Riordan Manufacturing’s China Systems

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Riordan Manufacturing’s China Systems
Riordan Manufacturing began business as Riordan Plastics in San Jose, CA in 1991 as a research and development company and licensing of its polymer processing patents. Over the years, the company has acquired a fan manufacturing plant in Pontiac, MI, a plastic beverage container manufacturing plant in Albany, GA and most recently expanded to a new manufacturing plant in
Hangzhou, China. To expand on its product offerings, the company moved its fan manufacturing operation to the new China plant and the Pontiac, MI location now handles custom plastic parts. Some of the company’s major customers include the Department of Defense, automotive parts and aircraft manufacturers, appliance
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Time is a very important to businesses because of how much money misuse of time costs. Misuse of money can drop a corporation’s profits and if the money is grossly misused, a corporation can go into bankruptcy.
China’s current tax rate for foreign corporations is 25 percent, before the tax rate for foreign corporations was 15 to 24 percent (The WorldWide‐Tax.com, 2008). China’s corporation tax laws are changing more rapidly now that China is seeing foreign companies show up. China is
“extremely stringent” (1) with their accounting regulations. China’s tax revenue has increased substantially. Outsourcing finance and accounting will save Riordan money. Riordan would not have to hire or train any management or finance and accounting staff for China’s regulations.
China’s finance and accounting laws are constantly fluctuating. The constant changing of laws will cause Riordan to keep retraining their finance and accounting management and staff. The outsourcing will reduce the probability of fines due to inexperience of management and staff.
Outsourcing to a company in China gives the advantage of having business ties to China’s finical and accounting. Riordan plans to relocate the plant in a few years and outsourcing a finance and accounting team would save the Riordan a large amount of money. Riordan would not have to relocate the finance and accounting group or computer system for the finance and accounting group. Outsourcing the finance and
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