Accounting organization in small and mediumsized enterprises in ha nam province in the era of industry revolution 4 0

Moreover, in reality, through the survey process, the author finds that the accounting organizing at SMEs in Ha Nam province still has some limitations in terms of organizing the account

MINISTRY OF EDUCATION AND TRAINING MINISTRY OF FINANCE

ACADEMY OF FINANCE



TRAN QUYNH HUONG

ACCOUNTING ORGANIZATION IN SMALL AND SIZED ENTERPRISES IN HA NAM PROVINCE IN THE ERA OF

MEDIUM-INDUSTRY REVOLUTION 4.0

Major: Accounting Code: 09.34.03.01

SUMMARY OF DOCTORAL THESIS IN ECONOMICS

HA NOI, 2024

The thesis was completed at: ACADEMY OF FINANCE

Full name of scientific advisors:

1 Assoc Prof, Ph.D Nguyen Thi Hong Van

2 Ph.D Ngo Thi Thu Huong

Opponent 1:

Opponent 2:

Opponent 3:

The thesis will be defended in front of the thesis marking Council at State level held at Academy of Finance, Hanoi

At am/pm, on [day] [month] [year]

The thesis can be found at the National Library and the Library of the Academy

of Finance

INTRODUCTION

1 The urgency of the research topic

SMEs in our country have been growing strongly both in quantity and quality, contributing significantly to socio-economic development, increasing state budget revenue, and creating jobs for workers However, SMEs still develop spontaneously, in a small and fragmented manner, lacking linkage, with weak management level and financial capacity, small markets, and low competitiveness The quality of accounting in managing and operating business activities of SMEs is still limited [58] In the context of international and regional economic integration, the issue of organizing accounting is a crucial task of enterprises to improve competitiveness and ensure sustainable development Accounting is an important tool in the enterprise management toolkit that needs to be comprehensively innovated to provide information on production and business activities to serve the management and operation process for managers

In recent years, the legal framework for accounting for SMEs has been constantly improved, creating a relatively unified legal corridor, facilitating the State's management of finance as well as the organization of accounting in SMEs However, with the strong development of the Industrial Revolution 4.0, the achievements of the Industrial Revolution 4.0 are increasingly applied in accounting, but the current legal regulations on accounting have not kept up with reality to be suitable for the digitalization and digital transformation process in accounting SMEs reflect difficulties in signing documents, circulating and processing documents, archiving accounting documents, etc

Moreover, in reality, through the survey process, the author finds that the accounting organizing at SMEs in Ha Nam province still has some limitations in terms of organizing the accounting apparatus; information collection; information processing and systematization; analysis and providing information; and accounting inspection work

Based on the above reasons, Ph.D candidate chose the topic: "Accounting organization in small and medium-sized enterprises in Ha Nam province in the era of industry revolution 4.0" as a doctoral thesis, with the desire that the research results will contribute to improving the theory and have practical significance in enhancing the role of accounting at SMEs in Ha Nam province

2 Overview of related research

2.1 Overview of published research related to the topic

Firstly, scientific works related to the organization of accounting in SMEs in the context of Industry 4.0 include studies by the following authors: Ngo Thi Thu Hong, Bui Phuong Thanh, Nguyen Van Dung, Truong Van Tu, Nguyen Dang Huy,

Vu Ba Anh, Le Viet Ha, Dam Bich Ha, Nguyen Thi Kim Anh, and Nguyen Thi Phuong Tuyen

Secondly, scientific works related to the factors affecting the organization of accounting in the context of Industry 4.0 include:

 Vietnamese research: Studies by Nguyen Bich Lien, Vu Thi Thanh Binh, Le Mong Huyen, and Tran Quoc Bao

 Foreign research: Studies by Ismail and King, Ivana and Ana, Meiryani and Susanto, Mona and Anik, Xu et al., Choi and Mueller, Zang, Rapina, Stoderstrom, and Sun

