Anh Son Trade And Industrial Equipment Joint Stock Company.pdf

NATIONAL ECONOMICS UNIVERSITY ADVANCED EDUCATIONAL PROGRAMS INTERNSHIP REPORT MAJOR ADVANCED ACCOUNTING ANH SON TRADE AND INDUSTRIAL EQUIPMENT JOINT STOCK COMPANY NGUYEN THI THUY HANOI, 2019 TABLE OF[.]

NATIONAL ECONOMICS UNIVERSITY ADVANCED EDUCATIONAL PROGRAMS

INTERNSHIP REPORT MAJOR: ADVANCED ACCOUNTING

ANH SON TRADE AND INDUSTRIAL EQUIPMENT

JOINT STOCK COMPANY

NGUYEN THI THUY

HANOI, 2019

TABLE OF CONTENTS

TABLE OF CONTENTS

LIST OF TABLES

LIST OF DIAGRAM

INTRODUCTION 1

CHAPTER 1: OVERVIEW OF TECHNICAL-ECONOMIC MANAGEMENT AND ORGANIZATIONAL STRUCTURE ABOUT ANH SON TRADE AND INDUSTRIAL EQUIPMENT JOINT STOCK COMPANY 2

1.1 History of the Establishment and Development of Anh Son Trade and Industrial Equipment Joint Stock Company 2

1.2 Features of business operations of Anh Son Trade And Industrial Equipment Joint Stock Company 3

1.2.1 Functions and Responsibilities 3

1.2.2 Main business activities 3

1.2.3 Features of business Process 4

1.3 Organizational structure 5

1.3.1 The organizational structure of the business management apparatus of Anh Son Trade And Industrial Equipment Joint Stock Company 6

1.3.2 Functions and responsibilities of the departments 6

1.4 Financial position and performance of the Anh Son Trade And Industrial Equipment Joint Stock Company 8

1.4.1 The income statement of Anh Son Trade And Industrial Equipment Joint Stock Company 8

1.4.2 Financial situation of Anh Son Trade And Industrial Equipment Joint Stock Company 10

CHAPTER 2: OVERVIEW OF ACCOUNTING ORGANIZATION AND SYSTEM AT ANH SON TRADE AND INDUSTRIAL EQUIPMENT JOINT STOCK COMPANY 12

2.1 Accounting organizational structure 12

2.1.2 Functions and responsibilities of each accounting department 12

2.2 Features of Accounting System 13

2.2.1 General Accounting Policies 13

2.2.2 Accounting Documents 16

2.2.3 Chart of Accounts 18

2.2.4 Accounting Books 19

2.2.5 Accounting Reports 21

2.3 Features of some key accounting cycles 22

2.3.1 Characteristics of accounting capital in cash 22

2.3.2 Accounting characteristics of fixed assets 24

CHAPTER 3: ASSESSMENT OF ACCOUNTING DEPARTMENT AND SYSTEM AT ANH SON TRADE AND INDUSTRIAL EQUIPMENT JOINT STOCK COMPANY 27

3.1 Evaluating the organization of the accounting department of Anh Son Trade And Industrial Equipment Joint Stock Company 27

3.1.1 Advantages 27

3.1.2 Disadvantages 27

3.2 Evaluation of the accounting system at Anh Son Trade And Industrial Equipment Joint Stock Company 27

3.2.1 Advantages 27

3.2.2 Disadvantages 28

CONCLUSION 29

LIST OF TABLES

Table 1.1: The income statement of Anh Son Trade And Industrial Equipment JointStock Company 9Table 1.2 Balance sheet of Anh Son Trade And Industrial Equipment Joint Stock Company.31Table 1.3 The table analyzes the variation of some financial indicators of Anh SonTrade And Industrial Equipment Joint Stock Company 11Table 2.2 The table of accounts is being applied at Anh Son Trade And IndustrialEquipment Joint Stock Company 18

LIST OF DIAGRAM

Diagram 1.1: Buying steps of Anh Son Trade And Industrial Equipment Joint StockCompany 4Diagram1.2: Selling steps of Anh Son Trade And Industrial Equipment Joint StockCompany 5Diagram 1.3: Management system of the Anh Son Trade And Industrial EquipmentJoint Stock Company 6Diagram 2.1: Organizational structure of the accounting system of Anh Son Trade andIndustrial Equipment Joint Stock Company 12Diagram 2.2 The order of bookkeeping is at Anh Son Trade And Industrial EquipmentJoint Stock Company 20Diagram 2.2.1: Rotation flow of accounting document 24Diagram 2.3.1: Process of recording accounting operating capital in cash 23Diagram 2.3.2: Bookkeeping process related to fixed assets operation 26

Along with the strong development of technology industry, the economy also hasnew changes Nowadays, competition in the economy is not only competitive in price,design, but also in quality and safety And this we can clearly see the technologyindustry is changing and developing day by day

Construction investment activities in Vietnam are growing strongly in bothquantity and complexity This lead to promising the ability to thrive and achieve largerevenues in the industry

How to request accounting operation and organization? How is it different frommanufacturing companies and service companies? Starting from the desire to learnabout commercial activities as well as the application of the theoretical and accountingfinancial knowledge in practice, I asked for an accounting practice at the “Anh SonTrade and Industrial Equipment Joint Stock Company”

After a month of internship, under the direct guidance of M.S Pham Thu Trangand the finance and accounting department of the company, I completed my report.However, due to limited time, qualifications and experience, it is inevitable that theseshortcomings could be avoided I look forward to receiving the help and guidance ofM.S Pham Thu Trang and the finance and accounting department of the company tomake my report more complete Thank you sincerely!

Regarding the structure, the report consists of 3 parts (excluding introduction andconclusion):

Chapter 1: Overview of technical-economic management and organizationalstructure about Anh Son Trade and Industrial Equipment Joint Stock Company

Chapter 2: Overview of accounting organization and system at Anh Son Tradeand Industrial Equipment Joint Stock Company

Chapter 3: Assessment of accounting organization and system in Anh Son Tradeand Industrial Equipment Joint Stock Company

CHAPTER 1:

OVERVIEW OF TECHNICAL-ECONOMIC MANAGEMENT AND ORGANIZATIONAL STRUCTURE ABOUT ANH SON TRADE AND

INDUSTRIAL EQUIPMENT JOINT STOCK COMPANY

1.1 History of the Establishment and Development of Anh Son Trade and Industrial Equipment Joint Stock Company

Business code / Tax code: 0105661166

The company was established under the Business Registration Certificate No

0105661166 issued on November 22, 2011 at the Business Registration OfficeDepartment of Planning and Investment of Hanoi

Charter capital: 5.000.000.000 Vietnam dongs

Company legal representative: Bui The At

1.1.2: History of the establishment and development

Anh Son Trade and Industrial Equipment Joint Stock Company was established

on November 22, 2011 with the legal representative is Mr Bui The At

The initial size of the company was just a small office, more than 10 employees,with little capital The company's directors and employees have started their businessesfrom small, low-value projects scattered in local and outside provinces, even those inremote areas that are not profitable but the company was still determined to implement,first for the purpose of Social Security and then to affirm its reputation and brand

In order to survive the increasingly fierce competition market and meet theincreasing demands of the market as well as the continuous development of thecountry, the company has built its own strategy, in which the focus is investing in highquality equipment, and improving the qualifications of employees The company isconstantly renovating technology, equipping modern machinery and equipment,applying scientific and technical advances in renovating construction methods in the

direction of modernity and advanced Thereby, it has created credibility withcustomers, at the same time creating a solid foundation for the company to developmore in new conditions.

Since 2015, Anh Son Trade And Industrial Equipment Joint Stock Company hashad many opportunities to implement construction projects for large projects in thearea The most modern construction and machinery team in Central Vietnam helpsAnh Son to make the first solid steps on the a development path

2017 is the time to mark a breakthrough development of Anh Son Joint StockCompany on a new level and a new position.The company has successfully signedcontracts with international customers such as SICHUAN HUASHI, ZYF Thesuccessful project not only enriches the operation experience but also affirms AnhSon's position in the eyes of customers

