Báo cáo thực tập kế toán tại CTCTP Thủy Tạ (Accounting internship report at Thuy Ta Joint Stock Company)
OVERVIEW OF THUY TA JOINT STOCK COMPANY
History of the establishment and development of Thuy Ta Joint Stock Company
1.1 History of the establishment and development of Thuy Ta Joint Stock Company
1.1.1 General information about the company
International name: THUY TA JOINT STOCK COMPANY
Vietnamese name: CÔNG TY CỔ PHẦN THỦY TẠ Legal type: Joint-stock company
Tax code: 0100107268 Head office: No 6 Le Thai To, Hang Trong Ward, Hoan Kiem District, Hanoi Legal representative: DINH THI NGOC DIEP
Phone: 0438289347 Fax: 0438255265 Website: www.thuyta.com.vn Email: thuytahn@fpt.vn
Charter capital: 30,000,000,000 VND Establishing date: 21/05/1998
Business line: Restaurants and mobile catering services Number of employees: 97 people
The Thuy Ta Company was established and underwent several developmental milestones:
In 1954: When the Vietnamese’ capital was liberated, Thuy Ta restaurant was used as a library for officials, soldiers, and students to read books and newspapers Through various reorganizations, mergers, and splits from its origins as a specialized establishment serving the affluent during the colonial era, Thuy Ta transformed into a facility catering to diverse layers of the capital's laboring population It offered refreshments such as coffee, lemonade, fruit juices, oranges, fruit punch, green bean sweet soup, and more The Thuy Ta refreshment store also operated mobile carts along the streets and neighborhoods, catering to officials, military personnel, residents of the capital, and passing travelers.
In 1967: Thuy Ta came under the management of the Food Services
In 1994: The Thuy Ta refreshment store was rebranded as Thuy Ta
Restaurant The Kinh Hoa specialty restaurant was established at 1 Le Thai To Street, attracting an increasing number of patrons The establishment underwent modernization, introducing innovations like refrigerated chambers, freezers, and Italian ice cream machines, continuously enhancing its contemporary facilities.
The Thuy Ta Village-style Restaurant emerged, enriching the architectural aesthetics, further embellishing the magnificent masterpiece of Hoan Kiem Lake, depicting the vibrant essence of Vietnamese culture Inside the restaurant, guests savored the essence of Eastern cuisine, where water spinach and banana flower slices encapsulated the royal artistic tradition Through the hands of skilled artisans, an Italian ice cream cone blossomed into a resplendent flower, and a baked "Hang Nga ripe steed" cake garnered additional adoration from the patrons Thuy Ta Company consistently embellished the poetic charm of the water pavilion and augmented the resplendence of Hoan Kiem Lake.
In 1998: Thuy Ta Restaurant marked a significant strategic breakthrough by entering large-scale industrial food production.
In 1999: A state-of-the-art industrial ice cream production line, with an annual capacity of one million liters, was established in addition to facilities for producing candy and preserved fruit, as well as a factory manufacturing pure crystal ice cubes The renowned ice cream brand of Thuy Ta became a familiar label among the inhabitants of Hanoi and the northern and central provinces.
From 2001 to 2005: Thuy Ta embarked on two projects: the expansion of the Thuy Ta Ice Cream Plant No 2 in Luong Yen, with a production capacity of 300 liters per hour, and the establishment of a food processing and beverage production facility in the Pho Noi Industrial Zone, Hung Yen The company currently produces up to 50 types of ice cream on a modern Italian production line Thuy Ta's ice cube and "Crystal" purified water products truly excel in quality, with a daily output of 100 tons according to U.S technology standards.
Mooncakes and confectionery products, appreciated for their unique flavors and authentic Hanoi quality, are trusted and consumed by over 1,200 retailers spanning from Hanoi to the northern and central provinces.
In 2006: Thuy Ta Restaurant underwent a transformation into a joint- stock company and was renamed Thuy Ta Joint Stock Company.
In 2017: The shares of TTJ, representing Thuy Ta Ice Cream, commenced trading on the UPCoM system in mid-2017 at a reference price of 31,000 VND/share This equated to a market capitalization value of 93 billion dong at the time of the Initial Public Offering (IPO).
In 2021: Thuy Ta Joint Stock Company filed for deregistration as a publicly traded company and subsequently delisted from the stock exchange.
Up to now, in 2023: Thuy Ta Joint Stock Company continues to sustain its core business operations within the restaurant sector.
Over the time frame of more than 69 years of formation and development, Thuy Ta Joint Stock Company has evolved into an entity with high-quality service offerings and has achieved numerous accomplishments that inspire pride:
Thuy Ta has indeed asserted its presence through accolades such as the
"Vietnamese High-Quality Goods" awards for multiple years, the "Golden Star of Vietnam," and the "Strong National Brand."
Through the patriotic movement that has run parallel to the company's growth and development, many employees and executives have been honored with the "Exemplary Competitor" titles at both the grassroots and city levels.
Director Nguyen Thi Ngoc Diem, acclaimed as an outstanding business leader for several years, was bestowed with the Third-Class Labor Medal by the President of the country.
