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Some accounting work to review when doing year-end settlement
Posted date 26/09/2018
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Posted date 26/09/2018
11.417 view
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Some accounting work to review when doing year-end settlement
MSc. Tran Thi Hong Hue
Lecturer, Faculty of Accounting
Lecturer, Faculty of Accounting
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1. Cash
- Has the unit made a fund inventory report on December 31?
- Does the amount in the cashier's cash book match the amount in the cash detail book made by the payment accountant?
- Check if there is any transaction that pays bills from 20 million VND ?
- Is the fund balance too large? Unreasonable? Note: only affects corporate income tax when you have interest expense
- Are accounting documents such as receipts and payment vouchers fully signed?
2. Bank deposits
- Has the accountant confirmed the deposit balance and checked the matching subsidiary ledger?
- Money transfer fees and card payment fees all have invoices --> Remember to take them back to keep as documents.
- Check the loans to see if there are complete contracts and debt receipts?
- Compare the loan account balance with the credit contract to see if it matches?
- Are the interest payments for contracts with interest payments due at the end of the period deducted in advance as expenses for the period? Are the interest payments recorded correctly at the loan amount + interest rate?
3. Input Value Added Tax
- Compare the arising number on the declaration and the arising number of Debit account 133: do they match?
- Does the carryover indicator 43 match the indicator 22 of the next period?
- Are the invoices and documents valid : Tax code, company name, address, tax rate, amount ?
- Check whether the conditions for deduction have been met such as: payment method; VAT on imported goods has payment documents?
- Allocation of input tax for taxable and non-taxable activities
- Is the accounting for input VAT and output VAT offset correct?
4. Advance
- Have you reconciled the advance balance?
- Is there any outstanding balance that has been outstanding for too long? Solution to fix and handle
- Are the refund documents appropriate? If you are on a business trip, you will need a travel permit, accommodation bill , round-trip ticket, etc.
5. Inventory
- Is there any inventory that has been stored for a long time? Is there any obsolete or damaged inventory? Is there a need to set up a provision? Is there a proposal to liquidate or sell?
- Need to compare the data on the total import-export inventory table to see if it matches the ledger and the numbers on the account balance sheet?
- Check if there is any negative time?
- Is there a year-end inventory report yet?
- Have the differences between reality and books been processed and accounted for?
- Have you run monthly cost calculation yet?
- Accountant checks between warehouse receipt and input invoices
- The accountant checks whether the output invoices have enough attached Warehouse Delivery Notes? For manufacturing enterprises, are they consistent with the production order?
6. Fixed assets
- Is there a fixed asset inventory record?
- Has depreciation been allocated? Is the allocation period determined in accordance with Circular 45?
- Considered depreciation, or VAT, depreciation for vehicles with 9 seats or less with original price over 1.6 billion VND
- Register depreciation method
- Depreciation for machinery that does not reach capacity?
7. Debt
- Has the accountant completed and confirmed the reconciliation of receivables and payables on December 31 of each year?
- Have the provision for bad debts and accompanying documents been prepared ?
- Is the debt offset in accordance with regulations?
- Evaluation of foreign currency debt
8. Salary and salary deductions
- Have you accounted for salary expenses fully?
- Have you accounted for social insurance , health insurance, union funds, and unemployment insurance monthly?
- Compare payroll documents and current social insurance policies
- Accounting for personal income tax for employees at the unit
- Family deduction profile
- Register for personal tax code
- Regulations on salary payment
Are the documents complete such as: Timesheet, Salary payment sheet, Bonus payment sheet , labor contract, salary increase decision, transfer decision, labor contract termination decision, appointment decision, dismissal decision, etc.?
Other labor procedures…
9. Taxes payable
- Declare and pay business license fees
- Personal income tax deduction: Progressive, full. Special note for non-resident individuals..
- Conditions for authorizing personal income tax settlement?
- Conditions for making personal income tax commitment according to form 02
- Have all tax arrears and penalties been fully accounted for?
- Have you declared your taxes completely?
- Has the adjustment declaration been made in accordance with regulations?
- Compare data generated from declaration and accounting
- Exclude unreasonable and invalid expenses (enter into item B4 in Corporate Income Tax Finalization Declaration Form 03/TNDN)
10. Capital
- Is the charter capital contributed enough? Compare the provisions of the Enterprise Law on charter capital contribution
- Virtual capital contribution leads to large cash, while interest expenses arise --> Interest risks are excluded from the reasonable expenses of the unit
- Personal income tax on capital transfer transactions?
- List of shareholders and capital contributors.
11. Revenue
- Is the invoice issued at the right time? Note: Construction companies issue invoices at the time of acceptance of the project or project item.
- Issue invoices for returned goods, accounting for returned goods
- Is the revenue profile appropriate?
- Compare documents and ledgers with monthly or quarterly declarations
- Revenue details by product, field, locality, etc.
- Is the tax rate in accordance with current regulations?
- In which cases is it necessary to stamp sales over the phone?
12. Cost
- Check if invoices and documents are valid?
- List unreasonable and valid expenses.
- Are the accounting costs correct?....
13. Carryover
Carry forward of end-of-period business results; Principle that accounts of type 5 and above have no balance….
The above article of the author has partly stated some of the main tasks that each accountant must do and check before, during and after preparing the Financial Report. Hopefully the above information will help accountants; lecturers; students; managers grasp the most effective financial management and in accordance with the provisions of law.
Good luck!
References:
1/ Official dispatch No. 10220/BTC-TCT on conditions for bank payment documents to deduct and refund VAT issued on July 20, 2009 by the Ministry of Finance.
2/ Pursuant to Clause 10, Article 1, Circular No. 26/2015/TT-BTC on conditions for input VAT deduction.- Has the unit made a fund inventory report on December 31?
