Accounting Outsourcing in China

“Accounting Outsourcing in China” is a service in high demand in our product range. What does “Accounting Outsourcing in China” mean? How can your business in China benefit from this type of service?

The aim: We will take charge of your accounting function and any related tasks, enabling you to concentrate on your main business activities.

Chinese accounting very much differentiates from accounting in Germany, Western Europe or the USA

1st example: the balance sheet, the profit and loss account as well as the declaration of all the taxes (including Corporation tax, VAT, Individual tax etc.) have to be handed in to the Chinese tax authority monthly or quarterly. Furthermore different documents have to be handed in to the Chinese social security authority as well as to the Chinese statistic office when necessary.

2nd example: The foreign investment enterprises should join the annual inspection, which is held by the Administration of Industry and Commerce together with six other administrative institutions. The annual inspections materials consist of at least 12 reports, which should be submitted timely to respective institutions.

3rd example: The official invoice, known as “Fapiao” in China, is strictly managed by the Chinese tax system. Companies need to obtain blank Fapiao from their tax bureau first and then issue to their customers. The issuance of Fapiao can only be done through a special device. The status of the Fapiao that a company keeps and operates should be declared to its tax bureau every month. If anything suspicious be detected by the Fapiao system, the company might will be blocked from issuing Fapiao immediately, which can led to serious business consequences.

4th example: To deduct input VAT from output VAT, not only the companies need to obtain the official Fapiao or import VAT forms from China Customs, also the companies need to submit them in a special verification system to get the permission for deduction.

5th example: Payments that leave or enter China are subject to foreign currency control. If the amount of a transfer exceeds 50,000 US Dollar (incl. VAT), there have to be filled out and handed in several documents in order to get the permission for the transfer. Therefore the contracts and invoices regarding this payment have to be submitted to the bank as well.

6th example: Annual CPA audit is mandatory for foreign investment companies in China.

Those are just a few examples of typical formalities and bureaucratic issues in Chinese accounting. This is why in China accounting there is generally twice the amount of documents to deal with as for example in Western Europe or the US resulting in a much higher workload.

Why is it so important, to make sure your accounting in China is in good hands?

All enterprises registered in China, including representative offices of foreign entities, are required by law to maintain accounting records. Failures in the reports or delays of them can lead to serious consequences such as fines or penalties, tax inefficiencies or even the freezing of the bank account. If the chief accountant in charge is responsible for these mistakes in the reports or for the delays he or even the legal representative can be punished personally, such records will have major negative influence to their professional career or business in China. The selection of a Chinese accountant can be rather tough. The outsourcing of the accountancy can be the best choice.

What are the advantages of Accounting Outsourcing?

  • you don’t have to look for a chinese accountant and care about motivation and supervising.
  • you don’t have to pay for recruiting, wages and quality management.
  • as a contact person you will get a qualified chinese accountant who speaks English fluently.
  • you always have access to our lawyers, IT-specialists and German consultants.
  • all of our employees stick to the Rufil Consulting Corporate principles.
  • additional security due to the appliance of anti-virus and anti-spy software, regular training for our employees and further security standards.
  • we are always loyal to our clients and partners.
  • complete control and transparency on your business in China.
  • long term thinking and long term business relationships in China.
  • adoption of liability regarding to our accountancy contracts as well as a liability insurance.
  • you can completely focus on your core business in China and earn more money that way

Further reasons to work with Rufil Consulting in China

  • we are a quality, service and customer oriented company
  • all of our employees stick to our corporate principles
  • we are a German company and adhere to German virtues
  • we work in China since 2004
  • through our services and performances we support international companies in China and generate that way a higher quality of life for our clients, employees and investors
  • we have access to a well-functioning network of experts in several business areas in China

Our service package “Accounting Outsourcing in China”

is more than the execution of basic accounting processes. Our service package is much broader and includes:

  • financial accounting & taxation under Chinese law;
  • payroll and salary accounting including processing of business trips and documentation of personnel;
  • online banking and payments;
  • reporting and consulting services in English;
  • other services that facilitate your accounting function.

Our quality promise:

“Your contact person will be a senior accounting specialist with a good command of English who regularly participates in professional training, is permanently employed at Rufil Consulting and based at our office in the German Centre Pudong, Shanghai. Don’t settle for less!”

Highly qualified accountants, auditors, IFRS-experts, tax consultants, experts and programmers for automation, accounting software and IT-solutions as well as international management consultants work in our Shanghai office. Our working languages are English, Russian, Chinese and German.

Get in touch with us!
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