With the official implementation of the new tax law, enterprises face new compliance requirements in financial accounting and daily expense management. Many finance teams are re-examining the mapping logic of their chart of accounts (COA) to ensure that the classification of items such as revenue, costs, and expenses accurately reflects the impact of tax law changes. For example, some expenses originally classified as deductible may have had their standards adjusted, or new tax base items requiring separate accounting may have been added.

At the level of expenditure practices, enterprises may need to reassess the timing of procurement, the boundary between capitalization and expensing, and the allocation method for cross-period expenses. Revisions in the new tax law regarding depreciation periods, the additional deduction ratio for research and development expenses, or preferential policies for specific industries may prompt enterprises to optimize cash flow arrangements and budgeting processes.

However, the specific response strategies for each enterprise often vary depending on the industry, scale, and existing financial system. The following two questions may help you sort out your own adjustment path:

  • What specific modifications have you made to your chart of accounts (COA)? For example, have you added accounts such as "Deferred Tax Assets" or "Tax Payable - New Tax Type"? Have you adjusted the accounting scope of existing accounts?
  • What changes have occurred in your expense approval and reimbursement processes? For example, have you raised the review requirements for invoice compliance? Have you reset the limits or approval levels for expense reimbursement?

These adjustments are not only related to tax compliance, but may also affect internal management efficiency and the transparency of financial reports. Welcome to share your practical experience in the comments section, or raise any confusion you encounter in responding to the new tax law.