- Does the amount in the cashier's cash book match the amount in the cash detail book made by the payment accountant?
- Check if there is any transaction that pays bills from 20 million VND ?
- Is the fund balance too large? Unreasonable? Note: only affects corporate income tax when you have interest expense
- Are accounting documents such as receipts and payment vouchers fully signed?
2. Bank deposits
- Has the accountant confirmed the deposit balance and checked the matching subsidiary ledger?
- Money transfer fees and card payment fees all have invoices --> Remember to take them back to keep as documents.
- Check the loans to see if there are complete contracts and debt receipts?
- Compare the loan account balance with the credit contract to see if it matches?
- Are the interest payments for contracts with interest payments due at the end of the period deducted in advance as expenses for the period? Are the interest payments recorded correctly at the loan amount + interest rate?
3. Input Value Added Tax
- Compare the arising number on the declaration and the arising number of Debit account 133: do they match?
- Does the carryover indicator 43 match the indicator 22 of the next period?
- Are the invoices and documents valid : Tax code, company name, address, tax rate, amount ?
- Check whether the conditions for deduction have been met such as: payment method; VAT on imported goods has payment documents?
- Allocation of input tax for taxable and non-taxable activities
- Is the accounting for input VAT and output VAT offset correct?
4. Advance
- Have you reconciled the advance balance?
- Is there any outstanding balance that has been outstanding for too long? Solution to fix and handle
- Are the refund documents appropriate? If you are on a business trip, you will need a travel permit, accommodation bill , round-trip ticket, etc.
5. Inventory
- Is there any inventory that has been stored for a long time? Is there any obsolete or damaged inventory? Is there a need to set up a provision? Is there a proposal to liquidate or sell?
- Need to compare the data on the total import-export inventory table to see if it matches the ledger and the numbers on the account balance sheet?
- Check if there is any negative time?
- Is there a year-end inventory report yet?
- Have the differences between reality and books been processed and accounted for?
- Have you run monthly cost calculation yet?
- Accountant checks between warehouse receipt and input invoices
- The accountant checks whether the output invoices have enough attached Warehouse Delivery Notes? For manufacturing enterprises, are they consistent with the production order?
6. Fixed assets
- Is there a fixed asset inventory record?
- Has depreciation been allocated? Is the allocation period determined in accordance with Circular 45?
- Considered depreciation, or VAT, depreciation for vehicles with 9 seats or less with original price over 1.6 billion VND
- Register depreciation method
- Depreciation for machinery that does not reach capacity?
7. Debt
- Has the accountant completed and confirmed the reconciliation of receivables and payables on December 31 of each year?
- Have the provision for bad debts and accompanying documents been prepared ?
- Is the debt offset in accordance with regulations?
- Evaluation of foreign currency debt
8. Salary and salary deductions
- Have you accounted for salary expenses fully?
- Have you accounted for social insurance , health insurance, union funds, and unemployment insurance monthly?
- Compare payroll documents and current social insurance policies
- Accounting for personal income tax for employees at the unit
- Family deduction profile
- Register for personal tax code
- Regulations on salary payment
Are the documents complete such as: Timesheet, Salary payment sheet, Bonus payment sheet , labor contract, salary increase decision, transfer decision, labor contract termination decision, appointment decision, dismissal decision, etc.?
Other labor procedures…
9. Taxes payable
- Declare and pay business license fees
- Personal income tax deduction: Progressive, full. Special note for non-resident individuals..
- Conditions for authorizing personal income tax settlement?
- Conditions for making personal income tax commitment according to form 02
- Have all tax arrears and penalties been fully accounted for?
- Have you declared your taxes completely?
- Has the adjustment declaration been made in accordance with regulations?
- Compare data generated from declaration and accounting
- Exclude unreasonable and invalid expenses (enter into item B4 in Corporate Income Tax Finalization Declaration Form 03/TNDN)
10. Capital
- Is the charter capital contributed enough? Compare the provisions of the Enterprise Law on charter capital contribution
- Virtual capital contribution leads to large cash, while interest expenses arise --> Interest risks are excluded from the reasonable expenses of the unit
- Personal income tax on capital transfer transactions?
- List of shareholders and capital contributors.
11. Revenue
- Is the invoice issued at the right time? Note: Construction companies issue invoices at the time of acceptance of the project or project item.
- Issue invoices for returned goods, accounting for returned goods
- Is the revenue profile appropriate?
- Compare documents and ledgers with monthly or quarterly declarations
- Revenue details by product, field, locality, etc.
- Is the tax rate in accordance with current regulations?
- In which cases is it necessary to stamp sales over the phone?
12. Cost
- Check if invoices and documents are valid?
- List unreasonable and valid expenses.
- Are the accounting costs correct?....
13. Carryover
Carry forward of end-of-period business results; Principle that accounts of type 5 and above have no balance….
The above article of the author has partly stated some of the main tasks that each accountant must do and check before, during and after preparing the Financial Report. Hopefully the above information will help accountants; lecturers; students; managers grasp the most effective financial management and in accordance with the provisions of law.
Good luck!
References:
1/ Official dispatch No. 10220/BTC-TCT on conditions for bank payment documents to deduct and refund VAT issued on July 20, 2009 by the Ministry of Finance.
3/ Pursuant to Article 4, Circular 96/2015/TT-BTC issued on June 22, 2015 of the Ministry of Finance amending and supplementing Article 6 of Circular No. 78/2014/TT-BTC on deductible and non-deductible expenses when determining taxable income for corporate income tax.
4/ Circular No. 45/2013/TT-BTC issued on April 25, 2013 guiding the management, use and depreciation of fixed assets.
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