Chapter 8:

ORGANIZE THE ACCOUNTING SYSTEM

(Subject code: 201085)

Prepared by: Accounting department 3

 Objectives of Chapter 8

❑ Know to organize the accounting structure

❑ Identify and establish the accounting policies for

accounting activities in the enterprise

❑ Setting up internal control systems for management in

the enterprise

❑ Establishing reporting systems for decision making

❑ Know to organize and store accounting documents

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 Contents

8.1 Organizing accounting structure

8.2 Establishment of the accounting

policies applied in the enterprise

8.3 Facilities, equipment for

accounting work

8.4 Setting up the internal control system

8.5 Organizing the preservation and storing

of accounting documents
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 Organizing accounting structure

❑ Industry characteristics, business field

❑ Operation scale

❑ Type of business

❑ Demands of management

❑ Demands for information usage

❑ Number of employees

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 Organizing accounting structure (cont.)

❑ Employees’ qualification

❑ The number and complexity of transactions

❑ Information technology

❑…

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 Organizing accounting structure (cont.)

Requirements for organizing accounting system

in computerized environment
❑ Control: provide accurate information, timely,
secure assets and information, in accordance
with the requirements of system control.

❑ Effectiveness: time for setting up system is

reasonable, costs is smaller than benefits.

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 Organizing accounting structure (cont.)

Requirements for organizing accounting system

in computerized environment (cont.)
❑ Suitability: satisfying the needs of the enterprise
and meet the requirements of system users.

❑ Flexibility: fit in current conditions as well as in

the future, or in the case of enterprise-scale : Quy mô DN
changes, changing the form of ownership, ...

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 Organizing accounting structure (cont.)

The factors affecting organizing accounting

system in computerized environment
❑ Regulations of government’s finance and
accounting management.

❑ Features of business activity.

❑ Management requirements of enterprises.

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 Organizing accounting structure (cont.)

The factors affecting organizing accounting

system in computerized environment (cont.)
❑ Control requirements.

❑ Information technology and awareness of the role

of information technology in management.

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 Organizing accounting structure (cont.)

Q: What are we interested in when setting up

personnel for accounting department?

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 Organizing accounting structure (cont.)

Personnel for accounting department

➢ Chief accountant
➢ General accountant
➢ Payables and receivables accountant
➢ Payment accountant
➢ Inventory accountant
➢ Taxes accountant
➢ Payroll accountant
➢ Product costing accountant
➢ Fixed Assets accountant
➢…
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 Organizing accounting structure (cont.)

Mr. Hùng
Giám đốc
Company Organizational Chart

Mr. Cường Mr. Tuấn

Ms. Lan
Trưởng phòng Trưởng phòng
Kế toán trưởng
kinh doanh nhân sự

Ms. Hân Mr. Khánh Ms. Hồng Mr. Lâm

Nhân viên kinh
Kế toán tổng hợp Quản lý tuyển dụng Quản lý tiền lương
doanh

Mr. Tâm
Mr. Hải Ms. Huệ Mr. Dũng Ms. Thanh
Kế toán lao động
Kế toán kho Kế toán công nợ Kế toán thanh toán Kế toán thuế
tiền lương

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 Organizing accounting structure (cont.)

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 Establishing accounting policies

❑ Identifying information requirements.

❑ Setting up accounting object list.

❑ Setting up chart of accounts. Bảng hệ thống tài khoản

❑ Selecting accounting form. Hình thức kế toán: Là hệ thống về tổ chức sổ

kế toán và các báo cáo kế toán.

Các hình thức kế toán trong doanh nghiệp

- Hình thức kế toán nhật ký chung (NKC) ...
- Hình thức kế toán Nhật Ký – Sổ Cái (NK-SC) ...
- Hình thức kế toán Nhật ký – Chứng từ (NKCT) ...
- Hình thức kế toán chứng từ ghi sổ (CTGS) ...
- Ghi sổ theo hình thức kế toán trên máy tính.

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 Establishing accounting policies (cont.)

❑ Setting up document system.

❑ Establishing reporting system and providing

accounting information.

❑ Selecting other accounting policies.

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 Establishing accounting policies (cont.)

Identifying information requirements

❑ Approach following accounting perspective offers everything
possible.

❑ Approach following perspective offers information users need.

No. Information User Objective Content Place of Scope of use

preparing

Internal External

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 Establishing accounting policies (cont.)

Setting up Lists of Accounting Objects

❑ What base is used for setting up lists of accounting

objects?

No. Group of Name of Detailed

accounting object accounting object accounting object

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 Establishing accounting policies (cont.)

(Đối tượng kế toán)

Accounting Objects need to detailed record
❑ Objects are related to transactions.

❑ Each accounting object can be managed one or more

in detail or not.

