The formula to determining operating business results in the case of enterprises applying accounting regulations according to Circular 133/2016/TT-BTC The operating business results = Ne
Rational
For Viet Nam, in recent years, logistics has emerged as a crucial service sector within the overall structure of the economy and Vietnam is considered a potential market for the development of the logistics industry However, according to statistics from Vietnam Report, out of over 3,000 logistics and transportation companies nationwide, 10% are foreign-owned, while a significant 88% are domestic enterprises However, foreign-owned companies account for 70-80% of the total revenue, indicating a relatively low level of activity among domestic logistics companies Therefore, domestic logistics enterprises are facing numerous challenges, which require the implementation of appropriate policies and business strategies to achieve their primary objectives of profitability and cost minimization
Beside, one of the most important aspects of company accounting is the accounting of revenue, expenses, and business results It makes a substantial contribution to each company's ability to manage its operations profitably, assists in rapid financial recovery, promptly arranges the subsequent business procedures, and gives timely information that helps the company analyze, examine, and select the best possible investment possibilities
Therefore, based on the accumulated knowledge gained during my study at school, along with the guidance of Ph.D Le Thanh Bang, and the practical experiences acquired during my internship at Khoi Minh Logistics Co, LTD, with the support and facilitation from the accounting department colleagues, I have chosen the topic: “COMPLETE THE ACCOUNTING FOR REVENUE, EXPENSES AND EVALUATION OF BUSINESS RESULTS AT KHOI MINH LOGISTICS CO., LTD” as the subject for my graduation thesis.
Objectives
The purpose of this study was to systematize general theories of revenue, expenses, and business results evaluation in commercial and service organizations
By researching and evaluating the revenue position as it exists today to suggest and offer suggestions on ways to enhance accounting for revenue, expenses, and business results assessment at Khoi Minh Logistics Co., LTD.
Subjects of study
The thesis will research, analyze the accounting for revenue, expenses and evaluation of business results at Khoi Minh Logistics Co., LTD.
Range of study
- About space: Khoi Minh Logistics Co., LTD
- About time: The source of data provided in the research is collected at the focus company in 2023
Research methods
- Gathering and processing data method: take information from the company about the subject, then analyze the information to choose relevant and plausible information for the thesis to be precise, pertinent, and scientific, offering helpful
- Comparative and statistical methods: Using the gathered and processed data in conjunction with statistical and analytical techniques, conclusions are drawn that provide the organization with recommendations and causes
- Interviewing method: Asking mentor some question related to accounting in actual situation and the ways to solve problems.
The structure of thesis
The thesis is divided into three chapters
- Chapter 1: Theoretical framework for accounting for revenue, expenses and evaluation of business results in the company
- Chapter 2: The reality of accounting for revenue, expenses and evaluation of business results at Khoi Minh Logistics Co., LTD
- Chapter 3: Discussions and suggestions for improving the organization of accounting for revenue, expenses and evaluation of business results at Khoi Minh Logistics CO., LTD
THEORICAL FRAMEWORK FOR ACCOUNTING FOR REVENUE, EXPENSES AND EVALUATION OF BUSINESS RESULTS IN
Some basics concept of revenue, expenses, and evaluation of business results of
1.1.1 The concepts related to revenue
Accounting Standard No 1 in Vietnamese accounting standards was published on December 31, 2002, by the Ministry of Finance under Decision No 165/2002/QD-BTC
- Revenues and other incomes: are the total value of economic benefits earned by an enterprise in the accounting period, arising from the enterprise’s normal production, business and other operations, contributing to increasing the owners’ equity, excluding capital contributions made by shareholders or owners
- Revenues arise in the process of normal business operations of enterprises and often include: sales revenues, service provision revenues, interests, royalties, dividends and shared profits
- Other incomes include incomes arising from operations other than revenues generating operations, such as incomes from liquidation or sale of fixed assets, fines collected from customers for their contract breaches…
Accounting Standard No 14 in Vietnamese accounting standards was published and issued by Decision No 149/2001/QĐ-BTC by the Ministry of Finance on December 31, 2002, regarding revenue and other income:
- Revenue from service provision transactions shall be recognized when the performance of these transactions are determined in a reliable way Where a service provision transaction relates to many periods, revenue shall be recognized in each period according to the performance of the work volume finished on the date of making of such period’s accounting balance sheet
- The outcome of a service transaction is determined when all four (4) of following requirements determines are fulfilled:
(b) It is most probable that the service transaction will result in economic benefits
(c) The completed portion of the work as of the date of the financial statements can be determined
(d) The transaction's costs alongside the expenditures required to finish the service transaction are identified
- Revenue from service provision is recognized only when it is ensured that the enterprise will receive economic benefits from the transaction If it becomes unlikely to recover the recognized revenue, it should be accounted for as an expense rather than reducing the revenue When there is uncertainty in collecting an amount that was previously recognized as revenue (doubtful accounts receivable), a provision for doubtful accounts should be established without reducing the revenue The provision for doubtful accounts is offset against the doubtful accounts receivable when it is determined that they are truly irrecoverable
Accounting Standard No 14 in Vietnamese accounting standards was published and issued by Decision No 149/2001/QĐ-BTC by the Ministry of Finance on December 31, 2002, depending on the type of service, one of the following three approaches is used to determine the finished portion of the work:
(a) Evaluation of the completed work portion;
(b) Comparison of the percentage (%) of the completed work portion with the total work volume to be completed;
(c) The percentage (%) of the incurred costs against the estimated total cost needed for completion
The portion of the work that has been finished is not reliant on regular or upfront payments from the client
1.1.2 The concept relates to expenses
Section 59, Circular 133/2016//TT-BTC by the Ministry of Finance, it represented that “Expenses are decreases in economic benefits recorded when incurred or due to the high probability that they will be spent in the future, whether or not spent in reality ”
Accounting Standard No 1 in Vietnamese accounting standards, which was published and issued under Decision No: 165/2002/QD-BTC on December 31, 2002 by the Ministry of Finance, expenses (cost):
- Costs are the total value of amounts which reduce economic benefits in the accounting period in the forms of amounts spent, asset depreciation amounts, or give rise to liabilities leading to a decrease in the owners’ equity, excluding amounts distributed to shareholders or owners