2.2 General assessment of the research situation

Firstly, regarding the research content, there are three main contents: organization of accounting in the context of IT application, accounting information systems, and factors affecting accounting information systems in the context of IT application Secondly, the research subjects of the studies are very diverse, such as the parent company - subsidiary model, joint stock company, SMEs Thirdly, the scope of research, the works have studied in the fields of production, commerce, import-export business, construction, exploitation, transportation, Regarding the research space, it has been mentioned in the scope of countries around the world, the whole country, regions, localities, industries, and enterprises Fourthly, the methods of data collection include both direct surveys, collecting data from reports

of agencies, organizations, enterprises, and published research results of domestic and foreign authors, data processing methods combining qualitative and quantitative research

In general, the above works have only focused on analyzing the organization

of accounting in enterprises in different fields and industries, at various scales and locations Some topics have studied the organization of accounting in the context of

IT application, however, they have only stopped at the application in a simple IT environment Currently, there are still very few research topics on the organization

of accounting in the context of Industry 4.0 This is a limitation for the author to inherit and continue to research and develop in the dissertation

Research on the organization of accounting in enterprises is always associated with the research context, space, and time Therefore, the results of previous studies may no longer be relevant to the current context With each different period, the development of the socio-economy is also different, so research topics can only achieve results corresponding to the research time When there are changes in time as well as the level of socio-economic development, it is necessary to continue researching the limitations of previous issues

On the other hand, the factors affecting the organization of accounting in the context of Industry 4.0 have not been really studied Most of the studies focus on the factors affecting the quality or suitability of accounting information systems or the success of accounting information technology in general, but there has been no research on the factors affecting the organization of accounting in enterprises in the

context of Industry 4.0 Moreover, there has been no specific case study for SMEs

in Ha Nam province

To overcome this gap, the author chose the topic: "Accounting organization in small and medium-sized enterprises in Ha Nam province in the era of industry revolution 4.0"

3 Research objectives and questions

(3) Analyze the factors affecting accounting organization at SMEs in Ha Nam province in the context of Industry 4.0

(4) Propose recommendations and solutions to improve the organization of accounting in SMEs in Ha Nam province in the coming time

- Fourthly, what are the factors affecting accounting organization at SMEs in

Ha Nam province in the context of Industry 4.0?

- Fifthly, what needs to be done to improve the organization of accounting in SMEs in Ha Nam province in the coming time?

4 Research subjects and scope

Research subjects: The dissertation studies the theoretical basis and practice of accounting organization in SMEs in Ha Nam province (from the perspective of financial accounting)

Research scope:

 Content: Organization of accounting in SMEs in the context of Industry 4.0, with an approach focusing on the accounting process, including: the accounting apparatus; the collection of accounting information; the systematization and processing of accounting information; the provision of accounting information; accounting inspection work

 Space: The dissertation focuses on SMEs in Ha Nam province It does not include micro-enterprises, state-owned enterprises, foreign direct investment (FDI) enterprises, or businesses that outsource their accounting services

 Time: Secondary data is used from 2019 to 2023 Primary data is surveyed

Secondary data sources: Secondary data sources consist of readily available data from previous studies and surveys; legal documents issued by competent state agencies; and data collected by statistical agencies

Primary data sources: Primary data sources are data collected by the author through surveys and in-depth interviews The primary data used in the dissertation includes survey data on the current state of accounting organization and the factors affecting accounting organization in SMEs in Ha Nam province in the context of Industry 4.0

Research population and sampling: The research population includes all SMEs in Ha Nam province, regardless of their field of activity or type of business For the survey sample selection, the author uses a convenience sampling method The author distributed 630 questionnaires, but due to non-response, only 225 were returned After eliminating invalid questionnaires due to missing information or falling outside the research scope, the number of valid questionnaires for analysis was 208

Data processing and presentation: After conducting the survey and depth interviews, the survey results are processed, synthesized, and analyzed by the author using statistical methods In addition, after receiving feedback from the survey, model testing and research hypotheses will be conducted using the collected data and SPSS 20 software

in-6 Theoretical and practical significance of the dissertation

Theoretical significance:

