INTERNATIONAL SCHOOL GRADUATION PROJECT PROJECT NAME ACCOUNTING OF SERVICE AND DETERMINING THE BUSINESS RESULTS AT INSIGHT HANOI TRAVEL AND SERVICES JOINT STOCK COMPANY STUDENT’S N
Overview of Insight Hanoi Travel and Services Joint Stock Company
The process of formation and development of Insight Hanoi Travel
and Services Joint Stock Company
2LLL Overview of Insight Hanoi Travel and Services Joint Stock Company
The Company is a Joint Stock Company, operating under the Enterprise Law and other current regulations of the Socialist Republic of Vietnam
- Company Name: Insight Hanoi Travel and Service Joint Stock Company
- Address: No 81, Group 55, Nguyen Kha Trac, Mai Dich, Cau Giay district,
Insight Hanoi Travel Joint Stock Company was established on January 2, 2016 by the Hanoi Department of Planning and Investment, 0108564604
Hanoi-based Insight Hanoi Travel Joint Stock Company, based in Hanoi, is a design company that provides custom group tours and itineraries to Vietnam and Southeast Asia countries
2.1.2 Features of service business activities at the Company
2.1.2.1 Functions, duties, business lines and characteristics of business services of the enterprise
Insight Hanoi Travel and Services Joint Stock Company is an independent organization specializing in providing comprehensive travel services Our main goal is to cater to the travel needs of individuals and organizations both domestically and internationally We are committed to delivering high-quality travel solutions that ensure customer satisfaction and seamless travel experiences.
In today's highly competitive market environment, our company is committed to sustainable development by diversifying its business lines This strategic approach aims to strengthen our market position and increase market share, ensuring long-term growth and resilience in the industry.
Tourism - Tournament full of competition
*ằ Business lines and characteristics of business services
Insight Hanoi Travel and Services Joint Stock Company Hanoi specializes in providing travel services, tours at home and abroad
Characteristics of accounting work at the Company se TỔ 1 Organizational structure of the accounting apparatus in the Company 16
221 Organizational structure of the accounting apparatus in the Company
Organizational structure of the accounting apparatus:
An effective accounting system begins with determining the number of accountants required, clearly defining the responsibilities of each accounting department, and establishing their relationship with other departments within the company.
The accounting organization must be simple, clear, easy to understand and assign reasonable and scientific responsibilities Apply appropriate accounting methods to strictly manage production and business activities
Based on the unique characteristics of business organizations and management structures, as well as the specific accounting practices aligned with the conditions and qualifications of Company Insight Hanoi Travel and Services, our approach ensures comprehensive compliance and optimized operational efficiency This tailored framework supports the company's growth by integrating management strategies with accurate financial reporting suited to its organizational needs.
Joint Stock Company in Hanoi organize accounting work under the centralized model,
According to this model, all accounting work is done in the accounting department of the Company
The chief accountant oversees all of the company's accounting functions, making key decisions within the accounting department They advise and assist the director, taking responsibility for the overall management of the company's financial records Additionally, the chief accountant often serves as the general accountant, preparing accurate accounting reports to support informed decision-making.
2 Accounting of turnover, liabilities, taxes: ee
Track the situation of revenue and expenditure and write a receipt, track details of each customer's debt and check the accuracy of that debt
White invoices for sold goods and declare the tumover of each kind of goods
Monitor and declare taxes on the software: Input VAT, Output VAT, CIT, PIT (if any)
3 Accounting of capital in cash, payment of wages, Insurance cum cashier:
Responsible for maintaining the cash fund book and handling bank deposits, ensuring accurate monitoring of revenue and expenditure related to water charges, installation fees, supply purchases, and payments for external services.
Ensure accurate accounting of employee labor outcomes, including working hours, productivity, and quality results Timely payment of wages and proper deduction of salaries are essential, along with regular analysis of the salary fund utilization to maintain financial efficiency and employee satisfaction.
Responsible for daily and monthly monitoring of cash import, export, and inventory, including bank deposits, to ensure accurate financial records Conducting regular cash audits, recording cash transactions, and preparing comprehensive fund inventory reports to maintain precise financial oversight Collating and reconciling cash funds at month-end to support accurate accounting and financial reporting.
