Accounting for consumption and evaluation of business results at dai duong xanh limited company

SUMMARY In economic activities, the field of trading and consuming goods and services is of particular importance in the economy The consumption of finished goods is the deciding factor in the success or failure of the business Consumption represents the competitiveness and prestige of the enterprise in the market In addition, the results of consumption are an aggregate quality indicator that reflects the final financial results of the business activity in the enterprise If the financial situation is good, it will prove that the business is doing well and will be able to improve the financial capacity of the business At the same time, excessive business results help the firm grasp all of its activities through expenditures that reflect its performance This makes it possible for enterprises to grow and business too effectively Recognizing the importance of this issue, I chose to study the topic: “Completing consumption accounting and determining business results at Dai Duong Xanh Limited Company” In this thesis, I started from chapter I to introduce about Dai Duong Xanh Limited Company The content of chapter II includes theoretical basis for accounting of consumption and business result determination in enterprises Then in chapter III, I mentioned the current situation of accounting of consumption and business result determination at the company In the last chapter, I would like to give some recommendations to improve accounting of consumption and business result determination at the Company V TABLE OF CONTENTS GRADUATION THESIS TASK I INSTRUCTOR’S COMMENT NOTE II REVIEWER’S COMMENT NOTE III APPRECIATION IV SUMMARY V TABLE OF CONTENTS VI LIST OF ACRONYMS IX LIST OF CHARTS X LIST OF REFERENCES .XI INTRODUCTION CHAPTER I: INTRODUCTION OF DAI DUONG XANH LIMITED COMPANY 1.1 Overview of the Company 1.1.1 Establishment and development 1.1.2 Fields of business 1.1.3 Management organizational characteristics 1.1.4 Accounting organization .7 1.1.5 Accounting method of the Company CHAPTER II: THEORETICAL BASIS FOR ACCOUNTING FOR CONSUMPTION AND EVALUATION OF BUSINESS RESULTS IN ENTERPRISES 11 2.1 Overview of accounting for consumption and evaluation of business results 11 2.1.1 Concept of consumption .11 2.1.2 Concept of Evaluation of business results 12 2.1.3 Tasks of Accounting for consumption and Evaluation of business results 12 2.1.4 Roles of Accounting for consumption and Evaluation of business results 13 2.2 Methods of consumption and payment 13 2.2.1 Consumption methods 13 2.2.2 Payment methods 14 2.3 Accounting for consumption .14 2.3.1 Accounting for sales 14 2.3.2 Accounting for revenue deductions 18 2.3.3 Accounting for cost of goods sold 19 2.4 Accounting for general & administration expenses 23 2.4.1 Accounting for general & administration expenses 23 2.4.2 Accounting for financial activities income 23 VI 2.4.3 Accounting for expenses of financial activities 26 2.4.4 Accounting for other income .27 2.4.5 Accounting for other expenses 30 2.4.6 Accounting for corporate Income tax charge 32 2.4.7 Accounting for evaluation of business results 34 CHAPTER 3: ACTUAL SITUATION OF ACCOUNTING FOR CONSUMPTION AND EVALUATION OF BUSINESS RESULTS IN THE COMPANY 38 3.1 Actual situation of accounting for consumption and evaluation of business results in the company 38 3.1.1 Consumption characteristics in Dai Duong Xanh Limited Company 38 3.1.2 Accounting for revenues of sales and service provision .38 3.1.3 Accounting for sales deductions 44 3.1.5 Accounting for Business management cost 49 3.1.6 Accounting for financial income 53 3.1.7 Accounting for financial expenses 54 3.1.8 Accounting for other income .54 3.1.9 Accounting for other expenses 54 3.1.10 Corporate income tax expense accounting 54 CHAPTER 4: SOME RECOMMENDATIONS TO COMPLETE THE ACCOUNTING FOR CONSUMPTION AND EVALUATION OF BUSINESS RESULTS IN THE COMPANY .63 4.1 The need and the principle of perfecting consumption accounting, determining business results at Dai Duong Xanh Limited Company 63 4.2 General assessment of current situation of accounting for consumption and Evaluation of business results in the company .65 4.2.1 Advantages 65 4.2.2 Limitations 66 4.3 Some recommendations to complete and perfect the accounting for consumption and Evaluation of business results in the Company 67 4.3.1 About account 521 68 4.3.2 About accounting software 67 4.3.3 About mode of consumption 67 4.3.4 Regarding tracking short-term receivables 68 4.3.5 Regarding the opening of Subsidiary ledger of ACC 64221 and ACC 64217 68 4.3.6 Regarding accounting books and vouchers 68 4.3.7 Regarding the remuneration 68 4.3.8 Regarding language skills 74 VII CONCLUSION 72 APPENDIX 73 VIII LIST OF ACRONYMS NO ACRONYM MEANING ACC Account CIT Corporate Incomes Tax CO Company COGS Cost Of Goods Sold CR Credit DR Debit FIFO First-in, First-out IC Individual Customer JSC Joint Stock Company 10 NO Number 11 VAT Value-Added Tax 12 VND Việt Nam Đồng IX LIST OF CHARTS No CONTENT PAGE Chart 1.1 Organizational Chart of the management apparatus Chart 1.2 Accounting organizational chart Chart 1.3 General journal chart Chart 1.4 Book keeping procedures Chart 2.1 Accounting for direct consumption sales 16 Chart 2.2 Accounting for agent-based consumption sales 16 Chart 2.3 Accounting for sales with installment/ deferred payment 17 Chart 2.4 Accounting for sales by goods exchange 17 Chart 2.5 Accounting for product and goods returns 18 Chart 2.6 Accounting for expenses incurred related to sales returns 18 Chart 2.7 Cost accounting according to periodic