 The dissertation generalizes the general theory of accounting organization in enterprises

 It analyzes the operational characteristics of SMEs

 It identifies the factors influencing accounting organization in enterprises in the context of Industry 4.0

Practical significance:

 The dissertation studies the characteristics of SMEs in Ha Nam province and the factors affecting their accounting organization in the context of Industry 4.0

 It surveys and analyzes the content of accounting organization according to the accounting process The evaluation results identify the advantages, limitations, and causes of these limitations

 Based on the research, survey, and evaluation results, the dissertation proposes practical directions and solutions to improve accounting organization in SMEs in Ha Nam province

7 Structure of the dissertation

In addition to the introduction, conclusion, bibliography, and appendices, the dissertation is structured into three chapters:

 Chapter 1: General theory of accounting organization in enterprises in the context of Industry 4.0

 Chapter 2: Current status of accounting organization in small and sized enterprises in Ha Nam province in the context of Industry 4.0

medium- Chapter 3: Solutions to improve accounting organization in small and medium-sized enterprises in Ha Nam province in the context of Industry 4.0

Chapter 1: General theory of accounting organization in enterprises in the

context of Industry 4.0

1.1 The Fourth Industrial Revolution and its impact on the organization of accounting in enterprises

1.1.1 The Fourth Industrial Revolution

Concept of the Fourth Industrial Revolution:

The first industrial revolution used water and steam power to mechanize production The second revolution took place thanks to the application of electricity

to mass production The third revolution used electronics and information technology to automate production Now, the fourth industrial revolution is emerging from the third revolution, it combines technologies together, blurring the lines between physical, digital, and biological

According to the National Center for Scientific and Technological Information, Industry 4.0 is defined as "a cluster of terms for technologies and concepts of organization in the value chain" along with physical systems in cyberspace, the Internet of Things, and the Internet of Services

Characteristics of the Fourth Industrial Revolution:

 Industry 4.0 is a combination of real and virtual systems, based on digital technology and big data processing

 The application of smart devices in Industry 4.0 will change the entire management and production process

 Industry 4.0 is based on the achievements of natural science fields such as mathematics, physics, chemistry, social sciences and humanities, and science and technology fields

 Industry 4.0 changes the concept of technological innovation

Some core technologies of Industry 4.0:

1.1.2 Overview of SMEs

Countries around the world use two common sets of criteria, qualitative and quantitative, to define SMEs Qualitative criteria are based on the basic characteristics of SMEs such as low specialization, few management points, and low management complexity; while quantitative criteria often include indicators of average number of employees, total asset value, revenue, or profit However, the criteria for determining SMEs are not the same in different countries depending on the economic conditions of each country

In Vietnam, the standards for SMEs are specified in Decree 80/2021/ND-CP dated August 26, 2021, of the Government SMEs play a very important role in the process of socio-economic development in countries:

Firstly, in terms of economy:

 SMEs account for a large proportion in the enterprise structure of the economy and tend to increase more and more strongly

 SMEs play a key role in maintaining and promoting economic development

 SMEs exploit and promote competitive advantages, promoting economic restructuring

 Help the market economy become more dynamic

Secondly, in terms of society: SMEs create jobs, contribute to solving unemployment, reducing poverty, and stabilizing socio-political security

1.1.3 Concept, role, and principles of accounting organization

1.1.3.1 Concept of accounting organization in enterprises

The concept of accounting organization is approached from many different perspectives: the viewpoint of scientists at the National Economics University, the viewpoint of author Ngo Thi Thu Hong, the viewpoint of scientists at the Academy

of Finance, the viewpoint of author Nguyen Phuoc Bao An et al., the viewpoint of author Vuong Thi Bach Tuyet, etc

According to the author, the concept of accounting organization is:

"Accounting organizing is the organization and arrangement of personnel according

to each accounting section, using accounting methods suitable for collecting, processing, analyzing and providing financial and economic information, suitable

to the specific characteristics of the business to meet the information needs to serve the management work in the enterprise."