For numerous years, the company has been honored with the "Excellent
Flag of Emulation" from the city and recognized with awards ranging from the Third-Class Labor Medal to the Second-Class and First-Class Labor Medals by the President of the country The company's Party committee has consistently been acknowledged as a strong and clean Party unit From the first store manager Nguyen Duy Toan, to figures like Le Thi Thu, Nguyen Thi Minh Nhuan, and directors Nguyen Thi Ngoc Diem and Vu Quoc Hung, these individuals have wholeheartedly and dynamically steered the Thuy Ta ship toward its robust and prosperous state as it stands today.
From the achievements that encompass both breakthroughs in management scale and business efficiency, in 2007, the President of the country decided to award the Third-Class Independence Medal This recognition serves as a source of encouragement, motivating the entire staff of Thuy Ta Joint StockCompany to heighten their sense of responsibility Amidst the patriotic emulation movement, the entire workforce of Thuy Ta Joint Stock Company is and will continue to operate with even greater efficiency, making a significant contribution to the worthy endeavor of constructing Hanoi as the City for Peace,aspired to be a city of a thousand years of civilization.
Features of business operations of Thuy Ta Joint Stock Company
1.2.1 Functions and Duties of Thuy Ta Joint Stock Company
Through the time frame of 69 years of operating, Thuy Ta carries out multiple functions and responsibilities It aims at fostering excellence, enriching experiences, and serving both customers and the broader community:
Product Quality and Innovation: Thuy Ta's foremost function is to consistently deliver products of the highest quality and to innovate within its offerings Whether producing a diverse range of ice cream flavors, crafting traditional Vietnamese confectionery, or providing refreshing beverages, the company ensures that each product reflects its dedication to excellence Through modernization, research, and development, Thuy Ta continually pushes the boundaries of taste, texture, and presentation, offering customers novel and memorable experiences.
Customer Satisfaction: A cornerstone of Thuy Ta's duties is to satisfy the discerning expectations of its customers By providing top-tier service and products that cater to various tastes and preferences, the company strives to create lasting bonds with its clientele The goal is not merely to meet expectations but to exceed them, leaving patrons delighted and fulfilled after each interaction.
Preserving Tradition: Beyond business, Thuy Ta embraces the responsibility of preserving Vietnamese culinary traditions and culture Whether through its traditional confectionery or culturally inspired dishes, the company contributes to the preservation and promotion of local heritage, offering patrons a taste of tradition that transcends time.
National Pride and Unity: Thuy Ta recognizes its role as a symbol of national pride and unity By participating in patriotic movements and championing Vietnamese values, the company unites its stakeholders in a shared mission This duty extends beyond commerce, embodying a commitment to contributing positively to the social fabric.
Employee Development: Nurturing a capable and motivated workforce is another vital function Thuy Ta provides a conducive environment for employees to develop their skills, contribute to the company's growth, and enhance their professional and personal lives.
Corporate Social Responsibility: Thuy Ta's duties extend to society through its corporate social responsibility initiatives The company engages in community projects, environmental conservation, and social betterment, aligning its actions with the well-being of the communities it operates within.
Adapting to Change: Thuy Ta's functions also encompass the ability to adapt to changing market dynamics and consumer preferences By embracing innovation and staying abreast of trends, the company ensures its continued relevance and resilience.
In summary, Thuy Ta Joint Stock Company's functions and duties converge to create a comprehensive framework that promotes excellence, customer satisfaction, cultural preservation, and societal betterment From product quality to customer care, tradition preservation to community engagement, the company's multifaceted responsibilities collectively contribute to its enduring success and positive impact.
The main business line of Thuy Ta Joint Stock Company is “Restaurants and mobile catering services”.
In addition, the company also has some other business lines such as:
Producing and trading Thuy Ta branded products
Producing and trading pure water branded Crystal products
Services for trading photo materials
Nowadays, Thuy Ta Joint Stock focuses on distributing its products and services in Hanoi and other provinces in the North of Vietnam.
1.2.3 Analysis of the financial position and business result of Thuy Ta
Established in 1954, after many years of operation, the company has developed and expanded in size and created more profits over the time frame.
The tables below show the Balance Sheet and Income Statement of ThuyTa in the last three years:
Table 1.1 Balance Sheet At the year ended December 31
Criteria Year-end 2020 Year-end 2021 Year-end 2022 Compared
VND % VND % VND % VND % VND %
Source: Thuy Ta JSC Income Statements
Table 1.2 Income Statement For the year ended December 31
Net sales and service revenue 48.452 33.520 58.083 (14.932) -30,82% 24.563 73,27%
Net income/loss from operating activities 174 (3.882) 553 (4.056) -2331% 4.435 114%
Source: Thuy Ta JSC Income Statements
At first glance, it was evident that the company faced significant challenges in the year 2021, as most of the figures indicated a sharp decline Nevertheless, in 2022, there was a slight improvement To provide more specific details, each aspect of financial statements will be analyzed based on respective financial ratios, which are profitability, liquidity, efficiency, and solvency ratios.
