Academy of Finance Graduation Thesis DECLARATION I, Lê Thanh Thủy, hereby declare that this thesis and the study presented in it are my own and have been generated by me as the result of my own original research Thesis:“Completing accounting for salary and deductions from salaries at Welding Technology and Equipment Company” Hanoi, May 21, 2018 Student Lê Thanh Thủy Lê Thanh Thủy CQ52/51.05 Academy of Finance Graduation Thesis ABSTRACT This research involves the process of accounting for salary and deduction from salary of enterprises in Vietnam in the context that global trade has obtained extremely fast growth The purpose of the study is to contribute to the fundamental theory of building accounting for salary and paying salary processes, which can help businesses to better process payroll accounting This has been done by examining the relevant literature and scenarios at WELDTEC…,in the period of 2015 - 2017 Questionnaires and interviews were also conducted for the collection of data and viewpoints of staff The first phase of the study involves reviewing literature which relates to accounting for salary and deduction from salary The second phase, upon the examination of figures and documents, aims to reflect the process of accounting salary and points out the company’s advantages and disadvantages The final phase involves solutions and recommendations to improve the current situation of WELDTEC Through analysis, it can be seen that ineffective payroll and payroll operations at WELDTEC are due to a number of reasons, including the need for timekeeping procedures Therefore, the solutions and directions in the study are expected to improve WELDTEC's current accounting status Lê Thanh Thủy CQ52/51.05 Academy of Finance Graduation Thesis ACKNOWLEDGEMENTS Firstly, I am deeply indebted to my supervisor MBA Pham Phuong Oanh whose help, stimulation suggestions and encouragement helped me all the time of research for and writing of this thesis I also want to thank WELDTEC co., ltd for giving me permission to commence this thesis in the first instance, to the necessary research work and to use departmental data I have furthermore to thank the General Manager as well as all seniors at WELDTEC co., ltd who gave and confirmed this permission and encouraged me to go ahead with my thesis My friends from Foreign Language Faculty also supported me in my thesis I would like to thank them for all their help, support, interest and valuable hints Especially, I would like to give my special thanks to my family whose patient love enables me to complete this work Finally, because of limitation of time and knowledge, mistakes are unavoidable, so I wish to have more opportunities, I also wish to receive more contribution and suggestions to make my thesis better Lê Thanh Thủy CQ52/51.05 Academy of Finance Graduation Thesis LIST OF ABBREVIATIONS Abbreviations Acc De Cr VAT WELDTEC Full Phrase Account Debit Credit Value Added Tax Welding Technology and Company Lê Thanh Thủy Equipment CQ52/51.05 Academy of Finance Graduation Thesis LIST OF FIGURES AND TABLES Table 2.1.2 Situation of turnover, cost and profit of the company 18 Table 2.1.3: Structure and management apparatus of WELDTEC co., ltd .21 Table 2.2.2.1.1 Employee time sheet .24 Table 2.2.2.1.2 Payment sheet 26 Table 2.2.2.2 Payable to employees subsidiary ledger 30 Lê Thanh Thủy CQ52/51.05 Academy of Finance Graduation Thesis TABLE OF CONTENTS DECLARATION i ABSTRACT ii ACKNOWLEDGEMENTS iii LIST OF ABBREVIATIONS………………………… …………………… … iv LIST OF FIGURES AND TABLES v PART I: INTRODUCTION .1 1.Rationale .1 Aim of the study Scope of the study Methodology Organization of the study .2 CHAPTER 1: GENERAL THEORY ON ACCOUNTING FOR SALARY AND DEDUCTIONS FROM EMPLOYEES’ SALARIES 1.1.Basic features of accounting for salary and deductions from employee’s salary 1.1.1 Concept on salary 1.1.2 Deductions from employees’ salaries .4 1.1.3 Salary funds and salary regulation 1.2.Content of accounting for salary and deductions from salary 11 1.2.1 Accounting for salary 11 CHAPTER 2: THE REALITY OF ACCOUNTING FOR SALARY AND DEDUCTIONS FROM SALARIES IN WELDTEC 17 2.1.An overview about WELDTEC .17 2.1.1.The information and development of the company 17 2.2.The main contents of accounting for salary and deductions from salary in WELDTEC 23 2.2.1.Types of paying salaries in the company .23 2.2.2 Contents of accounting for salry 24 2.2.3 Contents of deductions from employees’ salaries in the company 38 Lê Thanh Thủy CQ52/51.05 Academy of Finance Graduation Thesis CHAPTER 3: SOME CONSTRUCTIVE IDEAS TO BETTER THE ACCOUNTING FOR PAYROLL AND DEDUCTIONS FROM EMPLOYEES’ SALARY IN WELDTEC 44 3.1.Comments on accounting for salary and deductions from salary in WELDTEC 44 3.1.1.General comments on the accounting work at the Company: .44 3.1.2.Comments on the accounting for salary and salary deductions at the Company 45 3.2.Constructive ideas to make good accounting’s for salary and deductions from salary 48 3.2.1.The need to improve the accounting of salary