Dear Bosses, Dear Clients, it’s December again. What do companies need to pay attention to in the last month of the year?

1. Check invoices

Take a look at the prepaid accounts of the enterprise. If there is any money paid by the enterprise but the invoice has not been collected yet, it is necessary to urge the collection of the invoice as soon as possible; If you cannot obtain the invoice before the end of the year, the company’s profits will be inflated, and you will have to pay more corporate income tax.

2. Check profit

It is necessary to take a look at the profit of the company this year and whether it is expected to exceed 3 million RMB, because if it exceeds 3 million RMB, the corporate income tax will increase from 5% to 25%, and the company will be very passive at that time. Therefore, in the last quarter, it is necessary to predict the company’s revenue, costs, expenses, profits, total assets, etc.

3. Check entertainment expenses

Including conference expenses, training expenses, hospitality expenses, entertainment expenses, meal expenses, etc. If these expenses exceed the corresponding proportion, they will be increased during the annual tax liquidation next year, and the enterprise may need to pay corporate income tax. Therefore, it should be planned and adjusted in advance in the fourth quarter.

4. Check shareholder loans

Check if individual shareholders have borrowed money from the company this year. Shareholder loans should be returned to the company before the end of the year. If not, a 20% individual  income tax is required to be paid.

5. Check the payment status of social security

This year, due to the epidemic, various regions have implemented phased deferral of social insurance premiums. The deadline for deferred payment is from January 1, 2022 to December 31, 2023, and the deferred payment ratio is based on a certain proportion of the social security expenses borne by the enterprise and employees respectively, to be met or waived. This is just a temporary policy, and companies need to make up for the unpaid social security within the specified time.

The year 2023 will end in less than a month, and enterprises that have enjoyed the phased deferred payment of social security fund need to make up for it before December 31st, otherwise they will be charged a late fee.

Overall, the last quarter is a crucial time point for the entire financial work, and enterprises need to make predictions, adjustments, and plans in advance!