2018, the company expanded its size to 20 employees, investing in modernmachinery and equipment Revenue and profit in recent years have always reached andexceeded the set targets, the following year has always been higher than the previous year,and the living standard of employees have been taken care of and improved year by year

1.2 Features of business operations of Anh Son Trade And Industrial Equipment Joint Stock Company

1.2.1 Functions and Responsibilities

Founded in 2011 with the mission of serving customers with the goal of prestige andquality of service is of utmost importance Anh Son Trade And Industrial Equipment JointStock Company with many years of experience in the field of construction tower cranes,cage hoists, lifting equipment, construction machines with well-known brands NTP, QTZ,QTP, L-125, POTAIN, ZOOMLION With experienced staff, professional workflow,fast to best serve customers, work fast, save time, spend charge and ensure safety andreasonableness for the Company and its partners

With the trust of our customers for Anh Son over the past time, always values thefoundation for the development, and without any difficulties Anh Son Trade AndIndustrial Equipment Joint Stock Company can prevent us from bringing utility values

in line with the wishes and interests of our customers

1.2.2 Main business activities

Anh Son has been focusing its professional capacity and financial resources forthe following activities:

Purchase and sale of machinery, components, tower cranes, cage hoist,construction machinery, lifting equipment

* Supply construction equipment

* Support knowledge, paper records, catalogs

* Rental tower crane

* Advice on renting reasonable prices

* Providing quality rental goods

* Installation of lifting equipment, construction equipment

* Installation, removal and completion of tower cranes

* Safety inspection and verification

* Repair and maintenance, machine maintenance, tower crane equipment

* Fix technical errors in tower crane operation

* Repair of tower crane operators

* Maintenance, periodical maintenance of tower crane equipment

* Transporting machinery and equipment nationwide

* Provide the most appropriate shipping service for businesses

1.2.3 Features of business Process

Buying process of Anh Son Trade And Industrial Equipment Joint Stock Company

Diagram 1.1: Buying process of Anh Son Trade And Industrial Equipment Joint

Stock Company

The first step, the Anh Son Trade And Industrial Equipment Joint Stock Company willmake a list of products to buy and then searching for information to help them find the best equipment with the best price and quality The next, they will evaluate several different options and the possible benefits or drawbacks to each supplier The

company has explored their options and they will make a decision about whether or not to move forward with the purchase After purchased, they will evaluate their

Problem

purchase based on previous expectations and decide whether or not they are satisfied

If they’re not happy with product, they’ll just never use it again

Selling Process of Anh Son Trade and Industrial Equipment Joint Stock

- Prospecting: The first step in selling process in which potential customers areidentified by the salesperson is called prospecting

- Approach: Approach is the step where the salesperson actually meets thecustomer for the first time

- Presentation: The step wherein the salesperson talks about how the product willsatisfy the customer’s needs and add value to his/her life is called presentation

- Handling Objections: In this step, the salesperson clarifies all the doubts andquestions that the customer has and eliminates all his objections to buying the product

- Closing: The step in which the customer is asked to place and order for theproduct is called closing

- Follow-Up: This is the final step in the selling process where the salespersonfollows up with the customers to ensure satisfaction and builds the relationship inorder to repeat business with them

1.3 Organizational structure

prospecting

1.3.1 The organizational structure of the business management apparatus of Anh Son Trade And Industrial Equipment Joint Stock Company

The organizational structure of Anh Son Trade And Industrial Equipment JointStock Company is a combination of specialized units with specific functions andduties, along with rights and responsibilities certain to ensure the effectiveness ofmanagement activities

In addition to performing professional functions, the parts of the company areclosely connected, which helps to ensure the business process goes smoothly,making timely adjustments as needed to suit the reality Moreover, the departmentscan cross-control each other on the progress of the planned work, therebysupporting the company not to set up the Internal Control Department due to costissues Specifically, the Company's management apparatus is described through thefollowing diagram:

Diagram 1.3: Management system of the Anh Son Trade And Industrial

Equipment Joint Stock Company

1.3.2 Functions and responsibilities of the departments

Sales department

Sales department Department TechnicalTechnical

Department

Financial Accounting Department

FinancialAccounting Department

- Organize and manage the implementation of the plan, and make timelyadjustments through analysis of the company's business and financial situation.