and salary deductions 48 3.2.2.Constructive ideas to make good accounting’s shortcomings for salary and deductions from salaries 49 CONCLUSION .53 Lê Thanh Thủy CQ52/51.05 Academy of Finance Graduation Thesis PART I: INTRODUCTION Rationale In any society, all of enterprises have to focus on improving quality of auditing the accounts Accounting information must reach the truth and accuracy, they are the basic of foundation that the enterprise relys on in order to make the best decisions serve to the demands from the market, produces, properties of practices business activities in order to get the maximum profit in return This takes to the result of improving and raising the labor’s living standard, one of the most important factors in doing business activities Following the modern structure of the Government State, in the years gone by, Viet Nam enterprises consider accounting for salary and salary deductions as one of the most important parts that can not be omitted in their auditing the accounts task This not only shows the effectiveness of the inputs but shows the fair of the social economic, ensures following the salary policy of the Government State, shows the benefit between enterprises and their labor, takes part in supplying information accurately and adequately, helps the enterprises in managing the manufacturing plan During my intership at Welding Technology and Equipment Company, I found that the company has been in problems with its salary Beside the strengths, the company still exists some weaknesses that needs to innovate in order to adapt to the acquire of the current business activities such as managing and using labor cost, applying microcomputer system, etc From the analysis of urgency in both theory and practice in the company, I have decided to choose the graduation thesis’ title: “Completing accounting for salary and deductions from salaries at Welding Technology and Equipment Company” Aim of the study My study has three objectives: Lê Thanh Thủy CQ52/51.05 Academy of Finance Graduation Thesis First, it is to contribute to the background theory of accounting for salary and deduction from salary, which is done by pointing out definitions, accounts used and accounting entries for each account related to salary in an administrative unit Second, it is to illustrate how an administrative unit does accounting for salary and deductions from salary by taking scenario at Welding Technology and Equipment Company as a case for study Third, it is to review Welding Technology and Equipment Company’s achievements and limitations and to suggest possible solutions to improve the accounting performance for salary and deduction from salary in the future Scope of the study The study was conducted in the fiscal year from 01/01/2015 to 31/12/2015 and from 01/01/2016 to 31/12/2016, which focusing on accounting for salary at WELDTEC The company is located at Tran Thai Tong stress, Dich Vong Hau ward, Cau Giay district, Ha Noi Methodology The study was carried out by using many research methods and instruments of which interview and questionnaire were used as main instruments for data collection The questionnaire recommendations from was designed to collect staffs in Administrative opinion, ideas and Department, Accounting Department The questions in the questionnaire focused on the main subject of the study In terms of the interview, the interviewees are asked to answer questions and give their own perspectives about paying salary Thus, all the collected information and statistics and opinion are objective, relevant, central and useful for the study Organization of the study Except for the introduction, conclusion, references and documents attached, the main content is divided into three chapters as follow: Chapter 1: Literature review- Theory on accounting for salary and deduction from salary Lê Thanh Thủy CQ52/51.05 Academy of Finance Graduation Thesis Chapter 2: The study- The reality of accounting for salary and deductions from salary in WELDTEC Co., Ltd Chapter 3: Recommendations- Some constructive ideas to complete the accounting for salary and deduction from salary in WELDTEC Co., Lt Lê Thanh Thủy CQ52/51.05 Academy of Finance 50 Graduation Thesis expenses for each employer in the company, the accounting should be classified more specific and more cost-effective organization Solution 5: The accounting should be consistent and complete the accounting book compact but still ensure the necessary information in accordance with regulations and accounting principles, avoid duplication to increase the amount of unnecessary work Solution 6: Paying salary to employees: Continuously study the policies of the Party and the State on the work of salary and salary deductions to apply to his company in a scientific and reasonable manner consistent with the situation of production and business activities At the same time, the company must improve to improve the management of payroll and payroll deductions Regularly check, look to draw the forms and methods of