Stemming from the position and importance of accounting for receivable of Vietnamese enterprises in general and with Dai Quoc Viet Shipping CO.LTD in particular, I choose the topic " Acc
Reason for choosing the topic
Vietnam's economy is evolving into a market-oriented system characterized by robust state management, where enterprises hold ownership over production and financial activities To meet their operational goals, businesses require adequate capital and skilled administrators to optimize its use Effective debt accounting and solvency analysis serve as vital tools for managers, enabling informed decision-making and the development of accurate business strategies and plans.
Effective management of accounts receivable is crucial for businesses, as it directly impacts financial health and operational efficiency Accounting for debts allows companies to monitor and resolve issues related to outstanding payments, fostering strong relationships both internally and externally By mastering cash flow and receivables, businesses can minimize budget deficits, improve financial stability, and ensure compliance with legal requirements, all while maintaining positive partnerships.
Given the significance of accounts receivable in Vietnamese enterprises, particularly at Dai Quoc Viet Shipping Co., Ltd., I have selected the topic "Accounting for Cash and Receivables at Dai Quoc Viet Shipping Co., Ltd." for my internship report.
Research objective
Explore the structure of the accounting system and the management of cash and accounts receivable at Dai Quoc Viet Shipping Co., Ltd By gaining practical experience, I aim to enhance my knowledge and skills in this field.
The accounting situation of cash and accounts receivable at the Company reveals both strengths and weaknesses On the positive side, effective cash management enhances liquidity, while accurate tracking of receivables ensures timely collections However, challenges such as delayed payments and insufficient credit assessments can hinder financial performance To optimize the accounting of receivables, it is recommended that the Company implement stricter credit policies, enhance collection strategies, and invest in automated accounting systems These improvements can lead to better cash flow management and overall business performance.
Research object
The object of the study is the Accounts Receivable Accountant at Dai Quoc Viet Shipping CO.LTD
Research scope
- Data collection time: January 1, 2022 – December 31, 2022
- Space: Accounting Department of Dai Quoc Viet Shipping CO.LTD
- Limit on content: Accounts receivable from customers and receivables internally
- Time Range: Illustrative figures taken in 2022
Theme layout
In the framework of the research of the topic, the report has three chapters in all, plus an introduction and conclusion They are as follows:
COMPANY OVERVIEW DAI QUOC VIET SHIPPING CO.LTD
Characteristics of business organization and management at the company
1.1.1 The process of formation and development of the company
- General information about the Company:
• Company name is written in English: Dai Quoc Viet Shipping CO.LTD
• Company name is written in Vietnamese: Công ty TNHH Hàng Hải Đại Quốc Việt
- Name of director: Mr Huynh Van Bau
- Head office: Floor 6, 607 – 609 Nguyen Kiem Street, Ward 9, Phu Nhuan District, Ho Chi Minh City
1.1.2 History of formation and development
Dai Quoc Viet Shipping Co Ltd., founded in early 2012, specializes in international freight forwarding services by air and sea, as well as domestic shipping within Vietnam Operating as a private enterprise, the company maintains independent planning and legal status, ensuring accountability for all its business operations.
With a decade of experience, Dai Quoc Viet Shipping Co Ltd has established itself as a reputable leader in service quality and market understanding within the shipping industry The company has built trust among customers and peers alike, while its operations continue to diversify and professionalize Led by a team of seasoned professionals, Dai Quoc Viet Shipping is steadily strengthening its competitive position in the market.
1.1.3 Characteristics of the company's management and business organization
A director is responsible for overseeing all business operations, making critical decisions, and being legally accountable for those choices This role involves managing daily activities, delegating tasks to staff, ensuring smooth interdepartmental collaboration, and monitoring the financial aspects related to the acquisition of fixed assets.