inventory method 21 Chart 2.8 Cost accounting under perpetual inventory count method 22 Chart 2.9 Accounting for general & administration expenses 25 Chart 2.10 Accounting for financial activities income 27 Chart 2.11 Accounting for expenses of financial activities 29 Chart 2.12 Accounting for other income 31 Chart 2.13 Accounting for other expenses 33 Chart 2.14 Accounting for CIT expenses 35 Chart 2.15 Accounting for evaluation of business results 37 X LIST OF REFERENCES [1] Huỳnh Lợi (2010), “Giáo trình Kế tốn chi phí”, Trường đại học Giao Thông Vân Tải [2] Thông tin, số liệu nội Công ty TNHH MTV Đại Dương Xanh [3] Bộ Tài 2016, Thơng tư 133/2016/TT-BTC ngày 26/08/2016 Bộ Tài Chế độ kế tốn doanh nghiệp vừa nhỏ [4] Trần Minh Đạo (2019), “Giáo trình Marketing bản”, trang 85-86 XI INTRODUCTION The reason for choosing this topic In the new mechanism, with the operation of many economic fields, the independence and autonomy in enterprises are getting higher and higher, each enterprise must be creative in business, must be responsible for its business results, preserving capital and profitable business To so, businesses must be aware of the position of the product consumption stage, which determines the business performance of the business and is the basis for the business to have income to offset the costs spent Besides, the purpose of businesses is to make profits, so it is also important to determine correctly and accurately the business results in general and sales in particular Therefore, beside general management measures, the rational organization of accounting for consumption and determination of sales results is essential to help businesses have timely and accurate information to make business plan Dai Duong Xanh Limited Company has many business opportunities, but at the same time facing many competition of alternative products in the market that requires the company to have an agile and ingenious combination to keep firmly position itself in the market economy As a student at HCMC University of Technology and Education, after an internship, being deeply into the accounting apparatus and accounting work of Dai Duong Xanh Limited Company, I awared the necessity, role and importance of consumption so I chose the topic: “Accounting for consumption and evaluation of business results at Dai Duong Xanh Limited Company” Research objectives - Synthesizing, systematizing general theoretical issues related to consumption accounting and determine business result - Researching the current status of consumption accounting and determining business results at Dai Duong Xanh Limited Company - Evaluating advantages and disadvantages of consumption accounting and determine the company's business result - Proposing solutions to perfect the accounting in general and consumption, determine the business result in particular at the company Research methods - Interviewing and consulting staffs directly at accounting department - Referring to the necessary data and documents related to the thesis topic - Collecting company’s data and documents to bring into the thesis - Learning, referring and collecting documents, receipt, records of the company related to topics such as: subsidiary ledger, general journal… Interview questionnaire (Appendix No.1) Research subjects Subject: Accounting of consumption and business results determination at Dai Duong Xanh Limited Company Scope of study: - Space: Dai Duong Xanh Limited Company - Time: 30/01/2019 - 29/03/2020 - Data for research: Data that company obtained from 01/2019 to 12/2019 - Results achieved: During my internship at the company, I was enthusiastically helped by the staff working in accounting department to learn about the accounting apparatus and business situation of the company Thereby, I can clearly grasp the business situation of the company and gave some recommendations to the company Thesis structure This thesis consists of main parts: - Part I: Introduction of Dai Duong Xanh Limited Company - Part II: Theoretical basis for accounting of consumption and evaluation of business result in enterprises - Part III: Current situation of accounting of consumption and evaluation of business result at Dai Duong Xanh Limited Company - Part IV: Some recommendations to improve accounting of consumption and evaluation of business result at Dai Duong Xanh Limited Company CHAPTER I: INTRODUCTION OF DAI DUONG XANH LIMITED COMPANY 1.1 Overview of the Company 1.1.1 Establishment and development The Company fully satisfies the conditions for business registration in accordance with the current laws and has been granted a business registration license by the Department of Planning and Investment since May 16, 2013 and started its operations on May 22, 2013, to date the Company has been operating for more than years under the tax management of: Tax Department of Hoi An City Type of company: Dai Duong Xanh Limited Company Address: 29 Huynh Ngoc Hue, Block 4, Tan An Ward, Hoi An City, Quang Nam Province Director: Nguyen Anh Email: laochamxanh@gmail.com Tel: 0984072659 Tax code: 4000929832 Established in 2013, years is not enough time for an enterprise to assert its existence and develop stably, with the operating principle: Quality, trust and its brand in the market in the process of integration with the regional and international economy With the aim towards the satisfaction and benefits of customers, the appearance of Dai Duong Xanh Limited Company has significantly contributed to the transportation of passengers and goods Mission: We are committed to providing the highest quality, reliability and flexibility of service; Safety