RMB is the base currency for statutory ledgers and financial reports. Companies transacting in foreign currencies may use a foreign currency as the bookkeeping base, but all regulatory financial statements must be presented in RMB. Accounting records must be maintained in Chinese; internal management reports for group reporting can be prepared in any language.
Companies in China must use the accrual basis of accounting. Foreign-invested companies, including their legal representatives, are responsible for the truthfulness, completeness, and legitimacy of their financial statements. These statements form the basis for computing taxable income and distributable profits. Books and records must be retained for at least 15 years.
What Acadia delivers each month
- Journal entry preparation and monthly closing of RMB accounting books under Chinese GAAP (CAS)
- Bank reconciliation and intercompany reconciliation
- Monthly VAT return preparation and fapiao reconciliation
- Corporate income tax (CIT) provisional quarterly declaration
- Statutory financial statements (balance sheet, income statement) for year-end audit preparation
- Management reporting package in English for headquarters, customised to your group’s reporting cadence
- Year-end audit coordination with your China-registered CPA firm
- Annual CIT true-up filing and disclosure of book-tax differences
Turnaround and reporting standards
- Monthly closes delivered within 15 business days of month-end (express close available for active reporting entities)
- Statutory books maintained under Chinese Accounting Standards (CAS / Chinese GAAP)
- English-language management pack available aligned to IFRS or US GAAP mapping where required
- Digital fapiao (电子发票) reconciliation supported, including the transition to the new national e-fapiao system
- All work product signed off by a qualified CPA or senior accountant
Discuss your China accounting requirements
We handle statutory books, tax filings, and reporting in RMB, freeing your finance team to focus on the business.