- Directly negotiate with customers, sign contracts
VICE DIRECTOR: The person who directly directs the activities of the sales department and the import-export department and is concurrently the head of the sales department
- Support the Director, assume accountability before the Director for the work's scope and aggressively carry out the director-approved duties
- In addition, the Deputy Director also directly makes special orders, or supports when there are many orders
BUSINESS DEPARTMENT: Develop the company's business plan
- Organize, negotiate, sign contracts on forwarding and transportation services with partners, make reports on business results and make marketing plans, find customers
- To make statistics, evaluate the effectiveness, report the business situation and propose future business directions, in accordance with the actual needs and situation of the market
- Undertake market research, competitors, and external factors to come up with appropriate strategies and development directions
FINANCE - ACCOUNTING DEPARTMENT: Contributing a very important role in the business of the Company
The Accounting Department is responsible for performing professional tax operations Continuously update information on current tax laws, policies, and accounting regimes;
- Handling all arising economic transactions;
- Making financial reports, monthly/quarterly tax reports;
- Report work results to superiors;
- Report the financial situation to the manager of the client company
Each accountant will take on fixed clients, for easy tracking and the best level of understanding for its customers
ADMINISTRATION DEPARTMENT: Organize the storage and reception of official dispatches and issues related to the company's personnel
- Manage printing and typing of documents, official letters and papers in service of the company's management and seal management according to current regulations
Summarize the company's plan, draft administrative documents Build and organize meetings of the Director
Conduct research and monitoring to recommend to the Director labor standards, wage structures, and occupational safety measures for all employees Propose salary policies, bonuses, and payment methods to ensure fair compensation and effective labor protection within the company.
We facilitate the execution of forwarding service contracts by collecting necessary documentation from clients for customs declaration, registering for quarantine, and performing on-site duties at the port to manage cargo operations efficiently.
- Receiving goods, renting means of transport, delivering goods to importers, transshipping goods from warehouses (ports, airports) to private warehouses of domestic and foreign importers and vice versa
- Drafting documents for customs clearance, necessary documents
- Regularly monitoring and promptly grasping import-export information and changes of the State in tax, Customs manages and maintains records, documents and official documents
- Contact with customers to find out necessary information about customers.
Organization of the accounting apparatus at the company
1.2.1 Organization of the accounting apparatus
Dai Quoc Viet Shipping CO.LTD employs an efficient centralized accounting system that enhances the application of modern computational techniques This system ensures timely delivery of accounting information, facilitating effective administration and operation of the company's production and business activities.
1.2.2 Functions of each part of accounting
The chief accountant will create a development plan tailored to the business's operational status, while also monitoring economic contracts to safeguard the company's interests They will promptly address any wrongdoing that could result in losses or damage to fixed assets Additionally, the management board will receive guidance on overcoming financial challenges stemming from inadequate financial controls To enhance capital efficiency, the chief accountant will oversee and manage the company's capital effectively.
The role involves the collection, synthesis, and analysis of financial data, including accounts, accounting books, profit and loss statements, and financial statements, organized according to the business's accounting periods.
A payment accountant is responsible for managing cash and transfer transactions within a business, including creating receipts and processing expenditures This role also involves monitoring, summarizing, and accounting for both internal and external economic and financial transactions as they arise.
Perform tasks related to using cash flow to pay objects related to business activities of the enterprise
Making reports on the fixed assets of the business, taking part in the inventory and revaluation of fixed assets in accordance with state rules
To increase the economic efficiency of fixed assets, accountants examine the situation surrounding the setting up, mobilizing, maintaining, and using fixed assets
To effectively evaluate the cost of goods sold, along with selling, administrative, and other expenses, it is essential to analyze the volume of finished goods and services sold, as well as internal consumption This comprehensive assessment is crucial for calculating accurate sales outcomes.
Ascertain and distribute results, provide accurate, truthful, and comprehensive information about the sales condition, and support financial reporting and company management
To ensure the quality and quantity of goods from the moment they enter the warehouse until they are dispatched, it is essential to implement effective measures that minimize damage and loss.
