Accounting internship report ACCOUNTING INTERNSHIP REPORT INTRODUCTION Accounting is a very important term to our modern society It is a career for both genders who are at the start and have eyes set[.]
ACCOUNTING INTERNSHIP REPORT INTRODUCTION Accounting is a very important term to our modern society It is a career for both genders who are at the start and have eyes set on the top position of industry, management, government, and general business Accounting is basically required for every businessman, from an operator of a filling station to a staff of the government It’s so important to our society that none of the business organization can operate without it In a business, accounting is a major tool for helping managers, shareholders, potential equity investors, bond holders, potential creditors, suppliers and customers and other stakeholders in order to make a right decision While accounting reports are prepared in different formats and basic data is synthesized and summarized in various ways to facilitate decision making, there is only one principle maintained by the accounting system that each data of a transaction need to be entried as need debit and credit of two accounts Accountants then combine these data in various ways to provide information to internal or external users In order to understand accounting in both theory and practice and also have an overview of real accounting system and analyses of financial position of a business, as a senior student, I found that it is quite necessary to apply my accounting knowledge into real life cases Finally, I chose Langmaster International JSC to conduct my research and take a deeper look in the accounting process of an accounting system My report is divided into three parts below: Part I: Overview of Langmaster International Joint Stock Company Part II: Status of the accounting organization in Langmaster International Joint Stock Company Part III: Comments on accounting system of Langmaster International Joint Stock Company Student: Nguyen Hoai Thu Auditing High Quality Class ACCOUNTING INTERNSHIP REPORT PART I: GENERAL KNOWLEDGE ABOUT LANGMASTER INTERNATIONAL JOINT-STOCK COMPANY 1.1 Developing and growth 1.1.1 Overview of Langmaster International Joint-stock company Langmaster International JSC Langmaster International Joint Stock Company Name (Công ty Cổ phần Đầu tư Giáo dục & Phát triển Công Day founded nghệ Quốc tế Langmaster) 11/10/2011 No 27, Doan Ke Thien St., Mai Dich, Cau Giay Dist., Address Tax Code HN 0105560993 Owner’s equity VND 9,000,000,000 Size Medium Type Joint-stock Company Popular Customers Students from all universities and colleges Email info@langmaster.edu.vn Website langmaster.edu.vn / effortlessenglish.edu.vn Head Office 1: 27 Doan Ke Thien, Mai Dich precinct, Cau Giay Dist., HN Branch 1: 76 Nhon St., Minh Khai, Tu Liem Dist., HN Branch 2: 17, alley 27, Dai Co Viet St., Hai Ba Trung Dist., HN Branch 3: 28, alley Dai An, Van Quan, Ha Dong, HN Recruiting Apartment: No 170, Bach Mai St.,Hai Ba Trung Dist Business Registration: Registration number granted by the Department of Planning and Investment of Hanoi on 11/10/2011 Tax code: 0105560993 Student: Nguyen Hoai Thu Auditing High Quality Class ACCOUNTING INTERNSHIP REPORT The company has s fully legal personality in accordance with the laws of Vietnam to open bank accounts The company is a joint-stock one on the basis of the shareholders’ equity 1.1.2 History of development and growth On the first days of 2011, Langmaster was known as an English club founded by Mr Nguyen Tien Dung With approximately 80 members, Langmaster club operated mainly in university of commerce and Hanoi industrial university Established on 11/11/2011, Langmaster International JSC, located in 27 Doan Ke Thien street, Mai Dich precinct, Cau Giay Dist., HN, is the first English training school which possesses a special training method combined psychological factors in Vietnam This company always strives to become the most effective educational institution by providing English training programs which apply thinking professionally and efficiently to help people learn to speak English easily, smoothly and automatically from 3-6 months In August of 2012, Langmaster International JSC set up its first branch at 76 Nhon St., Minh Khai, Tu Liem Dist., In August of 2013, Langmaster International JSC set up its second branch at 17, alley 27, Dai Co Viet St., Hai Ba Trung Dist., In February of 2014, Langmaster International JSC opened its recruiting apartment located at 170, Bach Mai St.,Hai Ba Trung Dist In August of 2014, Langmaster International JSC set up its second branch at 28, alley Dai An, Van Quan, Ha Dong With training experience and deep expertise of faculty, experts whose professional education backgrounds are excellent nationally and internationally, Langmaster is proud to provide English training programs which could be implemented to meet the social development’s demands Student: Nguyen Hoai Thu Auditing High Quality Class ACCOUNTING INTERNSHIP REPORT Table 1.1: Some education conferences held by Langmaster International JSC Works Time & Place Guess: Dr Phan Quoc Viet – President of Tam “Skills Training” Viet Group 3/2011 – Nong Dan Meeting Hall Guess: Dr AJ HOGE – Manager of Effortless “Effortless English Method” “Outstanding leadership and mindset with NLP” “Life Management” “Power of solving problems with NLP” English LLC 9-11/11/2012 – Thien Duong Bao Son Guess: Mr Vas – CEO of Leading Performance Singapore 16-17/3/2013 – La Thanh Hotel Guess: Dr Le Tham Duong – Professor in Bank University in HCM City 11-12/3/2013 – Kim Lien Hotel Guess: Mr Vas – CEO of Leading Performance Singapore 7-8/9/2013 – Kim Lien Hotel With the achievements above, for many years, Langmaster has gained trust from clients and continued to provide services with great quality in order to expand its scale and improve the business profit in the future 1.2 Business characteristics and organizations 1.2.1 Functions and Missions of the company As a English training school which has the fastest growing rate in Vietnam, this company is not only pleased to make strong collaboration with a team of senior experts in teaching nationally and globally in Europe, America and Singapore but also committed to transfer practical knowledge based on thinking & education orienting to maximize the creative abilities of students The ultimate goals are to help people learn to change their attitudes and develop necessary skills as well as speak English fluently within 3-6 months to create a competitive advantage in the context of globalization Student: Nguyen Hoai Thu Auditing High Quality Class ACCOUNTING INTERNSHIP REPORT Missions: The most important mission is improving customers’ value – “Your success, our success” Visions: Help at least 10 million people speak English fluently and become the most successful company leading in educational field in the next 10 years Slogan: “Langmaster, learn smarter” 1.2.2 Characteristics of the company’s goods and services In educational industry, there are a lot of competitive English centers namely Apollo, Language Link, Smartcom but Langmaster is the exclusive supplier of “Effortless learning English” method invented by Dr AJ Hoge who has a Masters degree in TESOL (Teaching English to Speakers of Other Languages), a Masters degree in Social Work, a Bachelors degree in Journalism and NLP (Neurolinguistic programming is an approach to communication, personal development, and psychotherapy created by Richard Bandler and John Grinder in California, United States in the 1970s) A difference between Langmaster and other English centers is that this company could be able to create an active learning environment while other schools mainly provide heavily academic training which does not meet students’ actual needs Products characteristics: - - - Price: • 20 million for a NLP class • – million for an advanced and a VIP course • Approximately million for a basic course Number of students in a class: • 40 students for an English class • 20 students for a NLP class Class facilities (in room): • Modern tables and chairs Student: Nguyen Hoai Thu Auditing High Quality Class ACCOUNTING INTERNSHIP REPORT - • air-conditionals • A blackboard and a projector, CD Players… Exclusive prepared documents (using “Effortless learning English” method) 1.3 - Good professors (both Vietnamese and foreign experts) - Enthusiastic coach teams Business structure Management structure of the company was built on a compact model, follow regime of one head With such a model like that, the operation of the company is acted consistently from top to bottom The C.E.O of the company manages working process through documents and rules, and then each department is responsible for the implementation thereof There is a chief, who is the leader of each department The whole work of the company is conducted smoothly due to a reasonable division into specific components and assigned to the various departments in charge The chiefs on behave of his team receive their assigned tasks then arrange for their employees to specific tasks depending on qualifications and their abilities, and they are responsible for monitoring performance in the fields assigned to them FIGURE 1.1: Business Structure of Langmaster International JSC Student: Nguyen Hoai Thu Auditing High Quality Class ACCOUNTING INTERNSHIP REPORT CHAIRMEN C.E.O Vice C.E.O C.E.O Assistant Research & Development department Training department Accounting department Human Resource Marketing department Sales department 1.3.1 Apartment Functions Chairmen (Shareholders): Co-owners, who have the highest executive position of the company, may decide to operate the company's direction C.E.O (Chief executive officer): who has the authority to regulate all business activities as decided by the general meeting of shareholders Duties and powers of the director shall comply with business laws and company regulations Vice director: as assistants to the chief executive officer in management of the company Research & Development department: A company’s research and development department plays an integral role in the life cycle of a product The research and development team aids the company in staying competitive with others in the industry The department is able to research and analyze the products other businesses are creating, as well as the new trends within the industry This research aids the department in developing and updating