Salary accounting research project and current salary compensations at Nhat Minh Business Management Consultant Limited Liability Company Salary accounting research project and current salary compensations at Nhat Minh Business Management Consultant Limited Liability Company Salary accounting research project and current salary compensations at Nhat Minh Business Management Consultant Limited Liability Company Salary accounting research project and current salary compensations at Nhat Minh Business Management Consultant Limited Liability Company Salary accounting research project and current salary compensations at Nhat Minh Business Management Consultant Limited Liability Company Salary accounting research project and current salary compensations at Nhat Minh Business Management Consultant Limited Liability Company Salary accounting research project and current salary compensations at Nhat Minh Business Management Consultant Limited Liability Company Salary accounting research project and current salary compensations at Nhat Minh Business Management Consultant Limited Liability Company Salary accounting research project and current salary compensations at Nhat Minh Business Management Consultant Limited Liability Company Salary accounting research project and current salary compensations at Nhat Minh Business Management Consultant Limited Liability Company
GENERAL THEOPRY OF ACCOUNTING FOR SALARY
Overview of salary and salary compensation
1.1.1 Labor concept, salary and salary compensation
Labor refers to the utilization of the workforce in practical terms It involves the intentional and conscious efforts of individuals aimed at producing goods that fulfill societal needs As a unique form of human activity, labor embodies creative endeavors that contribute significantly to social life.
* Employees are those who work for salaries and labor or the mind that makes physical or mental products for others.
* Salary: labor cost is formed by agreement between employee and employer are in accordance with the relations and regulations laws in a market economy.
During Vietnam's central planning era, salaries were viewed as a component of national income, allocated to cover labor costs for officials and employees according to labor distribution laws Currently, under Article 55 of the Vietnam Labor Code, employee salaries are determined by mutual agreement in labor contracts and are based on labor productivity, quality, and efficiency Salaries represent a portion of the social product, compensating employees according to the quantity and quality of labor provided This framework not only addresses labor costs but also serves as a significant incentive for employees, encouraging them to enhance their skills, adopt advanced techniques, and ultimately boost productivity.
Labor creates products and earns salaries, establishing labor as a unique commodity Salaries represent the price of this labor force, which is traded in the market based on agreements between buyers and sellers, influenced by the laws of value and supply and demand Consequently, labor prices fluctuate according to the availability of labor and the demand for it The value of labor, reflected in salaries, is determined through negotiations between employees and employers As a result, salary levels can rise or fall depending on market conditions, but they generally remain aligned with the value of labor and other goods It is essential that salary fluctuations maintain a minimum standard of living for employees, ensuring their ability to continue working.
Salary compensaction include: Social Insurance, Health Insurance, Trade union funds, unemployment insurance
Under the current regime, social insurance is formed by appropriation The rate of 25.5% of the total salary must be paid to employees in each period math, where:
Employers must bear 17.5% of the total salary and salary included in operating expenses.
The employee must bear 8% of the total salary by compensation into their salaries.
- Health Insurance is a fund used to pay employees who contribute to the fund in medical examination and treatment activities, formed by prorating
4.5% of the total salary payable to employees, of which: Employers must bear 3% and be included in production costs business.
Workers incur 1.5% by deducting from their salaries.
Trade union funds are essential for supporting trade union activities across all levels Current regulations stipulate that these funds are deducted at a rate of 2% from the total salary for each accounting period This deduction is categorized as a business and production expense, with 1% allocated to the grassroots trade union and 1% to the upper union.
Unemployment insurance provides financial support to workers who have lost their jobs, with businesses contributing to this fund Currently, employers are required to deduct 2% from the total salary for each accounting period, where 1% is considered a cost of production and business, while the remaining 1% is deducted from employees' salaries.
Enterprises are required to establish and fully collect funds for their social insurance, which must be paid quarterly These funds are managed by authorized agencies based on original documentation, and a final settlement is necessary when submitting the quarterly funds The expenses covered by these funds are intended to provide minimum support for workers in cases of illness or labor accidents.
Labor is a crucial element in production and business operations, significantly influencing both the quantity and quality of a company's products Salary plays a vital role in aligning the interests of workers, serving as a motivating force that enhances creativity and labor consciousness, ultimately driving productivity Adequate and equitable salary payments not only reflect an employee's value within the company but also stimulate the production process, leading to improved labor productivity and product quality Consequently, this results in a continuous increase in revenue and business profits.
Management requirements for labor, salary, salary compensation :
Salary serves as the primary income source for workers, while businesses leverage it to foster a strong work ethic and promote labor productivity.
Businesses must compensate employees as part of the value generated from their products or services, which is a key component in calculating production costs To optimize expenses, it is essential for businesses to utilize their labor force efficiently, thereby reducing labor costs associated with each unit of product, service, and overall goods flow.
Effective salary management is crucial for production and business operations It ensures organized labor and accurate salary accounting, which enhances labor discipline and boosts productivity Additionally, it serves as a foundation for calculating salaries based on the principle of labor distribution.