Periodically (specifically weekly, monthly or quarterly depending on the request of superiors) the warehouse keeper will check the inventory and report back the inventory quantity
Manage the company's cash fund, update the fund number and store cash receipts and payments
1.2.3 Organizing the system of documents, accounts, books and financial statements (financial statements)
The Company uses the voucher system in accordance with the accounting voucher system format specified in Ministry of Finance Circular 200/2014/TT-BTC
The company adheres to the accounting system established by Circular 200/2014/TT-BTC, while also utilizing additional detailed accounts to enhance tracking and accounting processes within their software.
The General Journal operates using SAP accounting software, adhering to the regulations established by the Accounting Law and the current accounting book system.
The financial statement preparation period includes two distinct phases: the timeframe for creating interim financial statements, typically on a semi-annual basis, and the timeframe for preparing annual financial statements in accordance with accounting regulations.
- Applying the financial reporting system in compliance with the guidelines of the Ministry of Finance's Circular 200/2014/TT-BTC dated December 22, 2014, including 4 reports in accordance with regulations, namely:
• Balance sheet: model number B01 – DN
• Report on business results: form No B02 – DN
• Cash flow statement: form B03 – DN
• Notes to financial statements: form No B09 – DN
CHAPTER 2: SITUATION ON ACCOUNTING RECEIVALS AT DAI
QUOC VIET SHIPPING CO.LTD
Accounts Receivable
2.1.1 General theory of Accounts Receivable
2.1.1.1 Concepts and classifications of Accounts Receivable
Receivables represent a crucial asset for a business, signifying services rendered to customers that remain unpaid They play a vital role in illustrating the expected cash flow and the individual debt repayment status of each customer, making them essential for financial management.
Receivables for a business encompass both short-term debt, which is due within 12 months or within a business cycle, and long-term debt, which extends beyond 12 months Furthermore, receivables can be categorized into specific revenue streams.
- Returns of sold items by customers, whether or not they included VAT
Types of documents commonly used: Sales invoices, delivery notes, receipts, bank statements, debt confirmation minutes, sales acceptance minutes,
2.1.1.2 Principles of accounting for Accounts Receivable
According to Article 17 of Circular 200/2014/TT-BTC on accounting principles of receivables specifically as follows:
- According to management criteria, detailed records of the receivables must be maintained for each period, entity, kind of currency, and other factors
- According to the guidelines below, the amounts due will be divided into trade, intra- company, and other receivables:
Trade receivables arise from commercial transactions, including sales, services, and asset transfers between businesses and buyers These receivables encompass sales from exported products facilitated by a trustor through a trustee, as well as intercompany receivables between parent companies, subsidiaries, and joint ventures.
+ Receivables between superior organizations and associated organizations with dependent cost accounting and no legal status are considered intra-company receivables + Non-commercial or non-trading receivables include those like:
• Receivables, such as those for loan interest, deposits, dividends, and distribution profits, produce financial income
• Non-commercial receivables, such as pending assets, property loans, fines, and compensation receivables
When preparing financial statements, accountants must classify receivables as either long-term or short-term based on their remaining term It's important to note that receivables listed on the Balance Sheet may encompass amounts from accounts beyond just accounts receivable.
2.1.1.3 Roles, positions and duties of Accounts Receivable Accountants
- Track details of customers' debts (receivable status, receivable debts, debt objects, payment time) to have data for making periodic debt age reports
Accountants must verify and review invoices to ensure they are approved for payment by sellers If a customer demonstrates good debt payment history, their application will be approved; otherwise, appropriate measures will be taken to address any issues.
- Accountants should pay attention to overdue debts that are difficult to pay to make provision for bad debts
- After each accounting period, when preparing financial statements, the receivable accountant needs to calculate carefully so that the "Assets" side and the "Capital" side are balanced
2.1.2 Overview of accounts receivables at Dai Quoc Viet Shipping CO.LTD
2.1.2.1 General provisions on accounting receivables to suppliers and internal receivables
Figure 3: Accounts receivable accounting process
The process begins with the collection of authentic documents from economic transactions, including VAT invoices, credit notes, and receipts Accountants meticulously verify the accuracy of these documents and monitor the transactions Subsequently, accounts payable and receivable accountants enter the information into the Fast Accounting software, where the data is processed efficiently The accountant can periodically print reports from the software for exporting the necessary financial records.
