Trang 1 INTERNSHIP REPORT ACCOUNTING FOR PAYROLL AND SALARY DEDUCTIONS AT TAN AN INVESTMENT CONSTRUCTION - TRADING AND MATERIAL PRODUCTION JOINT STOCK COMPANY.. Prof.PhD Phan Duc Dun
A BRIEF DESCRIPTION OF THE COMPANY
General introduction about Tan An investment construction – trading and material
Tan An investment construction – trading and material poduction joint stock company
1.1.2 Director/Chief accounting of company
Building A04 (1 st floor ), Apartment 26 Nguyen Thuong Hien, Go Vap District, Ho Chi Minh City
Trading name : Tax code : 1100865834 Date of issue : 04/11/2008
Business license: the company was granted a registration license number
1100865834 dated November 4, 2008 Issued by Ho Chi Minh City authority The official date of operation was November 4, 2008
Type of business : Joint - stock company
1.1.6 Functions and duties of the business
Civil engineering construction, constructing works, roads, railways, water supply systems, and drainage, processing, and manufacturing; mining; industrial projects, electrical projects
- Demolition, site preparation, completion of construction works Other specialized construction activities
- Transportation, maintenance and repair, machinery and equipment rental
1.1.7 History and development of the business through periods
Established in 2008, Tan An Company has spent 13 years constructing and developing its expertise, swiftly emerging as a reputable contractor in the construction industry, solidifying its position through high-quality services and projects.
Through collective efforts and a relentless pursuit of excellence, the company has established a reputation for top-quality work, fostering trust and creating a solid foundation for continued growth and success.
Through sustained efforts, Tan An Investment Construction - Trading and Material Production Joint Stock Company has consistently achieved stable and growing annual output and revenue Notably, the company was awarded the certificate of construction capacity number LOA-000013324 by the Construction Department of Long An province, a testament to its exceptional capabilities and commitment to excellence.
Organize the construction of civil engineering, industry, irrigation, traffic class II Organizing construction supervision of class III traffic works
Management organizational structure of Tan An investment construction – trading and material production joint stock company
Organization chart of the company
Diagram 1 Management organization structure of company
1.1.8 Functions and duties of each department
- Shareholders' meeting is the highest decision-making body of the company, including all shareholders with voting rights
- As the company governing body, having full authority on behalf of the company to decide on the exercise of company rights and obligations
- The top leader responsible for directing the entire production and business process of the company Representing the company legally responsible for the state and other economic organizations
- Help the company leaders to plan operations, advise the director of the organization to implement the accounting of the business management plan of the company
- Research and capture market fluctuations in order to have appropriate business measures and methods
- Accelerate the construction progress of assignments within the scope of management
- Meeting with the investor, supervision consultant
- Control subcontractors (if any) according to progress
- Develop a plan and synthesize the periodic performance of the company to report to superior authorities when required
- Implementation and professional guidance on economic work, plans, techniques in the company such as documents, circulars, new policy regimes to apply changed or newly issued standards, regulations
The key responsibility involves planning, monitoring, and evaluating the production and business performance of the enterprise on a regular basis, including monthly, quarterly, and annual assessments, as well as providing ad hoc reports at the request of the company's leadership to ensure informed decision-making and strategic planning.
- The department directly assists in the management of the leaders, through specific tasks such as developing programs, work plans, weeks, months, quarters
- Do the work of organizing meetings Contruction teams
- Construction and settlement of works, work items under the contract assigned by the company, participating in the pre-acceptance test of the implementation
- The company's Supervisory Board functions as the judiciary, helping shareholders to control corporate governance and management
The company's organizational and management structure is characterized by a harmonious and synchronized rhythm among its departments, with each unit working in close tandem to provide seamless support This synergistic approach has been instrumental in driving the company's success and enabling it to thrive and grow exponentially.
