To effectively operate financial activities in a business, mastering basic accounting operations is indispensable. These operations not only help to record, classify and summarize financial information accurately, but also serve as a basis for making timely and correct management decisions. The following article will summarize important accounting operations that any accountant needs to understand, from initial bookkeeping to financial reporting, to support businesses in managing finances effectively and complying with legal regulations.
1. Concept and role of accounting operations
Accounting practices play a core role in recording, analyzing and presenting a business’s financial information. Understanding the concepts and roles of accounting practices not only helps accountants perform their jobs accurately, but also helps business owners make strategic decisions based on transparent and reliable financial data.
1.1 What is accounting?
Accounting operations are all activities of recording, processing and presenting financial fluctuations arising in the production and business process, reflected through the accounting system. This is a tool to convert economic operations into "accounting language", helping to provide clear financial information to relevant parties.
In reality, accounting transactions occur daily, including cash receipts and disbursements, purchases and sales of goods, asset depreciation, debt payments, employee payroll calculations, and period-end adjustment entries. Each transaction must be recorded according to accounting standards, ensuring transparency and accuracy for the entire financial reporting system.
1.2 The role and when to use accounting operations
Accounting is not just an administrative task, but the foundation for effective financial management and control. Businesses need to use accounting in many important situations, including:
- Prepare financial statementsAccounting operations are the input to prepare the final financial report, reflecting the financial situation and business results, helping managers evaluate operational efficiency.
- Tax management and optimization: Accurately recording accounting transactions helps businesses comply with tax regulations, while taking advantage of legal incentives to optimize tax costs.
- Prepare and control budgets: Through accounting operations, businesses can create budgets, track cash flow, analyze differences and make timely adjustments to optimize resources.
- Internal and external audit: Accurate accounting operations are the basis for auditors to evaluate the reliability of financial statements and the effectiveness of internal control.
- Asset and cash flow management: Businesses need to update operations related to fixed assets, inventories, cash flow, etc. to control financial situation and make timely decisions.
In addition, accounting operations also support in controlling production costs, analyzing profits by business segment, and forecasting short- and long-term financial risks. The correct and sufficient application of accounting operations helps improve financial management capacity, especially important in the context of businesses needing to make quick and accurate decisions.
2. Basic accounting operations in business
During the course of running a business, accountants will regularly handle many different types of accounting transactions, each reflecting a specific aspect of financial operations.
2.1 Overview of basic operations
Accounting operations play a key role in accurately recording and reflecting the financial activities of a business. Understanding and correctly handling these operations helps ensure transparency, compliance with legal regulations and support effective management decision making. Below are common accounting operations that accountants need to be proficient in:
- Purchasing accounting operations
- Sales accounting operations
- Cash capital accounting operations
- Fixed asset accounting
- Accounting for tools, materials, finished products
- Accounting for salaries and salary deductions
- Accounts receivable accounting
- Tax accounting
- Closing entries
- Payment discount
- Trade discount, sales discount
- Returned goods
- Agent commission
2.2 Purchase accounting operations
Among accounting operations Often encountered in businesses, purchasing accounting plays an important role in ensuring the accuracy and transparency of input costs. This business is directly related to the process of purchasing raw materials and goods for production or commercial business. Correct accounting not only helps businesses control resources well but also optimizes taxes payable. Below are common situations in purchasing accounting that businesses need to pay attention to:
- Purchase of goods for warehouse: When goods and raw materials are purchased and stored in the warehouse, the accountant records according to the following principles: Debit accounts 152, 153, 155, 156, 211, 641, 642 with pre-tax price; Debit account 1331 if there is input VAT; Credit account 111, 112 or 331 with the total amount paid or owed.
- Buy products for immediate use without going through the warehouse: In case goods are used directly for production or business activities without going through the warehouse, the accountant records: Debit accounts 621, 623, 641, 642 (direct costs); Debit account 1331 if tax can be deducted; Credit accounts 111, 112, 331.
- Payment of supplier debt: Debt payment shows transparency in financial transactions. Accounting records: Debit account 331; Credit account 111 or 112 corresponding to the payment amount.
- Import of goods and services: Accountants must closely monitor the value of imported goods, taxes payable and payment methods. Accounting includes 3 steps:
- Record the value of imported goods (Debit accounts 152, 156,…; Credit accounts 331, 112).
- Calculate import tax, special consumption tax,... on inventory price (Debit account 156; Credit account 3333, 3332,...).
- When paying taxes: Debit account 333; Credit account 111, 112.
- Purchase cost: Related costs such as transportation, loading, installation, etc. are added to the value of imported goods. Accountants record: Debit account 156, 211, etc.; Debit account 133 if any; Credit account 111, 112, 331.
- Buy with discount or rebate
- With payment discount, record: Debit account cash (111, 112); Credit account 515.
- With trade discount or rebate:
- If there is inventory: Debit cash account; Credit account 156, 152,… and Credit account 1331.
- If the goods have been exported: Debit cash account; Credit account 632, 154, 642,… and Credit account 1331.
In case of receiving discount after the purchase period, accounting allocates according to the quantity of inventory, consumed or used for investment.
- Purchased goods returned: One of accounting operations Another occurrence is the return of purchased goods. Accountants need to adjust the cost of goods sold, input VAT and corresponding liabilities to reflect the correct financial situation.
2.3 Sales accounting operations
Sales accountants are responsible for recording, accounting and reporting all sales activities, from generating revenue to processing discounts, returns or exports.
- Recording revenue from sales of goods and services: Record an increase in cash or accounts receivable (accounts 111, 112, 131), and record revenue and output VAT (accounts 511, 3331).
- Accounting for cost of goods sold: Record decrease in inventory (accounts 155, 156, 154) and increase cost of goods sold (account 632).
