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 need to be submitted timely to the 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 those to their customers. The issuance of Fapiao can only be done through a special device. Additionally, the status of the Fapiao that a company keeps and operates should be declared monthly to its tax bureau. If anything suspicious is detected by the Fapiao system, the company will be blocked from issuing Fapiao immediately. Of course, this can lead to serious business consequences.
4th example: To deduct input VAT from output VAT the companies need to obtain the official Fapiao or import VAT forms from China Customs. On top of that, 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 the foreign currency control. If the amount of a transfer exceeds 50,000 US Dollar (incl. VAT), several documents need to be filled out and handed in to receive the permission for the transfer. Therefore, all contracts and invoices in regards to this payment need to be submitted to the bank as well.
6th example: The Annual CPA audit is mandatory for foreign investment companies in China.
Those are just a few examples of typical formalities and bureaucratic issues in the Chinese accounting. This is why, generally speaking, there is twice the amount of documents to deal with in Chinese accounting as for example in Western Europe or the US. This of course, results 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 in the submittance 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 mistakes or delays in the reports, the accountant himself or even the legal representative can be personally punished.
This will be documented by chinese authorities and those 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 Artax 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 Artax 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 Artax 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.
Important information about accountancy and taxes in China (free downloads)
Inforrmational brochure Accounting and Taxes in Russia (37 pages)
Who are we?
We are a German-international medium-sized and owner managed strategy and consulting company with offices in Shanghai, Moscow and Waldshut-Tiengen (Germany). With about 30 employees – most of us are financial experts, business consultants, accountants, tax consultants and lawyers – we support German, Austrian, Swiss and other international companies in their business in China. How we work and what our corporate principles are you will find out at: about us.
Successful business in China means action.
Here is our “call to action”
Get in contact with us by sending us an email or calling us. Besides that we would be happy to organize a video conference for you or welcome you in our office in the center of Shanghai. This is the best way to get to know each other and discuss every upcoming questions. We are very much looking forward to meeting you!