Chinese tax authorities require all enterprises to complete a tax filing on a monthly basis (quarterly for representative offices), failure to do so may result in late interest penalties and fines. You may also be required by your headquarters' management to update them on how well your business is going in China . To timely provide fairly presented financial statements may therefore be critical for the smooth operation of your business.
You may find it beneficial to outsource your financial accounting function at the beginning stages of your business. You will need access to local expertise from the very beginning and avoid any unnecessary corrective costs. We can help you set up standardized working procedures, integrate finance functions to your business infrastructure, and coach your business and future finance team at a cost-effective way.
Our outsource service team can work with your employees in China to handle the whole process of accounting service. We can sort out the most efficient work procedures, collect all relevant documents, discuss the sufficiency and legality thereof, perform bookkeeping according to prevailing Chinese laws and regulations, and deliver local tax authority financial statements to you in a timely manner. According to your specific requirements, either from your local office or headquarters, we can prepare or propose a reporting package with an in-depth analysis for you.
We can also communicate on your behalf with local tax authorities or any other government bodies as statutorily required to handle any issues that may arise during the course of your business operation, a tax audit, or business audit by other government bodies.
With the development of your business, if you deem it necessary to build up your in-house finance function, we can help you design the most appropriate structure, set up internal control procedures, hire suitable staff, and provide training for your entire finance team to ensure a smooth transfer from our professional team to your team.
To ensure your cashier function goes well, you first need to recruit a cashier with high integrity, good personality, and strong technical competency. Then you need to set up and implement sound internal control procedures.
If you cannot ensure the above requirements are met, you may find outsourcing your cashier function to be a better option than keeping it in-house. Examples of circumstances where you may need to outsource include the following:
a) during the initial stage when you start up your business
b) your business experience in a restructure, such as a merger or spin-off
c) unstable finance function
d) lacking qualified personnel
By outsourcing your cashier function, you can have your junior staff closely supervised, coached from time to time by our professionals during the course of their work, and avoid unnecessary fraud when starting your business in China.
Working as your cashier function, we can help you control the bank movement, provide cash flow analysis and raise any significant issues where necessary.
To cope with a rapidly changing environment, the role of a finance function is shifting more and more from a historical data provider to a management decision supporter. This support can be provided though the fulfillment of the following assignments:
- Profitability analysis
- Activity based accounting
- Short-term operation decision
- Long-term investment decision
- Cost control
- Performance evaluation