Accurate and timely calculation of labor remuneration is essential, as it motivates employees to commit to their work and enhances the quality of labor Additionally, precise labor cost calculations play a crucial role in determining the overall business expenses and product costs.
Effective management and monitoring of employee mobilization and employment in production and business activities are essential for enterprises Proper mobilization of labor is achieved when various types of labor are managed and utilized according to their specific needs Therefore, classifying labor is crucial for every business, as it varies based on the type of enterprise and the classification of labor involved.
Effective salary accounting and compensation management enable businesses to efficiently oversee their salary funds, ensuring that salary payments and social insurance allowances comply with regulations This organization not only motivates employees to fulfill their responsibilities but also establishes a foundation for accurately allocating labor costs to product pricing Companies should implement reasonable salary policies that help reduce labor costs without compromising employee wages A well-structured salary accounting system is essential for maintaining compliance and incentivizing employee performance.
Duties of salary accounting and salary compensations
Salary accounting tasks include the following basic tasks:
To effectively manage labor costs, it is essential to systematically record, reflect, and synthesize data on employee numbers, labor hours, salary calculations, and compensation allocations based on employment categories.
Ensure that the accounting staff in the production and business departments adhere to proper procedures for recording labor and salaries, in compliance with established regulations and methods.
Forms of salary and salary compensation
Employee compensation is determined by factors such as working hours, salary level based on position, and the salary scale or coefficient This compensation structure is primarily suited for indirect workers, stable job roles, or direct workers who do not have specific product norms.
In enterprises, time-based salary structures are commonly utilized for office staff, including roles in administration, labor organization, statistics, and accounting This compensation method is contingent upon actual working hours, as well as the employee's industry, level of expertise, and professional skills.
Salaries vary across different jobs due to the specific nature of each role within an enterprise Professional and technical skills are categorized into various salary scales, each corresponding to a distinct salary level Additionally, salaries can be adjusted over time based on these classifications.
Is the salary compensation for employees based on daily salary and number of days actual work for the month
As salary paid to employees by month, the salary level is calculated over time is 1 month.
Monthly Salary = salary per day x the number of working days in a month
+ Weekly Salary: are salaries for employees based on weekly salary and number of days work for the month
Hourly rates can be calculated directly to pay hourly rates or based on day rate for overtime allowances for employees
Overtime allowances are calculated on a daily salary basis
Example: Daily salary is VND 40,000
An employee works overtime 5 hours
The time-based salary regime with a limited presence is neutral military, sometimes do not match the actual labor results of workers
It is simple time salary
Salary based on bonus period
Time-based payment is a straightforward compensation method where workers receive salaries based on their hourly or daily work duration The amount earned varies according to the salary level, which can be influenced by factors such as experience and job role.
Salary based on bonus period: It is the salary calculated according to simple time plus the bonus they are entitled to
1.2.1.2 Form of salary by product:
Different from salary form over time, salary form the product performs the payroll calculation for employees according to quantity and quality number of completed work products
Total salary payment = Unit salary/Number x the number of finished good
Form of salary based on direct product:
Salary paid to employees is calculated directly based on quantity completing products in accordance with quality specifications and unit salary specified, not subject to any restrictions
For the Company, this salary is not applicable because it is public trading company.
Total salary payables = Actual number of completed products * unit price of salary
Indirect workers in the production department, such as those maintaining machines and equipment, do not directly create products; however, they significantly influence the productivity of direct labor Consequently, their salaries are calculated based on the results achieved by direct labor.
In general, this form of compensation based on indirect products is not allowed exactly, there are many limitations, and not practical work.
+ Salary based on bonus products:
In this form, salary according to the direct product if labor is also rewarded in production, bonuses for increasing labor productivity, material saving.
This salary-based salary form has the advantage of being a promotion encourage enthusiastic workers to work, increase labor productivity and benefit businesses as well as employees' lives improved.
+ Salary according to accumulated products:
In addition to direct product pay, bonuses are calculated based on increased unit salary rates at high productivity levels This salary structure effectively motivates advanced workers, enhances labor productivity, and ensures that tasks are completed within the time limits set by contracts.
This type of salary structure can significantly raise labor costs within a business's product pricing Therefore, it should only be implemented when essential to fulfill an order or to compensate workers during challenging phases, ensuring stability in production.
The traditional salary structure has significant limitations, as it often fails to link compensation to labor outcomes and quality, resulting in a lack of motivation among workers To address these issues, it is essential to implement a system that not only tracks and records employees' full working hours but also incorporates a fair reward system.
The salary structure based on product output offers significant advantages over traditional salary forms It emphasizes the principle of compensating workers according to both the quantity and quality of their labor, effectively aligning salary income with the production results achieved by employees.
Stimulating labor productivity, encouraging workers to promote creativity improves production techniques, so this form is used quite spacious.