But first, let’s take a look at overview revenue for three years, the company experienced a significant decrease in revenue from 2020 to 2021, with revenue dropping from $48,452 to $33,520 This represents a substantial decline of approximately 30.8% and showed a remarkable recovery in its revenue, increasing it to $58,083 in 2022 This represents a substantial increase of approximately 73.1% from the prior year The significant decline in revenue from 2020 to 2021 suggests that the company encountered challenges or adverse conditions during the year 2021 These challenges could include various factors such as economic downturns, operational issues, or external disruptions like the COVID-19 pandemic In contrast, the subsequent recovery in revenue from 2021 to 2022 indicates that the company was able to adapt to these challenges and implement strategies for growth and improvement This recovery might be attributed to factors like effective cost management, strategic business decisions, increased demand, or a combination of these factors.
Now, we'll dissect the elements of the financial statements to facilitate a more straightforward analysis.
The company's gross profit margin remained relatively stable from 2020 to2021 and then declined in 2022 This could indicate that the company faced challenges in maintaining the profitability of its core operations, possibly due to factors such as increased production costs or pricing pressures.
Considering the operating profit margin, it took a significant hit in 2021, with the company experiencing negative profitability However, it showed a positive trend in 2022, indicating that the company managed to control operating expenses and improve its operational efficiency.
The net profit margin also suffered a substantial decline in 2021, resulting in a negative margin, indicating a loss for the year However, in 2022, there was a positive rebound in net profitability, suggesting that the company managed to turn things around and generate a profit The negative operating profit margin and net profit margin in 2021 indicate a challenging year, likely due to significant operating losses However, the company made a remarkable recovery in 2022, turning its operating and net profitability positive.
In terms of ROCE, the company experienced a substantial decline in ROCE from 0.88% in 2020 to a negative -13.82% in 2021 This sharp decrease indicates that the company's returns were insufficient to cover the capital employed in its operations during 2021 Negative ROCE suggests a loss-making year In 2022, the ROCE improved from a negative figure to 0.1% While it remains relatively low, this improvement suggests that the company was able to generate some positive returns relative to the capital employed In this case, the negative ROCE in 2021 aligns with the negative net profit margin and indicates that the company was not generating sufficient returns to cover its capital expenses, resulting in a loss-making year The subsequent improvement in ROCE in 2022 suggests a recovery in the company's ability to generate returns relative to its capital employed.
CHARACTERISTICS OF ACCOUNTING ORGANIZATION
Characteristics of accounting organization at Thuy Ta Joint Stock Company
2.1.1 Organizational structure of the accounting department
Thuy Ta Joint Stock Company is a centralized accounting organization It has one Chief Accountant and one General Accountant This style of accounting organization enables the corporation to concentrate more on managing accounting operations and hiring accounting employees with specific business expertise.
Figure 2.1: Organizational Structure of Thuy Ta’s Accounting Organization
2.1.2 Functions and responsibilities of each position in the accounting department
The chief accountant is accountable to both the Board of Directors (BOD) and the governing entity for the information supplied by the accounting department They guide, oversee accounting tasks, and review the results carried out by their subordinates, while also establishing and maintaining the effectiveness and efficiency of the company’s accounting systems and company’s policies They assist the Vice Director of Finance in aligning cost allocations with management agreements and collaborating with relevant departments on strategies for expense reduction Additionally, they play a role in shaping document flow procedures and maintaining accounting records.
The general accountant manages financial transactions, records, and reporting for organizations They handle accounts payable and receivable, ensure adherence to accounting standards and regulations, and aid in budgeting and forecasting Tax preparation, financial analysis, and report generation are integral to their role They collaborate with auditors, improve financial processes, and contribute to informed decision-making, thus promoting overall financial health and compliance.
Receiving and keeping all documents related to salary expenses at the company, such as labor contracts, salary increase decision, reward decisions, punishment of employees, employee timesheets, daily timesheets for workers, etc
Based on the timesheet and related documents such as leave application form, salary, and bonus regulations, etc., calculate the exact amount of social insurance, health insurance, unemployment insurance, and PCC into expenses, allowances, allowances, etc laws and regulations of the enterprise.
Timely payment to employees, monitor the use of salary funds, provide documents for management and functional departments, and plan the salary fund for the next period.
Develop a salary scale to submit to the insurance agency.
Completing the salary documents and documents to ensure that they can be included in reasonable expenses when finalizing CIT.
Income and Expenses Accountants are integral to an organization's financial management, overseeing its revenue and expenditure activities Their functions encompass various critical tasks They are responsible for accurately recording all income sources, such as sales, services, and investments, and categorizing them appropriately On the expenses side, they record and categorize all outgoing funds, including operating costs, overheads, and other expenditures These accountants ensure compliance with accounting standards and regulations, maintaining transparent and accurate financial records.
Income and Expenses Accountants play a pivotal role in budgeting and forecasting, providing insights into revenue generation and cost trends They collaborate with other departments to reconcile financial data, identify discrepancies, and prepare financial statements Additionally, they analyze financial performance, generating reports that aid in decision-making and strategy formulation.
Their expertise helps organizations understand their financial health, profitability, and cost-efficiency By providing insights into income generation and expenditure patterns, Income and Expenses Accountants contribute significantly to informed financial planning and effective resource allocation.
Liabilities accountants manage and record an organization's financial obligations Their key functions include accurately tracking and categorizing liabilities such as loans, debts, and payables They ensure compliance with accounting standards and regulations while maintaining precise records of financial transactions related to liabilities
Liabilities accountants collaborate with other departments to reconcile balances, resolve discrepancies, and generate accurate financial statements They play a crucial role in assessing the organization's financial health by analyzing debt ratios and evaluating repayment schedules
Liabilities accountants may also contribute to budgeting and forecasting processes, providing insights into future financial obligations Their expertise helps the organization manage its liabilities effectively, maintain transparent financial reporting, and make informed decisions related to debt management and repayment strategies.
