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Mr. Liu, who runs a building materials wholesale business, came to see us. He pulled out his phone and showed me his financial statements for the entire year:

其实现在很多行业都在经历这种“虚胖”——看起来生意做得大，流水哗哗涨，到最后一算利润没几个，卡在合规申报的关口进退两难。今天把梳理下来的逻辑和建议整理出来，有同样困惑的老板可以对号入座。

In fact, many business owners haven’t figured out for themselves why, even though they’ve secured a large number of orders, the money hasn’t made it into their pockets. By breaking down the situation of this building materials wholesaler, we can thoroughly explain this type of problem.

他做的是区域建材分销，对接上游工厂和下游装修公司，本身就是典型的低毛利行业，这种靠走量换市场的模式，利润本来就被摊得极薄。

In addition to the industry’s inherently low profit margins, there are two other common factors that further drive profits down:

First,Hidden costs haven't been fully accounted for, which makes profits appear artificially high, but the actual earnings are lower.. Many small and medium-sized business owners face numerous miscellaneous expenses for which they cannot obtain valid invoices, such as labor costs for hiring temporary workers to move goods, referral fees paid to clients, and miscellaneous transportation expenses.

Second,Fixed costs account for too large a proportion of total costs; as revenue increases, costs rise along with it.Take e-commerce live-streaming advertising, for example: to sell 10 million in merchandise, you’d need to spend 2 million on advertising; to sell 30 million, the advertising budget would rise to 6 million. While revenue triples, so do advertising costs. This model—where “revenue growth is accompanied by a proportional increase in costs”—is a classic example of generating buzz without actually making a profit.

If you underreport income or inflate expenses to make it appear as though your profits are low so you can pay less in taxes, the risks you’re creating will actually end up costing you more in the long run.The现在金税四期的监管逻辑和以前完全不一样了，高流水低利润就是税务系统重点关注的异常情形。很多老板觉得“合规就是多交税”，其实反过来想，合规才能帮你把该省的税省下来。

So the conclusion is actually quite clear:As long as your business operations are legitimate and you file your taxes truthfully and in compliance with the law, you’re coming out ahead; if you engage in non-compliant practices out of a hope to get away with it, you may appear to be paying less in taxes, but the potential losses resulting from the risks involved are the real loss.The

The first step in any optimization effort is to get your books in order. For many companies, the problem isn’t that their profits are actually low—it’s that their books aren’t kept correctly, which leads to inaccurate profit figures. Here are three specific steps you can take:

First.Record all costs for which you can obtain receipts as expenses; do not leave any gaps.The

Second.Reconcile transaction records with invoiced revenue to ensure consistency among the three flows.The

Third.Distinguish between fixed and variable costs, and cut out unnecessary expensesThe

Once you’ve sorted out your books, the next step is to comply with regulations and take full advantage of the tax incentives you’re entitled to. Don’t miss out on benefits you’re clearly eligible for and end up paying more taxes unnecessarily. Here are two of the most common—and most easily overlooked—incentives:

First,Be Sure to Take Full Advantage of Income Tax Incentives for Small and Micro EnterprisesThe

怎么用足？如果你有多个业务板块，可以考虑把不同业务拆分到不同的公司主体，每个主体都保持利润在优惠范围内，这样整体的税负就能降下来。这里要提醒一句，拆分业务一定要是真实的业务拆分，不要为了拆分而拆分，更不要搞空壳公司虚开发票，那就是违规了，反而会出问题。

Second,Be sure to claim all eligible deductions in a timely manner so you don’t waste your deduction allowance.The

In addition to standard cost deductions, there are many other deductible items. For example, companies that hire people with disabilities can receive reductions in the disability employment guarantee fund and immediate VAT refunds; for R&D expenses, even if you’re only making minor product improvements, you can still claim an additional deduction if the expenses meet the eligibility criteria; Additionally, social insurance contributions, housing provident fund contributions, and employee welfare expenses can all be deducted before taxes in accordance with regulations. By claiming all eligible deductions and making all necessary adjustments, you can reduce your taxable income.

Finally, it’s essential to develop the habit of conducting regular self-inspections. Businesses with high turnover and low profit margins are already a key focus of regulatory scrutiny, and identifying and addressing issues proactively is far less costly than having to take corrective action after an inspection. Here are two simple and practical areas to focus on during your self-inspections:

First.Conduct an annual self-audit focused on specific tax categories, with an emphasis on verifying the consistency between revenue and expenses.The

Second.Don’t adopt the mindset that “once you’ve filed the report, you’re off the hook,” and certainly don’t think that “once you’ve deregistered, you can pass the buck.”The

Finally, let’s return to the question posed by the building materials business owner at the beginning. My advice to him was: Declare your income honestly. If you earned 800,000 and paid 40,000 in taxes, you’d end up with 760,000—that’s a real profit; If you conceal your income to adjust your reported profit and end up paying tens of thousands less in taxes, but risk a fine of several million, that’s a real loss.

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