When a customer places an order, the Sales Department prepares a voucher and enters the order details into the software, which automatically updates and generates three invoices for the warehouse orders The first two invoices and the warehouse orders are sent to the Warehouse Department, while the third invoice is forwarded to the Accounting Department Additionally, the order slips are securely stored in the Sales Department, organized by order number.
Upon receiving the inter 1 and 2 invoices along with the warehouse order, the warehouse department will inspect the goods and export them according to the invoices The items delivered to customers will be linked to the corresponding invoices and warehouse orders stored by the warehouse department based on the order number.
The Accounting Department utilizes inter-3 invoices for data entry into the software, which automatically updates information and records customer receivables in the detailed ledger, general ledger, and associated documents, all organized by order number.
2.1.2.2 Characteristics and classification of some key supplier receivables and internal receivables
- Supplier receivables are debt owed by the customer to the company for goods or services delivered or used but not yet paid or monetary obligations still unfulfilled
Internal receivables refer to the financial transactions between superior units, such as corporations, and subordinate units, which can include independent production and business enterprises with their own accounting systems These subordinate units may also interact with one another, but it is essential to note that they operate independently from management agencies.
Supplier receivables refer to commercial receivables that emerge from buying and selling transactions These receivables can include amounts owed from sales and services, financial investments, proceeds from entrusted export sales, and the liquidation or sale of fixed assets.
• An internal receivable is an amount between a superior unit and a subordinate subordinate unit that has no legal status and is dependent on accounting
Other receivables encompass non-commercial claims that do not arise from typical purchase or sale transactions or service provisions Examples include payments owed to third parties, amounts payable by entrusted export parties, asset loans, fines, compensation, and pending assets These receivables contribute to revenue through financial activities such as loan interest, dividends, distributed profits, and deposits.
- Account level 1: 131 – Receivables from customers
- Account level 2: 1311 – Receivables from customers
- Missing property value pending settlement
- Receivables from individuals and groups for missing assets have clearly identified the cause and have a record of immediate handling
- Receivables of amounts arising from the equitization of state-owned enterprises
- Receivables from loan interest, deposit interest, dividends, and profit shared from financial investment operations
- Payments to be recovered on behalf of third parties, other receivables
- Reevaluate foreign currency receivables (in the event that the foreign exchange rate improves against VND)
- Transfer applicable accounts with the missing asset value in accordance with the settlement minutes' decision
- Transfer of receivables to state-owned companies' equityization
- Amount received on other receivables
- Reevaluating foreign currency receivables (in the event that the foreign exchange rate declines against VND)
- Amounts due from consumers that result from the sale of goods, services, fixed assets, investments, or investment real estate;
- The buyer receiving a refund for any surplus funds;
- If the recorded exchange rate for the foreign currency increases, reassess the receivables from customers that are financial items with a foreign currency origin while preparing the financial statements
- The purchase price made by the client;
- The amount that clients have paid in advance in advance;
- Sales discount subtracted from the amount owed by the customer;
- Returns of sold products by purchasers (with or without VAT);
- The buyer's trade discount and amount of the payment discount;
When preparing financial statements, it is crucial to re-evaluate customer receivables that originate from foreign currencies, especially if there has been a decline in the foreign currency exchange rate compared to the rate at which they were recorded This assessment ensures accurate financial reporting and reflects the true value of receivables in a fluctuating currency environment.
Figure 4: Accounting chart for the letter T
2.1.2.4 Accounting method applied at Dai Quoc Viet Shipping CO.LTD
- Applicable accounting book form: General journal
- Software used at the company:
2.1.2.5 Organization of accounting work at the company
To ensure accurate accounting, begin by using verified vouchers as the basis for daily book entries Record all transactions in the software before transferring the information to the ledger, following established guidelines for proper accounting practices Maintaining meticulous accounting records and card management is essential for organizational integrity.