1.2.2 The form of salary compensation
The salary fund encompasses the total amount payable to all categories of workers, both within and outside the enterprise As outlined in proposal No 235 / ĐBT dated September 19, 1985, by the Council of Ministers (now the Government), the salary fund includes various components essential for managing employee compensation.
- Monthly, daily salary based on the salary scale coefficient of the State.
- Daily remuneration for off-pay workers
- Salary paid to employees when making defective products inside rule.
- Salary paid to employees during the work stoppage due to equipment the machine stopped working for objective reasons.
- Salary paid to employees during the time of work assignment or doing the obligations of the State and society.
- Salary paid to employees taking periodical leave, vacation leave regime of the State.
- Salary paid to people who go to school but still on the payroll.
- Allowances according to the prescribed regime and other allowances are recorded in salaries
In the business production industry, employee compensation is categorized into two main types: base salary and additional salary The base salary is the payment received by employees for performing their primary duties, which includes regular wages along with various allowances such as responsibility, area, and overtime pay On the other hand, additional salary is granted for tasks outside of their main responsibilities, as well as during periods of leave, including vacations, paid time off, educational pursuits, meetings, and other absences Furthermore, compensation for workers producing defective products is also classified as additional salary.
The classification of salaries into main and supplementary categories is crucial for effective accounting and salary analysis in export production costs The main salary of production workers is directly linked to the production process and is included in the production costs of each product type In contrast, the salaries of production workers that are not tied to specific products require indirect accounting, which should be allocated to production costs based on specific attribution criteria Additionally, managing salary fund expenditures must align with the implementation of the production and business plan to ensure economic efficiency while meeting or exceeding production targets.
The International Labor Organization (ILO) defines social insurance as a protective mechanism for its member societies, implemented through various public measures aimed at addressing socio-economic challenges arising from loss or reduction of income due to illness, disability, old age, or death.
Social insurance is a system of 3 levels:
The first level serves as the foundational floor applicable to all individuals participating in the community festival It is designed for those in need, even if they have the capacity to contribute to social insurance Although these individuals may have limited financial resources, the State will provide subsidies when necessary.
2nd level: A mandatory floor for people with stable jobs.
3rd level: Is voluntary for those who want to contribute high social insurance
Social insurance, once limited to state-owned enterprises, is now governed by Decree No 45/CP, extending its coverage to all economic sectors and members of the Commune Association This policy allows individuals with high incomes or specific conditions to participate in social insurance, thereby enhancing their benefits Additionally, the regime mandates contributions from those eligible for preferential treatment, with the collective contributions forming the social insurance fund.
Accounting of salary and salary compensation
The role of labor accounting in an enterprise is to facilitate effective labor management and ensure precise salary calculations for each employee It encompasses the tracking of labor force quantity, working hours, and quality of work.
Accounting of the number of employees:
To effectively manage labor quantity, enterprises utilize "Books labor monitoring," typically overseen by labor departments This accounting system tracks the number of employees by occupation, job role, and skill level The Labor Department can create a comprehensive register for the entire enterprise while also establishing specific sections to reflect the current labor allocation and employment status within each firm.
Effective working time accounting is essential for accurately tracking the actual working days and hours of each employee, including off days and job stoppages across all production departments This precise record-keeping forms the basis for calculating and disbursing salaries to every individual within the enterprise.
The timesheet is a crucial document for tracking labor hours in businesses, serving to record the actual working time and absences of employees across various teams and departments Each production group and department must maintain separate timesheets for a month, ensuring that the list of employees aligns with the labor book The production team leader or department head is responsible for accurately recording attendance based on the number of employees present or absent at the start of each working day.
In the timesheet of the holidays as prescribed Tet, Saturday, Sunday must be clearly stated.
Employees must have access to a public timesheet to monitor their working hours At the end of each month, the gym leader collaborates with the accountant to review the timesheets Employees are responsible for verifying their daily entries The compiled data is then synthesized into reports for the labor division Once finalized, the timesheets are sent to the salary accounting department for payroll calculations In cases of absence due to illness or accidents, employees must provide sick leave certificates from authorized health facilities Any unplanned leave must be documented in the job termination record, detailing the reason and responsible party, which serves as a basis for salary calculations and damage settlements These records are forwarded to the accounting department to assist in subsidy calculations, and the social insurance agency uses this information to update the work grading table accordingly.
Effective labor result accounting is crucial for management and labor accounting in manufacturing enterprises It involves the timely and accurate recording of product quantity and quality, as well as the completed work volume of individuals and teams, which serves as the foundation for precise compensation.
The initial documents used to account for labor results vary based on the type and production characteristics of each enterprise These documents serve to record labor outcomes and confirm the completion of work products and contracts Certification of completed work products acts as a digital confirmation of the finished product by the employee unit or individual This certification is prepared by the assignor and requires signatures from the assignor, job recipients, product quality inspectors, and approvers.
Ballots are transferred to salary accounting for salary calculation applied in the form salary paid by product.
