1. Confirm the Company's Business Model
Before commencing accounting services, we will first communicate online with the company to confirm the purpose of the US company's establishment and its main business, and prepare a corresponding list of accounting documents accordingly.
2. Confirm the Company's Initial Accounting Data
Before taking over the accounting work, we will first confirm the company's initial accounting data based on its previous balance sheets, income statements, chronological ledgers, fixed asset lists, US income tax returns, and other relevant documents. We will also review previous detailed accounts for reference to ensure the continuity of the accounts.
3. Monthly or Quarterly Accounting Documentation Required from the Company
After confirming the above two points, we will send the accounting document list to the company, which will then be required to provide the corresponding accounting documents monthly or quarterly. The contents of the documentation checklist will vary depending on the specific business, but common items include:
1) Bank statements
2) Detailed lists of accounts receivable/payable, prepaid/receivables, and other receivables/payables
3) Fixed asset list
4) Inventory details
5) Invoices and documents from the company's daily operations
6) US employee pay stubs and proof of payroll tax payments
7) Data export tables from platforms such as Amazon and TK
4. Document Review and Accounting Processing
Upon receiving the documents, we will review the relevant documents and vouchers to determine if they are suitable for accounting entries. We will then use QuickBooks for accounting processing, strictly adhering to GAAP standards.
5. Regular Issuance of Various Financial Statements
After completing the accounting, we will issue monthly or quarterly financial statements conforming to US accounting standards, such as balance sheets, income statements, trial balances, and chronological ledgers, to meet the company's periodic financial reconciliation, insurance purchase, and loan applications needs. At the end of the year, the year-end balance sheet, profit and loss statement, etc., will be exported in one go. After confirming the data with the company, the tax authorities will be arranged to file the US income tax return.
6. Advantages of Accounting Services
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Strong compliance
We use the US-based accounting software QuickBooks to ensure that our accounting practices comply with GAAP standards. We have extensive experience and standardized processes for handling various US-specific accounting documents, such as Amazon platform invoices, various 1099 forms, and US employee payrolls, which greatly minimizes compliance risks.
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Highly efficient operations
Timely coordination
Upon receiving the accounting documents, a dedicated person will be assigned to process and follow up immediately. For companies that conduct monthly accounting, after providing the previous month's accounting data at the beginning of each month, various financial statements for the previous month can be issued within 10 days. With collaborative work between the Chinese and American teams, any issues can be addressed and resolved quickly, regardless of location.
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Familiarity with the differences between Chinese and American accounting standards
There are many differences between Chinese and American accounting standards, including in areas such as fixed assets, employee salaries, and R&D expenses. Furthermore, the accounting items and formats for US financial statements differ from those in China. Our staff is familiar with both Chinese and American accounting standards, understands Chinese accounting practices, and can readily comprehend various Chinese financial statements and audit reports. They can perform a certain degree of conversion between Chinese and American financial statements, effectively explain the differences, and assist companies with reconciliation between the two countries.
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Familiarity with US tax and accounting differences
GAAP standards differ from US tax law, with some special tax policies leading to discrepancies between taxable income and a company's actual net profit. We can clearly explain the reasons for these differences to businesses, helping them better understand relevant US tax regulations.
1. Quarterly Financial and Tax Risk Assessment
For companies using our accounting services, we assess potential financial and tax risks quarterly based on the information, assets, and profits provided by the company, and promptly remind them to mitigate compliance risks.
2. Estimated Income Tax
US income tax is highly correlated with a company's net profit. Our accounting department will estimate the annual income tax amount based on the company's mid-year operating performance, reminding the company to implement US profit control and tax planning, such as advance tax payments.
3. Consultation on Differences Between US and Chinese Accounting Standards
There are some differences between US and Chinese accounting standards. GAAP standards differ from domestic standards in many aspects, such as fixed assets, employee salaries, and R&D expenses. The names of accounting items and the format of financial statements also differ. We provide consulting services to companies using our accounting services in this area.
4. Consultation on Differences Between US Corporate Tax and Accounting Standards
Similar to China, US tax law differs from GAAP standards. Annual net profit needs to be adjusted according to tax policies to arrive at the final taxable income. We can clearly point out the various tax adjustments for companies.
5. Explanation of Income Tax Forms
US companies have both federal and state income tax forms. The format of income tax forms is relatively complex and is entirely in English. For companies whose accounting is handled by our company, our accounting department will provide detailed explanations of all forms and data within the tax forms.
6. Audit Coordination
If your US company requires an audit and needs an audit report from a US auditor, we can assist with coordinating the audit process, preparing necessary documents, and improving audit efficiency.
+1 949-490-9063
10 CORPORATE PARK, STE 330, IRVINE, CA 92606