Plan to pay the business's debts on a weekly, monthly, or quarterly basis as appropriate and pay in cash or through the bank The payable accountant is also the person who actively contacts and works with partners in case the payment plan is not guaranteed or cannot be implemented Common operations such as debt reconciliation, invoice checking, payment proposal review, to ensure accuracy before making payment. o Control the operation of the cashier:
The payable accountant will directly check and compare the papers and books submitted by the cashier department and ensure the validity and reasonableness of those papers. o Cash Management:
The payable accountant will cooperate with the treasurer to perform cash- related revenue and expenditure transactions, as well as compare and check the amount of cash remaining in the fund at the end of the day In addition, reporting to the director of all kinds of cash and cash balances when required.
The treasurer holds a critical role within an organization, primarily focused on managing financial assets and strategies Their key functions encompass cash management, overseeing investments, and ensuring sufficient liquidity for operational needs
Treasurers handle risk management by evaluating and mitigating financial risks, often through insurance or derivatives They also play a pivotal role in securing external funding through loans or bonds and maintaining relationships with banks and financial institutions
Additionally, treasurers manage the organization's capital structure and optimize its financing mix They provide financial analysis and recommendations to support decision-making and long-term planning
Treasurers often collaborate with other departments to align financial strategies with broader business goals
In summary, treasurers safeguard financial stability, manage assets, mitigate risks, and contribute to strategic financial decisions within the organization.
Characteristics of accounting systems at Thuy Ta Joint Stock Company.20 1 Accounting policies
Thuy Ta Joint Stock Company uses the Vietnamese Corporate Accounting System according to Circular 200/2014/TT-BTC dated December 22, 2014, which was issued by the Ministry of Finance to conduct accounting procedures and prepare financial statements
The accounting documentation system of Thuy Ta is the General Ledger System
The business operating cycle of Thuy Ta is within 12 months
The financial year of Thuy Ta is from January 1st to December 31st
The company’s accounting currency is Vietnamese dong (VN)
The company calculates Value-added Tax (VAT) by applying the Deduction Method.
Several significant accounting policies of Thuy Ta JSC are presented below:
Cash and cash equivalents are highly liquid assets that can be readily converted into cash within a short period They include cash on hand, cash in bank, bank deposits, and money in transit. o Recognition of Cash and Cash Equivalents: This policy outlines when the company recognizes cash and cash equivalents on its balance sheet.
Generally, these assets are recognized when they are available for use and the company has control over them. o Valuation: The policy specifies how cash and cash equivalents are valued for reporting purposes Cash is typically recorded at its face value, while cash equivalents, which may include short-term investments, are usually reported at their fair market value. o Treatment of Overdrafts: The policy clarifies how overdrafts, which occur when a company's bank account has a negative balance, are presented in the financial statements Overdrafts might be classified as a liability rather than as cash equivalents. o Bank Reconciliation: The policy may outline procedures for reconciling the company's cash balances in its accounting records with the actual cash balances held in bank accounts This ensures that discrepancies are identified and resolved. o Presentation: This policy dictates how cash and cash equivalents are presented on the balance sheet and potentially in the cash flow statement They are usually classified as separate line items, distinct from other current assets. o Disclosure: The policy covers the level of detail and the nature of disclosures related to cash and cash equivalents in the financial statements This might include information about restrictions on cash, any significant cash flows, and cash equivalents' maturities. o Change in Policies: If there are changes in accounting policies related to cash and cash equivalents, this policy would describe how such changes are communicated and their impact on financial statements. o Consistency: The policy emphasizes the importance of consistency in applying accounting methods related to cash and cash equivalents from one reporting period to another.
This policy outlines the criteria for recognizing loans as liabilities on the balance sheet, as well as calculating loans by the following equation:
Loans = Cost - Provisions for bad debts
Provisions for bad debts of loans are made based on the expected loss.
Receivables = Carrying amount – Provisions for bad debts
Receivables represent the total recoverable amounts from its customers or other business entities.
A provision for bad debts is established for receivables outstanding for six months or longer, or for amounts unlikely to be collected by the company by the fiscal year-end, due to circumstances such as insolvency of key customers,bankruptcy, or some financial challenges of customers that made them unable to pay their debts.
On the balance sheet, prepaid expenses are reported as “short-term/long- term prepaid expenses” These expenses are amortized over the period of time in which economic benefits are created in relation to expenses.
Whether or not the business entity was billed for the products and services obtained, payables and accruals are recorded for the amounts to be paid in the future.
Provisions There are 3 conditions to recognize a provision: o Firstly, the company has a present obligation arising from a past event. o Secondly, it is probable that an outflow of economic benefits to fulfill this obligation. o Finally, a reliable estimate can be determined regarding the amount of the obligation.
Provisions are assessed based on the expected expenditure necessary to fulfill this obligation as of the date of the balance sheet.
In Thuy Ta, inventory value is recognized using the weighted average (W.A) method.
