I. The drawbacks of professional agency bookkeeping
Firstly, there are a large number of irregularities and inaccuracies during the bookkeeping process. Investigations have shown that many smaller bookkeeping agencies conduct bookkeeping in an irregular manner. Accounting titles are inaccurately set up, business records are inaccurate, and vouchers are not genuine. Many bookkeepers are unaware of the daily operational status of the enterprises they represent, merely entering accounts based on some materials provided by the enterprise. Sometimes, they deliberately falsify information causing discrepancies between the books and reality. For instance, some goods have been sold but not recorded as sales, resulting in having entries without corresponding goods or no entries at all. Some goods are sold, but since the material invoices have not arrived, they are not provisionally booked, leading to over-transfer, under-transfer, or non-transfer of sales costs. This causes the book value to seriously deviate from the actual value. Inventories are not regularly counted in a timely manner, and losses, shortages, or surpluses of inventory are not accounted for, causing quantity discrepancies. Even worse, many accounting personnel at bookkeeping agencies falsify entries to meet the company’s tax evasion requirements. They delay recording income that should be recorded, keep proceeds hanging on pre-received accounts or other payable subjects, use receipts to transfer in intercompany accounts, avoiding taxation and profit declaration.
Secondly, disadvantages in tax filing. Tax filing times are concentrated in the tax system, requiring bookkeeping agencies to also concentrate their bookkeeping processes, which limits the expansion of bookkeeping services.
Thirdly, companies using bookkeeping services are generally scattered. Currently, regional tax payment systems are in place, and there are differences among district bureaus in many specific tax items. Therefore, during the tax filing period, accountants from bookkeeping agencies must visit several branches every day, wasting time and increasing costs. Moreover,汇总集中 of clients' financial summaries adds to the difficulty. Some companies only provide relevant materials to the bookkeeping agency on the last day of tax filing, making it difficult for the agency to file taxes on time, often resulting in penalties for late filings.