Usually, companies have their own accounting in China in-house. Smaller companies or companies that are just starting their business can also outsource their complete accounting to a service provider. For medium or large companies a complete outsourcing of these tasks and obligations to a third party because of the considerable administrative burden is not recommended. Also by the tax authorities it is expected to provide own personnel at larger enterprises.

In addition to the regulatory requirements the in-house accounting department must also ensure the reporting obligations to the European investor and ensure internal transparency. Here, a local accountant is often overwhelmed. Also, it is very difficult to judge for a European management in general, whether the in-house accounting complies with all legal requirements.

EunaCon Finance Solutions & Services offers customized controlling and advisory services for your subsidiary in China:

■  We consult the in-house finance department on a regular basis and resolves accounting and tax issues during scheduled onsite visits

■  We deliver monthly or quarterly reporting to the investor in Europe according to specified individual requirements. This requires a mapping between the local accounting records according to China GAAP and the accounting principles in the investor’s home country. The reports are designed in close coordination with the finance department in our client’s head office.