- Payment discount: Record financial expenses (account 635) when there is a payment incentive for customers.
- Trade discounts, sales discounts: Depending on the situation, revenue can be reduced directly or adjusted later using accounts 521, 531, 532.
- Returned goods: Record revenue reduction (account 5212), record goods back into inventory at cost price (account 156) and adjust accounts receivable and cash.
- Export sales: Record revenue in foreign currency at bank exchange rate (account 511), and reflect cost of goods sold (account 632).
- Dealer sales: Businesses that sell on behalf of others and receive commission will track the goods sent for sale (account 157), and record revenue and commission separately.
- Cash payments related to sales: Cash receipts, payments to suppliers, sales expenses, etc. are reflected through cash accounts or bank deposits (accounts 111, 112).
2.4 Accounting transactions for capital in cash (Cash, Bank deposits)
Accounting transactions involving cash are transactions that occur directly through cash funds or bank accounts, and play an essential role in reflecting the immediate financial situation of the business. Accurately recording these transactions not only helps control cash flow effectively but also ensures compliance with current accounting regulations.
Below are some common cash accounting transactions in business operations:
- Collect money from customers: Reflects the amount of money customers pay for goods and services provided. Record: Debit account 111, 112 / Credit account 131.
- Other payments: Includes revenues not from sales activities such as receiving capital contributions from shareholders, deposit refunds... Record: Debit accounts 111, 112 / Credit accounts 411, 1386.
- Pay suppliers: Payment of debts payable to suppliers of raw materials, services, etc. Record: Debit account 331 / Credit account 111, 112.
- Spend money on other expenses: Including immediate payment for services such as entertaining guests, buying gasoline; or spending on purchasing fixed assets, tools and equipment. Record: Debit account 642, 641, 242, 211; Debit account 1331 / Credit account 111, 112.
2.5 Inventory accounting operations (Raw materials, Tools, Finished products)
In the corporate accounting system, accounting operations related to inventories also plays a core role in accurately reflecting current assets, thereby directly affecting costs and profits. Recording, evaluating and accounting for inventories must comply with the original cost principle according to Vietnamese accounting standards, while flexibly applying valuation methods to optimize cost and cash flow management.
- Method of calculating import price: The original cost of inventory includes all costs directly related to bringing the goods to the warehouse such as purchase price, tax (VAT, import, environmental protection), transportation, storage, insurance and losses within the norm. If VAT is deductible, the value of the goods does not include this tax. In case of self-produced or outsourced goods, the accountant must include both processing and manufacturing costs in the original price.
- Method of calculating warehouse cost: Businesses can choose between four methods – specific cost, weighted average, first-in, first-out (FIFO) and last-in, first-out (LIFO) – depending on the nature of the goods and the cost control objectives. Each method has a different impact on the cost of goods sold and profit, so it is necessary to choose consistently, in accordance with business practices.
- Material accounting: Accountants need to correctly identify the account that arises when importing goods into the warehouse (Account 152), exporting directly to production (Accounts 621, 627…), or when re-importing unused materials into the warehouse. Accurate accounting helps to control raw material costs well and optimize inventory.
- Accounting for tools and equipmentTools and equipment can be used once or allocated in multiple periods. For tools of great value that are used for a long time, they should be recorded in account 242 and allocated gradually in each period. In case the tools are issued for immediate use, production or management costs should be recorded according to the function of use.
- Finished product accounting: Finished products created from production activities must be accounted for at actual cost, reflecting the correct cost of production. Transactions related to finished product warehousing (account 155), selling (account 632), or sending to agents (account 157) must be closely monitored to ensure transparency and consistency in financial statements.
- Warehouse Management: Warehouse accounting not only records accounting operations but also acts as an “extended arm” of the operations department. Tasks include periodic inventory, debt reconciliation, making records of discrepancies, reporting on imports – exports – inventories and storing documents in accordance with regulations. A transparent warehouse management system is the foundation for businesses to operate effectively and make timely decisions.
2.6 Fixed asset accounting operations
In the system accounting operationsFixed asset accounting plays a key role in ensuring that businesses effectively manage, use and monitor their long-term assets. Depreciation allocation, liquidation or sale of fixed assets requires accuracy and compliance with current accounting regulations.
- Determine the original price of fixed assets: Original cost is determined based on the total cost to bring the asset into a ready-to-use state, including the purchase price excluding VAT, transportation, installation costs, import tax (if any), after deducting discounts or rebates. This is an important accounting basis for calculating depreciation and recording costs throughout the life of the asset.
- Accounting for purchase of fixed assets: When purchasing fixed assets, businesses need to record the correct entries: Debit account 211 (original price), Debit account 133 (input VAT), Credit account 111/112/331 depending on the payment method. This helps ensure transparency in cash flow and asset control.
- Calculate and allocate asset depreciation: Depreciation is calculated monthly, most commonly using the straight-line method. Depreciation costs will be allocated to expense accounts such as account 154 (production costs), 641 (selling costs), 642 (business management costs), corresponding to account 214 (accumulated depreciation). Depreciation at the right time helps accurately reflect the remaining value of the asset.
- Liquidation and sale of fixed assets: When an asset is no longer of use or the enterprise needs to transfer it, two accounting steps must be performed: write off the asset and record the income from liquidation. The entries related to accounts 811, 214, 211 (write off) and accounts 131, 112, 711, 3331 (record revenue) must be handled carefully so as not to affect the financial results.
- Repair costs before liquidation: If there are costs for refurbishment or repair before liquidation, the accountant needs to record them in other expenses, specifically Debit account 811, Debit account 1331, Credit account 111/112/331, ensuring full reflection of costs related to the transaction.
- Fixed Asset Management: Accounting not only records but also supports effective asset management. Regularly updating information on usage status and remaining value helps businesses make timely investment, maintenance or liquidation decisions.
