Accounting for revenue in new way education limited company

THUONGMAI UNIVERSITY FACULTY OF ACCOUNTING AND AUDITING - - GRADUATION THESIS TOPIC: ACCOUNTING FOR REVENUE AT NEW WAY EDUCATION LIMITED COMPANY Instructor : PhD Pham Duc Hieu Students : Dang Khanh Ha – 18D155009 HANOI - 2022 SUMMARY In our country's current situation, with the objective of industrialization and modernization, a company's business process must adhere to a set of regulations The company's leadership must have enough knowledge, analyze, and supervise all aspects of the business's operations for this process to work effectively Accounting is considered a fundamental role in economic management in enterprises Since  fully implemented, it will provide executives with accurate information to assist them in understanding and making the right decisions For students majoring in accounting, the internship period at the company helps students consolidate their acquired capabilities and skills and study in-depth knowledge and apply theory to practice The internship term serves as a platform for students to gain more practical experience as a foundation for future professions while supporting them in preparing for their graduation thesis During my internship and practical research at New Way Limited Company, I observed different aspects of the accounting process, including the company's achievements and deficiencies I learned the importance of accounting for revenue after conducting specific research in the company As a result, I chose "Accounting for Revenue in New Way Education Limited Company" as the topic for my graduation thesis This thesis aims to analyze accounting for revenue in New Way Education Limited Company through practical observation and theoretical study using Vietnamese accounting standards and regulations that apply to the company's business characteristics As a result, I'll evaluate the company's current accounting for revenue status to determine the advantages and disadvantages and identify the primary reason Therefore, I confidently propose some suggestions to improve the accounting work for revenue at New Way Education Limited Company to increase revenue and improve business efficiency i ACKNOWLEDGEMENT The process for completing the graduation thesis is critical for all students in all majors to achieve a satisfactory outcome Not just with instructors' assistance and help, but also with the enthusiastic cooperation of the company's employees During my internship and thesis research, I gained a lot of practical experience while still strengthening my theoretical understanding I sincerely thank the Board of Directors of New Way Education Limited company for supporting me during my internship by allowing me to obtain documents for my thesis Especially, I would like to express my gratitude to the company's accountants, who have actively guided and assisted me throughout my internship At the same time, I would like to thank Associate Professor PhD Pham Duc Hieu from Thuongmai University has guided me enthusiastically so that I can complete my graduation thesis I also want to thank the Administrators of Thuongmai University for creating favorable conditions for me to complete my internship, thesis, research in my field of study Despite my best efforts and limiting theoretical and practical knowledge, the graduation thesis still has some mistakes Therefore, I'm looking forward to receiving assessments from teachers Sincerely thank you! Student Dang Khanh Ha ii TABLE OF CONTENTS SUMMARY i ACKNOWLEDGEMENT ii TABLE OF CONTENTS iii LIST OF TABLES AND DIAGRAMS v LIST OF ACRONYMS vi INTRODUCTION 1 Necessity of the research topic Objectives of the topic Subjects and scopes of study of the topic Research methodology Structure of the graduation thesis .4 CHAPTER 1: THEORETICAL ASPECTS OF ACCOUNTING FOR REVENUE IN BUSINESSES 1.1 Theoretical aspects regarding Accounting for Revenue .6 1.1.1 Overview of Revenue in businesses .6 1.1.2 Management requirements and tasks of Accounting for Revenue 1.2 Accounting for Revenue as required by Vietnamese accounting standards and regulations 10 1.2.1 Accounting standards related to Accounting for Revenue 10 1.2.2 Accounting for Revenue in businesses required by accounting regulations 14 1.2.3 Presenting information of Accounting for Revenue 23 1.2.4 Accounting for Revenue in terms of accounting software application 24 SUMMARY FOR CHAPTER 26 CHAPTER ACCOUNTING FOR REVENUE IN NEW WAY EDUCATION LIMITED COMPANY 27 2.1 Introduction to New Way Education Limited Company 27 2.1.1 History of formation and development of New Way Limited company .27 2.1.2 Characteristics of business operations and organizational structure of New Way Education Limited company 28 2.1.3 Characteristics of accounting and analysis in New Way Education Limited Company 31 iii 2.2 The current status of Accounting for Revenue in New Way Education Limited Company 37 2.2.1 Characteristics and management requirements for Revenue in New Way Education Limited Company 37 2.2.2 Procedures for preparing documents and information related to Accounting for Revenue in New Way Education Limited Company .38 2.2.3 Process of Accounting for Revenue in New Way Education Limited Company 40 2.3 Evaluation of Accounting for Revenue in New Way Education Limited Company 49 2.3.1 Strengths 49 2.3.2 Weaknesses and reasons .51 SUMMARY FOR CHAPTER 53 CHAPTER 3: SUGGESTIONS FOR IMPROVEMENT IN ACCOUNTING FOR REVENUE IN NEW WAY EDUCATION LIMITED COMPANY .54 3.1 Principles and requirements for improvement 54 3.1.1 Principles 54 3.1.2 Requirements .56 3.2 Solutions and proposals for improvement 57 3.2.1 In term of the apparatus organization 57 3.2.2 In term of accounting for revenue .57 3.3 Conditions for improvement 58 3.3.1 In term of New Way Education Limited company 58 3.3.2 In term of the government and appropriate authorities .60 CONCLUSION FOR CHAPTER .62 LIST OF REFERENCES .63 LIST OF APPENDICES 65 iv LIST OF TABLES AND DIAGRAMS Diagram 1 Processing of accounting for Revenue from sales and service provision 19 Diagram Process of accounting for revenue deductions 20 Diagram Process of accounting for financial income 21 Diagram Process of accounting for other income 22 Table Income statement of New Way Education Limited Company in 29 2019 – 2020 .29 Diagram The organizational structure in New Way Education Limited company 30 Diagram 2 Accounting Department in New Way Education Limited company 32 Diagram Process of bookkeeping 35 Diagram Bookkeeping sequence for revenue .44 v LIST OF ACRONYMS VAS Vietnam Accounting Standards VAT Value Added Tax IFRS International Financial Reporting Standards Dr Debit Cr Credit VND Vietnam Dong CIT Corporate Incomes Tax CFO Chief Financial Officer HR Human