Accounting Reviews

In the last few years, Thailand has completely transformed into one of the biggest business hubs in Southeast Asia. Local entrepreneurs and well-established multinational corporations have chosen Thailand to set up businesses. However, most companies don’t realize the importance of accounting services in Thailand. Every Thai and foreign company has multiple obligations related to accounting and tax. In this article, we will briefly explain some things every company should know about before setting up a business in Thailand. This information will help you understand the need and importance of hiring accounting services in Thailand.

Accounting & Annual Audit

Every functioning company in Thailand needs to maintain and prepare accounts. This is not only applicable to limited companies, but also foreign companies, joint ventures and registered partnerships. Only a private individual or sole proprietorship is exempted from this obligation. All the account statements filed by a business organization need to comply with Thai Accounting Standards. They should be true and accurate in portraying the image of a company’s expenses and assets.

In addition to this, a new company needs to close its initial accounting year within 12 months after it has been registered. The balance sheet should also be filled accurately and filed after each period. A business can change its accounting year, but only after it has taken a written approval by the revenue division. All the financial declarations of a company need to be certified and examined by a professional account. Account statements need to be signed and submitted within four months of closing. An approval of shareholders is also needed before filing the statements.

These documents also need to be sent to the commercial registrar and revenue department. If a business is unable to comply with these regulations, it may cause a penalty of 100,000 THB. The accounts and relevant business documents need to be saved and kept for at least five years. In order to make sure everything is done in a proper manner, you need a professional accounting company.

CIT or Corporate Earnings Tax

Every business organization in Thailand needs to have a taxpayer identification number. This needs to be acquired within two months of establishing a business. Tax identification number serves for both CIT and VAT.

VAT

Every company in Thailand needs to be registered for VAT if it comes under any of the following three categories.

Business activities and daily operations of a business are subjected to VAT. For instance, import and export of goods.

If the turnover of the company exceeds 1,800,000 Baht per year. Once a company reaches this figure, it needs to apply for a VAT number within 30 days.

If a company wants to use the services of a foreign national, it is necessary to acquire a work permit from the Government.

Social Security Fund & Payroll Services

For every business organization in Thailand, it is necessary for both employer and employee to contribute 5% earnings to Government funds.

As you can see, it can be tricky and complicated to manage everything on your own. Moreover, if you fail to do it in a proper manner, you may have to pay hefty fines and penalties. Therefore, it is extremely important to hire professional accounting services in Thailand. These companies will manage your finances and accounts to make sure you can focus on other aspects of your business.

Accounting is the study of how companies monitor their earnings and financial assets over time. Accounting firms do much more than the common presumptions; they compute costs and proficiency rewards from technology, engaging in techniques and strategies for mergers and acquisitions, superior control, acquiring and utilizing info systems to keep track of fiscal operation, taxation strategies, and health care benefits administration.

Typically the career can be a highly significant as well as versatile. The field is normally split into 3 broad areas: audit of financial statements, taxation and accountancy.

Auditing Accounts:
Work in auditing consists of checking financial transaction ledgers and budgetary statements within corporations and government.

Financial budget Assessment:
Spending budget analysts are responsible for creating and taking care of an organization’s financial strategy. They are in charge of the preparing of spending budgets, cash flow forecasts, revenue estimates and estimations of periodic outcomes.

Monetary:
Financial accountants prepare monetary statements based on ledgers and take part in vital monetary decisions affecting mergers and acquisitions, benefits/ERISA setting up and long-term business projections.

Management Accounting:
Management accountant operate in corporations and take part in decisions about money budgeting and line of business analysis.

Tax Accountants:
Tax accountants prepare company as well as personal income tax reports in addition to determining the amount of tax that have to be paid by a company or a person in a particular period. They are charged with developing tax techniques and strategies involving challenges including capital selection, how to best deal with a merger or acquisition, deferral of taxes, when to purchase materials and the like.

Various levels of ability tend to be apportioned dissimilarly between the sections which means that subject to your role there can be specific demands on your adeptness. Whilst average speaking skills are requisites for all sections; the ability to synthesize varies from substantially throughout each. Audit accountancy requires a moderate capability, taxes and financial requires a low level of skill, and Man accountancy a higher level of proficiency.

Entry level accountants may anticipate a somewhat team focused setting. Usually they are going to begin as a junior person in a team responsible for auditing an important trading account or even preparation monetary records. It can be important that junior members learn to pull their weight, and perform as a competent, productive, and useful member of the unit. There is also a significant degree of added scholastic work associated with this level due to the fact that you’re expected to master a whole lot in a really short time period. Anybody prepared to put in the hard work and long hours can count on a bright and financially rewarding profession in front of them.