Organization of the accounting apparatus at Insight Hanoi Travel and Services Joint Stock Company
—s capital in cash, liabilities, ae, = taxes
2.2.2 Accounting policies applied at the Company a, Accounting organization
Enterprises apply the accounting regime according to Circular 133/2016 / TT-BTC issued on 08/26/2016 of the Ministry of Finance
In addition, the organization of the accounting apparatus has the following characteristics:
- Accounting year: Starting from 01/01/N and ending on 31/12/N
- The monetary unit used in accounting is Vietnam dong
- Fixed asset depreciation method: Straight line
- Calculate VAT using the deduction method
- Accounting software to use: Misa
- Accounting book form: General journal b Organization chart of accounting records in the form of a general diary
' cle Summary book of details
Diagram 2.2 : Accounting organization in the form of General Journal
Record at the end of the month, or periodically ———>
Each day, transactions are initially recorded in the general diary based on vouchers used as the book entry basis The accounting software then automatically posts these transactions to the appropriate ledger accounts and relevant detailed books After verifying the accuracy through reconciliation, the recorded figures in the ledger and summary tables are used to prepare accurate financial statements In principle, the total debit amounts and credit amounts arising from these transactions should balance, ensuring the integrity of financial records.
The credit on the balance sheet for an arising amount must equal the combined total of the debit and credit amounts recorded in the General Journal for the same period It is important to note that the company does not establish a separate journal for this purpose, ensuring accurate and balanced financial reporting.
In order to mitigate the complex capital accounting at the unit, the Company used MISA accounting software to perform the accounting of economic transactions arising at the enterprise
Key features of MISA SME.NET 2017 accounting software
- Supporting enterprises in accounting management: Including 13 modules to manage invoices, money and assets, ete
- Warehouse Management: Helps businesses control all tools and instruments contained in the warehouse including: import, export, and inventory
Efficient salary and fixed asset management enable accountants to accurately handle the company's fixed assets, including automated calculation of detailed depreciation for each asset This system reflects any increases or decreases in asset value, ensuring precise financial tracking and reporting.
Our platform features essential modules including the Price Module and Tax Module, designed to facilitate accurate tax payments in compliance with the standards set by the tax authorities Additionally, the General Module offers comprehensive tools for summarizing profits and losses, preparing financial statements, and closing books by accounting periods These modules work together to streamline financial management, ensuring accurate reporting and regulatory compliance.
The Company's bookkeeping process is shown in the following chart:
SOFTWAR Lư ING E - summary | book
Diagram 2.3: Chart of accounting software applied at the Company
Print books, report at the end of the month and year —>
Actual situation of service revenue accounting and service business results
Characteristics of service delivery and determination of service business
2.3.1.1 Service provision activities of the Company
Insight Hanoi Travel Joint Stock Company is a company that designs and provides customized tours and itineraries to Vietnam and Southeast Asia countries
Services provided by the Company include:
The company has 2 main customers: business customers and retail customers
Services are provided within the national territory, catering to domestic needs
Customers of the Company are usually business customers and individual customers Services are primarily provided and take place within the territory of
+ Enterprise customers are units, organizations and businesses, Customers are very diverse and can be production units or business units in the country and abroad, private commercial companies,
+ Individual customers: The service pack is sold to consumers The target audience is domestic and foreign individuals who have demand for services regardless of race and nationality.
Accounting of service provision revenue and sales deductions 21
Revenue represents the total economic benefits an enterprise gains during an accounting period, stemming from its regular business and production activities It contributes to increasing the company's equity and is calculated based on the fair value of amounts received or expected to be earned This calculation accounts for trade discounts, sales rebates, and returned goods to ensure accurate revenue recognition.