paying science, unfair to workers Solution 7: On the management of time and quality of workers In view of the company's limitations mentioned above, the date of labor is the basis for calculating basic salary payable to employees In addition to reflecting the actual number of working days in a month, it also reflects the employee's sense of responsibility Therefore, accurate timekeeping is essential to ensure the equality of labor force has been spent as well as the basic for managers to assess the working attitude of each employee in the company In the company, payroll accounting is responsible for gathering time sheets and calculating the actual working days of employees to calculate wages The departments in the Company are responsible for specific timekeeping for each employee in their department and the accountant does not directly monitor this timekeeping In the time sheet does not reflect whether the employee worked full time or not So, to overcome this situation, payroll accounting should be regularly monitored and monitored to be more accurate In addition, to manage the situation of late work as well as the actual work hours of each company staff should use the "Time Attendance Card" to evaluate the work day is more comprehensive and Lê Thanh Thủy CQ52/51.05 Academy of Finance 51 Graduation Thesis accurate The information on the time card is absolutely accurate Company should install the card stamping machine is being applied by many businesses are effective today Based on the “Time Attendance Card”, managers should have timely reward policies for employees who work full time or overtime and take measures to correct those employees who not have enough time Solution 6: Raising staff income In this period, the salary of staffs in the company is not high So, the company needs to increase wages for employees to ensure a reproducible labor in the environment of the company profitable or less profitable The determination of the company's profit is always made after the determination of salary fund paid to employees To achieve this, the company needs to take measures increasing the salary fund company that is growing wage raise, increase the income of workers as follows: Expanding the scale of production, increase the number of finished products in the industry; Improving product structure, the company needs to carefully study the finished products that they supply to meet the increasing market demand; Improving the quality of each product, reduce waste, determine the suitable price This is a vital task for the quality of the company is increasingly enhanced; Exploiting all the available potentials of the company, promoting the advantages of business characteristics, machinery and equipment, capacity of management organization, development of professional production combined with general business to increase revenue for the company; Applying new scientific and technological achievements to reduce living labor, to conduct joint ventures to make full use of scientific and technological advances for production and business and expand the scope of partners in the market.; Improving the living standards of employees, effectively leverage the salary, distribute internal salary funds to ensure both stimulate development and ensure equity in the company Solution 7: Setting up a suitable bonus system Rewards are significant, it is a direct force to help workers increase labor productivity and bring about high economic efficiency Lê Thanh Thủy CQ52/51.05 Academy of Finance 52 Graduation Thesis Solution 8: Strengthen the training of managers and workers Improving the efficiency of employers is a matter of concern to every business Being a construction company requires a highly skilled workforce to better serve the needs of production and business Although the company has made great progress in production and business, in the coming years with the mechanism of opening under the pressure from domestic and foreign competitors together with the increasing demands of customers have placed The high demand for the company is to have the work of high quality, reasonable price Therefore, it is very important to improve the skills of the employees To achieve that, it is a requirement of enterprises to organize labor in a scientific way, combining to regulate the process of human activities and elements of the production process to bring about productivity Higher labor, efficiency to the optimal level Therefore, at the end of the business period, the company must analyze the labor situation in order to evaluate and check the fluctuation of the usage situation, working time, professional level, and so on Improving the skill level for laborers, first of all to classify laborers based on work requirements and production orientations, and plan to improve professional skills for employees of the company With a low level of skill, the company should train by sending staff to study more, invest funds the company has administrative measures to consciously carry out internal