A work contract serves as the foundational agreement for contracting work, outlining the responsibilities, workload, and interests of both the employer and the contracted individuals This document is essential for processing labor payments to the contractor In cases of product damage, the quality control officer and the responsible department must complete a broken report to facilitate proper handling The quantity and quality of completed tasks are documented in accounting vouchers, which businesses utilize to calculate salaries after receiving the necessary approvals.
Payroll accounting for employees relies on accurate labor time records, such as timesheets and completed workload lists, to ensure proper salary calculations After verifying these documents, the enterprise processes salary payments, including wages, bonuses, and other compensations The payroll system also includes detailed records of salary policies, product-based pay, additional benefits, and insurance for each employee, along with a structured bonus payment table.
A salary payment table is a crucial document that serves as the foundation for employee salary payments and allowances within an organization It is prepared by the labor force accountant and outlines the policies, salary structures, benefits, and insurance for each employee Additionally, it includes details on dynamic bonuses and allowances, ensuring a comprehensive overview of employee compensation.
The salary payment table serves as a crucial document for processing salary payments and allowances for employees in production and business units It is organized by department and corresponds to the timesheet, allowing each employee's salary, grade, and working hours to be recorded individually Payroll accounting then compiles a general salary payment table for the entire enterprise, with each team and department represented on a monthly basis This comprehensive table is submitted for approval by accounting heads and unit leaders, enabling revenue and expenditure accountants to issue payment notes and disburse salaries accordingly.
Salary payment for employees is usually divided into 2 periods in month:
+ Term 2: Pay the rest after deducting deductible amounts deducting salaries from laborers according to the prescribed regime
Salary is paid in the hands of an employee or a mass collective on behalf of the cashier, when receiving the income, the employee must sign salary payment table.
Employees on paid leave have their salaries included in production and business costs Since unexpected leave can vary throughout the year, it is essential to account for salary compensations and leave in each accounting period This approach helps prevent sudden changes in product pricing.
In a nutshell, labor accounting is both about managing employer mobilization this is the basis for calculating salaries to be paid to employees.
It is clear, accurate, timely that labor costs can be calculated correctly and fully salaries for employees in the enterprise.
Salary accounting and salary compensation
1.4.1 Vouchers used in accounting for salary and salary compensation
- Form No 01a- LĐTL: “Time Attendance Table” This is a voucher basis
Salary based on the actual working time of each employee This table is
Set up monthly by time department (production group, department)
- Form No 01b-LDTL: Time table for overtime work
- Form No 02-LDTL: Salary payment table
- Form No 03-LDTL: Bonus payment table
- Form No 04-LDTL: Road travel paper
- Form No 05-LDTL: Confirmation of finished products or jobs
- Form No 06-LDTL: Payment table for overtime pay
- Form No 07- LDTL: Payment table for outsourcing rent
- Form No 08-LDTL: Contract of contracting
- Form No 09-LDTL: Minutes of liquidation (acceptance) of the contract of contract
- Form No 10-LDTL: The list of compensation and payment of salary
- Form No 11-LDTL: Table of distribution of salary and social insurance
This form is utilized to track the working hours of employees, specifically for those who work overtime It serves as a basis for calculating salaries in accordance with the established regulations for overtime compensation.
- Some other relevant documents such as receipts, payment slips, paper please advance, deviation (paper way) invoice
1.4.2 Accounts used in salary accounting and salary compensation
Monitoring salary payments and other labor-related amounts involves overseeing the establishment and utilization of funds from SI, HT, UF, and UI accounts, specifically through accounts 334 and 338.
Account 334, titled "Payables to Employees," represents the liabilities related to employee compensation, including salaries, social insurance, and other income-related payments owed by the enterprise.
Account 334 - Payables to employees who have 2 second grade accounts
Account 3341 - Payables to employees represents the obligations of the enterprise regarding payments owed to employees, including salaries, bonuses, social insurance, and other income-related payments.
Account 3348 - Payables to Other Employees tracks the accounts payable related to payments owed to individuals who are not direct employees of the enterprise This account includes salaries, bonuses, and other income amounts due to these workers.
- Use to monitor the setting up and use of social insurance fund, health insurance fund, trade union fund, unemployment insurance fund,
Account 338 is classified into second-level accounts as follows:
The article discusses the monthly process in which accountants calculate salaries payable across various sectors, including production, sales, and services It emphasizes the importance of determining social insurance compensations, health insurance, unemployment insurance, and internal health insurance in accordance with regulations The rates for these compensations are documented in the Allocation Table Salary and salary compensation (Form No 01/distribution table).
The salary distribution table outlines the allocation of actual salaries, including main salary, extra salary, and other amounts Monthly contributions for social insurance, health insurance, Trade Union Funds, and unemployment insurance premiums are required based on the employment rate, recorded in Accounts 334, 335, 3382, 3383, 3384, and 3386.
1.4.3 Common transactions in salary and salary compensation
Diagram 2: Accounting for payroll related compensation
Accounting book used in salary accounting and salary compensation
To ensure accurate and timely salary accounting that provides valuable information for managers, it is essential to implement a well-organized and scientifically structured bookkeeping system and recording process This approach not only guarantees precision but also minimizes the workload for accounting personnel.