Correct implementation of fixed asset accounting not only helps businesses comply with legal regulations but is also an important tool in financial management and optimizing asset investment performance.
2.7 Accounting for salaries and salary deductions
Payroll accounting is an important part of a company's accounting, usually performed by a payroll accountant or general accountant. This task is directly related to employee benefits and has a major impact on the company's finances.
- Salary statistics and summary: This is the first step in the payroll accounting process, which involves summarizing employee salaries and deductions, ensuring accuracy in payment.
- Salary deductions: These deductions include social insurance (SI), health insurance (HI), unemployment insurance (UI), union dues (TU) and personal income tax (PIT), all of which have a direct impact on the actual amount of money employees receive.
- Accounting for salaries and deductions: After having the payroll, the accountant will post the accounting to the following accounts:
- Salary payable: Debit account 154, 641, 642 (Salary expenses of corresponding department), Credit account 334 (Payable to employees).
- Insurance quotes: Debit account 154, 641, 642 (Insurance costs of corresponding departments), Credit account 3383 (Social Insurance), Credit account 3384 (Health Insurance), Credit account 3385 (Unemployment Insurance), Credit account 3382 (KPCĐ).
- Deducted from salary: Debit account 334, Credit account 3382 (KPCĐ), Credit account 3383 (BHXH), Credit account 3384 (BHYT), Credit account 3385 (BHTN), Credit account 3386 (BHTN), Credit account 3389, Credit account 3335 (Personal income tax).
- Accounting for salary expenses and deductions based on final salary: Accountants need to account for insurance costs that the business must bear and deductions from employees' salaries if there are changes in the payment process.
- Salary payment: When the payment period comes, the accountant makes salary payments to employees and records: Debit account 334, Credit account 111, 112.
- Declare and pay salary deductions: Enterprises must manage the payment of personal income tax of employees and declare and pay insurance premiums according to the provisions of law.
The process of accounting for salaries and salary deductions is an important part of helping businesses maintain transparent financial operations, while ensuring that employees' rights are protected in accordance with regulations.
2.8 Accounts receivable accounting operations
Accounts receivable accounting not only includes tracking revenues, expenses, and cash funds, but also managing transfer transactions related to accounts receivable. Below are essential accounts receivable accounting operations that help businesses control and optimize their finances:
- Debt management and tracking: Check documents related to debts and understand payment terms in the contract. Track debts for each customer and track employee advances to ensure accuracy and transparency.
- Debt collection plan: Develop a debt collection plan for due, overdue or bad debts to ensure that the business fully recovers debts within the prescribed time.
- Reconciliation of debts: Perform periodic debt reconciliation, coordinate with relevant departments to ensure accuracy in debt data, helping businesses effectively control financial situation.
- Prepare debt report: Prepare periodic debt reports by month, quarter and year, providing important information for business leaders to make accurate financial decisions.
2.9 Tax accounting operations
Tax accounting is a mandatory activity and must be performed fully and accurately in accordance with the provisions of law. Below are the basic steps in tax accounting that businesses need to note:
- Collect, process, check, store documents and invoices: Ensure that the collection, processing and verification of the validity of documents and invoices are carried out completely. All documents must be carefully stored to ensure transparency and easy checking when necessary.
- Declare and pay VAT and personal income tax: Enterprises need to declare VAT and personal income tax (PIT) monthly and quarterly. The preparation of PIT and VAT declarations must comply with the prescribed time, because the tax payment deadline is also the deadline for submitting the tax declaration.
- Declaration and payment of Business License Tax, Corporate Income Tax Finalization: Business license tax declaration must be done at the beginning of the year and corporate income tax (CIT) settlement must be done at the end of the year. This ensures that businesses comply with state tax regulations.
- Monitor and report on invoice usageEnterprises need to monitor and report on invoice usage on a monthly, quarterly and annual basis to serve tax inspection and audit work.
- Calculation of provisional corporate income tax: Enterprises need to prepare quarterly provisional corporate income tax (CIT) declarations. If the enterprise makes a profit, it needs to calculate quarterly provisional CIT. Record these provisional taxes according to regulations: Debit account 821, Credit account 3334.
- Accounting for tax related entries: Accounting entries related to taxes such as VAT, import tax, special consumption tax, and personal income tax must be fully and accurately recorded.
2.10 Period-end closing entries
At the end of each accounting period, accounting transactions need to be transferred carefully and in the correct order to ensure the accuracy of the business's financial statements. Below are the accounting steps to note when transferring period-end entries:
- Transfer of input and output VAT: Determine the deductible input VAT amount and the payable output VAT amount. Accounting entry: Debit account 3331, Credit account 1331.
- Transfer to cost of goods account: Transfer cost of goods sold to the business results account. Entry made: Debit account 911, Credit account 632.
- Carry forward revenue deductions: If there are revenue deductions, the accountant needs to transfer them to the revenue account. Entry to be made: Debit account 511, Credit account 911.
- Transfer of expense entries: Transfer expenses to the income statement account, such as sales expenses and administrative expenses. Entry: Debit account 911, Credit account 642, 641.
- Carry forward revenue and other income entries: Net revenue from production and business activities and financial income must be transferred to the business results account. Accounting entries: Debit account 511, Credit account 911; Debit account 515, Credit account 911; Debit account 711, Credit account 911.
- Carry forward profit (or loss): After determining the profit after tax, the accountant transfers the profit (or loss) to the owner's account. The entry is: In case of profit, Debit account 911, Credit account 421; In case of loss, Debit account 421, Credit account 911.
- Corporate income tax transfer: At the end of the period, corporate income tax also needs to be transferred to the business results account. Accounting entry: Debit account 911, Credit account 821.
