirmation of finished products or jobs
- Form No 06-LDTL: Payment table for overtime pay
- Form No 07- LDTL: Payment table for outsourcing rent
- Form No 08-LDTL: Contract of contracting
- Form No 09-LDTL: Minutes of liquidation (acceptance) of the contract of contract
- Form No 10-LDTL: The list of compensation and payment of salary
- Form No 11-LDTL: Table of distribution of salary and social insurance
This form is utilized to track the working hours of employees, specifically for those who are permitted to work overtime It serves as a basis for calculating salaries, ensuring that overtime compensation is aligned with the established regulations.
- Some other relevant documents such as receipts, payment slips, paper please advance, deviation (paper way) invoice
1.4.2 Accounts used in salary accounting and salary compensation
Monitoring salary payments and other labor-related amounts is essential, particularly in relation to the management and utilization of funds from accounts SI, HT, UF, and UI, specifically using accounts 334 and 338.
Account 334, titled "Payables to Employees," is utilized to represent the company's liabilities related to employee compensation, including salaries, social insurance contributions, and other payments owed to workers.
Account 334 - Payables to employees who have 2 second grade accounts
Account 3341, designated for payables to employees, represents the outstanding amounts owed by the enterprise for employee salaries, bonuses, social insurance, and other income-related payments This account reflects the company's obligations in managing employee compensation effectively.
Account 3348, titled "Payables to Other Employees," tracks the accounts payable related to payments owed to individuals who are not regular employees of the company This account encompasses salaries, bonuses, and any other forms of income that may be due to these workers, ensuring accurate financial reporting and compliance with payroll obligations.
- Use to monitor the setting up and use of social insurance fund, health insurance fund, trade union fund, unemployment insurance fund,
Account 338 is classified into second-level accounts as follows:
The article discusses the monthly process of salary distribution and the calculation of various insurance compensations, including social, health, and unemployment insurance Accountants summarize the salaries payable for each category, such as production, sales, and services, while ensuring compliance with regulations The rates for social insurance, health insurance, trade union funds, and unemployment insurance are documented in the Allocation Table Salary and salary compensation (Form No 01/distribution table).
The salary distribution table outlines the allocation of main salary, extra salary, and other amounts, while also detailing the monthly contributions required for social insurance, health insurance, Trade Union Funds, and unemployment insurance premiums These contributions are essential for maintaining employment rates and are recorded in Accounts 334, 335, 3382, 3383, 3384, and 3386.
1.4.3 Common transactions in salary and salary compensation
Diagram 2: Accounting for payroll related compensation
Accounting book used in salary accounting and salary compensation .29
To ensure accurate and timely salary accounting that provides valuable information for managers, it is essential to have a well-organized bookkeeping system and recording process This scientific organization not only guarantees precision but also minimizes the workload for accounting personnel.
Under the current accounting regulations, enterprises are responsible for organizing their bookkeeping systems according to four prescribed formats by the Ministry of Finance This organization must also align with the specific characteristics and scale of their production and business activities Additionally, salary accounting functions should be implemented in accordance with these established forms.
Diagram 3: Diagram showing salary accounting and salary compensation in the form of general diary:
The payment table of payroll
Special journal General Journal Detailed accounting book of
Diagram 4: Diagram showing salary accounting and salary compensation recorded ledger in the form of ledger diary
The payment table of payroll
Cash book general accounting vouchers of the same type
Detailed accounting book of 338 account
Diary book - ledger Detailed summary
Diagram 5: Diagram showing salary accounting and salary compensations in the form of bookkeeping vouchers
General accounting vouchers of the same type
Detailed accounting book of 334, 338 account
The payment table of payroll
Diagram 6: Diagram showing salary accounting and salary compensations in the form of Journal – Document
The payment table of payroll
The list of document Dairy book - document
Detailed accounting book of 334, 338 account
Diagram 7 : Diagram showing salary accounting and salary compensations in the form of machine accounting
General accounting vouchers of the same type
Information about salary accounting and salary compensation
Employee salary information is categorized under compensations and is reflected in other payables The amounts recorded in this index should derive from the credit balance of account 334, "Payables to Employee Activities," during the reporting period, which is documented in the labor payables (Code 314) on the balance sheet Additionally, data for this criterion should be based on the credit balance of account 338 for the same reporting period, with details recorded in the short-term other payables (Code 319) on the balance sheet.