1.1.3.2 Role of accounting organization in enterprises

 Ensuring the provision of accurate, timely, and complete financial and economic information of the enterprise, helping relevant parties to make correct and timely decisions

 Ensuring that the company's assets and capital sources are recorded, monitored, reflected, and closely supervised to improve the efficiency of capital use

 Helping accountants to fulfill their requirements, functions, and tasks in the system of management tools

 Helping businesses to have a streamlined and efficient accounting apparatus, improving the productivity and efficiency of the accounting apparatus

1.1.3.3 Principles of accounting organization in enterprises

 Firstly, the organization of accounting in enterprises must comply with the legal framework for accounting

 Secondly, the organization of accounting needs to be appropriate to the characteristics, conditions, and specific circumstances of the enterprise and the professional qualifications of the management team and accounting staff

at a high level and faster Under the influence of new technologies of Industry 4.0, the automation of steps in the accounting and auditing processes is increasing At

the same time, the construction of large data centers helps to improve the scientific analysis and management of data in the field of accounting and auditing Besides, automation helps to eliminate confusion and minimize accounting and auditing errors

Industry 4.0 also brings certain risks and challenges to accounting in enterprises:

 Firstly, the challenge of accessing new technology

 Secondly, difficulties in applying international accounting standards

 Thirdly, the soft skills of accountants are still weak

 Fourthly, the challenge of ensuring information security and cybersecurity

 Fifthly, the challenge of the legal framework for new technology issues 1.2 Content of accounting organization in enterprises

1.2.1 Organizing the accounting apparatus

 Selecting and building an accounting apparatus organizational model: Enterprises can choose one of the following accounting apparatus organizational models:

- Centralized accounting apparatus organizational model

- Decentralized accounting apparatus organizational model

- Mixed accounting apparatus organizational model (both centralized and decentralized)

 Financial and management accounting organization model:

- Model separating financial accounting and management accounting

- Model combining financial accounting and management accounting

- Mixed model

 Organizing accounting personnel:

- Determining accounting personnel standards

- Analyzing accounting work in enterprises

- Developing accounting job descriptions

- Determining the size of the accounting apparatus

- Assigning accounting personnel to each job position in the accounting apparatus

The next part of the dissertation analyzes how, in the context of Industry 4.0, digital transformation impacts the organization of the accounting apparatus

1.2.2 Organizing the collection of accounting information

 Firstly, establish a system of document catalogs

 Secondly, design document templates

 Thirdly, organize the process of creating, receiving, processing, and circulating documents

 Fourthly, organize document inspection

 Fifthly, organize the preservation, storage, and disposal of accounting documents

In each part, the author analyzes and clarifies the influence of Industry 4.0 on the process of organizing the collection of accounting information

1.2.3 Organizing the systematization and processing of accounting information

 Organizing the selection and application of accounting policies

 Organizing the application of valuation methods The dissertation clarifies some contents in organizing the application of valuation methods and the characteristics of this method in the context of IT application

 Organizing the accounting account system:

o Firstly, establish the accounts to be used

o Secondly, approve the accounting account system

o Thirdly, organize the recording of transactions into accounts

 Organizing the application of accounting forms and the accounting book system:

o The form of organizing accounting books is a manifestation of organizing the accounting book system to carry out accounting work

in an accounting unit, including the quantity, structure, form of books, content of forms, order of recording methods, and the relationship between documents and books, between books and books, between books and accounting reports

o Accounting books include general ledgers and subsidiary ledgers 1.2.4 Organizing the provision of accounting information

 Organizing the preparation and publication of financial statements:

The annual financial statement system applied to SMEs includes mandatory reports (Financial Position Statement, Income Statement, Notes to the financial statements) Financial statements submitted to tax authorities must be prepared and submitted with an additional Balance Sheet The unrequired report is the Statement

of Cash Flows In addition, businesses can prepare other reports as required by the business management