Transferring accounting transactions in the correct order not only helps to report accurate financial statements but also ensures full compliance with current accounting regulations.
3. The importance of mastering basic accounting skills
For accountants, especially those new to the profession, understanding and correctly applying basic accounting operations helps to handle work more quickly and accurately.
3.1 Ensure accuracy and efficiency of work
Mastering basic accounting operations helps ensure accuracy in financial transactions and minimize errors in the work process. This not only helps increase work efficiency but also contributes to improving labor productivity.
3.2 Support for corporate financial management
Basic accounting operations play an important role in supporting the financial management of a business. These operations help accountants monitor financial status, manage budgets, costs, capital structure and financial risks, thereby making reasonable financial decisions.
3.3 Compliance with legal regulations
Proper compliance with basic accounting practices is an important factor in ensuring that businesses comply with legal regulations, especially tax regulations. Mastering these practices helps businesses avoid legal problems.
3.4 Prepare financial statements
Knowledge of basic accounting practices is necessary to prepare accurate financial statements such as asset statements, profit and loss statements, cash flow statements, and owner's equity statements. These statements play an important role in evaluating the performance and financial condition of a business.
3.5 Career development opportunities
Mastering basic accounting skills not only helps accountants work effectively but also creates a solid foundation for future career development. Building solid knowledge in this field will open up many opportunities for advancement and career development for accountants.
4. Using accounting software in business
Using modern accounting software is an effective solution to support accounting operations in businesses. Today's accounting software has smart features, helping accountants perform accounting operations from simple to complex quickly and accurately. Below are the outstanding benefits of using accounting software in accounting operations:
- Support to perform operations: Smart accounting software helps accountants quickly process daily accounting operations, helping to minimize errors and save time.
- Document management: Accounting software classifies documents according to forms such as purchased goods imported into the warehouse/not imported into the warehouse, goods tracked in the warehouse/not tracked in the warehouse. The software helps to check data, manage invoices and documents closely.
- Calculate and allocate costs/depreciation automatically: Accounting software has its own subsystem to calculate and allocate fixed asset depreciation costs, helping accountants track and allocate costs accurately. Calculating and allocating tool costs is also done automatically and accurately.
- Support end-of-period accounting: Accounting software provides the “Automatic closing entries” function, which helps accountants make period-end entries quickly and accurately.
- Update selling price: Accounting software helps businesses update the selling price of goods/services easily and automatically.
- Warehouse Management: Accounting software allows updating of goods information, helping the warehouse management system to always be accurate and timely.
- Report generationAccounting software supports the creation of important reports such as sales item lists, invoice usage reports, import/export/inventory reports and other financial reports.
Mastering basic accounting operations and knowing how to use accounting software will help accountants perform their work effectively and minimize risks. The combination of professional knowledge and accounting software is the key to making accounting work more convenient and accurate.
5. Bizzi – Technology solution effectively supports accounting operations
Bizzi is a platform that automates financial and accounting processes, helping businesses effectively transform digitally, reduce manual work and increase productivity. Below are Bizzi's outstanding solutions and specific benefits for accounting operations:
Automatically process input invoices
- Automatically download and process invoices: Bizzi provides each business with a unique email address to automatically receive invoices from suppliers. Invoices are downloaded and processed in less than 30 seconds, saving accountants significant time.
- Accurate data extraction: The system automatically extracts data from invoices and exports to Excel or CSV files, compatible with the business's existing accounting and ERP software.
- Checking for validity: Bizzi bot automatically checks the validity of invoices, including digital signatures, tax codes and supplier information, etc., helping to reduce errors and lost invoices.
- Smart storage: Invoices are stored for up to 10 years, easy to search and manage, helping accountants no longer worry about losing or searching for invoices.
Effective cost management
- Budget planning: Bizzi provides effective budget planning tools, accurately forecasting financial needs for all business activities, helping accountants monitor and adjust costs promptly.
- Real-time cost control and management: …
- Automate the process of creating and approving payment requests: …
- Cash flow control: The system allows tight control of cash flow, all cash flows are based on budget, estimated expenditure and actual expenditure, helping accountants monitor and control costs effectively.
- Thorough cost analysis: Bizzi automatically aggregates cost reports according to indicators, compares the most recent periods, helping accountants grasp trends and make accurate financial decisions.
Smart debt management
- Track debt: Bizzi helps accountants closely monitor debts, compare debts and important indicators such as days outstanding debt (DSO), debt aging report, helping to effectively manage debts.
- Automatic debt reminder: The system automatically creates processes and debt reminders according to scenarios for each customer group via email and text messages, helping accountants reduce manual work and increase debt collection efficiency.
Automate the payment process
- Paying through bank: Bizzi integrates with banks, allowing for approval and payment to suppliers directly through the platform, saving accountants time and reducing errors.
- Business credit card: Bizzi offers business credit cards that help separate personal and business expenses, simplifying accounting and tax management.
Integration with ERP system
- Flexible integration: Bizzi easily integrates with ERP systems such as Microsoft Dynamics 365 Finance, SAP, Odoo, Oracle NetSuite, helping accountants synchronize data and work efficiently.
Overall benefits for accounting profession
- Save time: Reduces invoice processing time and manual work by up to 80%.
- Increase productivity: Process automation helps accountants focus on higher-value tasks.
- Reduce errors: Automatic checking and processing helps reduce data entry errors and mistakes.
- Increased control: Real-time data and detailed reporting help closely manage financial operations.
- Cost savings: Reduce invoice processing costs and manual work, optimize resources.