The perpetual inventory method is applied for counting inventories in the company. o Initial measurement: Inventories are stated at cost.
Cost of inventory = Cost of purchasing + Cost of conversion + Other directly attributable costs incurred in bringing the inventory to its present location and condition o Subsequence measurement:
In case the net realizable value is lower than the original cost, the inventories are impaired Therefore, its value must be recognized at net realizable value
Recognition and depreciation of fixed assets: o Initial measurement: Cost modelCost = (Purchasing price – Trade discount) + Direct taxes +
Direct attributable costs + Borrowing costs o Subsequence measurement: Cost model
Depreciation expense/ annually = (Cost – Residual value)/ Useful life
Carrying amount = Cost - Accumulated depreciation - Residual value.
Fixed assets are depreciated on a straight-line basis over their estimated useful life as follows:
Types of fixed assets Useful life
Means of transport and transmission 6 years Equipment and tools for management 3-5 years
Thuy Ta recognizes the revenue from the sale of goods and services in the Income Statement when all five following conditions are satisfied:
(1) The company has transferred the significant risks and rewards of ownership of the goods to the buyer.
(2) The company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold
(3) The revenue can be measured reliably.
(4) It is probable that the economic benefits associated with the transaction will flow into the company
(5) The costs incurred in respect of the sale of goods and services can be measured reliably.
Corporate income tax (CIT) expensesTaxable income and the current year's CIT rate (20%) are used to calculate the corporate income tax expenses.
CIT expenses = Taxable income x Corporate income tax rate (20%)
Current tax expense and Deferred tax expense
Current tax expense is calculated based provision for income tax for the current year and under/over provision from the prior year
Deferred tax expense is determined based on the temporary difference in one period multiple CIT rate.
Income tax expense = Current tax expense + Deferred tax expense
Interest earned from deposits is accounted for using an accrual method, based on the balance of deposit accounts and the relevant interest rate
Interest from investments is recorded when the company is entitled to receive it.
Thuy Ta Joint Stock Company issues accounting documents in accordance with Circular 200/2014/TT-BTC dated December 22 nd , 2014, of the Ministry of Finance.
The following are lists of documents used in the accounting department:
Table 2.1: Accounting vouchers for payroll and personnel
No Name of the document Model No.
6 Table of salary allocation and social insurance
Table 2.2: Accounting vouchers for inventory and warehouse
No Name of the document Model No.
1 Goods received note (GRN) 01-VT
2 Goods issue note (GIN) 02-VT
Table 2.3: Accounting vouchers for sales
No Name of the document Model No.
Table 2.4: Accounting vouchers for cash and cash equivalents
No Name of the document Model No.
Table 2.5: Accounting vouchers for fixed assets
No Name of the document Model No.
1 Minutes of handing over fixed assets 01-TSCĐ
2 Fixed assets count sheet 05-TSCĐ
3 Minutes of calculation and depreciation of fixed assets 06-TSCĐ
All economic transactions arising related to the business’s operating activities must be recorded in accounting documents at the moment they arise.
Because accounting documents are the basis for recording accounting books and are the legal basis for all financial information provided Therefore, accounting vouchers used as a basis for accounting entries must be legal and valid documents, which means they must meet the following requirements: o Accounting vouchers must ensure the accurate content, nature, and size of the arising economic transactions The content of economic transactions must not be abbreviated, numbers and letters must be continuous, without interruption,and blank spaces must be crossed out. o Accounting vouchers must reflect the prescribed form, and recording documents must be clear, not erased, and not corrected. o Documents must ensure that all basic elements are recorded as prescribed.
Accounting documents are required to be made into multiple copies and circulated through relevant departments for confirmation and use according to function
Finally, these documents are gathered at the Financial-Accounting Department to review and enter data into the accounting bookkeeping system after verifying the legal and validity of the financial information in these documents Depending on the type of accounting vouchers, the managing entity must preserve and store them within the time limit prescribed by law.
The company's procedure for rotating accounting vouchers is as follows:
Figure 2.2: The process of rotating accounting vouchers
Step 1: Preparing&Gathering accounting vouchers
In the first step of the process, accounting vouchers are prepared and collected These vouchers can include invoices, receipts, purchase orders, expense reports, and any other documents that contain financial transaction information
It's crucial to ensure that all vouchers are complete, accurate, and properly authorized before proceeding to the next step:
Completeness: Accounting documents must be prepared with the required quantity of copies.
Accuracy: The content requirements for accounting vouchers must be met by computer-generated accounting vouchers.
Proper authorization: The signatures of all parties involved are required on every accounting document.
Before these vouchers are officially recorded, they need to go through an approval process This step involves verifying that the transactions represented by the vouchers are legitimate and comply with the company's policies and procedures Typically, authorized personnel or managers review and approve these vouchers to ensure they meet all necessary criteria
Step 3: Classifying accounting vouchers & Recording accounting books
Once the vouchers have been approved, they are classified based on the nature of the transactions This involves categorizing them into different accounts such as revenue, expenses, assets, or liabilities After classification, the transactions are recorded in the company's accounting books Each voucher's details, including date, description, amount, and account codes, are carefully entered into the appropriate accounts.
After recording the transactions, it's essential to store the accounting vouchers systematically and securely This serves as a backup and reference for future auditing, verification, or reconciliation processes Vouchers should be organized and indexed in a way that makes retrieval easy and efficient.