- Costs include production and business costs arising in the process of normal business operations of enterprises, and other costs
- Production and business costs arising in the process of normal business operations of enterprises, such as cost of goods sold, sale costs enterprise management costs, costs for loan interests, and costs related to letting other parties use assets with yields, royalties… These costs arise in the form of cash and cash equivalents, inventories, machinery and equipment depreciation
- Other costs include costs other than production and business costs arising in the process of normal business operations, such as costs for liquidation and sale of fixed assets, fines imposed by customers for contract breaches, etc
Section 59, Circular 133/2016//TT-BTC by the Ministry of Finance represented the condition of expense recognition:
(a) Expenses are recognized before they are spent due to the high probability that that they will be spent to comply with conservatism principle and preserve capital Expenses and revenues they created shall be simultaneously recorded according to matching principle In certain cases where matching principle conflicts with conservatism principle, accountants shall record expenses according to the nature of the transaction
(b) Accountants accountant must keep records of expenses related to salaries, raw materials, purchases, fixed asset depreciations, etc
(c) If non-deductible expenses defined by the Law on Corporate income tax are accompanied with adequate documentary evidence and properly accounted for, they shall not be recorded as decreases in accounting expenses and shall be adjusted in the annual corporate income tax declaration to increase the amount of corporate income tax payable
(d) To determine the business's results, all costs incurred throughout the period must be transferred to accounts indicating costs that have no balances at the end of the accounting period
Expenses in business operations refer to all the costs that the enterprise needs to incur in order to achieve its ultimate business objectives:
- The cost of goods sold The cost of goods sold for manufacturing and service-providing enterprises includes production costs (labor, materials, overhead) associated with the goods sold or services performed For trading enterprises, the cost of goods sold is the purchase price of the products sold
Selling expenses include costs associated with the process of product consumption, such as advertising, transportation of goods sold, commissions
- The administrative expenses The expenditures of the organization's general management, such as the salaries of the board of directors and staff members, office depreciation, utilities (such as electricity and water), and office phone bills, are included in administrative expenses Since administrative costs normally are not increasing in relation to revenue, comparing the rate at which administrative costs are rising to the rate at which revenue is rising can be used to assess
Financial expenses are costs related to securities trading, business financing, and interest expenses of the enterprise Within financial expenses, interest expenses are typically reported as a separate line item in the income statement
Other expenses are costs associated with activities outside of the production and business operations that generate revenue for the enterprise These are losses resulting from unrelated events or transactions that are not part of the company's usual business operations They might also consist of neglected or disregarded costs from prior years
- Costs of asset liquidation and disposal, including the expenses related to the bidding process for the liquidation activities
- The difference between the fair value of assets received in a small-value investment joint venture and the cost of investment in jointly controlled assets
- Impairment of the remaining value of fixed assets
- Residual value of assets from asset liquidation and disposal (if applicable)
- Loss arising from revaluation of materials, inventory, and fixed assets contributed as capital to subsidiaries, joint ventures, investments in associated companies, and other long-term investments
- Fines and penalties imposed for breaches of economic contracts and administrative penalties
Expenses related to corporate income tax
Role and some factor effect to accounting for revenue, expenses and
1.2.1 Role of accounting for revenue, expense and evaluation of business results
Role of accounting for revenue, expenses and determining business results It is important to account for revenue, expenses, and business results evaluations not just for companies but for the economy of each country as a whole
- The company needs to perform successfully in order to generate enough revenue to cover its costs, provide a foundation for growth, attain high economic efficiency, and support the well-being of its workforce Particularly revenue accounting is seen as a useful tool for managing an enterprise's business operations Furthermore, it is crucial to precisely calculate company results in order to support firms in fulfilling their responsibilities to the government, which include paying taxes, fees, and other expenses to the government budget
- Many entities connected to a firm, including suppliers, creditors, investors, and so on, make investment decisions based in large part on the accuracy of accounting information If the completion of the accounting for revenue, expenses, and company results is accurate, then there is a slight reduction in the investment risk
- The government can better monitor and understand the state of businesses executing government responsibilities thanks to the accurate accounting information This allows the government to create regulations that incentivize businesses to develop and implement suitable business management practices
1.2.2 Some factors affect to accounting for revenue, expenses and evaluation of business results
Accounting in general and accounting of revenue, expenses, and business results in firms in particular are influenced by a wide range of circumstances These incorporate the following important elements:
- Legal guidelines that must be adhered to, such as the Accounting Law, the Accounting Regime, and particular guiding documents
The functioning of the business in general and the accounting work at the business in particular are directly impacted by legal regulations (Accounting Law,
Accounting Regime, and specific guiding documents) As such, compliance with these regulations is required when performing accounting work, which includes the accounting of revenue, expenses, and business results
- Features specific to each company line
Accountants' evaluations regarding the financial condition of an organization are significantly influenced by the unique features of each sector and business line Nonetheless, with the goal to adhere to the general legal requirements, organizations with varying production and business features will use various accounting techniques that satisfy their particular requirements
The selection of an accounting method is heavily influenced by various aspects, including the management and the qualifications of the accountant Accounting work is significantly impacted by board of director needs, both physical and technical conditions, accounting software systems, supporting equipment
As a result, a wide range of factors both directly and indirectly affect accounting's revenue, cost, and business results Every company must be founded on certain requirements to implement suitable accounting techniques in order to meet the business's objectives.
