Keeping total control over your financial processes is determined by the level of Financial Supply Chain Management (FSCM) you have in place. It’s a common mistake for companies to see supply chains, financial management, and accounting as individual entities. They are pretty much all and one of the same if you are on top of things. FSCM is more of an end-to-end process that encompasses working capital management, procure-to-pay cycles, and even business processes like order-to-cash cycles.
This entire process covers every aspect of ordering and invoicing, payment, and reconciliation procedures. Managing the entirety of the financial supply chain can be difficult, confusing, and fraught with potential dangers, but not when you use FSCM to keep everything under the same banner. The main goal is to achieve total control while maintaining visibility across these seemingly different departments and ensuring supply chain efficiency so you can maximize profits and save money.
You need to fully understand that insurance, supply chain transaction costs, and finance combine to make up around 5% of your entire unit costs. It’s essential that you streamline these processes and the management of financial aspects of the supply chain. Let’s delve into the two issues that arise when you are trying to create a more concise climate for handling Financial Supply Chain Management across one or more of your companies.
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Managing the Financial Supply Chain in China
Ensuring you have efficient supply chain financial management in China is essential for both international and domestic business practices alike. In fact, it’s even more important because you are trying to meld two different business philosophies into one while ensuring you are compatible with the rules and regulatory status of both.
We have a team of financial experts here to support our clients whether they already operate in China or not, and especially if you moving your business into China and will need financial advice in the near future. Safely implementing systems and policies for our clients is what we do best. We can expertly handle both your accounting, and finance needs and bookkeeping under one roof so you have the FSCM and the complete control that you deserve.
Financial Supply Chain Governance in China
Here are some of the services we offer to ensure that your financial supply chain management runs smoothly when you operate in China or overseas:
Bookkeeping and accounting
Bookkeeping and accounting are major parts of managing a supply chain in China or anywhere else for that matter. But it’s especially important in China because there are so many compliance issues where the accounting rules in China (China GAAP) are concerned. The standardized accounting rules in other parts of the world, more formally known as the Western GAAP, is different in many ways when compared to the China GAAP.
We have the financial and accounting expertise and experience when it comes to understanding the bookkeeping and accounting systems for international companies who operate in China, which are officially known as ‘Chinese Entities’. Compiling financial reporting in line with Chinese accounting standards while making the necessary changes and adjustments to ensure it fits the needs of international standards and an overseas CFO is our area of expertise.
Financial Management & Budget Control and Planning
Financial management services that focus on budget planning and control are the cornerstone of our business. Our in- house team of accountants, financial controllers, and finance managers will ensure that your plans and accounting reports are always clear, concise, and transparent.
Tax Reductions and VAT Refunds
Chinese financial systems are massively different from the rest of the world, and the quicker you realize this and make the correct changes to your business, the better. The rules and regulatory status surrounding VAT refunds and tax reductions in China can seem complicated to the untrained eye. One of the biggest problems you have will be keeping in line with the constant rule changes and government policies. We can help you to keep legal and above board where tax and VAT refunds in China are concerned via our vastly experienced finance department that knows these regulations like the back of its proverbial hand.
ERP Supply Chain Management
We are also experts at implementing and managing a massive range of ERP supply chain management systems in China, the most prominent being Oracle, MFG, Priority, SAP, and many more. Let us handle the implementation process of these systems so we can manage and record the activity so you can gain rapid access to data in China.
Management Reporting (Advanced)
It’s not a simple process to prepare advanced managerial reports that detail annual budgets, cash flow, P&L, and other reports that will be needed by head office, so let us take care of that for you so you have that special peace of mind.
Tax Compliance and Planning
You need to ensure that you are prepared for tax audits on a local level, and to ensure compliance across the board when it comes to Chinese business regulations and rules.
Ensuring that your business operations in China run smoothly means that streamlining your supply chain financial management accounting might be the best decision you ever make. No man is an island, and neither is a company or enterprise. We can help you to implement and manage an FSCM that improves efficiency across the board, cuts costs, maximizes profits, and adheres to local and international business and tax regulatory standards and practices.