Depending on the company's policies and regulatory requirements, vouchers may need to be retained for a specific period, often several years.
In conclusion, rotating accounting vouchers is a structured process that ensures the accurate recording and retention of financial transactions It begins with the preparation and gathering of vouchers, proceeds with approval and classification, and concludes with the secure storage of these essential financial documents Properly executed, this process contributes to the transparency and integrity of a company's financial records, which is vital for financial reporting, compliance, and decision-making.
Thuy Ta JSC applies the Chart of Accounts that is regulated by Circular200/2014/TT-BTC dated December 22nd, 2014, issued by the Ministry of
Finance However, the company does not use all the accounts that are listed in the Circular due to the nature of its business operating activities
Table 2.6: List of accounts used by Thuy Ta JSC
In addition to the above common accounts, the enterprise has detailed accounting for several notable 2-level accounts as follows:
1111: Vietnam Dong (Cash on hand) 1121: Vietnam Dong (Cash in banks) 1281: Deposits with a term
1331: Deductible VAT of goods and services 1332: Deductible VAT of fixed assets
2111: Building & Structures 2112: Machinery & equipment 3331: Value Added Tax (VAT) 3334: Corporate income tax (CIT) 3335: Personal income tax (PIT) 5111: Revenue from sales of merchandise 5211: Sales discounts
Thuy Ta JSC applies the General Journal System in accordance with the current Vietnamese accounting standards for its accounting documentation.
Furthermore, the company utilizes MISA accounting software for the daily bookkeeping of its accounting transactions.
Every day, accountants use the checked accounting vouchers to record them in MISA software Firstly, accounting documents are recorded in the General Journals, then these data are transferred to the General Ledger for storing in suitable accounting accounts Simultaneously, these input economic transactions are recorded in both Special Journals and Detailed Accounting Books
Occasionally, or on a monthly basis, based on the quantity of transactions that occur, gather each specific journal, extracting information to log into the corresponding accounts within the General Ledger This process should involve eliminating duplicate entries resulting from transactions recorded in multiple special journal books, if applicable.
Characteristics of some key accounting cycles at Thuy Ta Joint Stock Company
Source: Financial Auditing 2 – Chap 20 2.3.1.1 Features of employees and payroll methods applied
As the features of the production field, Thuy Ta JSC has two types of employees: Direct labor (Restaurant employees) and Indirect labor (Administrative employees) The company applies the time rate system to two types of employees
According to this system, employees’ salaries are paid on a monthly basis.
Salaries are calculated based on contractual salary, standard working days, the actual working days in a month, and bonus from the restaurant’s monthly revenue (if any):
With administrative employees: o Standard working days: 26 days/month o Administrative staff work from Monday to Saturday and have Sunday off.
Monthly s alary payable= Contractual salary
Standard working daysx Actual working days
With restaurant employees: o Standard working days: 26 days/month o Restaurant employees are required to work on weekends (Saturday and Sunday) However, they can choose any day to take a rest at home on weekdays (maximum 4 days off/month).
Monthly s alary payable= Contractual salary
Standard working daysx Actual working days+Bonus
The company adhered to Ministry of Finance guidelines when implementing payroll deductions for its employees These deductions include social insurance, health insurance, unemployment insurance, and trade union fees, all designed to support the well-being and welfare of the workforce.
Each month, the payroll accountant calculates the deductions based on a predetermined percentage of an employee's monthly salary This percentage is established in accordance with the relevant regulations and ensures that each employee contributes proportionally to these essential funds.
In essence, these deductions are a vital component of the company's commitment to providing a comprehensive benefits package to its employees By facilitating contributions to social insurance, health insurance, and unemployment insurance, the company helps safeguard the financial security and health of its staff Simultaneously, participation in trade union fees underscores the organization's support for collective representation and employee advocacy.
Overall, Thuy Ta JSC follows established policies to ensure that these payroll deductions are carried out accurately and in accordance with the stipulated regulations, thus fulfilling its responsibilities to its valued workforce.
Table 2.7 Percentage of payroll deductions
Trade union fees Company pays 2%
Table 2.8 Timesheet of Thuy Ta JSC
Thuy Ta Joint Stock Company utilizes Account 334 – Payables to employees, to both record and settle obligations related to its workforce This includes disbursements for salaries, wages, bonuses, social insurance, and any other outstanding amounts in employees' income.
Account 334 consists of 2 sub-accounts: o Account 3341 – Payables to staff o Account 3348 – Payables to other employees
Furthermore, the company also uses Account 338 – Other Payables to record and manage deductions made from employee payroll.
Account 338 consists of 4 sub-accounts: o Account 3382 – Trade union fees o Account 3383 – Social insurance o Account 3384 – Health insurance o Account 3386 – Unemployment insurance
The company use the following documents in payroll accounting:
Table of salary allocation and social insurance Process of circulating payroll accounting documents is illustrated below:
Figure 2.6: Process of circulating payroll accounting documents
Firstly, at the end of the month, the payroll accountant take monthly timesheet to verify whether all information is correct Then, the pay slip is prepared and moved to the chef accountant for checking and approving After being approved, the pay slip is transfer to the director for the secound approving.