Under the current accounting framework, enterprises are responsible for organizing their bookkeeping systems according to four forms established by the Ministry of Finance, tailored to their specific production and business characteristics Additionally, salary accounting functions are to be implemented in various formats.
Diagram 3: Diagram showing salary accounting and salary compensation in the form of general diary:
The payment table of payroll
Special journal General Journal Detailed accounting book of
Diagram 4: Diagram showing salary accounting and salary compensation recorded ledger in the form of ledger diary
The payment table of payroll
Cash book general accounting vouchers of the same type
Detailed accounting book of 338 account
Diary book - ledger Detailed summary
Diagram 5: Diagram showing salary accounting and salary compensations in the form of bookkeeping vouchers
General accounting vouchers of the same type
Detailed accounting book of 334, 338 account
The payment table of payroll
Diagram 6: Diagram showing salary accounting and salary compensations in the form of Journal – Document
The payment table of payroll
The list of document Dairy book - document
Detailed accounting book of 334, 338 account
Software accounting form Diagram 7 : Diagram showing salary accounting and salary compensations in the form of machine accounting
General accounting vouchers of the same type
Information about salary accounting and salary compensation
Employee salary information is recorded under compensations in other payables The figures included in this index should reflect the credit balance of account 334, which pertains to payables related to employee activities.
During the reporting period, Ledger account 334 reflects labor payables (Code 314) on the balance sheet The data for this criterion is derived from the credit balance of Account 338, which is documented in the ledger statements Additionally, the details of Account 338 are categorized under short-term other payables (Code 319) on the balance sheet.
Salaries and compensation details for direct production workers and manure management personnel are reflected in the "Cost of Goods Sold" index (Code 11) within the operating results statement, while related expenses are categorized under "Selling Expenses" (Code).
25 above report on business results) and the target “Expenses of business management ”(Code 26 on the report of business results) for employees who workings at the administrative division, office.
1.6.3 In the cash flow statement
Information about salaries and salary compensations is displayed in Cash flow from operating activities - Cash payments to employees activities (salaries, bonuses, insurance, benefits ) (Code 03 on the Flow Report currency)
1.6.4 On the notes to the financial statements
Information about salary compensations is presented in details section other payables.
CHAPTER 2: ACCOUNTING FOR SALARY AND SALARYCOMPENSATION AT NHAT MINH BUSINESS MANAGEMENT
General information about Nhat Minh Business Management Consultant
2.1.1 The information of internship company :
Company name: NHAT MINH BUSINESS MANAGEMENT CONSULTANT LTD.CO
Charter Capital: 2,000,000 VND ( two billion Vietnam dong)
Company address: 3 Lane 560 Ngo Gia Tu - Duc Giang Ward - Long Bien District – Hanoi
Business license: 0108706400 - 19/04/2019 by Hanoi Tax Department Director: Le Truong Giang
2.1.2 Internship company’s basic features and operating activities:
The form of entity: Nhat Minh Business Management Consultant Limited Liability Company
- Providing Accounting service àn consultant service
- Wholesale computers, peripherals and software telecommunications equipment in specialty stores
- Retail audiovisual equipment in specialty shops
- Wholesale electronic and telecommunication equipment and components
- Wholesale machinery, equipment and spare parts for agricultural machinery
- Wholesale machinery, equipment and other spare parts
- Wholesale materials and other installation equipment in construction
- Retail furniture, paints, glass and other installation equipment in the construction of specialty shops
- Wholesale General (excluding state prohibited)
- Other retail stores in general business
- Retail carpet, cushions, blankets, blinds, curtain, wall and floor materials in specialty shops
Company structure
Human Resource Department Sale Department
3 sales collaborators operator Other staff
Director ( Mr Le Truong Giang ):
On behalf of the owner, the representative is responsible for exercising the company's rights and obligations They have the authority to act on behalf of the company in fulfilling these responsibilities and must ensure compliance with the Law on Enterprises and related regulations Additionally, they are accountable to both the law and the company owner for the execution of their assigned duties.
He is accountable to the State and his superior agency for overseeing all production and business activities of the company His responsibilities include managing these activities in accordance with the company's internal rules, regulations, and resolutions, as well as adhering to the policies and regulations set forth by the State.
The role involves advising company leaders and overseeing the implementation of essential tasks, including the accurate and timely accounting of all assets, equity, liabilities, and financial activities It also encompasses business and financial planning for the unit, as well as guiding leadership in directing inspections and ensuring compliance with financial and accounting regulations.
The primary responsibility is to accurately account for economic transactions in a timely manner to support effective business operations This includes coordinating with relevant departments to develop annual and long-term business and financial plans Additionally, the role involves managing financial investments and lending, advising leadership on financial and accounting compliance, and proposing business management strategies tailored to the unit's specific needs to maximize efficiency.