Organization of accountancy of Tan An investment construction – trading and material
1.2.1 Organization of accountancy of company
Diagram 2 The organizational chart of the company's accounting apparatus
- Responsible for all activities of the accounting department
- Organize and direct the accounting work, accounting information statistics
Warehouse, assets, tools, tax accounting
Bank, cash, revenue,debt accounting
- The Chief Accountant has the right to assign and direct the accounting members in the company
- Control and approve receipts, payment, input, and output documents
- Organize an inventory of materials, tools, and assets
- Transact with relevant agencies, ensure application and implementation of state policies
Warehouse, assets, tools, tax accounting
- Manage and track all import, export, inventory invoices, import-export bills and books, delivery records
- Management of corporate supplies, the value of assets Network, Cable Track invoices for input and output vouchers for tax declaration
- Check and compare the original documents: collection order, money transfer check with bank documents
- Manage receipts, payments, collect, process, check and reflect the company's revenues
- Salary calculation and deduction of salary, labor cost allocation by each employer; Monitoring the payment of salaries, bonuses, allowances, and allowances to employees
- Make reports on labor, salary, salary deductions, periodically analyze the labor situation, the management situation, and the salary fund expenditure
- Revenue, expenditure, checking the situation of fund balance
- Monthly salary payment for employees, advance payments
Diagram 3.The order of recording accounting books according to the accounting form Recording vouchers
Record at the end of the month
1.2.3 Accounting regimes and applicable accounting policies at company
- Applied accounting regime: applies Circular No 200/2014 / TT –BTC
- Annual accounting period: from January 1 to December 31 of that year
Cash book Summary of accounting vouchers of the same type
- Applied accounting methods and principles:
- VAT calculation method: according to the deduction method
- Inventory accounting by the method: First in, first out
- Principles and methods of converting other currencies into Vietnam: according to the exchange rate announced by the bank at the time of occurrence (using the actual exchange rate)
ACCOUNTING FOR PAYROLL AND SALARY DEDUCTIONS AT TAN AN
The company's labor characteristics
In accordance with the company's charter regulations, the organization reserves the right to recruit, hire, and utilize employees as per production and business requirements, while ensuring their rights and interests are safeguarded in compliance with the law and internal management policies Furthermore, the company is committed to implementing various insurance regimes, including social insurance, health insurance, and unemployment insurance, in adherence to statutory requirements, to provide comprehensive protection for its employees.
Employee structure at the company:
- At the office: 4 people, 50% of women: 2, 50% of men, 2.
Salary regime and salary form at the company
In 2018, the company applies Decree No 141/2017 / ND-CP dated December 7,
2017, of the Government on the regulation of the minimum regional salary of 3,980,000 VND / month, the minimum wage with training is 4,288,600 VND / month
As of January 1, 2019, the company implemented the government's Decree No 157/2018/ND-CP, which sets the minimum regional salary at VND 4,180,000 per month and the minimum salary for trained employees at VND 4,472,600 per month, as per the regulation issued on November 16, 2018.
Daily salary: Is the salary deducted for the employee according to the daily salary and the actual number of working days in the month:
Monthly wage: is the salary paid to the employee by the month, the salary is calculated by the time is 1 month
Monthly wage = Total income / standard labor day of month X actual working days 2.2.3 Way of payment
Our administrative office compiles a comprehensive salary breakdown on a monthly basis, categorizing payments by individual employee, position, and department The salary payment schedule is strictly adhered to, with disbursements made via bank transfer on the 9th of each month, or through advance arrangements as necessary This meticulous approach ensures accurate and timely compensation for all employees.
Accounting for payroll and salary deductions at company
2.3.1.1 Vouchers, books, and voucher rotation order o Vouchers, books
The accountant evaluates timesheets and prepares payrolls
The accountant gives the salary payment sheet to the chief accountant for approval
After that, the chief accountant will be transferred to the payroll director for approval
The salary payment sheet will be transferred to the accountant for entry, detailed accounting books on the Credit side (334,338)
Accountants calculate the number of health insurance, social insurance, accident insurance, and personal income tax to be deducted from employees c
Periodically, the accountant makes a receipt of deductions according to the employee's salary to synchronize
The chief accountant prepares a payment order
Then the accountant transfers the payment order form to the director and chief accountant for approval
The accountant receives back the payment order and sends it to the Bank to pay deductions according to the employee's salary
Account 334 - payables to employees: records of payables and payments to employees in terms of salaries, wages, bonuses, social insurance and other accrued amounts the income of employees
When recording employee compensation, it's essential to distinguish between debit and credit entries Debit entries typically include wages, bonuses, and social insurance paid or advanced to employees, as well as deductions from their salaries and wages In contrast, credit entries comprise salaries, wages, bonuses, and other amounts payable to employees, highlighting the importance of accurate accounting for employee compensation.
Account 623, specifically 6231, is designated to record the labor costs associated with operating construction machinery, encompassing main salary, supplementary salary, and salary allowances for workers directly involved in driving these vehicles Additionally, this account also captures expenses related to the maintenance and operation of construction machinery, including transportation, fuel, and material supplies.