Finally, the payroll accountant transfer salary to employees and record the transactions in to MISA accounting system, and extract a file.
2.3.1.4 Bookkeeping system for payroll cycle
Figure 2.7 Process for bookkeeping salaries and payroll deductions
Monthly, accounting information in the payroll table are recorded in Cash book, Detailed accounting books and General journals Before the accounting information relating to payroll is recorded in General ledger accounts 334, 338, it is reconciled with data in payroll documents In addition, the data is reconciled between General ledger accounts and nominal ledger Finally, accounting information relating to payroll is tranferred to the Trial balance and Financial Statements
2.3.2 2.3.2 Accounting for cash and cash equivalents
Figure 2.8 Relationship of General Cash to Other Cash Accounts
Source: Financial Auditing 2 – Chap 23 2.3.2.1 Fundamental features of cash and cash equivalents a Nature of cash
Cash is a short-term asset with the highest liquidity Therefore, cash is widely used to settle short-term debts and expenses of a business Alongside its high liquidity, cash is also the most vulnerable asset to misappropriation To safeguard cash from issues such as theft, fraud, and misappropriation, it should be stored securely (in safes, locked cabinets, etc.) in places with limited access.
Additionally, cash must be closely monitored through security camera systems and regular cash counts performed by the Treasurer at the end of each day, under the supervision of the Chief Accountant. b Classification of cash
Cash and cash equivalents in Thuy Ta JSC are divided into:
Both above cash types are Vietnam Dong currencies because the company do not have any economic transactions with foreign business entities. c Duties of accounting for cash
Accounting for cash involves recording all cash transactions accurately, reconciling bank statements, managing petty cash, and ensuring compliance with financial regulations Accountants must safeguard physical cash, verify employee expense reports, forecast cash flow, and maintain strong internal controls to prevent fraud They prepare budgets, analyze cash flow patterns, and facilitate audits Building and managing banking relationships, while optimizing cash management services, is also part of their role This meticulous cash management ensures an organization's financial stability and integrity, supporting informed decision-making and compliance with legal requirements
Thuy Ta JSC uses three types of accounting accounts to record cash&cash equivalents in its company:
Table 2.9 Lists of accounts for Cash & Cash equivalents
11213 Cash in bank (NN&PTNN)
11217 Cash in bank (SeAbank – collecting) 11218 Cash in bank (SeAbannk – spending)
128 Investment held until the maturity date
Source: Accounting Department 2.3.2.3 Source of documents
Figure 2.9: Accounting documents rotation for cash receipts
Firstly, the payer creates a payment request and remittance advice to the accountant responsible for payables Secondly, the payable accountant makes receipts, typically comprising three copies Next, the chief accountant reviews, signs, and authorizes the receipts before returning them to the payable accountant Then, the chief accountant transfers the authorized receipts to the treasurer After that, the treasurer receives the receipts, collects the money Then the treasure retains the second receipt, while returning the third receipt to the payer and the first receipt to the payable accountant Finally, the payable accountant stores all accounting vouchers and records this transaction in the Cash book.
Figure 2.10: Accounting documents rotation for cash payments
Firstly, a payment request is made by the cash receiver, and it is sent to the payable accountant Next, the payable accountant prepares payments and transfers them to the chief accountant to assess the validity of payments If these payments are invalid, the chief accountant will return them to the payable accountant for adjustment If they are valid, the chief accountant will send them to the director for signature and approval After that, the payments are signed and approved by the director and then they are returned to the payable accountant.
Then, the signed payments are moved to the treasure and the payements are made by the treasure Next, the cash receiver receives money from the treasure and signs the payments Finally, the payable accountant stores all accounting vouchers and records this transaction in the Cash book.
2.3.2.5 Bookkeeping system for cash and cash equivalents
Figure 2.11 Accounting process for bookkeeping cash and cash equivalents
Assessment of the accounting system and structure at Thuy Ta Joint Stock Company
In my opinion, Thuy Ta Joint Stock Company's accounting system runs efficiently and consistently The adoption of MISA Accounting Software by the company has proven beneficial in streamlining accounting tasks, reducing the workload of employees, and leading to cost savings in company management.
The software ensures the prompt and accurate updating of transaction details, and its data organization facilitates swift comprehension of the company's operational status, aiding decision-making The company remains committed to adhering strictly to Vietnam's Corporate Accounting Policy, as specified in Circular No.
200/2014/TT-BTC, issued by the Ministry of Finance on December 22, 2014.
Additionally, when accountants reconcile balances to prevent fraud, errors, and financial vulnerabilities, it contributes to the thorough and transparent management of the company's financial affairs.
In addition, the accounting structure of the company operates in centralized decentralization model with 3 levels of management For many years, this approach has proven to be highly effective in the decentralization of administration In Thuy Ta JSC, this accounting framework ensures that functional accountants have the opportunity to enhance their roles and skills, fostering a more efficient division of labor The centralized accounting model creates an optimal environment for oversight and professional guidance, ensuring swift and unified direction from the Chief Accountant and CEO The allocation of the accounting resources has been quite successful, guaranteeing a clear separation of responsibilities and a reduction in accounting errors.
Furthermore, all employees in the accounting department operate effectively and consistently thanks to the well-defined division of labor To prevent errors when inputting data into the program, the tasks are made plain.