the products created by the company Student: Nguyen Hoai Thu Auditing High Quality Class ACCOUNTING INTERNSHIP REPORT Accounting department: • Satisfy plans to use funds in the business and operation, wage payment and other policies for staff and employees in the Company • Fully apply accounting principles, strictly implement the original recording and ensure accuracy of data • Monitor and update data on the use of capital based on the source and the rate allowed to use, promptly notify the Board of Directors of the Company, the relevant departments to know to adjust timely and balanced funds • Guide and supervise other Departments and Teams completing the advance payment in the amount of work completed and coordinate to construction teams to organize the settlement, payback with investors • To advise the director in finance Marketing department: The marketing department studies the market and the target customers, decides the best way to reach these customers, and works with the rest of the company to help determine the new product needs of the market Besides, they’re also in charge of holding company’s Human Resource department: The marketing department studies the market and the target customers, decides the best way to reach these customers, and works with the rest of the company to help determine the new product needs of the market Training Department Functions of Training Department: • Make the training plan yearly, quarterly • Build up the training system • Hiring & training the trainer • Organize the class • Customer care • Build up the relationship with customer Student: Nguyen Hoai Thu Auditing High Quality Class ACCOUNTING INTERNSHIP REPORT Sales Department: Functions of Sales Department: • Make the business plan yearly, quarterly • Build up the sale system including sale structure, sale policy • Hiring & training sale team • Organize the sale activities to reach the sale target • Maintain the relationship with customer • Provide information about the market, customer, competitor 1.4 Financial Position and Operational Results of the Company Financial Position and Operational Results of the Company as shown in Table TABLE 1.2: The financial indicator of Langmaster International JSC Indicator Total Assets Current Assets Non-current Assets Unit VND VND VND Owner’s Equity VND Revenue VND ) 3.548.732.800 Earnings before Tax VND (500.438.000) Taxes payables and to 2012 712.110.305 712.110.305 (1.025.671.913 2013 4.191.029.459 3.117.113.935 1.073.915.524 (507.057.705) August of 2014 8.767.383.640 7.991.457.572 775.926.068 (3.325.216.753 14.568.290.054 (1.532.729.618 ) 14.417.190.325 (2.228.132.684 ) ) 0 other State VND Budget Labor Average Income Peopl e VND/ 40 160 230 2.000.000 4.000.000 6.000.000 person (Source: Accounting department of Langmaster International JSC) It is clear from the table that although Langmaster International JSC is a newborn company in service industry, it is promisingly improving Its revenue is on the upward trend From 2012 to 2013, Langmaster’s revenue dramatically increased by approximately 11.000.000.000 VND and then Student: Nguyen Hoai Thu Auditing High Quality Class ACCOUNTING INTERNSHIP REPORT continuously rose sharply in 2014 However, the earnings before tax of the company in all three years (2012, 2013 and 2014) were negative, leading to the bad figure for owner’s equity This contradiction is not too difficult to explain The main reason for this situation is that Langmaster International JSC is on the very first years of improvement and in order to mainly focus on long-term growth, they need to enhance their resources such as assets which could bring future economic benefits Specifically, although the total assets of Langmaster International JSC in 2012 were an inconsiderable number (with 712.110.305 VND), they quickly rocketed to 8.767.383.640 VND in August of 2014, which were double the figure for 2013 with 4.191.029.459 VND Through this statistic, we can easily realize the sustainable development strategies of Langmaster International JSC’s directors Besides, there was a significant growth (from 40 to 230) in the number of labors in Langmaster International JSC between 2012 and Aug/2014 It means that the directors of the company were successful in establishing a reputation in educational sector belonging to service industry It also reflects a friendly and dynamic working environment in Langmaster International JSC that could appeal more and more labors Finally, the key point showing Langmaster International JSC’s economic growth is the average income level of the employees In 2012, the average salary level of each Langmaster employee was so low (about million VND) that it might be really hard for them to cover daily life with such income However, in 2014, the average level of salary increased to 6.000.000 VND that is possibly enough to cover employees’ everyday needs PART 2: ACCOUNTING SYSTEM OF LANGMASTER INTERNATIONAL JOINT STOCK COMPANY 2.1 Organizing accounting department of Langmaster International JSC Overall, accounting department of Langmaster International JSC has the small size with only people: Chief accountant (the head of financial and accounting Student: Nguyen Hoai Thu 10 Auditing High Quality Class