Determining revenue from service provision’
Sales of goods and Sales of goods by h = Service deductions services invoice
According to VAS 14, sales are recognized only when all of the following 5 conditions are simultaneously met
- The enterprise has transferred most of the risks and benefits associated with ownership of the product or goods to the buyer; es
~ The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold
~ The revenue can be measured reliably
~ Businesses have gained or will gain economic benefits from sales
- Determine the costs associated with the sale ằ Accounting vouchers used:
- Receipt, credit note, bank transfer check
And some other relevant documents ằ Accounting books used:
- Accounting books that businesses use: Account 511, General journal numbers,
Summary: Service provision revenue in 2019
Revenue from services provided 1,501,982,889 278 overseas total §,401,558,428 100
The sales process begins with the salesperson preparing a sales document, which is then handed to the sales accountant to create the VAT invoice The sales slip is signed by the sales staff, chief accountant, and storekeeper, ensuring proper authorization before being delivered to the customer This streamlined procedure facilitates accurate record-keeping and compliance with VAT regulations.
+ VAT invoice: As a sales accountant is made in 3 copies, then verifies the information on the invoice, makes sure the accuracy and then sends it to the
The director will sign all three copies of the invoice, with the customer signing as the buyer One copy remains with the company for volume documentation, the second copy is handed over to the customer, and the third copy is retained for sales accounting to serve as the basis for book entries, ensuring accurate financial record-keeping and compliance.
+ Receipt: When selling cash, the sales accountant of the Company prepares
_—_——— ee a receipt from the software and then enters the necessary data The accountant only prints one copy of the receipt, then passes it to the chief accountant and the payer to sign it, then the receipt is kept by the sales accountant
Upon receiving the bank credit note, the sales accountant compares the amount with the detailed bank deposit book for each bank to identify any discrepancies If no accounting differences are found, the sale is recorded for data entry, and the credit note is then properly archived.
VAT Accounting Invoice, basing on inputting data into computer accounting program according to the software's procedure
Sales accountants are responsible for preparing three copies of VAT invoices They must carefully check all invoice details to ensure accuracy before handing the invoice to the customer for signature Once signed by the customer, the invoices are then forwarded to the director for approval and stamping, completing the verification and authorization process Proper handling of VAT invoices ensures compliance and audit readiness.
After issuing the VAT invoice, the sales accountant should collect the payment from the customer based on the invoice amount, prepare a collection slip for the customer's signature, have the slip signed by the chief accountant, and then generate and retain the receipt for record-keeping.
Based on Copies 03 of the receipt, added VAT Invoice, the sales accountant enters the data into the system
Y Cases of sale to Business customers
Revenue from corporate customers constitutes a significant portion of total income, primarily driven by the sale of high-priced tour packages Customers visit the sales office to execute sales, purchase, and service contracts, which include essential information such as business name, address, and legal representative details (with Power of Attorney if applicable) Both parties then agree on contract terms covering transaction details, pricing, payment terms and methods, service delivery schedules, and other relevant provisions.
Upon completing the contractual terms, both parties will sign a service provision agreement The sales department will issue three VAT invoices, similar to those issued for retail goods and services The invoiced value can be 30%, 50%, or 100%, depending on the specific terms outlined in the contract.
Illustration: On May 18, 2019, sales of packages of services provided to An
Thang Construction and Trading Joint Stock Company under Contract No 0000072
'VALUE ADDED INVOICE Symbol:TP / 19P Contact 2: Delivery to buyer No, 0000072
Sales unit: Insight Hanoi Travel and Service Joint Stock Company Tax code: 1008564604
Address: No 81, Nguyen Kha Trac, Group 55, Mai Dich, Cau Giay, Hanoi
Name of unit: An Thang Construction and Trading Joint Stock Company
Address: Number B47, Nha Phó Phó, Xã Phủ Cường, Soc Son District, Hanoi,
Form of payment: Bank transfer
No Namie ef goods and Unit Amount | Unit price | into money services
(Under contract No package first 150,000,000
Text: One hundred and sixty five million dong
Buyer (Signature, full Salesman (Signature, full Manager name) name) (Sign, seal, full name) es
> The revenue recognized after the completion of services is equal to the total amount exclusive of VAT
Y In case of sale to retail customers:
Sales to retail customers are facilitated through the Company’s Website or sales office, where sales staff provide expert advice on various service tour packages Customers can select the most suitable tour based on their needs, complete their payment, and receive vouchers for their purchases The accountant then issues VAT invoices for record-keeping and compliance purposes.