The "Cost of Goods Sold" index (Code 11) in the operating results statement provides information on salaries and compensation for direct production workers and manure management personnel, while the "Selling Expenses" target encompasses data related to the construction team.
25 above report on business results) and the target “Expenses of business management ”(Code 26 on the report of business results) for employees who workings at the administrative division, office.
1.6.3 In the cash flow statement
Information about salaries and salary compensations is displayed in Cash flow from operating activities - Cash payments to employees activities (salaries, bonuses, insurance, benefits ) (Code 03 on the Flow Report currency)
1.6.4 On the notes to the financial statements
Information about salary compensations is presented in details section other payables.
CHAPTER 2: ACCOUNTING FOR SALARY AND SALARYCOMPENSATION AT NHAT MINH BUSINESS MANAGEMENT
General information about Nhat Minh Business Management Consultant
2.1.1 The information of internship company :
Company name: NHAT MINH BUSINESS MANAGEMENT CONSULTANT LTD.CO
Charter Capital: 2,000,000 VND ( two billion Vietnam dong)
Company address: 3 Lane 560 Ngo Gia Tu - Duc Giang Ward - Long Bien District – Hanoi
Business license: 0108706400 - 19/04/2019 by Hanoi Tax Department Director: Le Truong Giang
2.1.2 Internship company’s basic features and operating activities:
The form of entity: Nhat Minh Business Management Consultant Limited Liability Company
- Providing Accounting service àn consultant service
- Wholesale computers, peripherals and software
- Retail computing, peripherals, software and
- Retail audiovisual equipment in specialty shops
- Wholesale electronic and telecommunication equipment and components
- Wholesale machinery, equipment and spare parts for agricultural machinery
- Wholesale machinery, equipment and other spare parts
- Wholesale materials and other installation equipment in construction
- Retail furniture, paints, glass and other installation equipment in the construction of specialty shops
- Wholesale General (excluding state prohibited)
- Other retail stores in general business
- Retail carpet, cushions, blankets, blinds, curtain, wall and floor materials in specialty shops
Human Resource Department Sale Department
3 sales collaborators operator Other staff
Company structure
Director ( Mr Le Truong Giang ):
On behalf of the owner, the representative is responsible for exercising the company's rights and obligations, acting on the company's behalf to fulfill these responsibilities They must ensure compliance with the Law on Enterprises and relevant regulations, while also being accountable to both the law and the company owner for the execution of their assigned duties.
He is accountable to the State and his superior agency for overseeing all production and business operations of the company His responsibilities include managing these activities in accordance with the company's internal rules, regulations, and resolutions, as well as adhering to the policies and regulations set forth by the State.
The role involves advising company leaders and overseeing the implementation of essential tasks, including accurate accounting of all assets, equity, liabilities, and financial activities It encompasses business and financial planning for the unit, as well as guiding leadership in directing and conducting inspections to ensure compliance with financial and accounting regulations.
The accounting team is responsible for accurately recording economic transactions to support business operations effectively They lead the development of annual and long-term financial plans in collaboration with relevant departments Additionally, they manage financial investments and lending activities, providing guidance to leadership on financial management and compliance with accounting regulations By researching and proposing tailored business management strategies, the team ensures adherence to current regulations while optimizing efficiency in line with the unit's specific circumstances.
The advising and assisting department supports the General Director in promoting the Company's diverse offerings, including loans, guarantees, and various credit solutions This department plays a crucial role in capital mobilization, international payment advisory, and financial consulting services Additionally, it focuses on product research and development, market expansion, and fostering strong customer relationships to enhance sales and foreign currency trading products, excluding interbank market transactions.
Each month, strategies, annual budget plans, and departmental work plans are developed and submitted to the General Director for approval Additionally, the personnel structure is organized, and tasks are assigned within the department to ensure the successful completion of the approved annual budget and work plans.
Perform internal reports in accordance with the Company's Regulations and other reports as required by the Board of Management.
To enhance the Company's operations, it is essential to develop and evaluate professional processes and regulations within the Division, ensuring their effectiveness in practice for continuous improvement Additionally, other responsibilities may be assigned by the Executive Board as needed.
+ Develop a strategy for developing human resources to meet the development requirements of the company
+ Planning recruitment and measures to implement the plan.
+ Receiving records and interviewing workers applying for jobs.