Account 642 - administrative expenses (6421- costs of managerial staff)
Corporate management staff, including board of directors and office managers, utilize a specific account to record and reflect various employee payables, such as salaries, allowances, social insurance, health insurance, union funding, and unemployment insurance, ensuring accurate tracking and management of these expenses within corporate departments.
Operation 1: On December 31, 2020, the accountant recorded that the salary payable to employees at the office was 50,000,000 VND and that the salary paid to the car rental staff outside was 173,491,000 VND
Operation 2: On January 9, 2021, cash advance payment to Mr Nguyen Truong Nam to pay staff salary of December 2020 for warehouse 03 173,491,000 was recorded December 31,
Operation 3:January 9, 2020, spending VND 50,000,000 on Ms Vo Thi Viet Kieu The company's treasurer pays a salary T12 / 2020 to office staff
Operation 4 :On January 9, 2021, cash advance payment to Mr Nguyen Truong Nam to pay staff salary of December 2020 for district Đức Huệ 54,568,000 was recorded December 31,
2.3.2.1 Vouchers, books, and voucher rotation order o Vouchers, books
The accountant evaluates timesheets and prepares payrolls
The accountant gives the salary payment sheet to the chief accountant for approval
After that, the chief accountant will be transferred to the payroll director for approval
The salary payment sheet will be transferred to the accountant for entry, detailed accounting books on the Credit side (334,338) c
Accountants calculate the number of health insurance, social insurance, accident insurance, and personal income tax to be deducted from employees
Periodically, the accountant makes a receipt of deductions according to the employee's salary to synchronize
The chief accountant prepares a payment order
Then the accountant transfers the payment order form to the director and chief accountant for approval
The accountant receives back the payment order and sends it to the Bank to pay deductions according to the employee's salary
2.3.2.2 User account Account 627 - Production overheads (specifically 6271 - Workshop staff costs)
Account 642 - General and administrative expenses (specific 6421 - management staff expenses)
Account 3383 - Social insurance Account 3384 - Medical insurance Account 3386 - Unemployment insurance Account 3382: Trade union fees
Operation 1: On December 31, 2020, the accountant recorded deductions according to the employees' salaries as follows
Deduction of 8%, salary social insurance in December 2020
Debit 6271: 1,689,000 Debit 6421 :1,420,560 Debit 6421: 1,932,640 Credit 3383 : 5,042,2000 Deduction of 1.5% of the health insurance salary for December 2020
Deduction of 1% of salary unemployment insurance for December 2020 Debit 6271 : 212,250
Debit 6421 : 177,570 Debit 6421 : 241,580 Credit 3384: 631,400 Deduction of 1% of the December 2020 salary union fee Debit 6271: 212,250
Operation 2: On December 31, 2020, calculate and make a list of officers and employees who pay the social insurance, unemployment insurance and health insurance premiums in December 2020 for employees working at the office and at the construction site , proceed to collect and prepare collection forms of social insurance, health insurance and salary insurance in December 2020 with the amount 6,629,700 VND
Operation 3: At the same time on January 9, 2021, the accountant makes a payment order and sends it to the bank to pay for the Social Insurance, Health Insurance, and Unemployment Insurance Quarter 4/2020 c
COMMENTS AND RECOMMENDATION
Comments
3.1.1 Comments on the company's accounting work organization
Our company employs a centralized accounting structure, where a specialized department handles all accounting tasks, receiving data from technical departments The chief accountant, vested with the highest decision-making authority, oversees this process and reports directly to the company director A team of accountants, assigned to specific areas of accounting practice, supports the chief accountant, streamlining financial decision-making and facilitating informed decision-making by the Board of Directors.
The company's accounting operations are structured to align with its prestige and business characteristics, ensuring a seamless and organized workflow A compact accounting apparatus is in place, with clear assignments, responsibilities, and tasks delegated to each accountant, promoting efficiency and accountability Moreover, every aspect of the accounting process is closely monitored to ensure full compliance with relevant regulations, maintaining the highest standards of financial management.
Compact apparatus, quickly collecting information The relationship is only within the unit, convenient for assigning and professionalizing
The company has created, circulated, and stored documents to comply with the prescribed accounting regime to serve the accounting work and arising economic transactions
Our company's accounting system is methodically implemented in accordance with Circular No 200/2014/TT-BTC, providing a detailed breakdown of level 2 and level 3 accounts for each task, project, and client, thereby facilitating efficient debt calculation and evaluation.
