Furniture
At A Glance
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 and provided a health check report with recommendations for required accounting adjustments
- Carried out an HR health check
- 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