The content of accounting for revenue, accounting for expenses, and evaluation
1.3.1 Accounting for sales revenue and service provision
Revenue from sale of goods and provision of services is the total amount received or expected to be received from transactions and revenue-generating activities, such as the sale of goods, products, and services to clients, including any applicable surcharges and other fees in addition to the selling price a, Documents used
- Value-added tax invoices, sales invoices,…
- Payment documents such as receipts, payment vouchers, bank’s statements, …
- Other related accounting documents such as return goods notes b, Accounting account
Accountants use account 511- Revenue from sales and service provision to record revenue from selling items and providing services in accordance with Circular 133/2016/TT-BTC
Account 511 - Sales Revenue and Service Revenue is used to reflect the sales revenue and service revenue of the enterprise during an accounting period This includes revenue from the sale of goods, products, and the provision of services Account 511 has no ending balance and has 4 Level 2 accounts:
- Account 5111: Sales of goods - This account is used to record sales and net sales of goods sold in an accounting period
- Account 5112: Revenue from selling finished products - This account is used to record sales and net sales of finished goods in an accounting period
- Account 5113: Revenue from service provision - This account is used to record the revenue and net revenue of the volume of services completed, provided to customers and determined to be done during an accounting period
- Account 5118: Other revenue - This account is used to record revenue from the sale and liquidation of investment properties, subsidies of the Government c, Structure of account 511
- Special consumption tax, export-import tax, or value-added tax (VAT) calculated based on the direct method must be paid on the goods sold during the accounting period
- The value of returned goods sold is transferred at the end of the period
- Trade discounts and discounts on goods sold transferred at the end of the period are also accounted for
- Net revenue is transferred to account 911
Revenue from sales of products, goods, investment properties and provision of services in the accounting period d, Accounting entries
Diagram 1.1: Accounting diagram of Account 511 - Sale revenue according to
(1) Revenue from sales of goods and provision of services
(2) Output VAT (the case of immediate separation of payable taxes at the time of revenue recognition)
(4) Output VAT (the case of immediate separation of payable taxes at the time of revenue recognition)
(5) Carrying forward sale revenue when evaluation of business results
1.3.2 Accounting for revenue deductions a, Documents used
- Receipts and payment vouchers, bank statements (debit and credit),
- Record confirming the reduction in the value of goods sold,
- Record confirming goods sold that were returned, and other original documents b, Accounting account
Accountants use account 511- Revenue from sales and service provision to record revenue deductions
Circular 133/2016/TT-BTC has eliminated the accounts for tracking revenue items such as returned goods, sales discounts, and trade discounts
Account 511 is used to reflect the adjustments deducted from sales revenue and service revenue generated during the period, including trade discount, returned goods, or sales discount c, Structure of account 511
- The accepted trade discount amount
- The transfer of all payments to customers
- The accepted amount of discounted sales to buyers
-The value of goods sold that were returned
The transfer of all revenue deductions to account 911 d, Accounting entries: Diagram 1.1
1.3.3 Accounting for cost of goods sold
Expense of finished goods and merchandise goods sold (shortly called cost of goods sold) is the expense of goods determined at the time they are sold out a, Documents used
- Purchase and sale contracts, sales contracts b, Accounting account Account 632 - Cost of Goods Sold is used to reflect and track the cost value of goods, services, and investment real estate sold during the period c, Structure of account 632
For production and business activities
-COGS of products, goods and services sold during the period
- Loss of inventory after deducting compensation caused by personal liability
The transfer of all revenue deductions to account 911 d, Accounting entries
Diagram 1.2: Accounting diagram of Account 632 - Cost of goods sold according to Circular 133/2016/TT-BTC
(1) The price of sold finished goods and services
(2) Carrying forward expenses and cost of products sold for assessing business results
(4) Inventory loss is included in the cost of goods sold
(5) Sold goods are returned to the warehouse
(6) Actual cost of finished goods converted into fixed assets used for business and production
(7) Overhead costs in manufacturing are included in the cost of goods sold
(8) Sale of investment property-remaining value
(11) Expenses associated with the property are not recorded as a rise in value
(13) Subtracting upfront costs to estimate the cost of real estate sold during the period
(14) Provision for devaluation of inventory
1.3.4 Accounting for selling and administrative expenses
Selling expenses are all expenses incurred associated with the process of selling goods and services Expenses associated with selling include salaries for sale personnel, indirect material costs, depreciation, warranty costs, rendered services, and other costs
Selling expenses shall be gathered and allocated in accordance with the following principles: selling expenses shall be incurred and collected as such Additionally, selling expenses can be broken down into two categories: variable and fixed Selling costs will be carried forward at the conclusion of the term in order to assess the business outcome a, Accounting account
According to Circular 133/2016/TT-BTC, selling expense and administrative are recorded in the same account, account 642 - Business administrative expenses This account has no ending balance This account has 2 Level 2 accounts:
- Account 6422: Administrative expense b, Structure of account
Selling costs incurred over the course of period
Amount of payable and bad debt provision (the difference between the amount of payable and bad debt provision made in this period and the amount of unutilized provision made in the previous period)
Any decrease in the cost of selling; reversing the provisions for payables and bad debts (the difference between the amounts to be set aside in this period and those set aside in the previous period that haven't been used up yet); forwarding corporate management costs to account for 911 c, Accounting entries: Diagram 1.3
Administrative expenses include general management costs of the enterprise, such as salaries of management department staff, office supplies costs, and depreciation of fixed assets used for the management department of the enterprise a, Document used
- Payment vouchers, debit notes, value-added tax invoices
- Tools and equipment used by the business management department
- Schedules for allocation and depreciation of fixed assets b, Accounting account
6422 – Administration expenses This account has no ending balance c, Structure of account 6422
-Expenses for administration -Any decrease in the cost of incurred at the time administration;
-Amount of payable and bad debt -Reversing the provisions for provision (the difference between the payables and bad debts (the amount of payable and bad debt difference between the amounts to provision made in this period and the be set aside in this period and those amount of unutilized provision made set aside in the previous period that in the previous period) haven't been used up yet);
-Forwarding corporate management costs to account for
Diagram 1.3: Accounting diagram of Account 642 – Business administration expenses according to Circular 133/2016/TT-BTC
(1) Cost of materials and tools
(3) Salary expenses and deductions according to salaries of Office staff
(4) Carrying forward business administrative expenses when evaluation of business results
(7) Provisions payable for corporate restructuring, …
(8) Reversing the difference between the provision for doubtful debts set up in the previous year and not yet used up larger than the amount to be set up this year
(10) Expenses for external purchases, expenses in other currency
(11) Input VAT is not deductible
(12) Backup refund for warranty, product costs
(13) Finished products, goods and services for promotion, advertising, internal consumption, gifts, for customers outside the enterprise (without the condition that customers have to buy any other goods or services)
(14) Amount to be paid to the export entrustment company
1.3.5 Accounting for financial income and financial expense
Financial income is all money obtained in connection with the business's financial operations is referred to as Interest income includes things like interest on loans, deposits, capital gains from selling financial assets, profit and dividend distribution, foreign currency differential gains, payment discounts, and other financial income a, Document used
- Other related documents b, Accounting account
Account 515- Financial income This account is used to reflect revenue from interest income, copyright sales, distributed dividends and profits, and other financial operating revenue This account also has no ending balance c, Structure of account
The payable VAT amount calculated by the direct method (if any)
Carrying forward of net financial income to account 911-Income Summary
Revenues from financial activities arising in the period d, Accounting entries
Diagram 1.4: Accounting diagram of Account 515 – Financial Income according to Circular 133/2016/TT-BTC
(1) Dividends, profits are distributed after the investment date
(3) Selling foreign currency - selling rate
(5) Sale and recovery of financial investments
(6) Profit from the sale of the investment
(7) Purchase supplies, goods, assets, services, pay payables in foreign currencies (in case the Creditor has a cash account, it shall be recorded at the recorded exchange rate)
(9) Gradually allocate profits due to late payment, interest received in advance
(10) Carrying forward exchange rate interest due to revaluation of foreign currency balance at the end of the period
(11) Carrying forward finance income when evaluation of business results
Financial expenses are all expenses incurred in connection with the company's financial operations, including borrowings Expenses associated with financial investments include: capital loss on the investments; interest or other costs associated with translating foreign currencies; loss on fluctuations in foreign exchange rates; provision for financial investments; and other costs associated with financial operations a,Accounting account
Characteristics of revenue accounting, expense accounting, and determining
The enterprise can apply one of four methods
In each accounting methods system, there are specific regulations regarding the number of books, book templates, submission procedures, recording methods, and the relationship between the accounting books.