This will increase the accounting department's attention to detail and accuracy as well as its level of expertise.
Firstly, the company lacks a clear separation of duties between the Payroll Accounting department and the Human Resources (HR) department.
In fact, Thuy Ta Joint Stock Company does not have an HR department, so payroll accounting is also responsible for personnel recruitment tasks, preparing recruitment documents, employment contracts, salary calculations, and disbursing wages to employees within the company This increases the risk of fraud or errors as there is no distinct division of responsibilities between departments, which leads to numerous undetected mistakes by the accountants.
Furthermore, the absence of a segregation of duties between departments also increases the workload for payroll accountants Although this approach helps the company save costs by not operating a separate HR department, the payroll accountants are not extensively trained in recruitment processes, candidate interviews, and the like This might result in hiring candidates whose skills are not suitable or favoring candidates who are acquaintances of former personnel within the company As a consequence, the overall workforce productivity of the company decreases, and the profitability is reduced due to the large annual recruitment needs for the Thuy Ta Restaurant Department, a section contributing significantly to the company's revenue and profits.
Secondly, Thuy Ta Joint Stock Company does not have a tax accounting department and the workload of the tax accountant is carried out by the general accountant These can lead to several disadvantages:
Inadequate Expertise: General accountants may not possess specialized knowledge in tax laws and regulations, which are complex and subject to frequent changes This could result in errors or oversights in tax calculations, filings, and compliance.
Increased Errors: Tax accounting requires meticulous attention to detail.
General accountants, who might be handling various financial tasks, might not have the focused expertise needed for accurate tax reporting This can lead to mistakes in calculations, deductions, and other tax-related matters.
Non-Compliance Risk: Tax regulations can be intricate, and non- compliance can result in penalties and legal consequences Without a dedicated tax department, the company might miss important updates in tax laws and inadvertently violate them.
Time Constraints: General accountants already manage a broad spectrum of financial tasks Adding tax accounting responsibilities to their workload can lead to time constraints, potentially causing delays in other crucial financial processes.
Strategic Focus: Tax planning is an integral part of financial strategy A dedicated tax department can analyze tax implications and recommend strategies to minimize tax liabilities With general accountants handling taxes, the company might miss out on potential tax-saving opportunities.
Missed Deductions: Tax accountants specialize in identifying eligible deductions and credits that can significantly reduce a company's tax burden.
General accountants might not have the same depth of knowledge to identify and utilize these opportunities.
Complex Filings: Depending on the nature of the business, tax filings can be intricate, involving multiple forms and schedules Without specialized expertise, general accountants might struggle to accurately complete these filings.
Lack of Tax Planning: Tax planning involves making decisions throughout the year to optimize tax outcomes General accountants, focused on day-to-day financial tasks, might not have the time or expertise to engage in effective tax planning.
Audit Risk: If tax-related documentation is not prepared accurately, the company faces a higher risk of being audited by tax authorities This can be disruptive and time-consuming.
Employee Burnout: Overloading general accountants with tax-related tasks in addition to their regular duties can lead to burnout and reduced job satisfaction.
Recommendations to the organization of accounting at Thuy Ta JSC
Firstly, it is imperative that the accounting staff not only meets the expectations of the general public but also continuously enhances their skills To achieve this, the company must foster an environment conducive to ongoing training and the development of professional credentials, with a particular focus on improving proficiency in computer-based information processing activities.
The company's unwavering commitment to these efforts has yielded significant success in the realm of accounting and management.
Secondly, it is vital to establish a clear segregation of responsibilities within the accounting department This ensures that the payroll accountant is not burdened with the simultaneous tasks of recruitment, payroll calculation, and disbursement Such segregation not only minimizes the risk of fraudulent activities, such as fictitious employees, improper compensation disbursement, and work overload, but also enhances the overall efficiency and integrity of the payroll process.
The above solutions have been thoughtfully devised to drive continuous improvement in the company's accounting function The ultimate aim is to transform the accounting organization, both in its general practices and material accounting specifics, into a more potent instrument for decision-making This transformation, in turn, will facilitate more effective support for production,strengthen the company's market position, and establish a robust presence in the industry By prioritizing these enhancements, the company is poised to navigate the ever-evolving business landscape with agility and confidence, ultimately achieving sustained success and growth.
In conclusion, my internship journey at Thuy Ta Joint Stock Company has been a transformative experience that bridged the gap between classroom learning and practical application This opportunity allowed me to translate theoretical accounting concepts into real-world scenarios, providing me with a deeper understanding of the complexities and nuances of the accounting field.
During my time at the company, I had the privilege to analyze the company's accounting systems and structures This hands-on experience enabled me to identify both strengths and weaknesses, offering valuable insights that could contribute to future improvements Collaborating with the accounting team and witnessing their day-to-day operations has provided me with a well-rounded perspective on the integral role accounting plays in the company's financial stability and decision-making processes.
I want to emphasize that this internship report is a true representation of my own experiences and reflections during my tenure at Thuy Ta Joint Stock Company I hereby confirm that the content presented in this report is original and has not been plagiarized or copied from any source.
I am immensely grateful for the knowledge shared, the guidance provided,and the skills acquired during this internship I am confident that the practical knowledge gained here will significantly shape my professional journey in the realm of accounting.