Functions of receivable account team and payable account team at finance department. The influence of average collection period on financial health and the process of payable management at Ernst and Young Vietnam
Nguyen, Thu (2021)
Nguyen, Thu
2021
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2021060915213
https://urn.fi/URN:NBN:fi:amk-2021060915213
Tiivistelmä
Within any business, revenue and expenses are the two most important factors that affect the profit of the company. Regarding revenue, most companies will either accept a one-time payment or periodical payment. The second type of payment gives the company more risks and disadvantages as the revenue is not yet received. In addition to ensuring revenue, most businesses put great effort into finding ways to minimize and control operational expenses. The primary responsibilities of the finance executives are managing unreceived income and controlling payments.
The purpose of this thesis project was to analysis how the finance department of Ernst and Young in Vietnam operated in the year of 2020 with a focus on three objectives. The first objective was to explore the functions of the account receivable team and account payable team, as well as their collaboration. The second objective was to determine the influence of the average collection period on client decision-making and the third objective was to clarify the company’s procedure of managing payable account. The knowledge base of the thesis project discusses the process of management and operation in each team of the Finance department: account receivable and account payable. The concept of average collection period as well as essential financial ratios for payable assessment is also discussed. For further development, this study can be utilized as a useful tool for business within the same field.
The project was carried out using qualitative research through the case study method. Specifically, data was collected from the author’s observations and experience at the workplace. Another source of data came from surveys which were designed for two groups of respondents: the managers and the staff. While the staff’s responses were mostly collected through mail or hardcopy, face-to-face interviews were held with the managers because of the nature of the questions asked. The result of the thesis project was a comprehensive understanding of the operating apparatus of one of the members of the Big four of Accounting and Auditing services providers.
The purpose of this thesis project was to analysis how the finance department of Ernst and Young in Vietnam operated in the year of 2020 with a focus on three objectives. The first objective was to explore the functions of the account receivable team and account payable team, as well as their collaboration. The second objective was to determine the influence of the average collection period on client decision-making and the third objective was to clarify the company’s procedure of managing payable account. The knowledge base of the thesis project discusses the process of management and operation in each team of the Finance department: account receivable and account payable. The concept of average collection period as well as essential financial ratios for payable assessment is also discussed. For further development, this study can be utilized as a useful tool for business within the same field.
The project was carried out using qualitative research through the case study method. Specifically, data was collected from the author’s observations and experience at the workplace. Another source of data came from surveys which were designed for two groups of respondents: the managers and the staff. While the staff’s responses were mostly collected through mail or hardcopy, face-to-face interviews were held with the managers because of the nature of the questions asked. The result of the thesis project was a comprehensive understanding of the operating apparatus of one of the members of the Big four of Accounting and Auditing services providers.