Article 36 of the Accounting Law of The People's Republic of China clearly stipulates that company shall delegate its bookkeeping to an intermediary organization which is established upon approval to engage in agency operation of accounting bookkeeping.

Bookkeeping company refers to the enterprises entrust the agency to accomplish the accounting activity, such as accounting bookkeeping and tax returns, who only set up the post of cashier to perform the daily cash management and property preservation, etc.

1. Security and confidentiality
the following ACTS are improperly incurred by the company’s accountant, the losses shall be borne by the company:
● The occurrence of leakage tax behavior
● Late fees generated by the overdue tax Returns
● VAT input tax cannot be deducted
● Export rebates problem
…………
If the above are handled by the accounting bookkeeping company and there are specific provisions listed on the Agent Contracts, the above losses would be charged to the Agent Company. Thus the unnecessary trouble caused by the full-time or part-time accountant can be avoided. If any dispute between the company and the agent are occurred, it can be resolved by arbitration or legal way if the negotiate are failed.

2．Cost Savings
Enterprises set up a post of finance tax accountant with monthly salary closed to 5000 yuan, which does not include the social insurance and housing fund paid by the company. if employing a finance and tax adviser, annual cost is about 30,000 yuan. Generally speaking, the bookkeeping company perform the role of accountant and consultant. If hiring a good bookkeeping company, it is worthful to employ an excellent financial advisor and an accountant as the agency fee is lower

3. Tax Returns are timely and accurate
Some companies often have problems due to the renewal of financial accountants, which will be avoided if handing over the accounting work to bookkeeping company. The financial reports prepared by the bookkeeping company are reviewed and audited by the special professionals to ensure the quality and accuracy of the reports

4. Professional services
The service provided by bookkeeping company is the comprehensive service of a professional team, whose team members are all qualified accountants with many years of experience and better understand the tax & accounting laws than the company's full-time accountant

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