A valid VAT invoice must include essential details such as the date of issuance, sales unit, buyer’s information, product name, unit of measurement, quantity, unit price, total amount, applicable VAT, total payment amount, and signatures of the buyer, salesperson, and unit leader Including these details ensures compliance with tax regulations and facilitates clear transaction documentation Properly prepared VAT invoices are crucial for accounting accuracy and legal compliance in business transactions.
The sales accountant thoroughly reviews the VAT invoice to ensure its reasonableness and validity, then accurately inputs the data into the computer system.
- The time of recognition of the Company's retail turnover coincides with the time when the Company makes a VAT invoice
Amounts reduced revenue Including the following main items:
Trade discounts are reductions offered by enterprises to service users when purchasing or providing services in large quantities, as stipulated in the economic contract of sale or purchase These discounts reflect the amount the company has reduced or paid back to the customer, emphasizing their commitment to bulk purchases and service agreements Incorporating trade discounts into contracts encourages higher-volume transactions and strengthens business relationships, benefiting both parties.
- Returned goods used: Used to reflect the tumover of the services sold returned by customers but due to the enterprise's fault such as violation of commitments, contracts,
- Sales rebates: Used to reflect discounts, discounts on service delivery during the period
VAT invoice, Bill of sale; Minutes of discount agreement, Economic contracts, Payment documents (receipts, credit notes, bank debit notes); Discount payment list
In the current financial regime, sales deductions may arise in the accounting period such as: trade discounts, sales rebates, and returned goods
In fact, the Company's service delivery situation is very good The company's services are planned, rigorously tested for quality before delivering to customers
Therefore, there was no discount in sales and sales returns in the period.
Cost of accounting for services provided at the Company
Documents used: Invoice of input VAT, invoice of input sales, list of purchased goods and services, payroll of staff directly leading the tour ằ Accounting accounts used ằ Account 632
> Accounting process Cost of services provided
- Accounting of expenses directly related to each Tour at the beginning of accounts 621, 622, 627 Combining from three (03) accounts to 154, from 154 is transferred to 632 at the end of the period
+ Account 621: Bus for direct transport, meals, hotels, sightseeing tickets, water money for guests, towels, hats, umbrellas,
+ Account 622: Expenses for tour guides directly involved, including salaries and insurance premiums of tour guides directly involved
+ Account 627: Salary of the executive department, local guides, Cost of clothing, footwear, gloves, speakers, backpacks and other general expenses,
In the accounting process, the software does not automatically calculate the cost of capital or input the cost price into the system Instead, it relies on the predefined cost associated with each tour code, which the program then aggregates automatically for comprehensive financial reporting.
- On MISA software, the software automatically calculates the average cost a TT] price of the Tour code and automatically updates the blank cost of goods in the previous sales documents
- Accounting books used: Ledger Account 632,
Summary table: Service capital value
Cost of service in the country 899,638,743 76.95
Cost of foreign services 269,483,325 2305 total 1,169,122,068 100
Accounting of business management expenses eee
- Selling expenses: including actual expenses incurred in the process of providing services, including costs of offering, product introduction, product advertising, service delivery commissions, wages member of the service division
This article outlines the key expenses involved in employee compensation and operational costs, including salaries, wages, allowances, social and health insurance, trade union fees, unemployment insurance, and labor accident insurance paid to service providers It also covers costs related to materials, labor tools, and depreciation of fixed assets used for service delivery Additionally, expenses for services purchased externally, such as electricity, water, telephone, and fax, are included, along with other miscellaneous monetary expenses necessary for smooth business operations.
Enterprise management expenses encompass all costs associated with production, business management activities, administrative operations, and other common enterprise items These expenses include managerial costs, management materials, office equipment, depreciation of fixed assets, taxes, fees, charges, contingency funds, and service costs Additionally, expenses incurred from external purchases and other financial transactions are also considered part of enterprise management expenses Efficiently managing these costs is essential for optimizing overall business performance and ensuring financial sustainability.
