Expand your business to Taiwan: Company Registration, Accounting, Tax, & Payroll Services

Taiwan Accounting Services of Engineering Project

Two service models: Simple Engineering Project Accounting Processing Model (90% of customers use), Complex Engineering Project Accounting Processing Model (adopted by 10% of clients), which uses Factory Modules in NEO-ERP system.

Email to: tpe4ww.ela@evershinecpa.com
or
Ms. Kerry Chen, USA Graduate School Alumni (English & Chinese speaker)
Tel No.: +886-2-27170515 ext. 600
Mobile: +886-939357000
Skype: oklahomekerry

Evershine has been serving many MNCs who won engineering project contract in Taiwan like Power Plant ,MRT ,Winding Power plant etc.
We provide them one-stop services on company registration, employer of record services, expatriates work permit and ARC application, contract review, payroll services , accounting and tax compliance services, DTA Tax exemption application services etc.

Evershine Provides Accounting, Payroll and Tax Services in Taiwan

1.
Online system support + Internet banking provides a collaborative working environment through a cloud-based accounting system.
2.
Evershine acts as an internal accountant in your company, even though its colleagues do not work in office of your company.
3.
Your staff mainly provides trading information and inquiries our cloud system for management use.
4.
Evershine can send staff to provide implementation of ERP and  daily data maintenance services on ERP, but your company provides us with Excel.
5.
When you use our services, your company need to assign a senior executive to  do financial scheduling , You don’t even have to hire basic accountants, cashiers, payroll processors, and information personnel.
6.
Evershine is also equipped with the enterprise network function of many banks, allowing your staff to directly approve payments to suppliers and employees anytime, anywhere. It is not necessary to hand over the large chapter (company chapter) and small chapter (name of representative) to anyone to avoid financial loss of control.
7.
In addition, we can produce last month’s IFRS financial statements within five working days.
8.
Work with IAPA or LEA member firms in Taiwan to ensure compliance.

Accounting Processing Features of Engineering Project Industry
1.
Fewer sales transaction, more purchases.
2.
Different projects, low repeatability, each project has its own specification of materials code mixture.
3.
Building basic data of materials code for a project in the traditional ERP has no subsequent value.

Simple Accounting Processing Mode for Engineering Projects (90% adopted)

1.
Evershine adopts double fields ( Project + Material code) as KEY to increase repeated availability.
Using Evershine General Purchase Approval System, Expenses Approval System:
After the documents are approved, the accounting voucher will be generated automatically, and transferred to Evershine accounting information system.
2.
Accounting processes:
The purchase items are handled by “project – material & labor & expense,” the virtual I/S account code in accounting processes; Including raw material procurement costs, manufacturing manpower, depreciation costs, miscellaneous acquisitions, manufacturing outsourcing costs.
3.
Monthly project statistical report
At the end of each month, reestimate the entire project revenue, estimate the total project cost, and generate the project income statement.
4.
Month-end Adjustment Entry
4.1
Cumulative actual cost / total project cost = CR (Cost Ratio); Cumulative actual revenue / total project revenue = CR (Revenue Ratio).
4.2
Usually monthly settlement, such as the completion of the progress of the CR method, when CR * the entire project income = project income.
4.3
If for control purposes, the completion schedule can be lower than CR and RR when the monthly settlement is usually made. For example, when RR > CR, (RR-CR) * actual revenue = advance receipts and when CR > RR, (CR-RR) * actual cost = construction in progress.
4.4
whatever amount being adjusted ,Next month the amount need to be re-adjusted back.
5.
Annual adjustment by auditor
Regardless of the usual methods, at the end of the year, the tax agent of that country can make adjustments according to the tax law of that nation.
6.
Scenario of adopting simple accounting process mode

It is suitable for simple, short-term (less than 1 year) engineering projects that do not require sophisticated personnel monitoring & inventory control.

