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Accounting in China

Updated:2018-3-28 14:48:41    Source:www.tannet-group.comViews:391

China Company Accounting Services
Hotline: 86-755-82143422, Email: tannet-solution@hotmail.com

Accounting in China is one of the issues that business owners need to pay attention to after company registration. Proper preparation is therefore critical for businesses in China to achieve success. Tannet has a deep comprehension of the complexities of the Chinese accounting system, and can help take charge of all you accounting and tax filing needs and do all the correspondence with the government and relevant bureaus, thus enabling you to concentrate on the business operation.

Main Accounting Principles in China
The vital points of accounting in China:
1. Do a correct bookkeeping;
2. Adhere to Chinese GAAP rules;
3. The financial year is set from the 1st of January to the 31st of December;
4. Do your bookkeeping in Chinese;
5. Chinese Yuan (RMB) as accounting currency;
6. It is permitted to use a bookkeeping software;
7. It is permitted to create subaccounts.

Despite significant efforts by the Chinese government, provisions and regulations still differ between different cities and regions. Due to the varying interpretation of laws, the non-compliance risks for investors are quite high. The best preparation is to get advice in advance. 

Introduction to Fapiaos
In China, you need to use special accounting formats. Authorities will reject any other format. Serial and Invoice numbers are fixed, too. For this, your business has to buy blank-invoices, so-called Fapiaos, from the tax authorities. The blank-invoices all have their distinctive serial invoice numbers. There also exists a database, where you can verify the Fapiao’s authenticity. Furthermore, companies need to purchase a special Fapiao printing machine, which is connected to the tax authorities and can print Fapiaos only for the services and products specified in the business license.

Since fapiaos are usually sold on the basis of business turnover, new enterprises often face the problem that during the first 6 months, the tax bureaus issue only a small amount of blank-invoices with a low value. If more is needed, a special authorization can be granted. This, however, involves a long bureaucratic process.

Managing Your Accounting and Bookkeeping in China
Be it for tax filing, regulatory compliance or internal tracking purposes, accounting is an important part of any business. This is as true for a business in China as it is anywhere else.

Relative to most of the world however, China has only recently embraced the market economy, and with that the practice of accounting. For this reason, some of the accounting and bookkeeping practices that are an everyday occurrence in China, may seem unusual to foreign investors new to the country. Despite some of these idiosyncrasies, China has come a long way in converging its accounting standards with international practice. This significantly simplifies the integration of a foreign investor’s Chinese subsidiary into its multinational group of companies.

Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.

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