for people and the environment is always a top priority Dai Duong Xanh strives to be the first choice of customers in the field of passenger transportation and related services through continuous improvement that is due to its superior integrity, the spirit of team work as well as exploitation and operation Vision: Dai Duong Xanh can become a leading brand in Vietnam in providing customers with the best inland waterway passenger transportation service at the most competitive price Core values: - Professionalism: The company always maintains professionalism in all jobs The company has the ability, expertise and good cooperation in providing services that meet the requirements of customers - Credibility: Working on the principle of mutual respect associated with each individual's responsibility - Accountants post all profits and losses into books, detailed financial statements monthly, quarterly and annually, making the accounting data management become much more detailed, making it easier for the senior managers to make reasonable decision on business strategies, helping the company’s business be more effective 4.2.2 Limitations In addition to the advantages and achievements in perfecting the accounting for consumption and evaluation of business results of the Company, there are still limitations that the company needs to improve and perfect to meet their managing requirements Although basically, the company has a good organization in accounting of revenue, expenses and evaluation of business results, there are still some limitations as follows: - Because the company applies Circular 133, revenue deductions are not separated from other accounts but subtracted directly from 511, so it is difficult for the company to control if it’s devaluation of sales or trade discount - Accounting vouchers gathered for use at the accounting office have not been classified according to different clear content Accounting vouchers for the arising sale operations are stored in a set of document including VAT invoices, receipts, payment slips, etc which may cause difficulties and take time and effort for better use of vouchers in posting of the accountants or checking of the authorities - In actual situation of the company and the payroll, there is a sales department with salespeople, but the expenses for this department are not recorded in the account 64217: Sales expenses but posted in the detailed account of 64221: Administration expenses Although the accounting of these accounts is incorrect in detail, the aggregated one on the 642 general account: the management and business expenses are still correct, so the accounting result is not too material without appearance in the financial statements - Currently, the company has not applied any preferential policies in business that is for customers to enjoy discounts The fact shows that business incentives are also one of the measures to improve the efficiency of enterprises’s competitiveness, accelerate sales and reduce capital revenue, and improve production and business efficiency It is essential to business survival in today’s economic situation - Debt recovery is still limited In the year, bad debt write-offs appeared many times 66 - The current software the company is using is Sivip, Sivip is an uncommon software, which can cause difficulties for trainees and new employees This will take a lot of time for retraining from scratch - In the current economic integration situation, foreign language is an essential requirement for employees However, some of the company’s employees have limited language skills If you want to expand trade opportunities to the world, businesses need to communicate with as many foreign partners and customers as possible Basically, a business with a global mindset but without a foreign language policy is the act of limiting its own development ability They will be at a disadvantage when there is direct competition from other competitors, where there is a better foreign language policy - The company has not really focused on promoting its services to many new customers The promotion will help the company to reach many potential customers and raise brand awareness through advertising 4.3 Some recommendations to complete and perfect the accounting for consumption and Evaluation of business results in the Company During my internship in the company, on the basis of the actual situation of the company as well as the theoretical issues that have been learned, I would like to give some recommendation to better improve the accounting for revenues, expenses and business results of the company as follows: 4.3.1 About account 521 The revenue deduction must not be separated from account 521 but subtracted directly from 511 prone to fraud and embezzle So the company should change the accounting policy, change the Circular 133 to Circular 200 4.3.2 About accounting software Sivip accounting software is not popular and few students studying accounting know it and are not taught how to use it when studying in university, so it is difficult to train new employees The company should be switching to more popular software, like misa or fast 4.3.3 About mode of consumption (Promoting) The motto of maximizing profit is always the desire and purpose of the service company, and one of the decisive factors that cannot be ignored is the method of consumption Currently, the company mainly provides catering, travel and vehicle rental services to a small number of retail customers To increase revenue, the company needs to promote its services to more customers through marketing service agencies 67 Lately there are many marketing