1. Anton Tscherne: Today we are interviewing the owner and general manager of a prominent accounting company in Jiaxing China

Thank you for meeting us today in you office. It is a pleasure to meet you. Could you please tell us your name?

Mr.Chen: Mr. Chen

2. Anton Tscherne: what is your position?

Mr. Chen: Owner and General Manager.

3. Anton Tscherne: When was the accounting company started?

Mr. Chen: Sept. 15th , 2010.

4. Anton Tscherne: How many workers are there in the company?

Mr. Chen: We have 38 workers.

5. Anton Tscherne: On your business card you have many services, can you explain the first service?

Mr. Chen: We do accounting for the small and mid size company, and do tax reporting to the government.

6. Anton Tscherne: I believe the tax reporting in China is do electronically?

Mr. Chen: Yes, some is done electronically,however, not everything.

7. Anton Tscherne: I also believe that companies in China must once a year in June do a yearly reporting. What is done at that time?

Mr. Chen: The former years income and profits inspection. Just for the revision for former years accounts. To correct any mistakes that were recorded incorrectly.

8. Anton Tscherne: Is that very much work?

Mr. Chen: Yes.

9. Anton Tscherne: Also every year companies must do business registration in June. Does your company also offer that service?

Mr. Chen: Yes, the financial department gives permission to do business.

10. Anton Tscherne: I believe that your business scope is accounting, what is the 2nd business scope of your company?

Mr. Chen: The 2nd business scope of our company is registration of new companies.

11. Anton Tscherne : Does your company do this paper work?

Mr. Chen: Yes.

12. Anton Tscherne: Is that much paperwork to do a registration of company?

Mr. Chen: Yes, it can also be a little complicated.

13. Anton Tscherne: Recently, company can do taxes online in China, is this true?

Mr. Chen: Yes, in the past years many procedures were simplified for the companies.The online service is more convenient.

14. Anton Tscherne: Can you discuss now the third business scope of your company?

Mr. Chen: Yes, the third scope is financial consultancy.

15. Anton Tscherne: What do you do for financial consultancy?

Mr.Chen: Most ordinary companies the owners know about running the company, however, maybe not so much about the financial department, the financial department is closely related to the taxes, which is governed by the government.

16. Anton Tscherne: How many years does a student need or study to be an accountant in China?

Mr. Chen: Most of our staff were accounting major, then when they graduate they can come to our company and also learn pratical procedures, our company hires many accounting majors from Jiaxing University.

17. Anton Tscherne: Does a person need to take a test and become certified to be an accountant in China?

Mr. Chen: Yes, there are several levels for accounting.

18. Anton Tscherne: Can we now speak about the 4th business scope. I believe it is audits and inspection of capital.

Mr. Chen: Yes, we can do capital inspection and audits, however, this is not our main point. Doing audits and inspection of capital require high qualification. An accounting company must be a 5 registered to do that.

19. Anton Tscherne: When does one do capital inspection and audits.

Mr. Chen: I can give you an example. For capital inspection, if you start a company from Amreica, the government business admistration department needs to know how much money you have.

The accounting company can go to the bank to make certain their is certain amount of money in the bank to start a company. Then after we do reseach, we can make report it is correct or not.

20. Anton Tscherne: Can we speak about the next business scope of your company which is audits?

Mr. Chen: Yes, for example, if a company has a new shareholder, we can make a financial report like a balance sheet(how much assets, how much ownership). The accounting company can do this research in detail and report a “Legal Form”. Also these audits are done for “listed companies” because they are public.

21. Anton Tscherne: Now let us speak about another business scope you do which is Trademarks and Patents.

Mr.Chen: We do basic application for Trademarks and patents.

22. Anton Tscherne: Your last business scope is accounting training, what do you do ?

Mr. Chen: For example, on Aug. 21, 2015, we will have customer training at the Morgen Hotel.

23. Anton Tscherne: Who comes to these trainings?

Mr. Chen: Cashier, accountants and bosses of companies. Some of the training is charged. Also we cover for example new tax policies in these trainings.

24. Anton Tscherne: I notice on your business card and you have a website:www.vees.cn. Is much of your services explained on your website?

Mr. Chen: Yes, I can show you our website now.

25. Anton Tscherne: You have a very professional looking website.

Mr. Chen: Actually we have 11 different websites.

26. Anton Tscherne: That is good because customers can find you easier on Baidu.

Mr. Chen: Yes, if you type in Baidu “Jiaxing Accounting Agency” then our website comes up on the first page of the search.

27. Anton Tscherne: Yes, I see. That is great because it is hard to get on the 1st page on Baidu search.

Mr. Chen: Yes.

28. Anton Tscherne: How does your company get on the first page on Baidu search?

Mr. Chen: because many people search our company and because we have been doing long time.

29 Anton Tscherne: Is these another website than Baidu that people can find your company?

Mr. Chen: Yes, the website www.360.com,however, Chinese citizens use Baidu most.

30. Anton Tscherne: I am very impressed that you do so much on the internet to show your company.

Mr.Chen: Thank you. We also have website:www.XYQY.com.

31. Anton Tscherne: Do you believe that it is important to have a good company website.

Mr. Chen: Yes, very important because there is much competition.

32. Anton Tscherne: I believe in China there is a tax of 25%. Does China also have VAT tax?

Mr. Chen: Yes, it was based on the French VAT system.

33. Anton Tscherne: How much is the VAT tax?

Mr. Chen: Yes, it was based on the “added value”. Two years ago the tax was charged from a business tax of 6% to now a VAT tax of 3%.

34. Anton Tscherne: Are you customers mostly factories or service companies?

Mr. Chen: Mainly service companies.

35. Anton Tscherne: How many customers does your accounting company have?

Mr. Chen: We have over 400 customers.

36. Anton Tscherne: Very close to use now we have the Nanhu Fund Town, the 1st fund town in China.

Mr. Chen: Yes, we believe the Nanhu Fund Town has a great future. Places like the Nanhu Fund Town contribute taxes. The fund companies contribute to the local economy by bring convience of financial support for small-mid size companies.

37. Anton Tscherne: In China I always hear the words “Fa Piao” which means invoice. Can you explain it?

Mr. Chen: In China the “Fa Piao” is controlled by the tax department. Also the “Fa Piao” numbers and passwords are controlled by tax deepartment.

38. Anton Tscherne: When did the idea of putting numbers on “Fa Piao”?

Mr.Chen: It started in the 1980’s.

39. Anton Tscherne: Is there also a VAT “Fa Piao”?

Mr. Chen: Yes, however, some accounting companies can not give VAT”Fa Piao”.

40. Anton Tscherne: Thank you Mr.Chen for showing us your company and during this interview I can truely impressed how you grew the company from 200 customers to 393 customers in the past 2 years.

I wish you much further success in the future.

Mr. Chen: Thank you.