The accounting system is opened in accordance with the prescribed regime, including detailed books to meet the requirements of data synthesis to provide necessary information for users
The number of accountants is limited, so each person has to do many diff erent jobs, requiring high-qualified and experienced accountants
3.1.2 Comments on the organization of salary accounting and salary deductions of the company
Accurate and comprehensive accounting of employees' salaries is crucial for fostering a secure work environment, where benefits are mutually advantageous for both the employees and the company's construction team This, in turn, encourages a sense of stability and job satisfaction, leading to increased employee retention By prioritizing fair compensation and adhering to established working instructions, companies can attract and retain capable, professional, and responsible individuals who excel in their roles.
Our company adheres to a strict accounting regime for wages and deductions, ensuring compliance with the prescribed order of voucher and book systems for salary accounting.
Our company prioritizes the timely and full payment of social insurance, health insurance, and unemployment insurance premiums, demonstrating a strong commitment to upholding our employees' interests and reflecting our high sense of corporate responsibility.
3.2.1 Some recommendations for the company's accounting work organization
To minimize errors associated with accounting software, it's crucial for companies to have staff with a solid understanding of information technology or basic knowledge of the software being used This expertise enables employees to effectively troubleshoot issues, rectify problems, and ensure seamless operations By having IT-savvy or software-literate personnel, businesses can mitigate potential mistakes and maintain data accuracy, ultimately streamlining their accounting processes.
To ensure accurate financial analysis, it's crucial to build a team of accounting professionals who possess both technical expertise and a deep understanding of the company's production and business operations This enables them to analyze and evaluate data effectively, ultimately determining the exact price based on collected data By leveraging information technology to streamline data processing, accounting teams can enhance their efficiency and precision, driving informed decision-making.
Companies need to set up an anti-virus program and accountants should print books at the end of each month in case data is lost
Implementing an investment voucher system and constructing additional facilities to safeguard documents can effectively mitigate the loss of crucial records Strengthening the collaboration between guaranteeing departments also enhances the circulation of documents, promoting a more streamlined process Furthermore, the accounting team should prioritize ongoing knowledge enhancement and exchange of best practices regarding ethics and professional responsibilities to minimize errors and improve overall performance.
To enhance their qualifications and stay up-to-date with rapidly changing economic transactions, accountants should be encouraged by their company to participate in both long-term and short-term professional courses This investment in ongoing education and training enables accountants to efficiently handle complex financial transactions and complete financial statements within tight deadlines, ultimately driving business success.
3.2.2.Some recommendations on the accounting of the salary and salary deductions of the company
Fully implement policies for employees
Implementing a total salary contracting approach for each department can be an effective strategy for companies to boost productivity and working capacity By adopting this method, businesses can incentivize departments to optimize their performance, leading to improved overall efficiency This approach enables companies to stimulate growth and enhance employee motivation, as each department is directly responsible for its own salary structure As a result, departments are more likely to strive for excellence, driving business success and increased competitiveness.
Establishing a fair and effective salary system is crucial for a company's success, as it significantly impacts business operations and influences various stakeholders A well-structured salary system can boost employee motivation, leading to increased labor productivity and ultimately driving business growth.
Through diligent study and guidance from experienced teachers, I have gained a profound understanding of theoretical concepts, market economic information, and the role of economic rules in modern management mechanisms Effective salary accounting and deductions play a crucial role in shaping product prices, as wages are a key factor in production costs, influencing company profits and employee income To optimize business performance, salary accounting must be enhanced in terms of management, labor utilization, and compliance with state regulations, ensuring timely and accurate calculation and payment of salaries and social insurance By doing so, businesses can incentivize employee productivity, drive growth, and inform data-driven decision-making for leaders and managers, ultimately supporting production expansion and business development.
In today's rapidly evolving economic landscape, business success is no longer solely dependent on employee productivity and task completion rates, but also heavily influenced by the fluctuating state of the economy As a result, continuous innovation in payment methods has become a crucial imperative for businesses of all sizes and industries, enabling them to stay adaptable and competitive in an ever-changing market.
Our company's salary structure is based on the current state-regulated regime, supplemented by our own effective approach, as reflected in our salary accounting practices However, salaries are heavily influenced by variable factors, making them non-fixed and potentially unsuitable for all employees at all times Consequently, despite our efforts to refine and adjust our salary accounting processes, some discrepancies may still occur, although we have made significant strides in identifying the optimal direction for improvement.