Challenges and opportunities of Omo mode in education chain enterprises From KPMG & CCFA

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The following is the Challenges and opportunities of Omo mode in education chain enterprises From KPMG & CCFA recommended by recordtrend.com. And this article belongs to the classification: Internet Education, kpmg , research report.

China Chain Management Association, together with KPMG, released for the first time the report “challenges and opportunities of Omo mode of education chain enterprises”, focusing on the challenges of Omo transformation of education chain enterprises and providing specific financial and tax guidance for enterprise transformation.

The outbreak of the novel coronavirus pneumonia has caused great concern in online education and accelerated the OMO transformation in the education industry. Many well-known education companies have announced the OMO model as the main strategy of the company. Ms. Su Shuang, Deputy Secretary General of China chain operation association, said that chain enterprises that only carried out offline training and education were affected by the epidemic, and had no harvest in the past half a year. Enterprises have sought to carry out online teaching business. In this process, enterprises need to understand not only the different requirements of policy supervision, but also the input and expenditure that may be required for the online production and service, as well as the fiscal and tax changes caused by the online revenue recognition.

Explore the mode of deep integration online and offline

Omo (online merge offline) mode, that is, online to offline integration mode, is a business model with rapid integration of online and offline brought by the development of science and technology, and the market efficiency is greatly improved after o2o (online to offline) mode. The Omo mode in the field of education is a multi scene integration, online and offline deep integration relying on science and technology, complementary advantages, and learning from each other’s strengths.

In this report, the transformation and upgrading cases of well-known chain enterprises such as squirrel Ai1 to 1 are cited, which not only describes the changes in their business model, but also analyzes the financial changes brought about by them. The leaders of well-known education chain enterprises have deep insight into the development trend of “Omo mode”. Xiao Rui, President of Bluebird Research Institute of Peking University, believes that the greatest advantages of Omo are service experience and service efficiency. However, the education field is different from the new retail field. It is not suitable for Omo because it needs to carefully select links and design scenes. Although in the teaching and training industry, the combination of online and offline Omo mode has become a common understanding of development, and Omo is showing an explosive trend, but the industry still has different understanding of this mode. “The concept of Omo itself has always been clear and gradually defined with the dynamic changes of industry formats, technologies, scenarios and demands.” Jin Xin, vice president of Chinese at lischen University, added.

Challenges and opportunities of Finance and taxation under the new education scene mode

The report points out that the form of Omo mode is the organic combination of online teaching / service and offline teaching / service. In view of this situation, Li Yiyuan, managing partner of KPMG’s China tax business development, elaborated on the “financial and tax issues that offline chain education and training institutions focus on” and the financial and tax challenges and opportunities faced by enterprises after the transformation of “Omo mode”.

Li Yiyuan believes that offline chain teaching and training institutions need to consider the rationality of their business model, legal compliance, tax benefits and compliance. There are typical fiscal and tax pain points in the income side and expenditure side of offline teaching and training institutions, which need to be focused on.

The report also points out that after the transformation of enterprises into “Omo” mode, enterprises are facing both financial and tax challenges and new opportunities to reduce costs and increase efficiency. Due to the different regulatory requirements and qualification requirements of offline training and online training, enterprises need to examine the challenges brought by changes in regulatory requirements during the transformation. For example, the record of training institutions, training content (discipline), training personnel (discipline) and so on. With the increase of technology investment, the transformation of “Omo” mode will also bring financial and tax preferential opportunities for enterprises. Offline chain teaching and training institutions need to increase technology development and software related investment in Educational Administration / teaching system, student management system, course supervision system, etc., and make good use of the preferential policies of science and technology such as R & D expenses plus deduction, high-tech enterprises, etc. Enterprises need to think about the different ways of technology investment adopted in their online, and how to better integrate with the existing core business.

Li Yiyuan believes that if enterprises can break the traditional understanding of the education industry through the application and management of high-tech qualifications, they can better highlight the positioning of science and technology enabling education. This will involve strengthening and implementing the application and management of intellectual property rights, including the ownership of intellectual property rights in Educational Administration / teaching system, student management system and course supervision system, how to define the income of high-tech products (services), and how to collect research and development expenses.

In addition, it can not be ignored that the transformation of offline chain teaching and training institutions into “Omo mode” may increase the promotion mode of Internet means, thus bringing uncertainty to the deduction of enterprise income tax expenses. The income and cost components of offline chain teaching and training institutions may change, so it is necessary to re evaluate the financial and tax indicators of enterprises, and make adjustments and optimization as soon as possible. However, the offline chain teaching and training institutions under the franchise mode may face the adjustment of the sharing settlement method, and may produce new practical financial and tax pain points. Enterprises need to improve the overall tax efficiency through structural optimization and value chain planning. In the report, the challenges and opportunities faced by offline chain teaching and training institutions in the transformation of “Omo mode” are analyzed in detail with real enterprise cases in the education industry.

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