Resource Acc Account TTKM Trung tam Kim Ma (Kim Ma centre) vi INTRODUCTION Necessity of the research topic - In theory: With the profound changes in the economy, particularly the complicated development of the COVID-19 epidemic, the competition among Vietnamese enterprises in the market is becoming increasingly fierce This creates many opportunities, but also many challenges Every business must take practical measures, take advantage of opportunities and maximize its potential to stand firmly in the market Accounting organization is a critical task for all businesses because it determines the growth or decline of the company Revenue is the total value of economic benefits of an enterprise obtained during the period from ordinary business activities Therefore, increasing revenue and maximizing profit is the top priority of every business Because revenue increases mean a company has performed well in its sales function and role, indicating that product or service satisfies customers and is in an efficient business period The fluctuation of revenue affects the company's financial position With reliable finance and good liquidity management, businesses will be able to expand growth opportunities Revenue analysis allows the companies to see and evaluate its performance of targets in each period – in an accurate, comprehensive, and objective way As a result, they can see the discrepancy between the revenue plan's objective and the achievement of the company Therefore, it is necessary to perfect the accounting for revenue in enterprises - In practice: With nowadays development, accounting work must be constantly innovated and improved in terms of contents, methods and organizational forms to meet the high demands of the economic management for businesses Currently, the competitive market is requiring the provision of more specific accounting information to suitable for the change of the business environment Moreover, accounting for revenue is an effective financial tool for management to have an overview and details of the company's financial position The information provided by the accounting department helps the board of directors make the right decisions and strategies to prevent risks and make operational plans For the accounting for revenue to be accurately and timely performed, the company needs to manage and create conditions for the accounting work to operate effectively and develop following the characteristics of the business After a period of internship at New Way Education Limited company to research the company's accounting system, I found that accounting for revenue applied to current accounting regulations The accounting method, accounts, journals, ledgers and documents used at the company are appropriate for the characteristics of the company's business activities However, to adapt to the unpredictable situation of the epidemic, businesses operating in the field of trade and services in general and in New Way Education Limited company in particular also faced many difficulties Therefore, I chose "Accounting for Revenue in New Way Education Limited Company" as my research topic and graduation thesis Improving the accounting for revenue is extremely important for the company Revenue should be determined precisely because it uses as the foundation for evaluating the company's performance and as an indicator for comparing revenue differences between years It also assists executives in considering options to make the best decisions for future goals Objectives of the topic - Listing and clarifying theoretical aspects of accounting for revenue by current accounting standards and regulations under the Decision 48 and Circular 133 and financial policies relevant for practical research - Researching and describing the current status of accounting for revenue in the New Way Education Limited company on documents, accounts and accounting methods compared to accounting standards and regulations - Analysing and evaluating the current status to point out the advantages and disadvantages that exist in the accounting for revenue in New Way Education Limited company - Proposing some suggestions to improve the accounting for revenue in New Way Education Limited company Subjects and scopes of study of the topic - Subjects of the topic: Research on theory and practice of Accounting for Revenue in New Way Education Limited company - Scopes of study of the topic:  In terms of content: Focus on researching the current status of accounting for revenue in New Way Education Limited company from financial accounting aspects Theoretical research based on accounting standards No 01, 14 and accounting regulation which is Circular 133/2016/TT-BTC by the Minister of Finance  In terms of spatial: Research on revenue accounting for educational services of New Way Education Limited company  In terms of timeline: Research on theoretical aspects and survey existing documents in New Way Education Limited company in 2020 Research methodology  Methods of data collection and synthesis The following methods were used to collect data for the study are observation, document research, and interview investigation: - Observation: Information is collected through direct observation during the internship at the New Way Education Limited company on the contents about the management apparatus organization, assigning work, and performance of accounting staff in the company Simultaneously, I monitored the process of preparing and transferring documents then entering data into accounting software so as on the balance sheet to make financial statements - Document research: The study was conducted based on documents, journals, ledgers (general and subsidiary) and financial statements of New Way Education Limited company in 2020 I also researched information on the mass media and other documents In addition, the reference to relevant documents such as accounting standards No 01 and 14, specialized accounting books, and theses of previous courses also helps a lot for research The collected information allows to supplement and test the information obtained from other methods to find out the advantages and disadvantages of accounting for revenue in the company ... to Accounting for Revenue in New Way Education Limited Company .38 2.2.3 Process of Accounting for Revenue in New Way Education Limited Company 40 2.3 Evaluation of Accounting. .. 1.2.2 Accounting for Revenue in businesses required by accounting regulations 14 1.2.3 Presenting information of Accounting for Revenue 23 1.2.4 Accounting for Revenue in terms... of accounting software application 24 SUMMARY FOR CHAPTER 26 CHAPTER ACCOUNTING FOR REVENUE IN NEW WAY EDUCATION LIMITED COMPANY 27 2.1 Introduction to New Way Education Limited