Based on the bureau connected with labour statistics there have been huge rises in career positions, reflective of the areas development and competitiveness. With the help of the best abilities and degree this particular growth ensures the possibility for an extremely profitable profession.

Top companies include KPMG, EY, Deloitte, Arthur Anderson, PWC, Moreley & Scott, BDO Seidman, and Hudsons. College graduates looking for entry level opportunities ought to contemplate employment with these companies. Many people do not make partner in public accounting firms even so the experience and training is usually excellent.

Following that, quite a few proceed to jobs with an accounting focal point in organization or governing administration. Serious gifted accountants can easily progress their career with the acquisition of necessary skills and working experience along the way and subsequently have the benefit of a highly successful line of work .

This article is intended to help everyone gain a better
understanding of National Accounts Programs, including the motivation
for creating one and the steps toward a successful process. While it is
not intended to definitively answer every question regarding national
accounts, it serves as a set of guiding principles for those in the
company who are responsible for the success of the program. It is
written for salespeople, branch managers and national account
representatives, not the company’s executive management team. However,
keep in mind that executive management needs to be committed to the
program and would benefit by understanding the process and concepts.

Regain Power by Offering Competitive Advantage

National
accounts, by definition, have significant size and buying power which
provide leverage in demanding lower prices. In addition, because of
their complexity and demographics, they are often more difficult and
expensive to service. Consequently, most national accounts are the least
profitable.

In response, you need to make a concentrated effort
to effectively rebalance the shift of power by offering significant
competitive advantages that make your products and services more
critical to your national accounts. Without creating competitive
advantage, you will be tied to the downward price spiral that eats
margin and effectively negates any understanding by your customers that
“price is not the same as cost.” A structured national accounts program
with definitive guidelines is the first step toward gaining competitive
advantage.

There are four basic broad categories of added value that create competitive advantage:

1.
Processes that streamline your customers’ productivity, improve
quality, take transaction costs out of the supply chain and provide
measurable savings (unrelated to price).

2. Administrative and
technical support that can reduce your customers’ internal costs enough
to affect bottom line operating costs.

3. Sales and marketing support that can increase your customers’ top line.

4. Technology that is core to your customers’ business results, yet is beyond their internal capabilities.

Your national accounts program should refocus your efforts on all of these issues.

Four Fundamentals

The
ultimate success of a national accounts program depends on the hard
work and team participation of all company employees involved in the
process.

There are four basic fundamentals of success in any national accounts program:

1.
Knowledge – Study the internal processes of your company and/or the
internal workings of your national accounts program if you already have
one in place.

2. Understanding – Research the business environment
in which your company operates and the resulting defined objectives for
a national accounts program.

3. Clarity – Identify the big
picture of market and customer demand and direction. This should be a
true understanding of what your corporation is trying to accomplish in
total.

4. Commitment – Secure the commitment of your entire company.

Knowledge

It
is essential to outline the objectives of your program, the process
involved, and the direction to take in order to receive help and support
when necessary. If you have no program in effect, it is critical to
develop this process.

Second, activity measurement and open
communication (both up and down the chain of command) are absolutely
critical for success. Accountability is an absolute necessity and it
must be clearly defined. Support from your company’s information
management system can provide the fundamental elements of success for
the national accounts program. A weak information system could leave
dangerous voids or even misrepresent the true picture of the national
accounts program.

Understanding

Understanding brings the
field view (external view) closer to corporate headquarters. An internal
company survey may provide the necessary clarity as to how a national
accounts program is perceived. Input from local account representatives
and branch managers is very important. Your company needs to explore how
things are being done and how an existing program is perceived. Most
importantly, input from the field with recommendations is essential. If
you currently have no program, the survey is even more critical to the
initial development stage of a new program.

Understanding actual needs of the national account is also critical
to the success of your program. To get a better understanding, ask the
following questions:

o What do national account types really value?

o What motivates our suppliers to negotiate special terms for these accounts?

o Do these accounts view our company as partners?

o What do we know about their business?

o Are we truly the primary source of supply?

o Can we create a win-win situation?

Clarity

Everyone
must have a clear understanding of exactly what you are trying to
accomplish. Recognizing the volatility of the environment is a valuable
piece of the puzzle. Your company needs to catch up to the pace of
change within the distribution industry to maintain competitive
advantage. Remember, “Perceived value drives expectations” and
“Performance value drives customer satisfaction.”

Raise your
customers’ perceived value high enough and you create “competitive
advantage” which is the first step towards rebalancing the shift of
power inherent in any national accounts program.