In each expense category, details of each expense content are monitored as follows: a) For selling expenses: ee
- Stafling expenses: reflecting payables to sales s†afF, including salaries, wages and deductions for social insurance, health insurance, trade union fees, unemployment insurance,
- Cost of tools and supplies: Reflecting the cost of tools and supplies for the process of selling service packs, calculation facilities, working facilities, ete
- Depreciation expenses of fixed assets: Reflecting the cost of depreciation of fixed assets in sales, sales,
Expenses for services purchased from outside, such as outsourcing, repair of fixed assets directly related to sales, and commissions paid to sales agents, should be reflected in the cost of goods sold These external service costs are essential for supporting the sales process and must be accurately recorded to ensure proper financial reporting and compliance with accounting standards Including these expenses helps provide a clear picture of the direct costs associated with selling goods and supports effective cost management.
Other cash expenses include various monetary costs associated with selling goods and providing services, such as expenses for accepting goods at sales sections, product introductions, promotional activities, advertising campaigns, special offers, and customer conferences Additionally, these expenses cover essential business management costs necessary for smooth operations and sales growth.
Management staff expenses include salaries, allowances, social insurance, health insurance, union funds, and unemployment insurance paid to enterprise management personnel, encompassing Board of Directors members and departmental managers.
The cost of management materials includes expenses related to exported materials used for corporate management, such as stationery, repair materials for fixed assets, tools, and other supplies These costs are reported based on their taxable prices or excluding VAT.
- Expenses for office supplies: Reflecting the costs of tools and office supplies used for management (with or without VAT)
- Depreciation expenses of fixed assets: Reflecting the depreciation expenses of shared fixed assets for enterprises such as: Working houses of departments, warehouses, architectural objects, transmission _ means,
| management machinery and equipment Used in office,
- Taxes, fees and charges: This reflects the costs of taxes, fees and charges such as excise taxes, land rents, and other charges and fees
- Contingency expenses: reflecting provision for doubtful debts, payables for provision in the enterprise's production and business costs
- Expenses for services purchased from outside: Reflecting costs of services purchased from outside in service of enterprise management,
Other cash expenses encompass various costs under the company's general management that are not included in previous categories, such as expenses for conferences, receptions, travel allowances, coach services, and expenses related to female employees' labor.
> Content of business management costs at the Company
General and administration expenses at the Company, including selling expenses and administration expenses, are all actually incurred during the sales process:
- Salary expenses and salary deductions for salespeople and administrative personnel
- Expenses for services purchased from outside: petrol, electricity, telephone charges,
- Other expenses in cash s* Depreciation expense of fixed assets:
The company is calculating the depreciation of fixed assets on a straight-line basis By this method, the average depreciation is calculated as follows:
Annual plan deduction level = Historical cost of fixed assets / time of depreciation
Monthly plan of deduction = Annual depreciation rate / 12 months
- Documents used: Spreadsheets and amortization of fixed assets for sales and a | corporate management
‘Salary expenses and salary deductions:
- Salary method applied by the Company: Salary based on time (in months), standard day of the month is the number of working days in a month, excluding
Salary = Monthly salary - (Monthly salary / Standard working day of the month) * Number of unpaid leave days
- Salary deductions (social insurance, health insurance, unemployment insurance) of business staff in accordance with current regulations According to
Decision 595 / QD-BHXH of Vietnam Social Insurance applied from June 1, 2017, the ratio of salary deductions has been adjusted In total, enterprises have to pay
32% of social insurance to the social insurance agency (deducted from employees! salary of 10.5%), before June 2017 is 32.5%
Deduction of expenses Extracted from
Salary deductions total of enterprises (%) | employees'salaries (%)
Monthly accounting vouchers are used to calculate employee salaries, bonuses, and allowances, including main salary, supplementary salary, lunch allowance, petrol, phone, and job allowances These calculations are primarily based on timesheets, leave applications, and various supporting documents to ensure accurate payroll processing.