CONCLUSION
In Chapter I, the thesis focuses on presenting and clarifying several concepts related to revenue, expenses, and determining the business results, specifically according to Circular 133/2016/TT and some decisions of Viet Nam Accounting System
The aforementioned issues will serve as a basis for reviewing and presenting some accounting issues related to revenue, expenses, and determining business results in specific situations at the company in Chapter 2.
THE REALITY OF ACCOUNTING FOR REVENUE,
The introduction overview about Khoi Minh Logistics Co., LTD
2.1.1 The overview introduction of Khoi Minh Logistics Co., LTD
- Name of the internship: Khoi Minh Logistics Co., Ltd
- International transaction name: KHOI MINH LOGISTICS COMPANY LIMITED
- Short name: KMLOG CO., LTD
- Address: Resettlement Area in Tu Khoat Village, Ngu Hiep Commune, Thanh Tri District, Hanoi City, Vietnam
- Website: https://kmlog.com.vn/
- Type of business: Non-state limited liability company
2.1.2 The history of development of Khoi Minh Logistics Co, LTD
A logistics firm Khoi Minh Logistics Co., Ltd or called KMLOG offers all kinds of local and international freight forwarding services by road, air, sea, and other means Under the motto "Be Customer's hero," the employees are constantly on hand to provide clients with the utmost support, comprehend and resolve issues, serve, and guarantee the safest goods all while being punctual and highly respected
In a capitalist economy, enterprises offering shipping and forwarding services were in intense competition when Khoi Minh was born Strong economic pressure from both foreign and domestic firms presented Khoi Minh Company with numerous challenges After more than three years of development and operation, the company has successfully removed business obstacles, gained the trust of its clients, and matched market knowledge with business strategy The business has steadily made its mark And as of right now, the business has expanded its activities, entered the space, and become a part of the transportation industry
KMLOG is committed to sustainable development, innovative business methods, and workforce development Its goal is to become Vietnam's top multi- industry business enterprise in the domains of internet, distribution, and export trade Prestige and standing on Vietnam's economic map, thereby creating the country's top brand
-For clients: provide each client with excellent services
-To partners: Foster an environment of collaboration, long-term projects, and sustainable development
- For officer and employees: To sustain the firm's culture of creativity and solidarity, officials and staff should make the necessary arrangements so that everyone may dedicate themselves to the business and benefit clients, the company, and themselves
-Duty to customers: Provide the greatest worldwide items at the most affordable prices, with the highest consumption value Both society and people's lives should be improved
- Officers and staff have a responsibility to provide the greatest working and operating environment possible Ensure the well-being of your staff
- As part of one's duty to one's nation and society, one should build and promote international integration
- Self-responsibility: Consistently cultivate a more robust enterprise, adding worth to society, others, and yourself
With the operating motto “Be customer’s hero”, Khoi Minh Freight Forwarding Co., Ltd always sets for itself the goals of constantly improving service quality to increase competitive strength, such as:
- Proactive in developing several long-term plans to use investments to grow commercial networks
- Seeking out local and international partners, putting business collaboration in the agency services sector into practice, entrusting the forwarding and transportation of import and export commodities, trading in machinery and equipment,
- Establish credibility and confidence with clients to develop a brand for high-quality services
- Lower lost costs as much as possible in order to offer competitive prices and boost earnings
- Constructing an efficient, modern, dynamic, cohesive, and scientific work place, always attend to issues pertaining to the company's working environment
With networks of agents spread over all seaports around the world, KMLOG has signed service contracts with many reputable carriers such as SITC, Heung A Line, SMLines, NYK, Kline, Evergreen, APL, MSC, Yangming for full container loading (FCL) or LCL KMLOG had focused to invest on it and has become one of the leading providers of containers of Viet Nam for routes to US, Europe, Asia…
Containers shipping out bound services from the ports of Ho Chi Minh, Hai Phong, Da Nang, Quy Nhon to all ports around the world with competitive prices and appropriate shipping schedule, especially to main ports of China (GuangZhou, Foshan, Shenzhen, Qingdao, Shanghai, Ningbo, ), Taiwan (Keelung, Kaohsiung), Korea (Seoul, Incheon) and Japan (Tokyo, Osaka, Yokohama),…
The company provides domestic transportation services It has an extensive network of container depots spread across various provinces and cities, ensuring a constant availability of trucks to meet the transportation needs of customers
Containers inbound service from all ports around the world to Ho Chi Minh, Hai Phong, with variety of delivery services such as receipt of good sat the port (CFS – CFS), receipt of goods at factory(DOOR – CFS), and deliver goods directly to the consignee Door (DOOR – DOOR)
Docs/Cus Operation Department Department Department
One of the most crucial processes in the series of steps for international freight forwarding is customs declaration services It significantly affects how much it costs for businesses to deliver goods these days
+ Processing via E-Cus VNACCS/ VCIS/ E-Manifest System: VNACCS – Vietnam Automated Cargo Clearance System, used to clear import and export goods; VCIS - Vietnam Customs Intelligence Information System VCIS mainly serves internally for risk management and professional supervision of Customs E- Manifest system is the system "Receipt of cargo declarations, other relevant documents and electronic clearance for incoming and outgoing ships" for customs declarants who are shipping lines and agents shipping lines and forwarding companies
+ Customs Bonds and Services: A Customs bond is a contract between three parties (Customs, a principal (i.e an importer), and a surety) to ensure that all the duties and fees associated with the rules and regulations of importing or other Customs activities are paid to Customs by the principal
+ Ability to Meet and Clear Hand Carry Shipments at Airport
2.1.4.1 The organizational structure of the company
Khoi Minh Logistics Co., LTD has 50 employees Who are split up into four departments and divisions that each have a distinct role Despite its brief existence, the company's structure is quite tight and well-suited for its business lines, which makes it appropriate for the management system to function precisely, immediately, and effectively
2.1.4.2 Duties and functions of departments
- Managing, planning, creating, and performing a business development strategy for transportation services in order to guarantee both the achievement of development goals and high-quality services for the business
- Organizing the creation of standard business procedures to guarantee efficient operation in the transportation sector of the company and inking departments, departments, and units across the system
- Training and developing employees, motivating and encouraging work spirit to improve efficiency
- Advise the Director to develop annual business plans and organize internal business accounting to ensure effective capital maintenance
- Verifying import and export documentation for supplies and items, comparing the paperwork with the vouchers on the software program company, such as FAST, FMS, ECUS,…
- Organize the implementation of financial and accounting activities of the company such as: monitoring expenditures of the enterprise, analyzing the financial position of the company, reflecting on the use of capital, assets, and production results business of the company
Overview about business characteristics of Khoi Minh Logistics Co., LTD
2.2.1 Overview about characteristics of revenue of Khoi Minh Logistics Co., LTD
Khoi Minh Logistics Company is working at main field of providing freight forwarding and transportation The company primarily uses its website, hotline, and social networking platforms to communicate with clients Revenue is typically recognized when services are performed, and the company has fulfilled its obligations under the terms of the contract or agreement