While the
knowledge aspect of the national accounts program is heavily weighted
toward internal perspective, clarity needs to be weighted toward your
external environment. You must be clearly aware of market dynamics,
including technology and other external forces shaping your particular
industry and driving behavior of the national accounts customers. You
must evaluate events and trends using an anticipatory perspective in
relationship to your competition. You need to ask yourself these
questions:

o How is the industry different today regarding what is expected from a national accounts program?

o What will be considered by 2007?

o What are our competitors doing in serving national accounts?

o What technologies offer the most potential, both as products and tools?

o What actions are our competitors taking to gain advantage?

o How will our suppliers react to our strategy?

Commitment

A
National Accounts Program cannot be treated like a member of the
“flavor of the month” club. Everyone needs to take it seriously.
Commitment is required by everyone. This is not something you dabble in.
That is why it is important to put the time and attention into the
planning process before getting wet. Understand your objectives.

The
only reason a company should embark on a national accounts program is
to obtain sales and market share that in total is profitable for the
company and meets the criteria of corporate strategic objectives.

The corporate objectives of the national accounts program may be outlined as follows:

o Develop a national presence in the marketplace

o Enhance the company image and credibility

o Develop impressive client references

o Support growth with preferred vendors

o Create synergy with the corporate mission statement

o Rebalance the shift of power and profitability in the national account program

One
of the core problems facing many national accounts programs is the need
to overlay a centralized sales function on an established decentralized
sales force. In the past, your processes and systems may not have
enabled customers, prospects, or even your own field sales
representatives to make informed, favorable decisions.

How Do We Get Started?

Step 1: Define the Players

Clearly define independent responsibilities of each player contributing to the success of the national accounts program.

Director of National Accounts

o Serves as liaison with national account at corporate level.

o Approves and helps establish “Rules of Engagement.”

o Provides support to local management.

o Monitors the activity between national account representatives and local branches.

o Determines qualification criteria. Reviews qualification process.

National Account Manager

o Supports/initiates implementation of national account program.

o Calls on national account corporate purchasing.

o Responds to issues and requests from the customer and company personnel.

o Meets and interacts with your customers’ top decision makers.

o Helps customers, even in areas unrelated to company products and service.

o Communicates effectively with local branch management and local account representatives.

Branch Manager

o Manages activity of local account representatives.

o Supports both corporate and local national account sales efforts

o Monitors national account activity, service level, and provides guidance to local account representative

o Reports progress.

o Interacts with Director of National Accounts on any and all national account issues.

Local Account Manager

o Manages consigned inventory

o Grows sales of non-contract items

o Interacts with national account manager

o Services account according to contract rules of engagement

o Provides Branch Manager with monthly status report.

Step 2: “The Tiger Team”

A
tiger team is a select group of top-level employees, selected by
executive management, who are committed to the objective of refining the
development of the national accounts program. This team consists of the
following personnel:

o Director of National Accounts

o Several national account representatives

o A regional manager

o Several local sales representatives

The tiger team should be split into two groups:

Group 1: Director of National Accounts

Several national account representatives

Group 2: Regional manager

Several local account representatives

With
a two-day retreat as the setting, each group will separately establish
the following during the first day: (This is a brainstorming session
designed to cover any and all ideas.)

o Measurement criteria for individuals and accounts

o Priorities

o Action items

o Accountability

o Objectives

o Rules and responsibilities of all players

On
the second day, the groups will merge and compare notes to establish a
united refinement plan to go forward. This documented plan will be
submitted to executive management for approval. Upon approval, it is
highly recommended that the intent and objectives of the program be
properly communicated to all employees. (E-mail rick@ceostrategist.com to get a sample national accounts program communication message.)

Then, a six-month audit should be conducted to follow-up on progress
and action items. This should ensure the program is progressing and
that objectives are met. (E-mail rick@ceostrategist.com if you would like a suggested listing of qualification procedures.)

Step 3: Communication

Establish communication processes and trust-building techniques for existing and prospective national accounts. Tips include:

o The sharing of relevant information will begin the trust building process. The company should take the lead.

o
The beginning dialogue should focus on the long-term strategic
initiatives of the respective companies. Understanding each other’s
drivers, challenges and strategies will build the foundation for future
communications.

o The customer needs analysis and account planning process are excellent vehicles to build trust and open communication.

o
Customer and supplier executive interaction fosters trust and will have
a cascading effect, driving both organizations toward more effective
communication.

o The data and information to be shared should be
identified in a cooperative environment. The focus should be on
information that will lead to improvement and efficiencies for both the
customer and the company.

o The capture, storage, retrieval and
communication of information to be shared must be considered when
building the infrastructure systems.

o The customer and your company’s national and local representation must develop the rollout plan jointly.

o Internal champions/coordinators of the rollout process must be identified and positioned by both the customer and the company.

o
The plan should be developed and implemented using a team “project”
approach. The ongoing monitoring and controlling activities should then
be transitioned to others within the respective organizations.

o The rollout plan should address cultural, functional and training issues for both organizations.