4 Expenses for office supplies and other cash expenses:
- Other expenses in cash of the Company are mainly: petrol, telephone, electricity, water, The cost of outsourcing services and other expenses of the
Company at present are mainly for electricity, water, telephone and reception
- Expenses for stationery supplies of the Company include expenses for purchasing office supplies such as repairing and refilling printer ink and necessary stationery supplies
+ VAT invoice for purchased services
Items ‘Amount of money Ratio (%) workers cost 85,380,000 T711
Cost of tools and supplies 5,589,780 5.05
Depreciation cost of fix 5,150,000 4.65 asset
Accounting of corporate income tax eXpenses
Current Corporate Income Tax: Is the amount of CIT payable (or recoverable) calculated on the taxable income and CIT rate of the current year
The current formula for determining CIT:
Current CIT = x income tax according to current year current regulations
Income taxes in the current year = Revenue - Deduetions + Other income
Revenue includes sales of goods and services, financial revenue (if any) and other revenues
Deductible amounts include: sales deductions, cost of goods sold, selling expenses, corporate management expenses, and financial expenses (if any)
- Account: 811- Corporate income tax expenses
At the end of each temporary accounting period, such as a quarter, accountants summarize the business performance by preparing an income statement using accounting software This financial statement captures the company's results for the quarter, enabling accurate analysis of profitability The quarterly income statement provides insights into revenues, expenses, and net profit, which are essential for evaluating financial health and making informed business decisions.
CIT involves filling out the provisional corporate income tax return after the end of the fiscal year On December 31, the company finalizes its annual financial results, recording accounting entries that reflect the year's tax expenses This process ensures accurate reporting of corporate income tax obligations based on the year's business performance.
Accounting to determine service business results at the Company 32 2.4 Advantages & Limitation at Insight Hanoi Travel and Services Joint Stock COMPAS, cancinsioonnnansansnaroanionn 4a kc seocos aches issoncnannnsns sendnnionaninareraenes oO
2.3.6.1 The content of accounting determines service business results at the
Business results are used to determine and reflect the results of business operations and other activities of an enterprise in an accounting period
Service business results are calculated by subtracting the total costs from net revenue, including the capital value of services provided such as products, goods, investment properties, and related expenses Key activities in investment real estate, such as depreciation, repairs, upgrades, operating leases, liquidation, and sale of properties, significantly impact these results Additionally, service provision costs and business administration expenses play a crucial role in determining overall profitability Optimizing these factors is essential for enhancing financial performance within service and real estate investment businesses.
- The formula to determine business results:
(2)-Net revenue from sales of goods and rendering of services
Business results after Business results Corporate income tax before tax tax expense
Insight Hanoi Travel and Services Joint Stock Company evaluates its business results annually, with accountants closing the books and calculating overall performance at the end of each fiscal year The company does not assess monthly or quarterly results but focuses on comprehensive annual financial statements The process of determining business outcomes is streamlined through straightforward updates and manipulations within the company’s accounting software.
Business results of an enterprise include normal business results and other operating results
Account used: Account 911 - Determining business results
Account 821: "Corporate income tax expense" ằ Accounting books used: Ledger of Account 911, 421
2.3.6.2 Preparation and presentation of financial statements in 2019 (Unit: VND)
- On the Business Result Statement:
The sales target for goods and services is based on the accumulation of the arising amounts during the reporting period The credit amount recorded in Account 511 in the ledger report (MS 01) for this period is 5,401,558,428, reflecting the total sales generated within the specified timeframe.
+ Net revenue targets on goods sale and service provision (MS 10) is determined by: MS10 = MS 01- MS 02 = 5,401,558,428
(because there are no sales deductions at the Company)
+ Cost of goods sold: Based on the accumulated credit arising on the Credit side of
Account 632 corresponding to Account 911 in the reporting period (MS 11), the following figures on this index shall be obtained: 3,889,122,068
+ Target Gross profit on sales and service provision(MS 20) is determined by: MS
Report on business results in 2019
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To ensure efficient production and business management, the company utilizes modern computer systems, with accounting tasks consistently performed using Misa software across all departments.
Our company is highly systematic, ensuring that updating accounting books is quick, simple, and efficient Daily receipt of accounting vouchers is promptly entered into the computer system, facilitating easy printing and comparison By leveraging computer-based accounting, data management becomes more secure, reducing manual workload and minimizing errors Additionally, the use of a local area network (LAN) connects all departments, enabling seamless communication and allowing accountants to access and process information in a timely manner, streamlining overall financial management.
2.4.1.2 The application of accounting regime
- With the application of accounting book form, the Company has complied with the financial and accounting regimes currently prescribed according to the documents of the Ministry of Finance
2.4.1.3 About the organization of the accounting apparatus
Our team of dynamic and enthusiastic accountants brings extensive experience and a strong sense of responsibility to every project They stay constantly updated with the latest information and quickly adapt to changes in accounting standards, ensuring accurate and compliant financial services.
