Currently, although the demand for online accounting services is vast, the market of online accounting services is still at the beginning stages.
FinTechs providing online accounting services shall obtain the business license with the approved business scope about “accounting technology services etc.” Then, upon its incorporation, it shall apply for an ICP filing to the telecommunication authority, which is applicable to an “ICP not for profit”. The FinTech which is a company incorporated in China is entitled to apply for an ICP filing.
Other than the ICP filing which is applicable to online services, the FinTechs are not required to get other approvals to proceed with online accounting services.
As the economy of China developed rapidly in recent years, the market size expansion of small and micro businesses is remarkable. The strong market demand exists which brings new opportunities for online-accounting services.
A report of a market research company IDC showed that, 47.3% of enterprises which had not used online-accounting services were considering the informationization of accounting, among which 46.7% were willing to accept online accounting services.
The biggest companies in the online accounting service are Kingdee Group and Chanjet Information Technology Company Limited according to the press and annual reports of Chanjet.
Although there is no specific license for providing online accounting services, from the customers’ perspective, the customers which are companies incorporated in China, shall comply with the relevant rules of accounting as it prepares its accounting statement/documents. As the service providers, in order to provide satisfactory service, the FinTechs shall ensure that the online accounting service could provide such functions.
Norah Yinuo Zhang