The primary source of revenue for a logistics company is derived from providing transportation, warehousing, freight forwarding, and other logistics services to clients
Logistics companies may offer additional value-added services such as customs clearance, packaging, inventory management, and distribution, which contribute to company’s revenue sources Revenue may also be generated through commissions or fees earned by acting as intermediaries between clients and subcontracted transporters or other service providers
Like the same of the characteristics of logistics field, revenue of this company always fluctuated It can vary based on fluctuations in demand for logistics services, seasonal peaks, or changes in market conditions
2.2.2 Overview about some characteristics of expenses of Khoi Minh Logistics Co., LTD
The expenses of this company typically exhibit the following characteristics:
- Cost of Goods Sold (COGS): The sum of all direct costs associated with providing a company's services, incur expenses related to the transportation, handling, and storage of goods, such as local charge fees for co-loader, trucking fee for co-loader, ocean freight, air freight,…
- Selling expenses: Costs associated with marketing activities, advertising, sales teams, and customer acquisition efforts contribute to the overall expenses of a logistics company
- Administrative expense: General administrative costs such as office rent, utilities, office supplies, professional services (legal, accounting), and other overhead expenses are incurred to support the overall functioning of the company
- Financial expense: It includes expenses such as interest payments on loans, bank charges, fees for financial services Because of working with agent around the world, company frequently buy/ sell by foreign currency, so this expense comes from bank charges, loss from exchange rate,…
- CIT expense: the total amount of CIT payable by the company
2.2.3 Some main operation’s results in 2 recent years
Figure 2.2: Statement of Profit or Loss of Khoi Minh Logistics Company for financial year 2023
Doanh thu bán hàng và cung cấp dịch vụ 8,147,102,230 8,231,991,847 (84,889,617) -1%
Các khoản giảm trừ doanh thu - - -
Doanh thu thuần về bán hàng và cung cấp dịch vụ 8,147,102,230 8,231,991,847 (84,889,617) -1%
Giá vốn hàng bán 5,462,034,493 6,441,743,744 (979,709,251) -18% Lợi nhuận gộp về bán hàng và cung cấp dịch vụ 2,685,067,737 1,790,248,103 894,819,634 33% Doanh thu hoạt động tài chính 24,060,701 9,720,687 14,340,014 60%
Trong đó:Chi phí lãi vay 20,088,720 28,414,000 (8,325,280) -41%
Chi phí quản lý kinh doanh 2,905,505,407 2,233,446,562 672,058,845 23% Lợi nhuận thuần từ hoạt động kinh doanh (313,519,696) (474,505,870) 160,986,174 -51%
Tổng lợi nhuận kế toán trước thuế (315,565,314) (477,484,680) 161,919,366 -51%
Cho phí thuế TNDN hiện hành -
Lợi nhuấn sau thuế thu nhập doanh nghiệp (315,565,314) (477,484,680) 161,919,366 -51%
Figure 2.3: The comparison table for financial indicators in the financial statements of 2023 and 2022 at Khoi Minh Logistics Company
The revenue from sales and service provision in 2023 decreased compared to
The revenue from financial activities in 2023 increased approximately threefold compared to 2022 The company benefited greatly from the exchange rate difference between 2023 and 2022
The cost of goods sold in 2023 decreased by approximately 1 billion compared to 2022 This indicates that the company has implemented appropriate adjustment policies to reduce cost of goods sold, contributing to increased profitability
In addition, both financial expenses and administrative expenses in 2023 increased compared to the previous year, 2022
The net profit after tax for both 2023 and 2024 was negative.
The reality of revenue accounting, expense accounting and determining
2.3.1 The characteristic of accounting system at Khoi Minh Logistics Co., LTD
Figure 2.4 Organizational structure of Accounting Department at Khoi Minh
- Organize and manage the accounting department in accordance with company regulations and financial management
- Prepare financial reports and tax declarations for the company at specified intervals as required by the law
- Analyze the company's business operations to assess the effectiveness of business plans, providing advice and proposing business strategies for the company
- Perform declaration and accounting of company's output and input invoices
- Record bank transactions including receivables and payables
- Monitor and manage customer accounts receivable
- Provide support in tax declaration and related tax filing tasks in accordance with regulations
The company utilizes the accounting software FAST, which is linked with other software used within the company such as FMS (Financial Management System) to support declaration and accounting of various transactions, data consolidation, and generating reports
2.3.2 The accounting policy applied at Khoi Minh Logistics Co., LTD
The accounting policy applied at Khoi Minh Logistics Co., LTD
- Accounting regime currently applied: Accounting regime for small and medium-sized enterprises, following Circular 133/2016/TT-BTC published 26/08/2016
- Accounting period starts from January 1st and ends on December 31st each year Accounting method: Regular declaration
- Value Added Tax (VAT) calculation method: Deduction method
- Depreciation method for fixed assets: Straight-line depreciation method
- Accounting software used: FAST Accounting software -Accounting form used: General Joural Accounting
The content of accounting for revenue, expenses, and evaluation of business
2.4.1 Accounting for sales revenue and service provision
The sales and service delivery process at Khoi Minh Logistics Co., LTD
The sales and service delivery process at Khoi Minh Company involves generating revenue through transportation services provided to customers When customers have a transportation service requirement, they communicate and submit requests (including information about the supplier, quantity, etc.) to the sales department The sales staff is responsible for sending the service pricing sheet After successful negotiations, the sales department sends a sales contract consisting of three copies: one copy is retained by the sales department, one is given to the customer, and one is retained by the accounting department
When the order arrives in Vietnam, the transportation department is responsible for customs declaration and transporting the goods to the warehouse The accounting department will record the incoming invoices (such as LCC fees, international transportation charges, etc.) Once the delivery to the customer is completed, the accounting department will issue an electronic VAT invoice (through BKAV platform) and send it to the customer At the same time, revenue recognition is recorded in the accounting system
The company calculates VAT payable according to the deduction method, so the revenue from providing the above services is the revenue excluding VAT and the enterprise uses the VAT invoice
The necessary accounting documents to recognize the above-mentioned revenues include:
- Minutes of acceptance and liquidation of the contract
Example 1: According to VAT invoice 1C23KTM No.00001460, dated Dec
21, 2023, Khoi Minh Logistics Company provides regular transportations services for Duc Minh Manufacturing and Trading Company under the retainer contract
Regular fee paid is VND 3,053,084 VND
Based on VAT invoices, receipts, payment request signed contracts, and other relevant documents
The accounting record as follows:
Figure 2.5: Output VAT invoice 1C23KTM No 00001460 dated December 21,
Figure 2.6: Recording of VAT invoice 1C23KTM No 00001460 dated
December 21, 2023 on FAST accounting software
Figure 2.7: Subsidiary ledger of Account 511
Figure 2.8: General ledger of Account 511
The company records revenue and performs accounting in accordance with regulations, promptly, and accurately The company also ensures that revenue transactions are correctly classified into corresponding categories such as sales revenue from import goods (5113IM), sales revenue from export goods (5113EX), or other services This helps in monitoring and reporting revenue according to its sources and the types of company activities
Business activities of Khoi Minh Logistics Company are inseparable: the production and consumption of products are carried out simultaneously, at the same time Therefore, the company's revenue from production and service provision is not volatile and does not have anything to reduce revenue