The department provides advisory and assistance to the General Director regarding the sale of the company's products and services, including loans, guarantees, and various credit forms It focuses on capital mobilization in the market, international payment advisory, financial consulting, capital contributions, joint ventures, and foreign currency trading products, excluding interbank transactions Additionally, the department is involved in product research and development, market expansion, and fostering strong customer relationships.
+ Implementing strategies, annual budget plans and work plans of the Division each month for submission to the General Director for approval.
Organize personnel structure, assign tasks in the Department to complete the annual budget, the work plan of the department / department has been approved in each period.
Perform internal reports in accordance with the Company'sRegulations and other reports as required by the Board of Management.
To enhance the Company's operations, it is essential to establish and refine processes and professional regulations within the Division Regular evaluation of the effectiveness of these processes and regulations will facilitate continuous improvement and operational excellence.
Perform other duties as directed by the Executive Board assigned. Human Resource Department:
+ Develop a strategy for developing human resources to meet the development requirements of the company
+ Planning recruitment and measures to implement the plan.
+ Receiving records and interviewing workers applying for jobs.
+ Making training contracts, probationary contracts and labor contracts
+ Settlement of regimes for employees such as leave, sick, wedding,
+ Check and calculate working days for company office employees + Maintain and implement the regulations of corporate office
+ Join the company's salary raising, reward and discipline council.+ Presiding over meetings such as salary increase, commendation and discipline.
Diagram 8: The structure of accounting sysytem
( Source: Accounting Department ) Tasks of the members of the accounting apparatus at the company:
Chief Accountant general accountant cum tax accountant
Salary accountant Inventory accountant cum cashier
The Chief Accountant oversees all accounting activities within the Finance and Accounting Department, ensuring compliance with current regulations and the company's charter This role involves organizing accounting work and preparing financial reports under the guidance of the general director Key responsibilities include reviewing financial statements, providing management reports, and advising on the company's financial status Additionally, the Chief Accountant collaborates with the general director on personnel matters, such as recruitment, salary adjustments, and disciplinary actions for accountants, storekeepers, and cashiers Furthermore, they are required to report any financial and accounting law violations to higher authorities in writing.
A payment accountant is responsible for managing accounts receivable and accounts payable, monitoring bank deposits, and overseeing customer and employee liabilities They play a crucial role in debt recovery by urging timely payments and creating payment plans with suppliers Additionally, payment accountants issue weekly and monthly reports, directly receive relevant documents from the cashier, and ensure the validity and accuracy of these documents.
Effective fixed asset accounting involves systematically recording and reflecting the current value of assets and supplies, as well as tracking any increases or decreases in fixed assets Accountants must accurately calculate depreciation to allocate costs to production and business operations based on wear and tear Additionally, accountants are responsible for inspecting departments to ensure accurate bookkeeping and participating in the evaluation of fixed assets in accordance with company regulations.
+ -Tax accountant: make tax report (tax return and settlement), works directly with tax authorities.
Accurate record-keeping is essential for reflecting labor time, product quality, and employee salary accuracy It is crucial to calculate social insurance, health insurance, and trade union fees correctly to manage employee income and expenses Timely salary payments and oversight of salary fund usage are necessary for effective management and planning Additionally, precise calculations and analyses of salary, social insurance, health insurance, and trade union funds can lead to cost-saving measures and provide essential data for accounting and management Reporting on labor, salaries, and insurance within the accountant's responsibilities is vital for monitoring compliance and addressing any violations of labor discipline and policies Proposing strategies to enhance labor productivity and responsibly utilize resources is key to maximizing labor potential.
Cashiers are responsible for managing cash and collaborating with the cash collection department and local agents, as well as handling bank transactions At the end of each day, they must perform a stocktaking to reconcile the cash with the fund book, identifying and rectifying any discrepancies that arise.
Storekeepers are responsible for monitoring material imports and exports, managing associated debts, and calculating costs They create import and export notes while keeping accurate records of stock quantities and facilitating the transfer of materials to the appropriate sections.
2.2.2 Organizational characteristics of the accounting apparatus at Nhat Minh business management consultant co., ltd
Diagram 9: Organizational characteristics of the accounting apparatus at
Tasks of the members of the accounting apparatus at the company:
Chief Accountant general accountant cum tax accountant
Salary accountant Inventory accountant cum cashier
The Chief Accountant oversees all accounting activities within the Finance and Accounting Department, ensuring compliance with current regulations and the company's charter This role involves organizing accounting work and preparing financial reports under the guidance of the general director Key responsibilities include reviewing financial statements, providing management reports, and advising on the company's financial status Additionally, the Chief Accountant collaborates with the general director on matters related to recruitment, salary adjustments, and disciplinary actions for accountants, storekeepers, and cashiers They are also tasked with reporting any financial and accounting violations to higher authorities.