Bizzi is an advanced technology solution that effectively supports accounting operations, helping businesses transform digitally effectively and sustainably. To learn more about Bizzi's solutions, please visit bizzi.vn
Businesses register for trial at: https://bizzi.vn/dang-ky-dung-thu/
To effectively operate financial activities in a business, mastering basic accounting operations is indispensable. These operations not only help to record, classify and summarize financial information accurately, but also serve as a basis for making timely and correct management decisions. The following article will summarize important accounting operations that any accountant needs to understand, from initial bookkeeping to financial reporting, to support businesses in managing finances effectively and complying with legal regulations.
1. Concept and role of accounting operations
Accounting practices play a core role in recording, analyzing and presenting a business’s financial information. Understanding the concepts and roles of accounting practices not only helps accountants perform their jobs accurately, but also helps business owners make strategic decisions based on transparent and reliable financial data.
1.1 What is accounting?
Accounting operations are all activities of recording, processing and presenting financial fluctuations arising in the production and business process, reflected through the accounting system. This is a tool to convert economic operations into "accounting language", helping to provide clear financial information to relevant parties.
In reality, accounting transactions occur daily, including cash receipts and disbursements, purchases and sales of goods, asset depreciation, debt payments, employee payroll calculations, and period-end adjustment entries. Each transaction must be recorded according to accounting standards, ensuring transparency and accuracy for the entire financial reporting system.
1.2 The role and when to use accounting operations
Accounting is not just an administrative task, but the foundation for effective financial management and control. Businesses need to use accounting in many important situations, including:
- Prepare financial statementsAccounting operations are the input to prepare the final financial report, reflecting the financial situation and business results, helping managers evaluate operational efficiency.
- Tax management and optimization: Accurately recording accounting transactions helps businesses comply with tax regulations, while taking advantage of legal incentives to optimize tax costs.
- Prepare and control budgets: Through accounting operations, businesses can create budgets, track cash flow, analyze differences and make timely adjustments to optimize resources.
- Internal and external audit: Accurate accounting operations are the basis for auditors to evaluate the reliability of financial statements and the effectiveness of internal control.
- Asset and cash flow management: Businesses need to update operations related to fixed assets, inventories, cash flow, etc. to control financial situation and make timely decisions.
In addition, accounting operations also support in controlling production costs, analyzing profits by business segment, and forecasting short- and long-term financial risks. The correct and sufficient application of accounting operations helps improve financial management capacity, especially important in the context of businesses needing to make quick and accurate decisions.
2. Basic accounting operations in business
During the course of running a business, accountants will regularly handle many different types of accounting transactions, each reflecting a specific aspect of financial operations.
2.1 Overview of basic operations
Accounting operations play a key role in accurately recording and reflecting the financial activities of a business. Understanding and correctly handling these operations helps ensure transparency, compliance with legal regulations and support effective management decision making. Below are common accounting operations that accountants need to be proficient in:
- Purchasing accounting operations
- Sales accounting operations
- Cash capital accounting operations
- Fixed asset accounting
- Accounting for tools, materials, finished products
- Accounting for salaries and salary deductions
- Accounts receivable accounting
- Tax accounting
- Closing entries
- Payment discount
- Trade discount, sales discount
- Returned goods
- Agent commission
2.2 Purchase accounting operations
Among accounting operations Often encountered in businesses, purchasing accounting plays an important role in ensuring the accuracy and transparency of input costs. This business is directly related to the process of purchasing raw materials and goods for production or commercial business. Correct accounting not only helps businesses control resources well but also optimizes taxes payable. Below are common situations in purchasing accounting that businesses need to pay attention to:
- Purchase of goods for warehouse: When goods and raw materials are purchased and stored in the warehouse, the accountant records according to the following principles: Debit accounts 152, 153, 155, 156, 211, 641, 642 with pre-tax price; Debit account 1331 if there is input VAT; Credit account 111, 112 or 331 with the total amount paid or owed.
- Buy products for immediate use without going through the warehouse: In case goods are used directly for production or business activities without going through the warehouse, the accountant records: Debit accounts 621, 623, 641, 642 (direct costs); Debit account 1331 if tax can be deducted; Credit accounts 111, 112, 331.
- Payment of supplier debt: Debt payment shows transparency in financial transactions. Accounting records: Debit account 331; Credit account 111 or 112 corresponding to the payment amount.
- Import of goods and services: Accountants must closely monitor the value of imported goods, taxes payable and payment methods. Accounting includes 3 steps:
- Record the value of imported goods (Debit accounts 152, 156,…; Credit accounts 331, 112).
- Calculate import tax, special consumption tax,... on inventory price (Debit account 156; Credit account 3333, 3332,...).
- When paying taxes: Debit account 333; Credit account 111, 112.
- Purchase cost: Related costs such as transportation, loading, installation, etc. are added to the value of imported goods. Accountants record: Debit account 156, 211, etc.; Debit account 133 if any; Credit account 111, 112, 331.
- Buy with discount or rebate
- With payment discount, record: Debit account cash (111, 112); Credit account 515.
- With trade discount or rebate:
- If there is inventory: Debit cash account; Credit account 156, 152,… and Credit account 1331.
- If the goods have been exported: Debit cash account; Credit account 632, 154, 642,… and Credit account 1331.
In case of receiving discount after the purchase period, accounting allocates according to the quantity of inventory, consumed or used for investment.
- Purchased goods returned: One of accounting operations Another occurrence is the return of purchased goods. Accountants need to adjust the cost of goods sold, input VAT and corresponding liabilities to reflect the correct financial situation.
2.3 Sales accounting operations
Sales accountants are responsible for recording, accounting and reporting all sales activities, from generating revenue to processing discounts, returns or exports.
- Recording revenue from sales of goods and services: Record an increase in cash or accounts receivable (accounts 111, 112, 131), and record revenue and output VAT (accounts 511, 3331).
- Accounting for cost of goods sold: Record decrease in inventory (accounts 155, 156, 154) and increase cost of goods sold (account 632).