In 2023, the company did not incur any revenue deduction
2.4.3 Accounting for cost of goods sold
Cost of goods sold at the company is which the entire direct costs incurred by the business for consulting and rendering any form of service that has been accepted for payment by clients are what the company uses
However, Khoi Minh Logistics is a business entity engaged in providing intermediary transportation services and does not directly engage in import-export activities The company utilizes transportation services from other intermediary transport companies such as: Quanterm Logistics Company, WR1 International Freight Forwarding Company, …
Accordingly, when an order arises and the company utilizes services provided by another entity, accounting will record the transaction:
Debit 632- Cost of goods sold Debit 133111- Input value added tax Credit 331- Payables
Example 1: Khoi Minh Logistics Company enters into a contract to utilize the services of WR1 Company On June 15, 2023, Quanterm Company completes the provision of services to Khoi Minh Company The supplier issues invoice number 17661
Debit 63213IM (for import goods): 1,855,017 Debit 133111- Input value added tax: 185,502 Credit 112-Cash in banks: 2,040,519
Figure 2.9: Input VAT invoice 1C23TQP No 17661 dated June 15, 2023
Figure 2.10: Recording of Cost of goods sold in June 29, 2023 on FAST accounting software (1)
Figure 2.11: Recording of Cost of goods sold in June 29, 2023 on FAST accounting software (2)
Figure 2.12: Subsidiary ledger of Account 632
Figure 2.13: General ledger of Account 632
Example 2: Khoi Minh Company enters into a contract to utilize international transportation services with Evcargo On Oct 16,2023 this company completes the provision of international transportation services to Khoi Minh Company and issues an invoice (debit note) No 23058072
Accounting entries at Oct 31, 2023 with exchange rate 26,400
Debit 63213EX( for export goods) : 125 EUR * 26,400 Debit 133111: 0
Figure 2.14: Input VAT invoice No 23058072 dated Oct 16, 2023
Figure 2.15: Recording of Cost of goods sold in Oct 31, 2023 on FAST accounting software (1)
Figure 2.16: Recording of Cost of goods sold in 31 Oct 2023 on FAST accounting software (2)
Figure 2.17: Subsidiary ledger of Account 632
Figure 2.18: General ledger of Account 632
The company appropriately recognizes costs in the cost of goods sold and accurately accounts for them in the respective accounts The company also ensures that COGS are correctly classified into corresponding categories such as COGS for import goods (63213IM), COGS for export goods (63213EX), or other services This helps in monitoring and reporting COGS according to its sources and the types of company activities However, the timing of the accounting entries is not reasonable
Accounting based on vouchers: VAT invoices, payment requests, debt notices, payment orders, to record in Account 6422 – “Business administration expenses”
After obtaining the office staff payroll from the administrative team, the accountant will enter it into account 642 Accounting using legitimate VAT invoices, cash payment slips, and debit notes to document stationery purchases for management Additional cash outlays for things like gas, printer ink, electricity, water, and internet The accountants also rely on VAT invoices, payment requests, and advance notes before entering them into the program
- Debit-Credit note from bank
Debit 642- Admin expense Debit 133111- Input value added tax Credit 331/111- Payables/Cash
Example 1: According to VAT invoice 1C23TMP No 118, dated
November 10, 2023, Khoi Minh purchased software FMS from Minh Phong Company
Based on VAT invoices, payment slips and other relevant documents
The accounting record as follows:
Figure 2.19: Input VAT invoice 1C23TMP No 118, dated November 10, 2023
Figure 2.20: Recording of administrative expense in Nov 13, 2023 on FAST accounting software (1)
Figure 2.21: Recording of administrative expense in Nov 13, 2023 on FAST accounting software (2)
Figure 2.22: Subsidiary ledger of Account 642
Figure 2.23: General ledger of Account 642
The company appropriately recognizes costs in the administrative expense and accurately accounts for them in the respective accounts The company also ensures that this expense are correctly classified into corresponding categories This helps in monitoring and reporting this expense according to its sources and the types of company activities
2.4.5 Accounting for financial income and financial expenses
For the convenience of payment, the company opened a bank account at TPBank and registered to monitor the account on its own web domain provided by the bank Because of that, the company receives interest from bank deposits every month and can monitor daily and hourly balance fluctuations When there is an interest announcement from the website, the accountant can choose to print the Credit Note directly on the web or receive the statement and the credit note sent by TPBank at the end of the month
In addition, the company's financial activities also generate revenue from the exchange rate differences during payments/receipts made in foreign currencies
Debit 112- Cash in banks Credit 515- Revenue from financial income
Example 1: On September 25, 2023, TPBank announced to pay deposit interest for September at VND 8,152 Accountant record:
Figure 2.24: Credit note for Deposit interest from TPBank account
Figure 2.25: Recording of Deposit interest from TPBank account on FAST accounting software
Figure 2.26: Subsidiary ledger of Account 515
Figure 2.27: General ledger of Account 515
The company recognizes revenue from financial activities in accordance with regulations, accurately accounts for it in the appropriate accounts, and records it at the appropriate timing
The company's main financial expenses come from the interest costs of regular borrowings from Sacombank, a commercial bank, to support its business operations When settling or partially repaying the loans through the online banking system, the loan interest amount is displayed on the screen and at the end of the month, the bank will automatically deduct the loan interest from the company's account Upon receiving the notification, the accounting department will proceed with the accounting entries
In addition, the company's financial activities also generate expense from the exchange rate differences during payments/receipts made in foreign currencies
- Debit note from the bank
Debit 635- Financial expense Credit 112- Cash in banks
Example 1: On Dec 12,2023 when settling the loan on the online banking system, upon receiving a notification of the loan interest amount of 84,403, the accounting department proceeds with the accounting entries
Debit 6352: 84,403 Credit 112 Sacom (Cash at Sacombank): 84,403
Figure 2.28: Debit note for loan interest from Sacombank account
Figure 2.29: Recording of loan interest from Sacombank account on FAST accounting software
Figure 2.30: Subsidiary ledger of Account 635
Figure 2.31: General ledger of Account 635
The company recognizes expense from financial activities in accordance with regulations, accurately accounts for it in the appropriate accounts, and records it at the appropriate timing
2.4.6 Accounting for other revenue and other expenses
At Khoi Minh Company, account 711 is used to record other income, primarily the small remaining balances of account 131 However, due to the small amounts involved, neither the buyers nor the sellers typically request refunds or additional payments
Example 1: Customer Samsin overpaid an amount of 80 VND for order No
IM202220 to Khoi Minh Company By the end of the year, Khoi Minh Company adjusts the accounts receivable and records the balance in account 711
Figure 2.32: Recording of other revenue on FAST accounting software
Figure 2.33: Subsidiary ledger of Account 711
Assessment of the status of accounting for revenue, expenses and evaluation of
Khoi Minh Company is a newly established enterprise that has been operating for 3 years With a dedicated team of employees and a supportive management board, the company is constantly striving to grow and develop The various departments are gradually improving, particularly the finance and accounting department, in terms of refining processes and procedures