A payment accountant is responsible for managing accounts receivable and accounts payable, monitoring bank deposits, and overseeing customer and employee liabilities They play a crucial role in debt recovery by creating payment plans with suppliers and issuing weekly and monthly reports Additionally, they directly receive relevant documents from the cashier and ensure the accuracy and validity of these documents.
Effective fixed asset accounting involves the timely and comprehensive recording of asset values and changes, ensuring accurate reflection of existing assets and supplies Accountants play a crucial role in calculating depreciation to allocate costs appropriately based on wear and tear Additionally, they inspect departments to ensure accurate bookkeeping and actively participate in the evaluation of fixed assets in accordance with company regulations.
+ Tax Accountant: make tax report (tax return and settlement), works directly with tax authorities.
Actual salary accounting and salary compensation at NHAT MINH
2.3.1 Characteristics of salary, salary compensation at NHAT MINH BUSINESS MANAGEMENT CONSULTANT CO
The Company has a total labor force of 25 individuals, which includes both directly managed employees and those on the construction team The school team oversees the leasing process at the work site, utilizing short-term contracts, with salaries determined based on the specific job or product delivered.
- Based on gender, the company classifies employees into two main groups:
Male and female employees: including 15 female employees and 10 male workers Based on the production relationship, the company classifies employees as: employee direct and indirect labor.
- Direct labor: are employees involved in the production process products, directly performing service labor; Based on this form the company, there are 20 direct employees.
- Indirect labor: are managers working in departments The company does not directly participate in the production and business processes, relying on In this form, the company has 05 indirect employees
The Company has effectively organized its workforce to eliminate redundancy, ensuring optimal labor management By implementing structured rules and consistently monitoring employee numbers and working hours, the Company fosters a productive environment Additionally, it regularly enhances bonuses to motivate and reward employees for their contributions.
Effective time management by employees is crucial for enhancing discipline and serves as the foundation for calculating salaries, bonuses, and overall labor productivity Therefore, it is essential for the labor team to accurately record the actual hours worked by each employee on a monthly and quarterly basis.
The Company tracks labor time through dynamic timesheets, which are essential for calculating salaries across various divisions, including business management, executive organization, financial planning, technical, and construction management After collecting timesheets, the planning and approval department reviews and approves salary payments The accounting team then monitors and processes all salaries and compensations, adhering to established regulations They prepare the salary distribution table and set the pay date, ensuring accurate recording in accounting software At the end of the year, comprehensive reports detailing salaries and compensations are generated for review.
Nhat Minh Business Management Consultant Limited Liability Company adheres to state policies by offering employee subsidies for situations like illness and maternity leave The company ensures compliance with social and health insurance benefits, unemployment insurance, and union funds, basing its subsidies on relevant documentation and the salaries and percentages applicable to its officials and employees.
Salary compensations include: Social insurance, Health insurance, Trade union funds, unemployment insurance.
Under the current regime, social insurance fund is formed by compensation The rate of 25.5% of the total salary must be paid to employees in each period math, where:
- Employers must bear 17.5% of the total salary and salary included in operating expenses.
- The employee must bear 8% of the total salary by compensation into their salaries.
The health insurance fund is established to cover medical examination and treatment costs for employees who contribute to it This fund is created by allocating 4.5% of the total salary payable to employees.
- Employers must bear 3% and be included in production costs business.
- Workers incur 1.5% by deducting from their salaries
Trade union funds support activities at all levels of the union Current regulations stipulate that 2% of the total salary for each accounting period is deducted for these funds, which are included in production and business costs Of this amount, 1% is allocated for grassroots trade union operations, while the remaining 1% is directed to higher union levels.
Unemployment insurance is a financial benefit that employers are required to provide to employees who lose their jobs Under current regulations, businesses must deduct 2% of the total salary for unemployment insurance during each accounting period, with 1% of this cost being absorbed by the employer as part of production expenses, while the remaining 1% is deducted from the employee's salary.
2.3.2 Salary accounting at Nhat Minh Business Management Consultant Limited Liability Company
The purpose of labor accounting in the business, apart from helping labor management is also to ensure accurate salaries for each person labor.
The content of labor accounting includes: Accounting of the number of employees, labor time and labor results.
Salary labor accounting organization, is very necessary it is a division indispensable in the general information system of accounting.
2.3.2.1 Accounting of the number of employees
To effectively manage labor quantity, enterprises utilize labor monitoring books overseen by the labor department These records detail the number of workers categorized by occupation, job type, and technical rank The labor department compiles this information into a comprehensive register.
Enterprise - wide and set up separately for each department to make sense of the allocation, existing employers in the enterprise.
Effective time management in accounting involves tracking the working hours of employees across all departments Utilizing a time attendance table allows for accurate recording of work hours, facilitating timely management of employee labor allocation.
Effective working time accounting is essential for accurately recording the actual number of working days and hours for each employee and department within a business This process includes tracking both workdays and work stoppages, and the resulting data is crucial for calculating salaries.