- Emerging transactions are documented in pertinent detailed accounting books and cards at the same time they are entered into the software
- At the end of the period: Compare accounting books and accounting data on the software
- Year-end: Closing the books, financial statements are made automatically on Excel software.
COMMENTS AND RECOMMENDATIONS ON FINISHING
General assessment of material accounting at Dai Quoc Viet Shipping CO.LTD 22
The company's accounting operations are meticulously structured in accordance with a unified process, ensuring that each department fulfills its specific functions and responsibilities This collaborative approach enables effective monitoring of the company's activities while adhering to state policies.
Accountants have clearly defined roles, with each individual responsible for specific tasks and trained to enhance their professional skills while adhering to regulations Monthly inspections are conducted to compare transactions with accounting records, allowing for timely adjustments to any discrepancies.
The implementation of accounting software has significantly enhanced the efficiency of Dai Quoc Viet Shipping CO.LTD's accounting operations, particularly in managing receivables With its user-friendly interface, Glorious accounting software allows for better financial management and control, enables the establishment of access rights for improved security, facilitates quick transaction processing, and supports data export to Excel This technological support has led to a reduction in workload and minimized errors in accounting tasks.
While Misa software offers numerous advantages, it also presents certain challenges, particularly in addressing data reporting errors Fortunately, these issues are promptly managed by the company's dedicated support team.
- The company's particularity is trading in building materials, so the company's business area is quite large Therefore, updating data and reflecting arising economic transactions is not timely with vouchers.
Some recommendations to improve the accounting of receivables to suppliers
While accounts receivable accounting has positively contributed to the company's production and business activities, certain limitations hinder the efficiency of the accounting organization Notably, errors in the current accounting software have emerged as a significant issue To enhance convenience and effectiveness in accounting operations, the company should consider upgrading to new accounting software.
Through the time of fact-finding at Dai Quoc Viet Shipping CO.LTD, I clearly realized the importance of accounts receivable accounting The internship report on the topic
"Accounting of receivables at Dai Quoc Viet Shipping CO.LTD " stated the following basic issues:
- In theory: Stated and systematized the basic issues of accounting for receivables and the accounting apparatus of enterprises
- In reality: Reflecting the actual situation of the company's process of recording receivables and rotating documents
During my internship at Dai Quoc Viet Shipping Co Ltd, I had the opportunity to compare theoretical knowledge with real-world practices in corporate accounting Despite the short duration of my internship and my limited experience, the supportive guidance from the Company’s Board of Directors, particularly the accounting department, allowed me to engage deeply with the business accounting processes This experience not only enhanced my academic understanding but also helped shape my future career path However, as my exposure was primarily with a small-scale company, the insights gathered may lack diversity and generalizability, and the errors identified are inevitable Future reports should aim to collect more comprehensive data and adopt a broader perspective to accurately identify issues and propose effective solutions for improvement.
1 Ministry of Finance (2014) Circular No 200/2014/TT-BTC issued on December 22, 2014
2 Ha Chi Hieu (2020) “Accounting receivables at Agimexpharm Pharmaceutical Joint Stock Company”
3 General documents and books from the Finance - Accounting Department Dai Quoc Viet Shipping CO.LTD
4 Dr Nguyen Thi Khoa, MSc Loi Minh Thanh (2016), “Accounting Reference Book Part 1”, Vietnam National University Publishing House, Ho Chi Minh City
5 Dr Nguyen Thi Khoa (2016), Financial Accounting 2, Ho Chi Minh City National University Publishing House.
Input screen of Value-Added Tax invoice No 00000660
Appendix 1: Value-Added Tax invoice No 00000660
Value-Added Tax invoice No 00000692
Appendix 2: Input screen of Value-Added Tax invoice No 00000660
Input screen of Value-Added Tax invoice No 00000692
Appendix 3: Value-Added Tax invoice No 00000692
General Journal
Appendix 4: Input screen of Value-Added Tax invoice No 00000692