Accounting requirements
China companies face recurring bookkeeping, tax and employee-related filing obligations throughout the year. Missing records or filing deadlines can quickly create problems with tax, payroll, banking and future profit distributions. Hongda helps keep these obligations organised from the start.
A consistent accounting routine does more than meet filing deadlines — it gives management a clearer picture of the China business throughout the year.
Not every company files every tax every month.
Your part
You do not need to prepare the accounting books yourself. Send us the supporting business records each month, and Hongda turns them into organised bookkeeping, tax filings and employee-related reporting.
No complicated accounting handover every month — Hongda can establish a recurring document routine with your China team or overseas headquarters.
What you receive
Depending on the agreed scope and the company’s activity, Hongda may provide:
You should know what has been completed, what remains outstanding and what needs your attention.
How it works
Quick answer: each accounting cycle runs in four stages: review the records, keep the books, prepare the filings and report to management. Select a stage for detail.
Stage 1 of 4
We review invoices, fapiao, contracts, bank activity, payroll and other supporting records, then follow up on gaps before they become year-end problems.
Stage 2 of 4
We record transactions and maintain the relevant ledgers, fixed-asset, inventory and expense records, with bank reconciliation where applicable.
Stage 3 of 4
We prepare the VAT, corporate income tax and other recurring filings that apply to the company.
Stage 4 of 4
We provide the agreed financial information and raise unusual transactions, missing records, filing questions and other items that need management attention.
Our role is not simply to enter transactions and submit returns. Each accounting cycle, we review the records you provide, reconcile the books, prepare the applicable filings and flag issues that management should know about.
Year-end
Monthly bookkeeping creates the financial foundation for year-end tax and corporate compliance. Keeping the books organised throughout the year makes the annual work much easier to manage.
Not every foreign-owned company has identical statutory-audit or annual filing requirements. We confirm the work according to the entity, location and relevant reporting obligations.
Hongda can connect the monthly accounting work with the year-end compliance process, so the annual review does not begin with incomplete records.
Switch accountant
You do not need to wait until year-end to move your accounting to Hongda. We can review the existing books and filing records, identify the handover materials and establish a new monthly workflow with your team.
A typical handover may include:
Hongda reviews the historical records, identifies missing information or unresolved issues and coordinates the transition so the next accounting cycle can continue with as little disruption as possible.
If historical inconsistencies or potential tax issues are identified during the handover, we flag them separately for your review rather than silently carrying them forward.
Send us a brief overview of your current accounting situation and we can help you understand what would be needed for the handover.
Why Hongda
China accounting can be difficult enough without language gaps, multiple service providers and unclear reporting. Hongda supports foreign-owned businesses that need both local compliance execution and clear communication with overseas management.
When an accounting issue connects with banking, payroll, social insurance, work permits, import and export or company compliance, Hongda can coordinate the related work instead of sending you to multiple providers.
We explain China-specific accounting and tax issues in practical business language, helping overseas founders and headquarters understand what is happening locally.
We review the records you provide, flag missing or unusual items and communicate issues that require management attention rather than simply submitting returns.
From a newly incorporated WFOE to a trading company with employees and cross-border transactions, the accounting workflow can evolve with the business.
Client voices
Travis Perkins
David Finch BA ACMA CMIIA CAMA
Director of Group Business Risk & Assurance, Travis Perkins PLC
With Hongda since 2008
Travis Perkins PLC (a leading builders merchant in the UK) has been using Hongda Business Services since 2008 for accounting and professional services. Throughout this time, we have found the team at Hongda to be very helpful and professional in their dealings with us. We look forward to working with the company in the future.
Sound United
Jack Peng
Vice President, Asia Pacific, Sound United
With Hongda since 2013
Sound United (a leading designer and manufacturer of consumer audio products in the US) has been using Hongda Business Services since 2013. Moving one’s operations to China is not a small task, but Hongda’s expert services helped us set up a company and deal with tax issues so we could get on with growing our business in no time at all, and that’s why we continue to use them today.
Tulip Pacific Ltd.
Erik de Waard
Director, Tulip Pacific Ltd.
With Hongda since 2012
Tulip Pacific Ltd. (Business planning and interim financial management services) has been using Hongda Business Services since 2012. Hongda has helped us set up legal entities in China/HK and takes care of our annual company audits. They are the most efficient business service provider I have worked with to-date, and their professional advice has helped me better advise my own clients and provide greater value to my overall business.
Your team
Meet the three chief consultants at Hongda, including founder Angel Ho and co-founder Bobby Lee.
Chief Consultant, CEO
Founder of Hongda in 2007. Holds Chinese Tax Agent, IPA (Australia) and IFA (UK) certificates. Provides one-stop services covering market access, company establishment, financial settlement, financial and tax consultation, and human resources management.
Chief Consultant
Co-founder of Hongda. Many years of corporate legal consultancy and involvement in managing client enterprises. Familiar with tax, personnel and project management work across Guangdong, Hong Kong and Macau. Excellent English communication skills.
Chief Consultant
24 years in enterprise management, business development, and financial and tax compliance. Has provided financial and tax advisory services for hundreds of companies. In-depth learning and practical experience in IFRS (International Financial Reporting Standards), Generally Accepted Auditing Standards and International Taxation.
FAQ
Practical answers about monthly records, filing cycles, employee compliance and switching accountants.
Ask your questionUsually, yes. A company can still have filing obligations even when it has no revenue or tax payable. The required returns and filing frequency depend on its taxpayer status, registrations and local requirements. Hongda can review the current setup and confirm the recurring filing calendar.
It depends on the company’s VAT taxpayer status and assigned filing period. Some businesses file monthly and others quarterly. We confirm the applicable cycle rather than assuming every company follows the same schedule.
Typical records include sales and purchase invoices or fapiao, contracts, bank statements, payment and reimbursement records, payroll changes and other documents supporting the month’s transactions. We can agree a recurring checklist with your China team or overseas headquarters.
Yes, where included in the agreed scope. Hongda can coordinate payroll-related accounting, employee IIT withholding and filings, and social-insurance contribution work according to the applicable local rules.
Yes. You do not normally need to wait until year-end. We can first review the existing books, filings and outstanding items, then agree on a practical handover date and monthly workflow. If you are unsure about the condition of your current records, we can start with a review before you decide to switch.
Yes. We can explain China-specific accounting, tax and filing matters in English and coordinate document requests or management questions with overseas founders and headquarters.
The monthly books form the basis for year-end closing, annual corporate income tax reconciliation, annual corporate reporting and any audit coordination or other annual compliance that applies to the company.
Contact our team
Share your plans, structure and timing. We confirm the scope with you before any work starts.
