China accounting and bookkeeping services provided by Tannet are more than just record keeping. Choosing the right accounting firm can help you make and keep more money. Tannet's accounting services combine quality cost effective accounting and bookkeeping services with a team of tax accounting professionals to help clients make and save more money.
Accounting & Bookkeeping standards differ from one country to another, even though most countries Generally Applied Accounting Principles (GAAP) have been modified to be in compliance or similar to International Financial Reporting Standards (IFRS). However they are still many countries that operate within their own GAAP regulations. China’s Accounting Standards (known as CAS or PRC GAAP) have remained largely autonomous from globally recognized principles and thus providing cross-border businesses and multi-national (MNCs) businesses with a challenge when ensuring compliance to the principles used in their Head office jurisdiction.
With regard to the requirements of maintenance of accounting books and records for a Foreign Investment Enterprise (FIE) in China, there are a number of important regulations to observe and make reference to. The following is a summary of the basic requirements.
Accounting Books and Records
Books and records have to be maintained in accordance with the relevant regulations. It is a requirement under the Enterprise Income Tax Law for FIEs to retain their accounting records for at least 15 years.
Reporting Currency
RMB is the base currency for ledgers and financial reports. For enterprises using currencies other than RMB in their business transactions, one of these foreign currencies can be used as the bookkeeping base currency. However, the financial reports are required to be shown in RMB which is translated from such foreign currency.
Language
Accounting records have to be maintained in Chinese. Ethnic minorities may use their dialects whilst FIEs may choose to use Chinese solely or a combination of Chinese and a foreign language.
Accounting Period
The accounting period in China is stipulated from 1 January to 31 December. However, if a Chinese company is a subsidiary of a foreign group of companies whose balance day does not fall on 31 December, the Chinese subsidiary can choose to use another date as its balance day, subject to the approval of the relevant regulatory authorities.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, 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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