During the internship period at the company's accounting department, I had the opportunity to gain hands-on experience and practical knowledge in accounting tasks in a real-world setting Throughout this process, through observation, research, and practical application, I have formed some evaluations regarding the company's work in accounting for revenue, expenses, and determining business results
The accounting department has highly skilled personnel, with each staff member assigned specific tasks that align with the nature of the work and requirements The accounting department always collaborates closely and provides timely support to other departments
The accounting software system (FAST) is designed to meet the needs of recording, posting, storing, and supporting reporting, fast access speed, many outstanding features and utilities, various management reports,…Therefore, the accounting data is relatively accurate, enabling the accounting department to process data quickly and meet necessary requirements when required b, About form of accounting
The General Journal accounting system is implemented by the Company The general journal may be examined and compared at any time, and the information is delivered promptly, accurately, and thoroughly These features make utilizing this type of general journal accounting easier for the accountant, especially when it comes to chores like verifying and comparing each transaction or economic event Furthermore, compared to other accounting methods, recording, printing, and tracking are also more straight forward and easy
In addition, the company utilizes computerized bookkeeping This method helps to reduce workload and increase efficiency for the accounting department during the process of posting transactions and preparing financial reports due to the fast processing speed of the software c, About accounting policy
The Company closely applies the accounting policies according to Circular 133/2016/TT-BTC by the Ministry of Finance Circular 133/2016/TT-BTC provides specific regulations, principles, and accounting methods for small and medium- sized enterprises This helps simplify the accounting process, reduce complexity, and increase consistency in recording and financial reporting
Morever, Circular 133/2016/TT-BTC sets requirements for the preparation of financial statements, including both consolidated financial statements and separate financial statements for each business This increases transparency and reliability in the financial information of the enterprise d, About accounting revenue
Khoi Minh Logistics Company complies with the current regulations and accounting standards in carrying out revenue accounting Adhering to the legal and accounting regulations helps the company avoid legal risks and ensures fairness and transparency in financial reporting
The company has a reasonable and accurate recording process to recognize revenue from transportation and logistics services Whenever there is a transaction, the accounting department promptly and completely records it into the FAST’s accounting software To ensure accurate recording, accountants always reconcile with relevant documents and produce comprehensive periodic revenue reports
Therefore, it helps the company avoid legal risks and ensures fairness and transparency in financial reporting e, About evaluation of business results
The accounting process for determining the business results at Khoi Minh Logistics Company is evaluated to be highly effective
Revenue and expenses are identified and recorded correctly according to standard accounting principles They are regularly monitored and promptly reflected, ensuring the accuracy and reliability of the financial statements
The company has a rigorous internal reconciliation and control process to ensure consistency and reliability of the financial information The data is verified and compared with relevant documents and other related data to identify and rectify any errors and inaccuracies This helps to enhance the quality and reliability of the financial reports f, About the procedure for rotation documents
The organization's departments prepare and rotate accounting vouchers in a streamlined, coordinated manner Every voucher is examined, thoroughly stamped, and signed by the appropriate individuals In order to ensure the use, storage, and preservation of linked departments and to establish the foundation for future accounting operations, the company's accounting vouchers are also duplicated into numerous copies in line with the needs that arise
In summary, the accounting work related to revenue, expenses, and determination of business results at the company has complied with accounting standards, with a strict accounting process encompassing comprehensive tracking of revenue and expenses This ensures the accuracy of determining business results and financial reporting As a result, the board of directors, as well as customers, have access to the most accurate assessments of business efficiency and can make appropriate adjustments to increase profitability
For Khoi Minh Company, the accounting work related to revenue, expenses, and determination of business results has been gradually improved to meet the needs of evaluation and analysis However, when considered from other perspectives, the process still has some limitations a, About accounting system
As a newly established company, the accounting department of Khoi Minh Company is still understaffed As a result, sometimes the staff members have to take on multiple responsibilities beyond accounting tasks In addition, the whole accounting department staff is female, young, and highly capable of getting married and starting a family When they take time off, it will negatively impact the department's work because of their high level of knowledge
DISCUSIONS AND SUGGESTIONS FOR IMPROVING THE
Development orientation of the company from 2025 to 2030
The logistics industry is currently facing a rapidly changing and developing landscape The growth of e-commerce, the expansion of the global market, and the increasing demand for freight transportation have created new challenges and opportunities for this sector Businesses are increasingly required to meet the demands of global freight transportation, ranging from small-scale domestic shipping to large-scale international cargo transport Beside, the demands for environmental protection and sustainability are also creating pressures and opportunities for the logistics industry
In this context, Khoi Minh Logistics can seize the opportunity to develop and enhance its position with a right development orientation, such as:
- Expanding transportation network: The company can enhance and expand its transportation network, including both sea and air routes This will help broaden the scope of operations and strengthen the ability to provide freight transportation services domestically and internationally
- Investing in technology and information systems: The company can invest in modern technology and information systems to enhance management and monitoring capabilities of transportation activities
- Emphasizing training and development of personnel: The company can prioritize training and development of its workforce to enhance skills and expertise This will ensure an adequate talent pool to meet the company's needs during expansion and growth
- Building strategic partnerships: The company can establish strategic partnerships with transportation service providers, manufacturers, and logistics industry partners This will create opportunities for collaboration and expand the company's business network
In particular, to survive in the long term and remain competitive against larger companies, effective management and operation of departments, as well as the formulation of financial policies and cash flow planning, are crucial Therefore, the company needs to quickly develop and organize a well-functioning accounting system to accurately track revenue, expenses, and determine business results This will provide a solid foundation for the management board to make informed decisions regarding future policies A well-developed accounting system also helps enhance the company's reputation and trust in the eyes of customers, increasing the potential for investment and revenue generation
In summary, Khoi Minh Logistics Company can achieve future growth and success by expanding its transportation network, investing in technology, expanding services, emphasizing personnel training, and building accounting system These development directions will enhance competitiveness and meet the increasing demands of customers.
