For overseas investors establishing operations in China, navigating local regulations is critical for sustainable success. China’s dynamic tax system and evolving financial landscape require expert support to ensure compliance, optimize costs, and unlock growth. Partnering with specialized service providers mitigates risks while providing strategic insights for informed decision-making.
Accurate bookkeeping under Chinese Accounting Standards (CAS) forms the bedrock of compliance. Professional services ensure meticulous recording of daily transactions – sales, purchases, payroll, and bank reconciliations – while managing VAT fapiao (official invoices), a unique aspect of China’s tax system. Beyond compliance, real-time CAS-compliant reporting delivers actionable insights into costs, profitability, and cash flow, enabling strategic adjustments. Providers leverage approved accounting software to ensure data security and efficient statutory reporting.
Effective inventory management directly impacts tax liabilities and operational efficiency. Our systems track stock movements in real-time using customized solutions, aligning physical counts with accounting records. This enables precise cost allocation for raw materials, work-in-progress, and finished goods – ensuring accurate COGS reporting for tax deductions while minimizing write-offs from obsolescence or shrinkage.
Beyond basic bookkeeping, we implement activity-based costing models that dissect your operational expenses across departments, projects, and product lines. By mapping costs to revenue drivers and benchmarking against industry standards, we identify tax-deductible expenditures while highlighting optimization opportunities – transforming cost data into actionable intelligence for pricing decisions and profitability analysis.
Navigating China’s mandatory “Five Insurances and One Fund” system requires local expertise. We handle registration, monthly contribution calculations (adjusted to regional thresholds), and payment processing for all employees. This includes managing annual base adjustments, new hire enrollments, and maternity subsidy applications – ensuring full compliance with labor regulations while minimizing administrative burdens.
Our specialists manage the complete document lifecycle: from VAT fapiao (official invoice) verification via the Golden Tax System to preparing corporate income tax filings with supporting schedules. We standardize receipt digitization, expense categorization, and deduction package assembly – creating audit-ready documentation that accelerates tax refund claims and withstands regulatory inspections.
China mandates 15-30 year retention periods for financial records. We implement secure digital archiving with blockchain timestamping and physical storage solutions, organizing ledgers, contracts, and tax filings in retrievable formats. Custom metadata tagging allows instant retrieval during tax audits or due diligence, while role-based access controls protect sensitive data.
Accelerate month-end closing with our library of pre-approved templates: standardized journal entry forms, depreciation schedules, and tax calculation workbooks – all pre-configured for CAS and regional tax regulations. These plug-and-play tools eliminate setup errors for new subsidiaries while ensuring consistency across multi-location operations.
We maintain legally compliant accounting books including cash journals, subsidiary ledgers, and general ledgers with dual-language (Chinese/English) annotations. Physical ledgers are stored in fireproof facilities with controlled access, while digital versions feature automated backup and version control – meeting archival requirements under China’s Accounting Law.
Proactive control assessments prevent compliance breaches before external audits. Our bilingual teams conduct transaction testing, internal control evaluations, and fraud risk assessments. Quarterly verification of procurement approvals, payment authorizations, and inventory counts strengthens financial governance while providing management assurance.
For mandatory annual audits by Chinese CPAs, we prepare audit packages with pre-reconciled trial balances, supporting evidence, and explanatory memos for complex transactions. Our liaison with accredited audit firms streamlines the process, reducing fieldwork disruptions while ensuring timely sign-off on financial statements.
Tannet Group Limited is in its sixth five-year development plan stage, and setting the upcoming two five-year plans. Tannet has been always devoted to providing with business solutions for investors all across the world. Should you have further inquiry, pls feel free to contact Tannet at 86-755-82143181, email to anitayao@citilinkia.com, visit our website https://tannet-group.net/.