- Payment discount: Record financial expenses (account 635) when there is a payment incentive for customers.
- Trade discounts, sales discounts: Depending on the situation, revenue can be reduced directly or adjusted later using accounts 521, 531, 532.
- Returned goods: Record revenue reduction (account 5212), record goods back into inventory at cost price (account 156) and adjust accounts receivable and cash.
- Export sales: Record revenue in foreign currency at bank exchange rate (account 511), and reflect cost of goods sold (account 632).
- Dealer sales: Businesses that sell on behalf of others and receive commission will track the goods sent for sale (account 157), and record revenue and commission separately.
- Cash payments related to sales: Cash receipts, payments to suppliers, sales expenses, etc. are reflected through cash accounts or bank deposits (accounts 111, 112).
2.4 Accounting transactions for capital in cash (Cash, Bank deposits)
Accounting transactions involving cash are transactions that occur directly through cash funds or bank accounts, and play an essential role in reflecting the immediate financial situation of the business. Accurately recording these transactions not only helps control cash flow effectively but also ensures compliance with current accounting regulations.
Below are some common cash accounting transactions in business operations:
- Collect money from customers: Reflects the amount of money customers pay for goods and services provided. Record: Debit account 111, 112 / Credit account 131.
- Other payments: Includes revenues not from sales activities such as receiving capital contributions from shareholders, deposit refunds... Record: Debit accounts 111, 112 / Credit accounts 411, 1386.
- Pay suppliers: Payment of debts payable to suppliers of raw materials, services, etc. Record: Debit account 331 / Credit account 111, 112.
- Spend money on other expenses: Including immediate payment for services such as entertaining guests, buying gasoline; or spending on purchasing fixed assets, tools and equipment. Record: Debit account 642, 641, 242, 211; Debit account 1331 / Credit account 111, 112.
2.5 Inventory accounting operations (Raw materials, Tools, Finished products)
In the corporate accounting system, accounting operations related to inventories also plays a core role in accurately reflecting current assets, thereby directly affecting costs and profits. Recording, evaluating and accounting for inventories must comply with the original cost principle according to Vietnamese accounting standards, while flexibly applying valuation methods to optimize cost and cash flow management.
- Method of calculating import price: The original cost of inventory includes all costs directly related to bringing the goods to the warehouse such as purchase price, tax (VAT, import, environmental protection), transportation, storage, insurance and losses within the norm. If VAT is deductible, the value of the goods does not include this tax. In case of self-produced or outsourced goods, the accountant must include both processing and manufacturing costs in the original price.
- Method of calculating warehouse cost: Businesses can choose between four methods – specific cost, weighted average, first-in, first-out (FIFO) and last-in, first-out (LIFO) – depending on the nature of the goods and the cost control objectives. Each method has a different impact on the cost of goods sold and profit, so it is necessary to choose consistently, in accordance with business practices.
- Material accounting: Accountants need to correctly identify the account that arises when importing goods into the warehouse (Account 152), exporting directly to production (Accounts 621, 627…), or when re-importing unused materials into the warehouse. Accurate accounting helps to control raw material costs well and optimize inventory.
- Accounting for tools and equipmentTools and equipment can be used once or allocated in multiple periods. For tools of great value that are used for a long time, they should be recorded in account 242 and allocated gradually in each period. In case the tools are issued for immediate use, production or management costs should be recorded according to the function of use.
- Finished product accounting: Finished products created from production activities must be accounted for at actual cost, reflecting the correct cost of production. Transactions related to finished product warehousing (account 155), selling (account 632), or sending to agents (account 157) must be closely monitored to ensure transparency and consistency in financial statements.
- Warehouse Management: Warehouse accounting not only records accounting operations but also acts as an “extended arm” of the operations department. Tasks include periodic inventory, debt reconciliation, making records of discrepancies, reporting on imports – exports – inventories and storing documents in accordance with regulations. A transparent warehouse management system is the foundation for businesses to operate effectively and make timely decisions.
2.6 Fixed asset accounting operations
In the system accounting operationsFixed asset accounting plays a key role in ensuring that businesses effectively manage, use and monitor their long-term assets. Depreciation allocation, liquidation or sale of fixed assets requires accuracy and compliance with current accounting regulations.
- Determine the original price of fixed assets: Original cost is determined based on the total cost to bring the asset into a ready-to-use state, including the purchase price excluding VAT, transportation, installation costs, import tax (if any), after deducting discounts or rebates. This is an important accounting basis for calculating depreciation and recording costs throughout the life of the asset.
- Accounting for purchase of fixed assets: When purchasing fixed assets, businesses need to record the correct entries: Debit account 211 (original price), Debit account 133 (input VAT), Credit account 111/112/331 depending on the payment method. This helps ensure transparency in cash flow and asset control.
- Calculate and allocate asset depreciation: Depreciation is calculated monthly, most commonly using the straight-line method. Depreciation costs will be allocated to expense accounts such as account 154 (production costs), 641 (selling costs), 642 (business management costs), corresponding to account 214 (accumulated depreciation). Depreciation at the right time helps accurately reflect the remaining value of the asset.
- Liquidation and sale of fixed assets: When an asset is no longer of use or the enterprise needs to transfer it, two accounting steps must be performed: write off the asset and record the income from liquidation. The entries related to accounts 811, 214, 211 (write off) and accounts 131, 112, 711, 3331 (record revenue) must be handled carefully so as not to affect the financial results.
- Repair costs before liquidation: If there are costs for refurbishment or repair before liquidation, the accountant needs to record them in other expenses, specifically Debit account 811, Debit account 1331, Credit account 111/112/331, ensuring full reflection of costs related to the transaction.
- Fixed Asset Management: Accounting not only records but also supports effective asset management. Regularly updating information on usage status and remaining value helps businesses make timely investment, maintenance or liquidation decisions.