Accounting Processing Mode for Complex Engineering Projects (10%)
1.
Adding Factory modules

In addition to the use of Evershine General Purchase Approval System, Expenses Approval System, There must be a Project ERP system like in Factory modules. After the document is approved, the accounting voucher will be automatically generated. Transfer to Evershine Accounting Information System.
2.
The voucher being initialed with B/S account code
Accounting treatment: the input of “project-material” “project-labor” “project-cost,” are accounted for in real account accounting items like processing construction in progress, at the end of the month and then according to the proportion of completion, into project-Engineering cost.
3.
Scenario of adopting complex accounting process mode
Larger projects, involving a large number of people, need to work together, and a long period, or need strict personnel & inventory control
4.
Adopting Factory modules
Use the Factory module in NEO Project ERP System.

The time and conditions of use of Engineering Project ERP with factory modules.

Applicable at the same time as:
1.
The project involves a large number of people who need to work together.
2.
The period is long, usually more than a year.
3.
Strict personnel & inventory control is required.

The material code should be repeated used:
1.
Built with traditional ERP (such as SAP) will meet a lots of difficulty, due to the volume is large and other projects cannot be repeated used.
2.
Evershine adopts double fields ( Project + Material code) as KEY to increase repeated availability.
3.
The Finished products will be followed customer specifications.
The semi-finished products may also be followed customer specifications or standard semi-finished goods。
The raw materials are usually purchased for standard products.
4.
The finished product is small and diverse, the repeatability is low, and the specifications are different each project.

Provide information immediately:
1.
Your staff mainly provides trading information ASAP when it occurs.
2.
Evershine can provide maintenance services on ERP, but your company provides us with Excel.
3.
You should provide budget information for each project.
4.
Your staff should provide the materials, personnel and outsourcing information for each project work order.

5.
Usually both design and production process at the same time, your staff need to provide the actual materials, workers time card, outsourcing transaction information.
6.
The construction personnel in the factory or in the production area of the client side project, shall provide the actual amount of materials, personnel operations, and outsourcing operations s in real time.

****
The above content was written in June 2022 by Dale Chen Principal Partner / Accountant / Patent Attorney.
The author worked in Tatung Company Financial Computing Center, Taiwan Everlight Chemical Information Department Deputy General Manager.

Contact us
email to: tpe2ww.ela@evershinecpa.com
or
Ms. Kerry Chen, USA Graduate School Alumni (English & Chinese speaker)
Tel No.: +886-2-27170515 ext. 600
Mobile: +886-939357000
Skype: oklahomekerry Evershine CPAs Firm
6th Floor ,378, Chang Chung Rd,

Evershine has 100% affiliates in the following cities:
HeadquarterTaipeiXiamenBeijingShanghai,
New YorkSan FranciscoHoustonPhoenix
TokyoSeoulHanoiHo Chi MinhBangkok,
SingaporeKuala LumpurManilaDubai,
New DelhiMumbaiDhakaJakarta,
FrankfurtParisLondonAmsterdam,
MilanBarcelonaBucharest,
MelbourneSydneyToronto

Other cities with existent clients:
Miami, Atlanta, Oklahoma, Michigan, Seattle, Delaware;
Berlin, Stuttgart; Prague; Czech Republic; Bangalore; Surabaya;
Kaohsiung, Hong Kong, Shenzhen, Donguan, Guangzhou, Qingyuan, Yongkang, Hangzhou, Suzhou, Kunshan, Nanjing, Chongqing, Xuchang, Qingdao, Tianjin.

Evershine Potential Serviceable City (2 months preparatory period):
Evershine CPAs Firm is an IAPA member firm headquartered in London, with 300 member offices worldwide and approximately 10,000 employees.
Evershine CPAs Firm is a LEA member headquartered in Chicago, USA, it has 600 member offices worldwide and employs approximately 28,000 people.
Besides, Evershine is Taiwan local Partner of ADP Streamline ®.
(version: 2022/03)

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