❑ Base for confirming objects needed to managed in

detail.

❑ Encrypt objects needed to managed in detail.

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 Establishing accounting policies (cont.)

Setting up document system

❑ Base for setting up document system

➢Accounting document regime : chế độ tài liệu kế toán

➢Features of accounting objects : Đặc điểm của đối tượng kế toán

➢Features of business activity : Đặc điểm của hoạt động doanh nghiệp

➢Management requirements

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 Establishing accounting policies (cont.)

Setting up document system (cont.)

❑ List of documents
No. Voucher name/ Place of Place of Purpose
number preparing approving of use

❑ Design document samples

❑ Guide method of preparation
❑ Description of business processes

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 Establishing accounting policies (cont.)

Setting up chart of accounts

❑ Base for setting up chart of accounts

❑ Setting up chart of accounts in computer-based

environment

Acct. Code Account name Detailed Note

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 Establishing accounting policies (cont.)

Organize to provide accounting information

➢Reporting classification:
✓ Financial reports : Balance sheet, P&L, Statement of Cash flow

✓ Management reports

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 Establishing accounting policies (cont.)

Organize to provide accounting information (cont.)

➢Requirements:
• The usefulness and purpose of usage

• Storage and presentation methods

• Format and form of presentation

• Time to provide information

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 Establishing accounting policies (cont.)

Organize to provide accounting information (cont.)

➢ Requirements:
• Sending place, receiving place and storage place should be
made clearly and fully

• Access and control: prepared by, checked by, users, ...

• The detailed contents of information must be complete,

accurate, clear, easy to access and easy to check.

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 Establishing accounting policies (cont.)

❑ List of reports
Report Content Form Time Method of Place of Place of
providing preparing receiving

I. Financial report
…
II. Management
report
1. Revenue cycle
- Activity report
- Object and
resource reports
…

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 Establishing accounting policies (cont.)

Selecting accounting form

❑ Base for selecting accounting form
➢ The size and characteristics of business activities
➢ Management requirements
➢ Professional qualifications of staff accountant
➢ Condition of technical facilities
❑ Setting up kinds of books, book structure, reference
checking relations, order and method of recording the
type of ledger

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 Establishing accounting policies (cont.)

Other accounting policies

❑ Method of inventory declaration

❑ Pricing method of inventory

❑ Pricing method of fixed-assets

❑ Foreign currency accounting method

❑ Credit policies: payment discounts, credit limits,

...
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 Facilities, equipment for accounting work

Facilities, equipment:
➢ Working office
➢ Desks and chairs
➢ Filing cabinets
➢ Computers
➢ Network systems
➢ Tools
➢ Other equipment: printer, photocopier, scanner,
shredder, cash register, safe, data storage devices, …

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 Facilities, equipment for accounting work
(cont.)

Facilities, equipment (cont.)

➢ ERP system
➢ Accounting software
➢ Microsoft office: Word, Excel, PowerPoint, Access, …
➢ Tax software
➢…

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 Setting up the internal control system

Set up components of internal control system:

❑ Control environment
➢ Organization’s policies
➢ Management commitment, competence
➢ Organizational structure
➢ Organization culture
➢ Methods of assigning authority and responsibility
➢…

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 Setting up the internal control system
(cont.)

Set up components of internal control system:

❑ Risk assessment
➢ Specifying objectives clearly enough for risks to be
identified and assessed
➢ Identifying and analyzing risks to determine how they
should be managed
➢ Considering the potential of fraud
➢ Identifying and assessing changes that could
significantly impact the system of internal control

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 Setting up the internal control system
(cont.)

Set up components of internal control system:

❑ Control activities
➢Proper authorization of transactions and
activities
➢Segregation of duties
➢Design and use of documents and records
➢Safeguarding assets, records, and data
➢Independent checks on performance

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 Setting up the internal control system
(cont.)

Set up components of internal control system:

❑ Information and communication

➢ Obtaining or generating relevant, high-quality
information to support internal control
➢ Internally communicating information, including
objectives and responsibilities, necessary to support the
other components of internal control
➢ Communicating relevant internal control matters to
external parties

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 Setting up the internal control system
(cont.)

Set up components of internal control system:

❑ Monitoring
➢ Selecting, developing, and performing ongoing or
separate evaluations of the components of
internal control
➢ Evaluating and communicating deficiencies to those
responsible for corrective action, including senior
management and the board of directors, where
appropriate

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 Organizing the preservation and storing
of accounting documents

Preservation and storing of accounting

documents
➢ Compliance with accounting laws on the preservation
and storing of accounting documents
➢ Storage of accounting documents in two forms: papers
& files (electronic documents)
➢ Storage methods: either by type or by group or by both
➢ Storage place: filing cabinets, file storage; computer
hard drive

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