Correct implementation of fixed asset accounting not only helps businesses comply with legal regulations but is also an important tool in financial management and optimizing asset investment performance.
2.7 Accounting for salaries and salary deductions
Payroll accounting is an important part of a company's accounting, usually performed by a payroll accountant or general accountant. This task is directly related to employee benefits and has a major impact on the company's finances.
- Salary statistics and summary: This is the first step in the payroll accounting process, which involves summarizing employee salaries and deductions, ensuring accuracy in payment.
- Salary deductions: These deductions include social insurance (SI), health insurance (HI), unemployment insurance (UI), union dues (TU) and personal income tax (PIT), all of which have a direct impact on the actual amount of money employees receive.
- Accounting for salaries and deductions: After having the payroll, the accountant will post the accounting to the following accounts:
- Salary payable: Debit account 154, 641, 642 (Salary expenses of corresponding department), Credit account 334 (Payable to employees).
- Insurance quotes: Debit account 154, 641, 642 (Insurance costs of corresponding departments), Credit account 3383 (Social Insurance), Credit account 3384 (Health Insurance), Credit account 3385 (Unemployment Insurance), Credit account 3382 (KPCĐ).
- Deducted from salary: Debit account 334, Credit account 3382 (KPCĐ), Credit account 3383 (BHXH), Credit account 3384 (BHYT), Credit account 3385 (BHTN), Credit account 3386 (BHTN), Credit account 3389, Credit account 3335 (Personal income tax).
- Accounting for salary expenses and deductions based on final salary: Accountants need to account for insurance costs that the business must bear and deductions from employees' salaries if there are changes in the payment process.
- Salary payment: When the payment period comes, the accountant makes salary payments to employees and records: Debit account 334, Credit account 111, 112.
- Declare and pay salary deductions: Enterprises must manage the payment of personal income tax of employees and declare and pay insurance premiums according to the provisions of law.
The process of accounting for salaries and salary deductions is an important part of helping businesses maintain transparent financial operations, while ensuring that employees' rights are protected in accordance with regulations.
2.8 Accounts receivable accounting operations
Accounts receivable accounting not only includes tracking revenues, expenses, and cash funds, but also managing transfer transactions related to accounts receivable. Below are essential accounts receivable accounting operations that help businesses control and optimize their finances:
- Debt management and tracking: Check documents related to debts and understand payment terms in the contract. Track debts for each customer and track employee advances to ensure accuracy and transparency.
- Debt collection plan: Develop a debt collection plan for due, overdue or bad debts to ensure that the business fully recovers debts within the prescribed time.
- Reconciliation of debts: Perform periodic debt reconciliation, coordinate with relevant departments to ensure accuracy in debt data, helping businesses effectively control financial situation.
- Prepare debt report: Prepare periodic debt reports by month, quarter and year, providing important information for business leaders to make accurate financial decisions.
2.9 Tax accounting operations
Tax accounting is a mandatory activity and must be performed fully and accurately in accordance with the provisions of law. Below are the basic steps in tax accounting that businesses need to note:
- Collect, process, check, store documents and invoices: Ensure that the collection, processing and verification of the validity of documents and invoices are carried out completely. All documents must be carefully stored to ensure transparency and easy checking when necessary.
- Declare and pay VAT and personal income tax: Enterprises need to declare VAT and personal income tax (PIT) monthly and quarterly. The preparation of PIT and VAT declarations must comply with the prescribed time, because the tax payment deadline is also the deadline for submitting the tax declaration.
- Declaration and payment of Business License Tax, Corporate Income Tax Finalization: Business license tax declaration must be done at the beginning of the year and corporate income tax (CIT) settlement must be done at the end of the year. This ensures that businesses comply with state tax regulations.
- Monitor and report on invoice usageEnterprises need to monitor and report on invoice usage on a monthly, quarterly and annual basis to serve tax inspection and audit work.
- Calculation of provisional corporate income tax: Enterprises need to prepare quarterly provisional corporate income tax (CIT) declarations. If the enterprise makes a profit, it needs to calculate quarterly provisional CIT. Record these provisional taxes according to regulations: Debit account 821, Credit account 3334.
- Accounting for tax related entries: Accounting entries related to taxes such as VAT, import tax, special consumption tax, and personal income tax must be fully and accurately recorded.
2.10 Period-end closing entries
At the end of each accounting period, accounting transactions need to be transferred carefully and in the correct order to ensure the accuracy of the business's financial statements. Below are the accounting steps to note when transferring period-end entries:
- Transfer of input and output VAT: Determine the deductible input VAT amount and the payable output VAT amount. Accounting entry: Debit account 3331, Credit account 1331.
- Transfer to cost of goods account: Transfer cost of goods sold to the business results account. Entry made: Debit account 911, Credit account 632.
- Carry forward revenue deductions: If there are revenue deductions, the accountant needs to transfer them to the revenue account. Entry to be made: Debit account 511, Credit account 911.
- Transfer of expense entries: Transfer expenses to the income statement account, such as sales expenses and administrative expenses. Entry: Debit account 911, Credit account 642, 641.
- Carry forward revenue and other income entries: Net revenue from production and business activities and financial income must be transferred to the business results account. Accounting entries: Debit account 511, Credit account 911; Debit account 515, Credit account 911; Debit account 711, Credit account 911.
- Carry forward profit (or loss): After determining the profit after tax, the accountant transfers the profit (or loss) to the owner's account. The entry is: In case of profit, Debit account 911, Credit account 421; In case of loss, Debit account 421, Credit account 911.
- Corporate income tax transfer: At the end of the period, corporate income tax also needs to be transferred to the business results account. Accounting entry: Debit account 911, Credit account 821.