- Develop business strategies, plans, goals and distribution of resources in theshort and long term;

- Assessing information about customers, competitors, markets to establishdistribution channels according to the company's business orientation;

- Organize the provision of services; monitor the implementation of monthlyplans, summarize and evaluate business results

 Finance - accounting department.

- Making financial plans for the year, meeting the funding sources forproduction and business plans To guide functional departments to implement thestatistical and accounting regime according to the State's regimes and policies;

- Accounting for transactions arising of the company Responsible for theaccounting work of the Company, and the State Help leaders quickly grasp the status

of the Company's operations as well as economic opportunities to make appropriateand timely decisions

- Set up and properly implement salary, bonus and insurance policies foremployees in the company;

- Strictly implement the regime of obligations to the superior and theremittances to the State budget To implement the accounting regime in accordancewith the State regulations;

 Sales department

- Sales Department is the advisory and assisting department for the directorabout the sale of products & services of the Company Research & productdevelopment, market development; customer relationship building & development Beresponsible to the director for those activities in their assigned duties and authority

- Implementing strategies, annual budget plans, and monthly work plans tosubmit to the director for approval

- Advice to develop sales policies, including pricing, promotions, discounts &promotions, reach customers for approval by the director

- Policy recommendations for customers, customer groups, submit to thedirector and follow the approved policy

- Set sales goals and plans to submit to the director for periodic approval andimplement the organization of sales of products and services under the function to

achieve the approved goal Comply with the Company's regulations in proposingpolicies for customers when providing products & services under the mandate.

- Finding and developing new customers belonging to the target group of the Company

- Searching for customers to make investment, contribute capital in jointventures and associates according to the Company's development plan and strategy

- Find, maintain and develop relationships with customers Customer careaccording to the Company's policy

- Collect and manage customer information and customer records as prescribed.Clues about the income, customer information management to serve the customerrating, evaluation and reevaluation of customer records

Instruct, supervise and inspect affiliated units in the production process in terms

of technology, quality, progress, labor safety, machinery and equipment andenvironmental sanitation

- Guide and together with attached units to compile the construction acceptancedocuments, coordinate with the investor to accept and hand over the work

- Research to develop plans, plans for technological innovation, equipment tomeet the requirements of production and business of the Company, and application ofscientific and technical advances, innovations and inventions in the Company'sproduction and business activities

1.4 Financial position and performance of the Anh Son Trade And Industrial Equipment Joint Stock Company

1.4.1 The income statement of Anh Son Trade And Industrial Equipment Joint Stock Company

Table 1.1: The income statement of Anh Son Trade And Industrial Equipment Joint Stock Company

( Soure: Finance report 2016-2018 – Finance and Accounting Department)

2016 2017 2018 Difference 2018

compared to 2017

Difference 2017 compared to 2016

Revenue from sale of

goods and rendering of services 26,463,821,736

8,399,203,863

12,327,483,47

4 26,323,572,118 13,996,088,644

113.54

3,928,279,61

1 46.77Income from financial activities 4,423,024 5,272,615 7,646,099 2,373,484 45.02 849,591 19.21Expenses from financial activities 22,350,000 0 102,187,092 102,187,092 (22,350,000) (100.00)

including: Interest expense 22,350,000 0 74,658,136 74,658,136 (22,350,000) (100.00)

General and administration

expenses 930,257,621 1,171,899,083 1,905,992,528 734,093,445 62.64 241,641,462 25.98 Profit from operation

7,451,019,266

11,160,857,00

6 24,323,038,597 13,162,181,591

117.93

3,709,837,74

0 49.79Other income

Other expenses

551,107,580 906,133,142 4,935,031,067 4,028,897,925

444.6

3 355,025,562 64.42Other profit

3,999,962,69

8 57.97 Income tax expense

1,380,043,276 2,180,035,816 4,537,210,597 2,357,174,782

108.1

3 799,992,540 57.97Net profit after tax

5,520,173,104 8,720,143,262 18,148,842,390 9,428,699,127

108.133,199,970,15

8 57.97

Through Table 1.1, we can see that the business situation of Anh Son Trade AndIndustrial Equipment Joint Stock Company is changing in a very good direction, this isreflected in the company's profit target has increased sharply at 3,199,970,158corresponding to an increase of 57.97% in the period of 2016 - 2017 Especially, in theperiod of 2017-2018, the company had a remarkable growth at 3,199,970,158corresponding to an increase of 108.13% This is due to the following influences:

