Accounting Sorting and Process Management for a Company's High-Tech Enterprise Application
• A company plans to apply for the qualification of a high-tech enterprise, yet it is confronted with such issues as vague understanding among the management, disorganized internal R&D institutions and unclear accounting records.
• Our Services
– Assist the enterprise management in conducting policy training and project application evaluation, and assess the success probability as well as the subsequent response strategies.
– Submit the application roadmap and timeline to the management.
– Assist the enterprise in sorting out internal processes and establishing internal R&D institutions.
– Assist the enterprise in reconciling R&D expenses and high-tech related income over the past three years.
– Assist the enterprise in sorting out the internal allocation process of R&D expenses and building the relevant accounting system.
– Assist the enterprise in establishing a tax review process.
– Special-purpose audit.
• The enterprise has successfully applied for the qualification of a high-tech enterprise and achieved substantial tax savings, ensuring that it enjoys the tax incentives for high-tech enterprises free of risks.
Accounting Sorting and Process Management for a Company's Application for Tax Incentives of R&D Expense Additional Deduction
• A company plans to apply for the tax incentive of R&D expense additional deduction, yet it is faced with such issues as the management's unfamiliarity with relevant tax policies and application procedures, as well as non-standard allocation of R&D expenses.
• Our Services
– Assist the enterprise management in conducting tax policy training；
– Submit the project application roadmap and timeline to the management；
– Assist the enterprise in sorting out the internal R&D expense allocation process and establishing the relevant accounting system；
– Provide assurance services for R&D expense additional deduction；
– Assist in preparing the filing materials for the tax incentive of R&D expense additional deduction；
• The enterprise has successfully applied for the tax incentive of R&D expense additional deduction, achieved substantial tax savings, and ensured the risk-free enjoyment of the preferential policy for R&D expense additional deduction.
【Audit for Acceptance of Government Special Funds】
Special Audit for the Acceptance of Provincial and Municipal Science and Technology Special Government Funds Applied by a Company
• A company plans to apply for the special audit for the acceptance of provincial and municipal science and technology special government funds, yet it is faced with issues such as the management's unfamiliarity with the policies on the use and administration of special government funds.
• Our Services
– Assist the enterprise in sorting out the expenditure process of science and technology special government funds and establishing the relevant accounting system.
– Assist the enterprise in compiling the expenditure details of science and technology special government funds.
– Assist the enterprise in conducting statistics on the fulfillment of relevant economic indicators.
– Provide a special audit on the revenue and expenditure of science and technology special government funds and the fulfillment of economic indicators in accordance with the science and technology project contract.
• The enterprise has successfully passed the acceptance of the science and technology project.
【Tax and Accounting Consulting】
Accounting Sorting and Tax Assurance Services for Land Appreciation Tax of a Real Estate Company
• A real estate company plans to conduct the liquidation of Land Appreciation Tax, yet it is confronted with such issues as unclear accounting records, disorganized internal contract management, unfamiliarity with the liquidation process and inadequate grasp of relevant policies.
• Our Services
– Based on the company’s project circumstances, assist the management in sorting out the Land Appreciation Tax policies and formulating liquidation strategies.
– Assist the enterprise in compiling the financial documents of liquidation projects and standardizing accounting treatments.
– Calculate the Land Appreciation Tax for liquidation projects based on the enterprise’s financial data and provide the optimal tax planning scheme.
– Guide the enterprise in preparing the tax documents required for liquidation.
– Conduct assurance audit on Land Appreciation Tax liquidation and issue a tax assurance report.
– Assist the enterprise in communication and coordination with tax authorities during the subsequent liquidation process.
• The enterprise successfully completed the Land Appreciation Tax liquidation within the specified time and achieved substantial tax savings.
Analysis on the Establishment of R&D Center and Tax Processes by a Foreign-funded Enterprise
• A Fortune Global 500 company plans to establish an R&D center in China and conduct planning on the legal form of the R&D institution to be set up and the associated transactions that may arise in the future.
• Our Services
– Assist the enterprise management in analyzing the advantages and disadvantages of various legal forms for establishing an R&D center.
– Assist the enterprise management in analyzing the turnover tax and income tax issues that may be involved in various future businesses from the perspective of China's tax system.
– Assist the enterprise management in analyzing the rationality of transaction pricing with related parties from the perspective of China's transfer pricing rules.
– Assist the enterprise in applying for the qualification of Advanced Enterprise in Technical Services and government subsidies for relevant offshore service income.