Creating and managing various employment contracts, including training, probationary, and labor contracts, is essential for effective workforce management Additionally, establishing employee leave policies for occasions such as illness and weddings ensures compliance with labor regulations Monitoring and calculating working days for office employees is crucial for accurate payroll and attendance tracking Furthermore, upholding and enforcing corporate office regulations fosters a productive and organized work environment.
+ Join the company's salary raising, reward and discipline council.
+ Presiding over meetings such as salary increase, commendation and discipline.
Diagram 8: The structure of accounting sysytem
( Source: Accounting Department ) Tasks of the members of the accounting apparatus at the company:
Chief Accountant general accountant cum tax accountant
Salary accountant Inventory accountant cum cashier
The Chief Accountant oversees all accounting activities within the Finance and Accounting Department, ensuring compliance with current regulations and the company's charter This role involves organizing accounting tasks and generating financial reports, while working under the guidance of the general director Key responsibilities include reviewing financial statements, providing management reports, and advising on the company's financial status Additionally, the Chief Accountant collaborates with the general director on personnel matters, including recruitment, transfers, salary adjustments, and disciplinary actions for accountants, storekeepers, and cashiers They are also tasked with reporting any financial or accounting violations to higher management.
A payment accountant is responsible for managing accounts receivable and accounts payable, overseeing bank deposits, and monitoring customer and employee liabilities They also play a crucial role in debt recovery, creating payment plans with suppliers, and issuing financial reports on a weekly and monthly basis Additionally, payment accountants directly receive and validate relevant documents from the cashier to ensure their accuracy and legitimacy.
Effective fixed asset accounting involves systematically recording and reflecting the current value of assets and supplies, as well as tracking any increases or decreases in fixed assets Accountants play a crucial role in accurately calculating depreciation to allocate costs to production and business operations based on asset wear and tear Additionally, they conduct inspections of various departments to ensure that necessary books and accounts are maintained accurately and participate in the evaluation of fixed assets in accordance with company regulations.
+ -Tax accountant: make tax report (tax return and settlement), works directly with tax authorities.
Timely record-keeping is essential for accurately reflecting labor time, product quality, and employee salary payments It is crucial to correctly calculate expenses related to social insurance, health insurance, and trade union fees from employee income Ensuring prompt salary payments and monitoring the salary fund's usage supports management and planning departments Accurate distribution and analysis of salary, social insurance, health insurance, and trade union funds are vital for proposing cost-saving measures and providing necessary data for general accounting Reports on labor, salaries, and insurance are the accountant's responsibility, enabling a comprehensive understanding of fund utilization Analyzing these funds helps identify strategies to enhance labor productivity and address violations of labor discipline and policies related to salaries and insurance.
Cashiers are responsible for managing cash and collaborating with the cash collection department and local agents, as well as handling bank transactions At the end of each day, they must perform a stocktake and reconcile it with the fund book, identifying and rectifying any discrepancies that arise.
Storekeepers are responsible for monitoring material and managing import and export debts They must calculate the costs associated with these transactions, create import and export notes, and keep accurate records of stock quantities Additionally, they handle the import, export, and transfer of materials to the appropriate sections.
2.2.2 Organizational characteristics of the accounting apparatus at Nhat Minh business management consultant co., ltd
Diagram 9: Organizational characteristics of the accounting apparatus at
Tasks of the members of the accounting apparatus at the company:
Chief Accountant general accountant cum tax accountant
Salary accountant Inventory accountant cum cashier
The Chief Accountant oversees all accounting activities within the Finance and Accounting Department, ensuring compliance with current regulations and the company's charter This role involves organizing accounting tasks and preparing financial reports, while also conducting thorough checks of financial statements and management reports Additionally, the Chief Accountant provides insights on the company's financial status and collaborates with the general director on matters such as recruitment, salary adjustments, and disciplinary actions for accounting staff Furthermore, any detected violations of financial and accounting laws must be reported in writing to higher authorities.
Actual salary accounting and salary compensation at NHAT MINH
2.3.1 Characteristics of salary, salary compensation at NHAT MINH BUSINESS MANAGEMENT CONSULTANT CO
The company employs a total of 25 individuals, including direct staff and members of the construction team The leasing process for the work site is overseen by the school team, utilizing short-term contracts, with salaries based on job performance or product output.
- Based on gender, the company classifies employees into two main groups:
Male and female employees: including 15 female employees and 10 male workers Based on the production relationship, the company classifies employees as: employee direct and indirect labor.