regulations Establish a rigorous quality control and quantity control system to make the right decisions for short-term contract workers, ensuring the labor market is plentiful in our country Lê Thanh Thủy CQ52/51.05 Academy of Finance 53 Lê Thanh Thủy Graduation Thesis CQ52/51.05 Academy of Finance 54 Graduation Thesis CONCLUSION WELDTEC co., ltd has been doing its business well and step by step created its own image in the market by establishing more and more relationships with both domestic and foreign clients In every process of business, the company always considers the quality, efficiency and the reputation over the other aspects Of which, the reputation is the thing that WELDTEC always pay attention to In order to obtain that big objective, it requires not just one individual but all departments to work hard with each other and make efforts and take high responsibility in doing every work At present, WELDTEC has not yet a company that has reputation; however, its business seems to have signs from both outside and itself to develop in the future For three months of internship at WELDTEC co., ltd, I have learnt a lot of knowledge as well as gained much valuable real experience which makes me understand more about the job that I have interested in Many of my questions have also been answered through this interesting time at WELDTEC co., ltd Nevertheless, as the internship time at WELDTEC co., ltd is short, the solutions and recommendation that are suggested may not be perfect I hope to get the comments and opinions from lecturers and every staff in the company to make the study better Lê Thanh Thủy CQ52/51.05 Academy of Finance Graduation Thesis REFERENCES Circular 200/2014/TT-BTC Documents and data from departments of WELDTEC co., ltd Law on Accounting dated June 17, 2003; Websites: https://thuvienphapluat.vn/ http://www.dankinhte.vn/ https://www.google.com.vn/search?q=http%3A%2F %2F+investopia.com&rlz=1C1PRFE_enVN758VN758&oq=http%3A%2F %2F+investopia.com&aqs=chrome 69i57j69i58j0l4.1289j0j8&sourceid=chrome&i e=UTF-8 https://vi.wikipedia.org https://www.webketoan.vn/ http://danketoan.com/ Academy of Finance Graduation Thesis APPENDIX Appendix 01 CÂU HỎI PHỎNG VẤN VỀ LƯƠNG THƯỞNG VÀ PHÚC LỢI Cách thức trả lương Cơng ty có hợp lý hay không? Và chưa hợp lý điểm nào? Tiền lương trả hạn hay chưa? Tiền lương làm việc anh/ chị nhận hợp lý với sức đóng góp cho công ty hay chưa? Khi nghỉ phép, nghỉ ốm đau, nghỉ chờ việc anh/chị nhận tiền lương? Anh/ chị có nhận tiền thưởng dịp lễ, tết? Anh/ chị đóng bảo hiểm đầy đủ hay không? Công việc anh/ chị có phù hợp với ngành nghề đào tạo hay khơng? Anh/ chị có đề xuất, giải pháp để giúp hoạt động chi trả lương tốt hơn? Lê Thanh Thủy CQ52/51.05 Academy of Finance Graduation Thesis Appendix 02 MẪU HỎI VỀ HOẠT ĐỘNG HẠCH TỐN, VÀ CHI TRẢ LƯƠNG TẠI CƠNG TY WELDTEC Theo anh chị hoạt phận kế toán tiền lương hoạt động hiệu hay chưa? a Rồi b Chưa Theo anh hoạt động chi trả lương cho CBCNV chiếm phần trăm tổng chi phí cơng ty? a Nhỏ 20% b Nhỏ 40% c Nhỏ 60% d Lớn 60% Cơng ty thực quy trình chi trả lương tốt hay chưa? a Chưa b Chưa tốt lắm c Tốt d Rất tốt Hoạt động chi trả lương cơng ty gần gặp khó khăn ngun nhân gì? a Khó khăn thủ tục chấm cơng thiếu kinh nghiệm b Chưa hạch tốn rõ ràng tiền lương khoản trích theo lương c Ý kiến khác Đề xuất anh chị để giúp hoạt động hạch toánh, chi trả lương tốt hơn: Lê Thanh Thủy CQ52/51.05 Academy of Finance Graduation Thesis Lê Thanh Thủy CQ52/51.05 PHIẾU NHẬN XÉT THỰC TẬP Họ tên sinh viên: Lê Thanh Thủy Lớp CQ 52/51.05 Trường Học Viện Tài Chính Thực tập : Cơng ty TNHH Công Nghệ Thiết bị Hàn Đề tài:“Completing accounting for salary and deductions from salaries at Welding Technology and Equipment Company” Giảng viên hướng dẫn: Phạm Phương Oanh Chức vụ: Giảng viên khoa Ngoại Ngữ – Bộ môn Lý thuyết Tiếng Dịch – Khoa Ngoại Ngữ – Học viện Tài Nhận xét đơn vị thực tập: Về tinh thần, thái độ ý thức tổ chức kỷ luật Về đề tài: Xác nhận đơn vị thực tập Hà Nội, ngày tháng năm 2018 Cán hướng dẫn thực tập SUPERVISOR’S JUDGEMENT Supervisor: Comment Student: Class: 51.05 Intake: CQ 52 Topic: Completing accounting for salary and deductions from salaries at Welding Technology and Equipment Company Mark: - In number: - In word: Supervisor CRITIC’S JUDGEMENT Critic: Comment Student:Lê Thanh Thủy Class: 51.05 Intake: CQ52 Topic: Completing accounting for salary and deductions from salaries at Welding Technology and Equipment Company Mark: - In number: - In word: Critic ... AND DEDUCTIONS FROM EMPLOYEES’ SALARIES 1.1 Basic features of accounting for salary and deductions from employee’s salary 1.1.1 Concept on salary 1.1.1.1 Definition of accounting for salary Salary... FOR SALARY AND DEDUCTIONS FROM EMPLOYEES’ SALARIES 1.1.Basic features of accounting for salary and deductions from employee’s salary 1.1.1 Concept on salary 1.1.2 Deductions from. .. 3.1.2.Comments on the accounting for salary and salary deductions at the Company 45 3.2.Constructive ideas to make good accounting s for salary and deductions from salary