- Assign work to each accountant clearly, in work there is always mutual support
- There are sufficient computers for each employee and other equipment for accounting work
- The data entered into the system are very detailed and complete, thus helping to perform and solve financial analysis and corporate govemance
- Compliance with the accounting regime
- Strict input order, transparency and process compliance
Understanding the operation and processes of accounting service enterprises reveals common limitations faced by these businesses Key challenges often include difficulties in accurately accounting for revenue and determining business results These issues pose risks to the integrity of the accounting process, potentially leading to errors, financial losses, and compliance problems during audits Addressing these core issues is crucial for ensuring accurate financial reporting and minimizing operational risks.
The first is the issue related to the flow of invoices, creating and keeping document for tax and accounting purposes:
Delays in transferring company documents and invoices to the accounting department hinder timely recording of consumption, leading to missed declarations in subsequent quarters This issue is common among small businesses and service providers, where delayed or missing documentation affects revenue recognition, transaction legality, and compliance with tax regulations Ensuring prompt submission of complete documents is essential for accurate financial reporting and tax compliance.
* For the original document, in the accounting process, because it was a small unit, the company omitted a few unnecessary documents when the accounting process took place such as payment request form, request form purchases, business decisions, etc This causes problems in the tax inspection process, which will be considered as non-deductible and increase the tax payable to the business This leads to difficult and
36 inaccurate business results determination and causes the company to increase unnecessary expenses
The second is about accounting work
* For account 642 - Cost of business management: The problem with the service company (small company) is that it is not divided into multiple accounts, but is generally accounted on account 642 This leads to difficulties in management and allocation issues, especially for selling expenses and business management costs Because of these shortcomings, revenue accounting was difficult because it was unable to separate sales and management expenses This also partly leads to difficulties in determining business results
The company’s compliance with accounting regulations reveals several issues, including over VND 20,000,000 in revenue collected via cash instead of bank transfers, violating Circular 78/2014/TT-BTC Additionally, expenses for services provided by individuals lack proper documentation confirming work completion, creating challenges in accounting verification and increasing inspection risks Furthermore, the company has depreciated assets faster than the permissible limits without notifying the tax authorities, exposing it to potential legal penalties.
2.4.3 The cause of the restriction
- Because the workload of the accounting department staff is very large, mainly concentrated at the end of the month
- Complicated accounting operations affect the time to complete the report to es ee the Corporation
- Due to the nature of the industry, the implementation of discount discounts is difficult because it must be placed in relationship with other suppliers: For example;
To Sum up, After enquired about Insight Hanoi Travel and Services Joint
I gained valuable insights into the business activities, organizational structure, and the operation of the company's accounting system, with a particular focus on revenue accounting This understanding helped me assess the company’s ability to determine business results accurately I observed that the company is steadily developing and progressively establishing a strong market position Overall, the accounting system functions effectively, providing practical benefits that support the company's growth and success.
The company's accounting processes currently face limitations in organizing service revenue accounting and accurately determining the results of service provision Overcoming these challenges is essential to enhance financial accuracy and compliance with accounting standards Addressing these issues will improve transparency and efficiency in the company's financial reporting.
PART 3: PROPOSAL AND SOLUTION FOR COPANY
3.1 Solutions to improve revenue accounting at Insight Hanoi Travel and Services
To address the primary issues of errors in revenue accounting and accurately determining business results, small and medium enterprises must focus on thorough review and process improvement Implementing effective solutions ensures reliable financial reporting, supports steady business growth, and minimizes unnecessary risks These strategies are essential for helping SMEs develop sustainably and achieve long-term success.
About the process of invoices, creating and keeping document
Ensuring the proper collection of all valid invoices, tickets, and receipts—including meal and drink expenses for business guests, business travel invoices, and transportation tickets—is essential for accurate accounting This process is a critical part of the business operations that support efficient service delivery and financial management Accurate documentation not only facilitates transparent financial reporting but also complies with accounting standards and regulatory requirements Implementing a systematic approach to collect and verify these valid documents helps streamline the business process and ensure smooth operational workflows.