The books of an overseas subsidiary are usually in one of three states. Recorded but not closed: every transaction is in QuickBooks, but accruals, prepaids, depreciation and revenue cut-off are nobody's job, so month-end figures keep moving. Closed but not reconciled: the bank agrees, but receivables, payables, inventory, intercompany, sales-tax liability and payroll have not been tied out line by line. Reconciled but not consolidable: the chart of accounts, currency translation and intercompany eliminations do not match headquarters' framework, so headquarters rebuilds the U.S. numbers every month. The root cause is the same: the bookkeeper executes, and the controller's seat — review, judgement and ownership of the numbers — is empty.
Headquarters adds another layer. Finance in China works under PRC accounting standards and group templates; the U.S. books follow U.S. GAAP and tax definitions. Headquarters needs a reporting package it can consolidate directly — account mapping, currency translation, intercompany elimination workpapers — and at year-end a PBC list for the U.S. component of the group audit. The finance person seconded from China does not know U.S. rules; the accountant hired in the U.S. does not know what headquarters needs. Both are waiting for someone who can produce the numbers and explain them.
As fractional controller, Jenny Gao, CPA, EA serves as the subsidiary's controller — she was responsible for multi-entity finance and compliance, tax provision and audit inside a multinational and has served U.S. subsidiaries of Chinese companies since 2016 — while B&G's team and systems execute the bookkeeping and reconciliations, or review and supervise the bookkeeper you already have. A fixed monthly calendar: bilingual management reports and the headquarters consolidation package within 10 business days of receiving complete records; a quarterly review of controls and process; PBC lists for the group audit, banks and investors prepared by us.
The boundaries are clear: we do not approve on management's behalf, hold no bank payment authority and do not serve as a corporate officer. A formal compilation report on the financial statements can be arranged separately; where an audit or review is required, we help you engage the right firm and prepare for it.