Financial statements are an important method to convey accounting information

of enterprises to users for making economic decisions Therefore, after the financial statements are prepared, it is necessary to publicize the information for internal and external users in appropriate forms

 Organizing the analysis of accounting information:

o Organize analysis planning

o Organize the implementation of analysis

o Organize the reporting of analysis results

1.2.5 Organizing accounting inspection work

 Content of accounting inspection organization:

Inspecting compliance with legal regulations, principles, and implementation methods in all stages of accounting organization, such as accounting documents, accounting accounts, accounting books, accounting reports, etc

Inspecting the implementation of responsibilities according to the authority of the chief accountant in directing, organizing, assigning, and managing the activities

of the accounting apparatus; the results and effectiveness of the accounting apparatus; the relationship and coordination between the accounting department and other departments when performing work

 Timing of accounting inspection: Can be done periodically or irregularly

 Accounting inspection work in enterprises can include the following contents:

o Develop an inspection plan

o Conduct the inspection

o Conclude the inspection

In the context of IT application, the methods and approaches of accounting inspection also need to change accordingly

1.3 Factors affecting the organization of accounting in enterprises in the context of Industry 4.0

1.3.2 Proposed research model and research hypotheses

 Proposed research model:

Proposing a research model of factors affecting the organization of accounting in enterprises in the context of Industry 4.0, including the following 7 factors: (1) Support of top management; (2) Knowledge of managers; (3) IT infrastructure; (4) Size of the enterprise; (5) Legal environment; (6) Internal control; (7) Accounting team

 Variables in the model and research hypotheses:

o Hypothesis H1: Support of top management has a positive impact on the

organization of accounting in the context of Industry 4.0

o Hypothesis H2: Knowledge of managers has a positive impact on the

organization of accounting in the context of Industry 4.0

o Hypothesis H3: IT infrastructure has a positive (+) impact on the

organization of accounting in the context of Industry 4.0

o Hypothesis H4: Enterprise size has a positive (+) impact on the

organization of accounting in the context of Industry 4.0

o Hypothesis H5: The legal system has a positive (+) impact on the

organization of accounting in the context of Industry 4.0

o Hypothesis H6: Internal control has a positive (+) impact on the

organization of accounting in the context of Industry 4.0

o Hypothesis H7: Accounting human resources have a positive (+) impact on

the organization of accounting in the context of Industry 4.0

1.4 Experiences in applying some achievements of Industry 4.0 in the field of accounting in some countries around the world and lessons learned for Vietnam

 South Korea: Examining South Korea's experience in applying cloud computing, AI, Big Data, and Blockchain technologies in the accounting field This could involve analyzing specific use cases, benefits achieved, and challenges faced

 Singapore: Exploring Singapore's experience in adopting XBRL (eXtensible Business Reporting Language) for preparing financial statements This could involve analyzing the implementation process, benefits of using XBRL, and lessons learned for other countries

 Poland: Investigating Poland's experience in implementing a national invoicing system (KSeF) and its data digitization process This could involve analyzing the system's features, benefits, challenges, and implications for accounting practices

e-Lessons learned for Vietnam:

 Firstly, state management agencies need to develop a strategy for developing the accounting field in both the short and long term

 Secondly, the Government and relevant specialized agencies continue to raise awareness of the business community about digital transformation

 Thirdly, develop high-quality human resources to meet the changes in the accounting field

 Fourthly, pay special attention to information security and data security of enterprises

 Fifthly, businesses themselves need to research, study, and set requirements for their own digital transformation

Chapter 2: Current status of accounting organization in small and sized enterprises in Ha Nam province in the context of Industry 4.0

medium-2.1 Overview of small and medium-sized enterprises in Ha Nam province 2.1.1 Overview of small and medium-sized enterprises in Ha Nam province

Ha Nam is located in the southwest of the Red River Delta, in the key economic development area of North Vietnam Ha Nam province is more than 50