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Client Industry: Furniture

Client Overview: Incorporated in Shanghai Free Trade Zone (“FTZ”), the client’s principal business is the sale of high-end Western-style furniture to customers in Shanghai. Established in 2008, the company operates an office in the FTZ and another in downtown Shanghai, with a total headcount of 30.


Client Brief

  • The company’s individual income tax (IIT) filing base was inconsistent with the salary amounts stated in employment contracts, resulting in under-reported IIT since the company’s inception.
  • Cash revenue was understated, leading to under-reported corporate income tax (CIT) and value-added tax (VAT).
  • There was a risk of challenges from the tax authority on applicable VAT rate

How we helped
  • Conducted an on-site visit to the client’s office to understand the current business situation
  • Performed a financial health check
  • Conducted an accounting health check for FY 2014-2015 and provided a health check report with recommendations for required accounting adjustments
  • Carried out an HR health check for FY 2015
  • Evaluated the internal workflow and provided recommendations

Our Value

  • Improved internal control over workflow for bank accounts, cash management, staff claims, vendor payments and supply chain processes
  • Improved inventory management, leading to more accurate cost calculations
  • Minimise the risk of challenges from the tax authority