Do companies with revenue exceeding RMB 2 million need to comply with regulatory requirements and perform cost accounting?

The answer is yes. Companies with revenue over 2 million not only need to handle compliance and cost accounting, but this should also become a kind of "required course" for the business.

From a compliance standpoint, ensuring financial and tax compliance is a core prerequisite for long-term stable operation. This involves the entire process, including financial accounting, tax management, handling invoices, internal control building, and policy adherence. The key requirements for financial and tax compliance are: deductible costs must be directly related to production and business activities, and must have valid legal documents (like invoices, warehouse receipts, delivery notes, cost calculation forms, etc.). Costs without documents or unrelated to business activities cannot be deducted. For companies with revenue over 2 million, the business scale is already sizable, and tax authorities will pay more attention. If accounting is not standardized or documents are incomplete, it’s easy to run into problems during a tax inspection.

From a cost accounting perspective, cost accounting is the core loop in corporate tax settlement and declaration, and must strictly follow the principle of "matching revenue and costs." Cost accounting should adhere to three core principles: the matching principle, the accrual principle, and the principle of authenticity. Companies with a revenue scale of 2 million are no longer in the "small-scale" stage; various costs and expenses are getting more complex—raw material purchases, labor costs, marketing expenses, logistics costs, etc. are all intertwined. Without a standardized accounting system, business owners simply cannot understand the real profit situation, let alone make informed business decisions.

More importantly, according to the Ministry of Finance's "Accounting Standards for Small Enterprises," small businesses should strictly follow these standards in their accounting to improve the quality of accounting information, strengthen financial management, and enhance overall internal management, as well as pay taxes according to law. Companies with revenue over 2 million, whether from a legal obligation or their own development needs, should establish a standardized financial compliance and cost accounting system.