+ In the period of 2016 - 2017, because the construction and equipment joint stockcompany Anh Son gained a reputation with partners, the company expanded and receivedmore packages from outside Specifically, revenue from sales and service provisionincreased at 9,529,448,559, corresponding to 36.01%

+ In the period of 2017 - 2018, the reputation of Anh Son Trade And IndustrialEquipment Joint Stock Company has achieved many achievements and has been paidattention to by foreign and domestic partners In particular, the company has woncontracts with major international partners such as SICHUAN HUASHI, ZYF companywith relatively high bid value The company has expanded its personnel size in itsdepartments Specifically, sales revenue increased from 35,993,270,295 to63,378,648,576 (corresponding to an increase of 76.08%)

1.4.2 Financial position of Anh Son Trade And Industrial Equipment Joint Stock Company

Extracting information from the company's balance sheet, we have the table of fluctuations of some of the following main criteria:

Table 1.2 The table analyzes the variation of some financial indicators of Anh Son Trade And Industrial Equipment

Joint Stock Company

compared to 2017

Difference 2017 compared to 2016

7,532,062,444 8,877,688,656 9,299,117,200

421,428,544 4.75

1,345,626,21

2 17.87 Prepayments to suppliers

267,548,048 1,405,350,367 1,582,100,000

176,749,633 12.58

1,137,802,31

9 425.27 Owners' Equity 5,473,754,048 4,919,254,028 4,982,496,418 63,242,390 1.29(554,500,020) (10.13)

Undistributed profit after

tax 473,754,048 780,745,972 1,117,503,582 336,757,610 43.13 306,991,924 64.80

( Soure: Finance report 2016-2018 – Finance and Accounting Department)

As shown in Table 1.2, we can see that Anh Son Trade And Industrial Equipment Joint Stock Company goes throughtwo opposite stages of transformation of the company's entire situation, including:

+ In the period of 2016 - 2017, the total assets of the company increased by more than VND 2 billion, equivalent to anincrease of approximately 10% over the previous year The reason for this increase is because the company has prepaid theseller an amount of VND 1,137,802,319 In addition, the company accelerated the process of debt collection from old

customers, specifically, by the end of the year; customer receivables were strong at approximately VND 1,345,626,212,equivalent to a reduction of nearly 18% compared to the previous year early 2016.

+ In the 2017-2018 periods, total assets grew at more than VND 4.6 billion equivalent to 19.32% The amount of cashand cash equivalents that the company holds grows appropriately to sustain the company as it expands

CHAPTER 2:

OVERVIEW OF ACCOUNTING ORGANIZATION AND SYSTEM AT ANH SON TRADE AND INDUSTRIAL EQUIPMENT JOINT STOCK COMPANY

2.1 Organizational structure of accounting department

The accounting system of the company is organized in the form of centralizedaccounting All work is focused on solving in the accounting department of thecompany The accounting department of the company applies the accounting softwaresystem to the financial and accounting management

All daily data are updated by accounting department in the software Theaccounting data will then be automatically transferred to the relevant accountingdocuments and operating sections At the end of the period, by software, data ofaccounting will be carried out to financial statements as well as the managementreporting system will help Director quickly understand the financial situation of thecompany

Diagram 2.1: Organizational structure of the accounting system of Anh Son

Trade and Industrial Equipment Joint Stock Company.

2.1.2 Functions and responsibilities of each accounting department

- Chief of Accounting Department

+ Perform and inspect the whole accounting of the company, in charge of theentire work of guiding and checking the operations of accountants

+ Take ultimate responsibility for the accuracy and truthfulness of the numbersand figures updated in the software

Chief accountantChief accountant

Financial Accounting DepartmentFinancial Accounting Department

General

AccountantGeneral

Accountant

Payable AccountantPayable Accountant

Cash AccountantCash Accountant

CashierCashier