Suggestions for improving accounting for revenue, expenses and evaluation of
Firstly, about completing the accounting system The company should focus on recruiting and training personnel for the accounting department As mentioned earlier, there are limitations in the accounting staff Therefore, the company needs to strengthen its recruitment efforts to attract qualified individuals with relevant accounting knowledge and skills Additionally, investing in training programs and professional development opportunities for the accounting staff will enhance their capabilities and ensure they are well-equipped to perform their accounting tasks effectively, especially providing training courses related to recording revenue, expenses, and determining business results will help improve the skills and job quality
By building a competent and knowledgeable accounting team, the company can improve the overall quality and accuracy of its accounting processes
Secondly, regarding ensuring information security when using accounting software as well as other related software Accountants should establish and control access to accounting software and related software Only grant access to necessary individuals based on their tasks and roles This helps ensure that only authorized personnel can access sensitive information Moreover, they can perform regular backups of data from accounting software and related software Ensure that backup copies are securely stored and capable of data recovery when needed Test and perform trial data recovery procedures to ensure the integrity and availability of data The company also needs to provide training for employees on the safe and secure use of accounting software and related software Ensure that employees understand information security risks, safe procedures when using the software, and how to identify and report security issues
Thirdly, the company should establish a regular review and verification process to ensure the accuracy of accounting data The accounting figures should be checked and compared with corresponding supporting documents and reviewed to identify and rectify any accounting errors Verify that the figures have been recorded correctly and are consistent with corresponding supporting documents For example, reviewing and verifying the accounting records, including financial statements, general ledgers, journals, and supporting documents such as invoices, receipts, contracts, and bank statements Ensure that the recorded figures accurately reflect the transactions and are consistent with the corresponding supporting documents
Fourthly, about the linkages between accounting and other departments The company and accounting department should ensure that accounting information is closely linked with other departments within the company This ensures that accounting data is provided and used consistently and accurately throughout the organization This includes providing accurate and complete data related to sales, purchases, inventory, expenses, and any other transactions that impact the financial records and documents delivery note, contract,…)
Fifthly, for each incurred contract, accounting needs to communicate with the director and sales staff to plan for estimating the potential compensation for customers and setting aside provisions for contingent liabilities
When contingent liabilities meet the recognition criteria, accounting proceeds to set aside provisions in accordance with the agreement stated in the contract with the customer
Sixthly, about completing accounting method Costs related to the provision of transportation services to customers should be recorded and accumulated in account 154-Cost for work in progress Then, when the service provision is completed, revenue should be recognized in account 511, and simultaneously, the accumulated costs in account 154 should be transferred to the corresponding account 632
With this accounting approach, costs will be recognized at the appropriate timing, in accordance with regulations Additionally, when costs are recorded in account 154, the accounting department can easily track the incurred costs, ensuring accurate and updated data This will facilitate effective cash flow planning
For example, accounting records the incurred local charge costs during the provision of services to customers
When local charge fee is incurred:
Debit 154 - Cost for work in process:
When service is completed, carry forward this cost to cost of goods sold: Debit 6323 - Cost of goods sold of the regular consulting service:
Credit 154 - Cost for work in process
Recommendations to the Government
Through financial regulations and legislation, the state plays a significant role in controlling the macroeconomy To assist companies in doing better in the economy, the legal framework must be strengthened and improved
Objectives develop and strengthen the legal system
Presently, numerous businesses encounter challenges and issues finishing intricate financial processes that impact the businesses' own operations The government must to make an attempt to establish a suitable and timely legal framework that will enable businesses to grow fairly in an open market To ensure that businesses have no difficulties collaborating with state agencies, it is also essential to streamline administrative processes and enhance the customer service skills of state employees The government must also make technological investments and advancements to enhance the computerized accounting system and assist firms in achieving optimal efficiency while maintaining accuracy precise and comprehensive in bookkeeping
Reinforce laws that assist companies
In order to create conditions that support capital and business operations for large, medium, and small firms, the government must efficiently employ its resources to promote the economic development of the entire nation From there, companies may increase productivity in both business and accounting tasks, enabling them to make more precise, accurate, and comprehensive judgments
Based on the advantages and limitations of revenue accounting, cost accounting, and business results determination at Khoi Minh Logistics Company, I propose several development directions and areas of improvement that the company should focus on Additionally, I suggest some solutions to enhance and elevate the work of revenue accounting, cost accounting, and business results determination
By implementing these suggestions and gradually improving upon them, the company can enhance its accounting practices in the future
In conclusion, the main topic of this thesis was the completion of the revenue, expense, and business result accounting at Khoi Minh Logistics Company Throughout the research, various aspects of the company's accounting practices were examined, including the recognition and classification of revenue, appropriate expense allocation, and the assessment of business results
It was found that Khoi Minh Logistics Company follows established accounting regulations and standards in recording revenue, ensuring accurate and timely recognition The company also appropriately accounts for expenses, ensuring proper allocation and adherence to accounting principles Additionally, I observed the improper aspects in this accounting work that did not comply with management criteria, from which I could further improve the business outcomes of the organization by making discussions and suggestions which I hope that it will provide a foundation for enhancing the company's financial management and decision-making processes, ultimately contributing to its long-term success and sustainability
2 Circular 133/2016/TT-BTC issued on August 26, 2016 about
Accounting for small and medium enterprises
3 Accounting Standard No 14: Revenue and other income
4 Actual figures, documents and reports of Khoi Minh Logistics Company
5 Some graduation theses of seniors