The timesheet serves as a crucial document for tracking labor hours in businesses, recording both the actual working time and absences of employees within teams and departments Each department must maintain separate timesheets on a monthly basis, ensuring that the list of employees aligns with the records in their respective labor books It is the responsibility of the grounding department and chief departments to accurately document timesheets based on the attendance and absence of workers in their units.
Timesheets must clearly indicate leave days for festivals, Tet, Saturdays, and Sundays They should be accessible in a public area for employees to review their working hours At the end of each month, the group leader, department head, and general assembly will collaborate to provide the employer model to the accountant The accountant is responsible for verifying daily confirmations on the timesheets.
Table 2.1: Timesheets in May of 2019 (excerpts)
Effective labor result accounting is crucial for comprehensive management and labor tracking in manufacturing companies It involves the precise and timely documentation of the quantity, quality, or mass of work completed by the workforce, ensuring accurate payroll calculations.
Nhat Minh Business Management Consultant Limited Liability Company utilizes two primary salary structures: time-based salaries and product-based salaries The time-based salary model is predominantly employed in departments such as corporate management, administrative organization, and financial planning and management In contrast, the product-based salary model is applied to sales personnel and collaborators To account for paid labor time, the company uses vouchers such as timesheets and labor records that document completed work products.
Review the status of salary accounting and salary compensations at Nhat
About the management accounting system at Nhat Minh Business Management Consultant Limited Liability Company
The accounting structure of the organization effectively supports the company's operational and developmental needs It is evident that the accounting system features well-defined roles and responsibilities that align with the qualifications of the accountants.
Our team, comprised of experienced professionals and skilled in computer applications, ensures that the accounting department, led by highly educated division heads, effectively manages tasks This guarantees that the voucher system aligns with requirements and serves as a legal foundation for all economic operations.
The company implements clear regulations for document application and circulation to reduce errors in the process This ensures a safe and secure method for creating and distributing documents, while also clarifying the delegation of approval.
- check of term, the regular vouchers are checked and supervised by the accountant.
Nhat Minh Business Management Consultant Limited Liability Company has implemented a unified account system to address current accounting needs, enabling effective monitoring of the company's financial situation By utilizing a general diary accounting book system alongside Misa.NET accounting software, the company minimizes accounting tasks, accelerates information processing and reporting, and facilitates error detection Each accountant, with specific tasks and functions, operates solely within their designated module, enhancing control and ensuring data security.
Salary accounting at the company
The salary accounting, social insurance, health insurance, and trade union contributions at Nhat Minh Business Management Consultant Limited Liability Company adhere to the regulations set forth by the Socialist Republic of Vietnam The accounting practices comply with the Ministry of Finance's guidelines and the company's internal policies, particularly following the accounting regime outlined in Circular 200/2014/BTC Additionally, the company has equipped all departments with computers, printers, and copiers, ensuring a connected system via the Internet and LAN for efficient and seamless information flow.
The company uses capital effectively, there is not too much state debt, but the workers' capital appropriation is equal to
Organizing the labor rearrangement to suit the content of technology process work to take full advantage of labor capacity and salary distribution according to the efficiency of labor contribution
Salary accounting and compensation calculations have been finalized, taking into account each job, project, work item, and the number of working days Employees within the company have successfully completed this process.
The limitations and causes of salary accounting at the company
About the corporate accounting apparatus, the organization of work still has many contradictions and is not suitable with the competence level of each accountant.
Accountants are responsible for updating data, yet they often lack knowledge about the data updating processes in other operational areas, which can lead to a lack of visibility regarding its impact on the overall company processes.
International language and computer skills of accountant are not really fluently and professional so that accounting software improved and upgraded to the new version is a barrier
The company's manual timekeeping system relies heavily on human input, leading to inaccuracies and inefficiencies in salary accounting The use of Excel software for this process results in a significant workload, and errors can occur when copying formulas, causing discrepancies in reports and delays in timely reporting.
A significant drawback at Nhat Minh Business Management Consultant Limited Liability Company is the salary structure, which combines salary ranks with working time for positions that do not require advanced technology This approach results in a disconnect between employee compensation and the actual nature and extent of their work, leading to labor loss Consequently, the salaries do not adequately reflect the intellectual contributions and efforts of the employees, ultimately hindering labor cost savings and reducing overall production and business efficiency.
Service, strengthening, inspecting and controlling the Company should apply the salary method according to the working time in combination with the score.
The bonus regime plays a crucial role in motivating employees, as appropriate remuneration can effectively encourage them to reach their full potential and enhance creativity, ultimately boosting production efficiency However, the Company has not fully leveraged its bonus system, which includes both regular and periodic bonuses; currently, only regular bonuses are utilized, neglecting the benefits of periodic rewards.
- Number 4: Vouchers and books for accounting.
At the end of each month, the accountant creates a salary distribution table that only includes a single column for "minus social insurance" and a total column This limited information obscures details such as individual salaries, allowances, other expenses, trade union fees, social insurance, and health insurance for the quarter Consequently, this lack of transparency complicates data verification and comparison, as well as the calculation and distribution of these amounts.