• The enterprise has been successfully established and operated, and obtained substantial government subsidies from the local authority, ensuring that it enjoys a variety of tax incentives including value-added tax and income tax free of risks.
Establishment and Analysis of the R&D Process for an Enterprise
• An enterprise engaged in the manufacturing of non-standard machinery has made substantial R&D investments, yet it lacks clarity on how to identify R&D activities and standardize corresponding processes, resulting in a relatively high overall tax burden. The enterprise is in urgent need of establishing a complete set of R&D SOP processes and a supporting report system.
• Our Services
Assist the enterprise in evaluating the feasibility of applying for tax incentives for sci-tech enterprises.
Conduct brainstorming sessions to identify the enterprise's technological innovation highlights.
Optimize the enterprise's R&D organizational structure.
Identify key R&D nodes and potential R&D expenses.
Formulate R&D process SOPs to implement systematic control over the enterprise's R&D processes, covering the entire life cycle of R&D workflows.
Design and optimize the enterprise's financial system, including accounting voucher management, process document retention, expense structure analysis, R&D budget management, and early warning systems.
• After the successful application, the enterprise enjoys the tax incentives without any risks and has achieved a tax saving of approximately 3.5 million yuan.
Tax Incentive Planning for an Enterprise
• An international manufacturing enterprise with an annual revenue of approximately 2 billion yuan and annual tax payments of around 250 million yuan features high product technological content and high gross profit margins, yet bears a relatively heavy tax burden. Its business is mainly focused on the Chinese market. The headquarters harbors certain concerns about transferring patents to China, and the enterprise has a high royalty payment ratio, facing dual pressures from customs and tax authorities. With substantial R&D investments in China, the enterprise plans to establish an R&D center, intends to apply for the R&D expense additional deduction policy and the high-tech enterprise qualification, and conduct planning for potential tax incentives in its business processes.
• Our Services
Analyze the enterprise's business processes and consider prioritizing the application of tax incentives for software enterprises as the first step.
Assist the enterprise in the planning and positioning of its R&D center, and explore the application for duty exemption on imported equipment.
Complete the filing of R&D expense additional deduction projects and optimize the SAP accounting system.
Conduct valuation of patent transfers from the headquarters and reasonably reduce royalty payments.
Plan to apply for high-tech enterprise qualification in two years.
• The enterprise's comprehensive calculation shows an annual tax saving of approximately 85 million yuan.
【New Third Board listing】（Dashin Jiangsu Branch）
A Case of an Enterprise's Listing on the New Third Board
• An emerging high-tech enterprise, though small in scale, features high technological content, making it suitable for listing on the "New Third Board" platform for small and medium-sized enterprises.
• Our Services
– Assist the enterprise management in analyzing the group management structure and standardizing the operational structure in preparation for listing.
– Conduct due diligence and sort out the equity structure prior to listing.
– Implement the management incentive plan.
– Standardize and organize the financial affairs in preparation for listing.
– Conduct tax coordination and filing work.
– Complete the statutory audit for listing and the joint-stock system transformation.
• The enterprise successfully listed on the New Third Board in the first batch, and received strong support from the local government, laying a higher development platform for the company's long-term development in the future.
【Cost Savings and Business Process Optimization】
Case of Cost Savings and Business Process Optimization for a Garment Foreign Trade Company
• A garment foreign trade company has seen a consecutive decline in its reported net profit and gross profit in recent years due to economic changes and revisions to trade terms. However, the company's management and business staff believe from the business perspective that the company should be achieving sound profits. They aim to clarify the causes of the discrepancy between the profits reflected in the financial statements and the projected profits from the business side, put forward recommendations for improving profit performance, design a quotation system, and standardize the company's cost accounting and component analysis.
– Improve the enterprise’s financial accounting system driven by financial reporting, and customize an independent management-oriented cost accounting system for the client (with cost drivers as the core driving factors);
– Design an Activity-Based Costing (ABC) approach for financial report analysis;
– Measure the capacity costs of resources, identify the enterprise’s idle capacity and implement corresponding disposal measures;
– Optimize sales terms and supplier terms;
– Reasonably design the cost components and calculation methods for quotations based on cost drivers;
– Customize a financial management and analysis module for the enterprise to calculate customer-specific gross profit and product-specific gross profit, so as to guide the enterprise’s business activities.
• After special review and improvement measures, the company’s annual profit has increased by nearly 3 million yuan.