Transferring accounting transactions in the correct order not only helps to report accurate financial statements but also ensures full compliance with current accounting regulations.
3. The importance of mastering basic accounting skills
For accountants, especially those new to the profession, understanding and correctly applying basic accounting operations helps to handle work more quickly and accurately.
3.1 Ensure accuracy and efficiency of work
Mastering basic accounting operations helps ensure accuracy in financial transactions and minimize errors in the work process. This not only helps increase work efficiency but also contributes to improving labor productivity.
3.2 Support for corporate financial management
Basic accounting operations play an important role in supporting the financial management of a business. These operations help accountants monitor financial status, manage budgets, costs, capital structure and financial risks, thereby making reasonable financial decisions.
3.3 Compliance with legal regulations
Proper compliance with basic accounting practices is an important factor in ensuring that businesses comply with legal regulations, especially tax regulations. Mastering these practices helps businesses avoid legal problems.
3.4 Prepare financial statements
Knowledge of basic accounting practices is necessary to prepare accurate financial statements such as asset statements, profit and loss statements, cash flow statements, and owner's equity statements. These statements play an important role in evaluating the performance and financial condition of a business.
3.5 Career development opportunities
Mastering basic accounting skills not only helps accountants work effectively but also creates a solid foundation for future career development. Building solid knowledge in this field will open up many opportunities for advancement and career development for accountants.
4. Using accounting software in business
Using modern accounting software is an effective solution to support accounting operations in businesses. Today's accounting software has smart features, helping accountants perform accounting operations from simple to complex quickly and accurately. Below are the outstanding benefits of using accounting software in accounting operations:
- Support to perform operations: Smart accounting software helps accountants quickly process daily accounting operations, helping to minimize errors and save time.
- Document management: Accounting software classifies documents according to forms such as purchased goods imported into the warehouse/not imported into the warehouse, goods tracked in the warehouse/not tracked in the warehouse. The software helps to check data, manage invoices and documents closely.
- Calculate and allocate costs/depreciation automatically: Accounting software has its own subsystem to calculate and allocate fixed asset depreciation costs, helping accountants track and allocate costs accurately. Calculating and allocating tool costs is also done automatically and accurately.
- Support end-of-period accounting: Accounting software provides the “Automatic closing entries” function, which helps accountants make period-end entries quickly and accurately.
- Update selling price: Accounting software helps businesses update the selling price of goods/services easily and automatically.
- Warehouse Management: Accounting software allows updating of goods information, helping the warehouse management system to always be accurate and timely.
- Report generationAccounting software supports the creation of important reports such as sales item lists, invoice usage reports, import/export/inventory reports and other financial reports.
Mastering basic accounting operations and knowing how to use accounting software will help accountants perform their work effectively and minimize risks. The combination of professional knowledge and accounting software is the key to making accounting work more convenient and accurate.
5. Bizzi – Technology solution effectively supports accounting operations
Bizzi is a platform that automates financial and accounting processes, helping businesses effectively transform digitally, reduce manual work and increase productivity. Below are Bizzi's outstanding solutions and specific benefits for accounting operations:
Automatically process input invoices
- Automatically download and process invoices: Bizzi provides each business with a unique email address to automatically receive invoices from suppliers. Invoices are downloaded and processed in less than 30 seconds, saving accountants significant time.
- Accurate data extraction: The system automatically extracts data from invoices and exports to Excel or CSV files, compatible with the business's existing accounting and ERP software.
- Checking for validity: Bizzi bot automatically checks the validity of invoices, including digital signatures, tax codes and supplier information, etc., helping to reduce errors and lost invoices.
- Smart storage: Invoices are stored for up to 10 years, easy to search and manage, helping accountants no longer worry about losing or searching for invoices.
Effective cost management
- Budget planning: Bizzi provides effective budget planning tools, accurately forecasting financial needs for all business activities, helping accountants monitor and adjust costs promptly.
- Real-time cost control and management: …
- Automate the process of creating and approving payment requests: …
- Cash flow control: The system allows tight control of cash flow, all cash flows are based on budget, estimated expenditure and actual expenditure, helping accountants monitor and control costs effectively.
- Thorough cost analysis: Bizzi automatically aggregates cost reports according to indicators, compares the most recent periods, helping accountants grasp trends and make accurate financial decisions.
Smart debt management
- Track debt: Bizzi helps accountants closely monitor debts, compare debts and important indicators such as days outstanding debt (DSO), debt aging report, helping to effectively manage debts.
- Automatic debt reminder: The system automatically creates processes and debt reminders according to scenarios for each customer group via email and text messages, helping accountants reduce manual work and increase debt collection efficiency.
Automate the payment process
- Paying through bank: Bizzi integrates with banks, allowing for approval and payment to suppliers directly through the platform, saving accountants time and reducing errors.
- Business credit card: Bizzi offers business credit cards that help separate personal and business expenses, simplifying accounting and tax management.
Integration with ERP system
- Flexible integration: Bizzi easily integrates with ERP systems such as Microsoft Dynamics 365 Finance, SAP, Odoo, Oracle NetSuite, helping accountants synchronize data and work efficiently.
Overall benefits for accounting profession
- Save time: Reduces invoice processing time and manual work by up to 80%.
- Increase productivity: Process automation helps accountants focus on higher-value tasks.
- Reduce errors: Automatic checking and processing helps reduce data entry errors and mistakes.
- Increased control: Real-time data and detailed reporting help closely manage financial operations.
- Cost savings: Reduce invoice processing costs and manual work, optimize resources.
Bizzi is an advanced technology solution that effectively supports accounting operations, helping businesses transform digitally effectively and sustainably. To learn more about Bizzi's solutions, please visit bizzi.vn
Businesses register for trial at: https://bizzi.vn/dang-ky-dung-thu/