The infrastructure system should have the ability to report
information that is crucial to monitoring and controlling the ongoing
application of these services.

Track the Process on the Web

It
greatly enhances the communication process if national accounts
programs are tracked on the web. As Akarin Weatherford, Chief Technology
Officer of CEO Strategist LLC points out, this creates great
opportunities to increase effectiveness within the organization:

o
Communication channels widen as web application is leveraged to support
the account management process. Collaborative tools allow managers,
sales persons and account representatives to adequately share
information between themselves about accounts.

o Managers can
track and view the progress of sales persons and account representatives
from anywhere with near 24×7 availability using a standard web browser
from any PC or laptop connected to the Internet.

o A centralized
web site to track the milestones within this process means that managers
can capture a real-time picture of what is going on with the entire
account management process and each individual account in order to make
appropriate critical business decisions.

o Accountability and
traceability for each manager and sales representative are established
since all actions performed on a customer’s account are recorded by the
web site.

Because of the distributed nature of national and local
accounts, the best way to manage this process is through a web-based
application. This means the following:

o No Need to Buy Special
Computers or Software – Most managers, sales persons, and account
representatives will already have what they need to participate:
laptop/PC, web browser, and local internet service, meaning no long
distance access charges (through AOL, Road Runner, AT&T, etc.).

o
Information Technology Overhead Can be Cut – Maintain one software
application at one location (on the server) rather than many software
applications in many branch locations (on individual computers). If
there are any updates to the web site, it occurs in one place and is
automatically distributed to managers, sales persons, and account
representatives the next time they connect to the site. You can shrink
the IT staffing because the necessary support coverage is less.

Summary

The
motivation and process for developing a national account program have
now been outlined. As you go forward, remember these elements that will
be critical to the program’s success:

o Gather All Input – A
national accounts program involves many participants. It is not
something you do to get customers. It is something you do with major
national chains. The most successful national accounts programs have
included executive and corporate input in combination with branch and
local input. Most importantly, however, is the input of the customers
themselves in the planning, implementation and measurement stage.

o
Focus on the Process and Communicate Well – In a national accounts
program the old clich

Accounting is a fundamental slogan of every business. Without the accounting practice, it is difficult to be effective in your business. Its basically helps you to monitor the transactions happening and make sure that all the expenditures are meaningful. Accounting helps you to reduce the unnecessary expenses and increase the profit scale of the business. All the companies implementing the same strategy of recording the transactions to achieve the maximized profit with the minimized expenditure. Accounting can be done either manually or using the accounting software. We are going to discuss about the advantages and disadvantages of the manual accounting and the computerized accounting in this article.

Generally accounting cycle has certain steps of activities. Recording all the transactions as “Journal”. Posting them into ledger accounts. Preparing trial balance, making adjustment entries, preparing adjusted trial balance, preparing financial statements and proper disclosures, posting the closing entries and preparing the balance sheet. This is all about accounting. It is not a big deal to carry out this sequential process, but its become dramatically hectic when there are thousands of transactions.

Let us focus on the main issues of manual accounting here. Paper works are involved in manual accounting. All the accounting activities would be carried out on the paper manually. Obviously, it would take much time and resources for the large organization. Computerized accounting saves lot of time where in, the employee has to record the transactions and all the other calculations would be carried out by the software either automatically or by a request. Computerized accounting provides accurate results on the precised report but some software takes much time and resources as manual accounting requires. Hence, it is not easy to decide on which software would work more fast and economic. Best computerized accounting software is highly expensive. On the other hand, computerized accounting could handle thousand calculations simultaneously where as manual accounting needs much time to do that. Even then, we cannot say that manual accounting provides no benefits. Manual accounting can be handled with cheap work force and resources. It is reliable as it is done manually with minutes of observations. Do not have to rely on the machines.

The main advantage of computerized accounting is the speed and accuracy. We can have an easy backup and restoration system. All the data and information will be secured. The disadvantages includes high cost, updating the system, special training for the personnel, relying only on the machines and the reduced employment.

Both the computerized and the manual accounting got the merits and the demerits. They can be differentiated only in terms of cost, speed and the mobility. It can be implemented according to the size of the business. Small and Medium sized companies prefer manual accounting considering the low cost. They could utilize quality accountants and carry out the day to day activity or even they could simply offshore their accounting tasks to an outsourcing firm. Large scale businesses completely rely on the computerized accounting as it gives fast and accurate results. It would be really helpful for them to have the accounting records without any chaos.