- Direct labor: are employees involved in the production process products, directly performing service labor; Based on this form the company, there are 20 direct employees.
- Indirect labor: are managers working in departments The company does not directly participate in the production and business processes, relying on In this form, the company has 05 indirect employees
The Company has effectively organized its workforce for production, ensuring there is no surplus labor In its labor management approach, the Company implements structured regulations and consistently monitors employee numbers and working hours Additionally, it frequently increases bonuses to motivate and reward employees.
Effective time management by employees is crucial for enhancing discipline and serves as a foundation for calculating salaries and bonuses, ultimately influencing labor productivity Therefore, the HR team must ensure accurate tracking of the actual hours worked by each employee on a monthly and quarterly basis.
The Company utilizes timesheets to account for labor time, ensuring accurate salary payments for various departments, including business management, financial planning, and technical operations Once timesheets are collected, the salary accounting process involves monitoring, inspecting, and processing all salaries and compensations for employees The compensation structure adheres to company policies, leading to the establishment of pay dates and distribution tables Salary and social insurance records are maintained in accounting software, culminating in the annual printing of general and detailed salary reports for executive review.
Nhat Minh Business Management Consultant Limited Liability Company adheres to state policies by offering subsidies to employees during instances of sickness, maternity leave, and other circumstances The company ensures compliance with social insurance, health insurance benefits, unemployment insurance, and union fund contributions, basing these subsidies on relevant documentation and calculating them according to the base salaries and entitlements of its officials and employees.
Salary compensations include: Social insurance, Health insurance, Trade union funds, unemployment insurance.
Under the current regime, social insurance fund is formed by compensation The rate of 25.5% of the total salary must be paid to employees in each period math, where:
- Employers must bear 17.5% of the total salary and salary included in operating expenses.
- The employee must bear 8% of the total salary by compensation into their salaries.
The health insurance fund is designed to cover medical examination and treatment expenses for employees who contribute to it This fund is established by allocating 4.5% of the total salary payable to employees.
- Employers must bear 3% and be included in production costs business.
- Workers incur 1.5% by deducting from their salaries
Trade union funds are essential for supporting activities at all levels of trade unions Under current regulations, these funds are collected at a rate of 2% of the total salary for each accounting period, which is incorporated into production and business costs Of this amount, 1% is allocated for grassroots trade union operations, while the remaining 1% is directed to upper union levels.
Unemployment insurance is a financial safety net for employees who lose their jobs, requiring businesses to contribute a percentage of their employees' salaries As per current regulations, a total of 2% of the salary is deducted for unemployment insurance each accounting period, with employers covering 1% as part of their production costs and employees having 1% deducted from their wages.
2.3.2 Salary accounting at Nhat Minh Business Management Consultant Limited Liability Company
Labor accounting plays a crucial role in business by facilitating effective labor management and ensuring precise salary calculations for each employee It encompasses key elements such as tracking the number of employees, monitoring labor hours, and evaluating labor outcomes.
Salary labor accounting organization, is very necessary it is a division indispensable in the general information system of accounting.
2.3.2.1 Accounting of the number of employees
To effectively manage labor quantity, businesses utilize labor monitoring books, overseen by the labor department These records detail the number of workers categorized by occupation, job type, and skill level The labor department compiles this information into a comprehensive register for efficient workforce management.
Enterprise - wide and set up separately for each department to make sense of the allocation, existing employers in the enterprise.
Effective time management in the workplace relies on accurate accounting of employee working hours across all departments Utilizing a time attendance table as a voucher allows businesses to track and record employee attendance efficiently This system enables organizations to manage labor resources effectively, ensuring optimal utilization of employees' time in their respective roles.
Effective time tracking is essential for accurately recording the actual number of working days and hours for each employee and department within a business This process not only accounts for regular workdays but also includes work stoppages The data collected from this time accounting is crucial for calculating employee salaries.
A timesheet is a crucial document for tracking labor hours in businesses, used to record employee attendance and absences within each department on a monthly basis Each department must maintain separate timesheets that align with their respective labor records It is the responsibility of department heads to accurately document attendance and any absences, including holidays and weekends, on the timesheets These documents should be accessible to employees for transparency regarding their recorded hours At the end of each month, department leaders must compile the timesheets and submit them to the accounting department, where the accountant will verify the daily entries for accuracy.