service available at resonable prices, they will research market, rely on the company’s field of activity to find target 4.3.4 Regarding tracking short-term receivables For customers with due debt payables, the company should send them advance notices to remind about their debt payment, periodically sending a balance sheet to each customer, especially to those too much overdue debt and no longer ability to pay debts It is necessary to have specific regulations and measures in debt collection which must ensure that the two principles: (1) the interests of the company are not infringed, and at the same time, (2) customers will not leave the company The accountant needs to prepare a debt tracking report: Debt tracking report form: (Appendix No.7) 4.3.5 Regarding the opening of Subsidiary ledger of ACC 64221 and ACC 64217 - The accountants merge accounts 64221 and account 64217 into the one general account 642, which may result in errors The accountants need to separate into Subsidiary ledger of account 64221 and Subsidiary ledger of account 64217 for easy monitoring and management Sample of Subsidiary ledger account: (Appendix No.8) 4.3.6 Regarding accounting books and vouchers - The original documents, when being delivered to the office, should be classified and arranged for a neat, straightforward, tidy science, numbered, signed, logically compiled into a set system for the convenience of monitoring and comparing data - On monthly, quarterly and annual basis, the accountants must re-check all data to see if there is any loss of documents, damage or termite If any, immediately report to the Director for timely action If not, the seal will be put back in the cabinet and kept as before If the preservation of accounting vouchers is performed well, it will bring high efficiency and long-term storage - The input invoices should be collected and save in booklet monthly or quarterly, arranged in the order on the VAT declaration which makes finding invoices become quicker and easier 4.3.7 Regarding preferential policies (Remuneration) - In order to organize tour sales well and increase revenue, the company should have preferential policies and promotions for customers such as for customers to enjoy commercial discounts and sales discounts for customers who book large-scale tours 68 - Encourage everyone in the company to pay insurance Communicate for all of employees to understand the benefits of these insurance And increasing the employee’s insurance premiums, although it will increase the business cost, but improving labor productivity and increasing business efficiency 4.3.8 Language skills The company should encourage employees to study and take exams for English certificates to improve their language skills Can be motivated by raising salaries or bonuses for staff with a foreign language degree with high scores 4.4 Orientation to improve profit at Dai Duong Xanh Limited Company General assessment of business performance: The company is expanding its business to new markets, investing in more modern equipment, improving the quality of human resources as well as the quality of customer service to meet the increasing travel needs of capital people Some measures to improve business efficiency of the company: - Expanding service market: Operating in the business field, every enterprise must determine for themselves a reasonable business strategy with their conditions, in which the target market strategy plays a significant role Market is a decisive factor to the business performance of the company In order to improve business efficiency in general and consumption efficiency in particular, the company needs to have an appropriate market expansion strategy First of all, the company needs to serve regular customers well and take measures to expand markets to serve: Strengthen advertising measures, marketing clearly shows the service quality and reputation of the Company Strengthening promotional policies, implementing trade discounts for large and regular customers of the company Build a dynamic staff, have policies that care about human resources such as salary and bonus policies, and create conditions for employees to serve customers in the best way - Manage well the cost of business management: Expenses are the amount spent to generate revenue, but they are the expenses of the business Therefore, the economical and reasonable use of the expenses of this business will have a great impact on the business performance of the company Cost savings are to reduce the amount of material consumption per unit of product, increase the volume of products and services produced, and reduce the cost of the 69 supplied goods In that sense, saving costs has been the striving target of companies and businesses in all economic sectors For Dai Duong Xanh Limited Company, in order to improve the efficiency of production and business in addition to increasing revenue, the company needs to know how to save business costs In order to save costs, I would like to recommend some of the following measures: Purchasing materials and spare parts necessary for the process of repairing and renewing means of transport must be purchased from reliable and guaranteed sources, without buying goods of clear origin, unsatisfactory quality, and anti-wastefulness fees when buying raw materials, limiting buying from multiple sources will make it difficult to manage prices and sources of materials Operating expenses include two expenses, which are selling expenses and administrative expenses, but due to the characteristics of their business activities (service activities), selling expenses account for