Everything You Need to Know About Chinese Accounting Standards

Everything You Need to Know About Chinese Accounting Standards

Although the accounting regulation in China is based on the Generally Accepted Accounting Principles (GAAP), which is a system that shares 90% similarities to the IFRS (International Financial Reporting Standard), there could still be lots of differences and hard to handle. One of them would be the “Fapiao” system in China. Fapiao is basically the receipt that is handed to customers upon purchasing a product or service and is created by the government to show proof of tax payment. Companies are required to purchase the software and devices that are authorized to print fapiao to operate businesses.

As technology plays a more critical role in Chinese people’s daily life, using a cloud based-accounting system would not only save you time but also the effort and cost of finding third-party accountants. On the other hand, many of the western accounting tools are not available in China, while others that are available are not a great fit for the Fapiao system. Therefore, it would be more convenient to use some of the local accounting tools.

Here are some of them:

  1. Megi

Megi is an online accounting tool suitable for small to medium-size business which operates specifically in China. Megi provides all functionalities including Fapiao management and support for all the major banks to help you to manage your business in China.

Megi also supports an English reporting feature, so for many of the small to medium-size foreign companies which need an English tool, it would be a great tool.

The price for Megi is relatively cheaper, with 400rmb per month, and comes with unlimited users and features.

2. Kingdee KIS

For Kingdee KIS, it is a great cloud-based software for micro and small businesses in China. They currently have 3 different versions aiming for the different needs of the business.

1. KIS mini version

This version is mainly for start-ups with only simple financial accounting needs. It does not support multiple user features, which means it could only be used on a single computer. It does not support the fixed asset management module and salary management module.

The price for this version is RMB 2000.

2. KIS standard version

This version is aiming at growing businesses that require a more precise tool in their financial accounting process. This version also supports multiple users features so it can be installed on multiple computers.

The price for this version is RMB 3500 – 4000

3. KIS professional edition

This version includes all the features that the standard version has, and in addition to that, it also specializes in production and sales operation in the industry.

The price for this version is RMB 4000 – 7000

3. Yonyou

Like the other two software, Yonyou is designed aiming at the Chinese accounting standards, and facilities under the China CAAP system.

But unlike the other two, Yonyou is more suitable for medium to large size businesses. This software provides more complex enterprise-level functions. Including the following:

1. Provide one-stop end-to-end connection and accounting services.

2. Provide multi-purpose automatic accounting, real-time financial data analysis services

3. Provide electronic archiving, storage, inspection, and other services for accounting files

For pricing, there are 2 versions:

– G3 financial management system V11.0: RMB 4980, service fee is charged at 20% of the product quote every year

– G6 financial management system V12.1: RMB 14000, service fee is charged at 20% of the product quote every year

If you have any questions, please feel free to contact us at [email protected], or if you prefer, please call +1 561 729 6508 for a complimentary consultation.

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