Table 2.1: Timesheets in May of 2019 (excerpts)
Accurate and timely accounting of labor results is essential for effective management and labor accounting in manufacturing enterprises It involves precise recording of the quantity, quality, or mass of work completed by the workforce, ensuring that salaries are based on reliable data.
Nhat Minh Business Management Consultant Limited Liability Company utilizes two primary salary structures: time-based salaries and product-based salaries The time-based salary system is predominantly used in departments such as corporate management, administrative organization, and financial planning and management In contrast, the product-based salary model is applied to sales personnel and collaborators To track labor results, the company employs various vouchers, including timesheets for labor hours and records of completed work products for product-based compensation.
Review the status of salary accounting and salary compensations at Nhat
About the management accounting system at Nhat Minh Business Management Consultant Limited Liability Company
The accounting structure of the organization effectively supports the company's operational and developmental needs It is evident that the assignment of roles within the accounting team aligns well with the accountants' qualifications, ensuring efficiency and effectiveness in financial management.
Our team, consisting of highly educated division heads and experienced staff, particularly in the accounting department, ensures that our voucher system meets legal requirements and aligns with the needs of our economic operations.
The company implements strict regulations for the creation and distribution of documents, significantly reducing errors in the application process This ensures a safe and efficient document management system, enhancing overall operational integrity.
- check of term, the regular vouchers are checked and supervised by the accountant.
Nhat Minh Business Management Consultant Limited Liability Company has implemented a unified accounting system that addresses current financial needs, allowing for effective monitoring of the company's financial status By utilizing a general diary accounting book in conjunction with Misa.NET accounting software, the company minimizes accounting tasks, accelerates information processing and reporting, and facilitates the quick identification of errors Each accountant is assigned specific tasks and functions, ensuring that they only access and operate within their designated modules, which enhances control and data security.
Salary accounting at the company
Salary accounting, social insurance, health insurance, and trade union contributions at Nhat Minh Business Management Consultant Limited Liability Company adhere strictly to the regulations set forth by the Socialist Republic of Vietnam The accounting practices comply with the Ministry of Finance's guidelines and the company's internal policies, effectively implementing the accounting regime outlined in Circular 200/2014/BTC The company has equipped all departments with computers, printers, and copiers, ensuring a connected system via the Internet and LAN for efficient and seamless information sharing.
The company uses capital effectively, there is not too much state debt, but the workers' capital appropriation is equal to
Organizing the labor rearrangement to suit the content of technology process work to take full advantage of labor capacity and salary distribution according to the efficiency of labor contribution
The salary accounting and compensation processes have been finalized, reflecting the specific roles, projects, tasks, and total working days of each employee within the company.
The limitations and causes of salary accounting at the company
About the corporate accounting apparatus, the organization of work still has many contradictions and is not suitable with the competence level of each accountant.
Accountants are often tasked with updating data, yet they may lack knowledge about the processes involved in updating information across other operational areas This lack of visibility can significantly impact the overall efficiency of the company's operations.
International language and computer skills of accountant are not really fluently and professional so that accounting software improved and upgraded to the new version is a barrier
The company's manual timekeeping system relies heavily on human input, leading to inaccuracies and inefficiencies in salary accounting The use of Excel software contributes to a heavy workload, and errors can occur when copying formulas, resulting in incorrect reports and delays in processing.
A significant drawback at Nhat Minh Business Management Consultant Limited Liability Company is the salary structure, which combines pay and salary ranks with working time for positions that do not require advanced technology This approach results in a disconnect between employee compensation and the actual nature and extent of their work, leading to labor loss Consequently, salaries do not adequately reflect the intellectual contributions and capabilities of the workforce, undermining efforts to optimize labor costs and enhance production and business efficiency.
Service, strengthening, inspecting and controlling the Company should apply the salary method according to the working time in combination with the score.
The bonus regime plays a crucial role in motivating employees, as appropriate remuneration can effectively encourage them to reach their full potential and enhance creativity, ultimately boosting production efficiency However, the Company has not fully leveraged its bonus system, which includes both regular and periodic bonuses; currently, only regular bonuses are utilized, missing the opportunity to reward employees consistently.
- Number 4: Vouchers and books for accounting.
At the end of each month, the accountant generates a salary distribution table that only includes a single column for "minus social insurance" alongside the total amount This limited information obscures details such as individual salaries, allowances, additional expenses, trade union fees, and social and health insurance contributions Consequently, this lack of transparency complicates data verification and comparison, making it challenging for relevant users to manage and distribute these financial figures effectively.