the proportion of small in total cost (These two expenses are aggregated in account 642) Therefore, the main solution needs to focus on reducing business management costs First of all, the company needs solutions to reduce unnecessary costs such as: telephone costs, electricity costs, to avoid widespread usage For expenses for meetings and reception, the company should have specific regulations on the amount of money to be spent for each meeting In addition, the company should disseminate the thrift practice policies to each employee, asking everyone to cooperate At the end of the year, there are rewarding and sanctioning policies for individuals and divisions that have not done well - Improve service quality: As we know the quality of services provided to customers is a very important issue for a business enterprise in the service sector If the service quality does not meet the needs of the customer, that service will not be available for long Here are some solutions to improve the quality of customer service - Increased customer engagement: In the customer service industry is the most important person, customers express their opinion on the quality of service used through customer feedback and participation in the implementation of the service Therefore, customer participation affects the quality of services provided and enhances customer participation is also an important measure to increase service quality to attract customers to use our services company 70 In addition, in order to increase business efficiency, it is necessary to synchronously coordinate among departments in the company, in which accountingis the most effective financial tool 71 CONCLUSION The transportation industry in general and the passenger transport in particular always play an important role in the development of each country as well as the development of industries in the country's economy, The transport industry ensures the smooth match between branches in the national economy and the expansion of cultural exchanges between regions Therefore, innovation to improve the quality of the transport industry is one of the urgent requirements In order to that, the company must perfect itself and improve the quality of its operations In the process, the accounting work is the first and important factor that needs to be completed, creating the basis for the business perfecting other factors Accounting in general and consumption accounting, determining business results in particular play a role as the most effective tool in business management During the process of theoretical research and practical research, I boldly went into the topic: "Accounting of consumption and business result determination in Dai Duong Xanh Limited Company" The subject mentioned and solved a number of issues about the organization of the accounting apparatus and the organization of accounting for consumption and determination of results in Dai Duong Xanh Company On the basis of the stated fact, the subject has analyzed the advantages to be promoted and the shortcomings to be overcome of the accounting system at the company From there, give some measures to improve accounting in general and sales accounting and determine the results in particular However, this is a rather wide and complex issue, so the topic cannot be fully covered, but has only studied in depth some major issues of consumption accounting and determining business results From there, seeing the points that need to be promoted and proposing some ideas to further improve this accounting practice for analyzing and evaluating results, perfecting the management apparatus and organize business to help the company survive and grow Due to the wide scope of the topic, the short internship time and limited knowledge, my topic is definitely not certain of the shortcomings I look forward to receiving the attention and suggestions of teachers During the internship and writing internship, I have received enthusiastic attention and help from all staff in the accounting department of Dai Duong Xanh company, with the dedicated help of Ms Nguyen Thi Lan Anh I would like to thank all the Accounting Department staff of the company and Ms Nguyen Thi Lan Anh for helping me complete this graduation topic 72 APPENDIX APPENDIX NO.1 No Questions Department What is the company's organizational structure? HR department What are the accounting policies and regimes applied by the company? Accounting department The company's accounting year? Accounting department How to put VAT invoice data into the accounting software? Accounting department How does the accountant record revenue? Accounting department How to classify costs, transfer costs? Accounting department How companies income tax? Accounting department calculate corporate 73 APPENDIX NO 2: VAT INVOICE 74 APPENDIX NO 3: VAT INVOICE 75 APPENDIX NO 4: VAT INVOICE 76 APPENDIX NO 5: PAYROLL 77 APPENDIX NO.6: INCOME STATEMENT 78 APPENDIX NO 7: DEBT TRACKING REPORT FORM 79 APPENDIX NO 8: SAMPLE OF SUBSIDIARY LEDGER ACCOUNT 80 ... situation of accounting of consumption and evaluation of business result at Dai Duong Xanh Limited Company - Part IV: Some recommendations to improve accounting of consumption and evaluation of business. .. situation of accounting for consumption and evaluation of business results in Dai Duong Xanh Limited Company 3.1.1 Consumption characteristics in Dai Duong Xanh Limited Company - Business items: The company. .. of Accounting for consumption and Evaluation of business results 12 2.1.4 Roles of Accounting for consumption and Evaluation of business results 13 2.2 Methods of consumption and payment