Accounting & Bookkeeping in Hong Kong
Ever wonder how profitable your company could be if you had time to focus on your actual business rather than handling all the company paperwork? Going through loads of paperwork just to get your company accounts up to date? In order to run a successful business entity anywhere in the world, accounting and bookkeeping are essential. And Hong Kong is no exception.
In Hong Kong, every company needs to comply with the requirements to keep their books up to date and in order. This will not only help to facilitate the managerial decision-making process, but also aid in the maintenance of the accounting and auditing of the financial statements, which are critical to the filing of Profits Tax Return (PTR). Moreover it’s especially important as your company accounts will need to be compliant with the Inland Revenue Department’s (IRD) requirements.
This article will provide you with an overview of the essential accounting and bookkeeping services in Hong Kong for your business entity.
Bookkeeping for Hong Kong Business
As mentioned above, bookkeeping is essential for every incorporated business entity in Hong Kong. Bookkeeping is the recording of all the transactions of the business from paying the bills, payrolls, collection of all accounts receivable, purchases, sales, and many more. It doesn’t matter whether you are operating a small or a big business, every company should have a bookkeeper.
Compliance requirements of bookkeeping in Hong Kong
In order to stay on the good side of the IRD, business entities need to comply with the statutory requirements of bookkeeping in Hong Kong. Below are some of the requirements:
- A private limited company needs to have a registered auditor under the Companies Ordinance unless it is a dormant company with no relevant accounting transactions during a financial year.
- If there is any relocation of the statutory books from the registered office, notify the government within 15 days if the statutory books are relocated from the registered office.
- Always follow the deadlines for annual filing as per the requirements of the Companies Registry and Tax Authority.
- If there has been a reallocation of shares, notify the government. This notification must be issued within one month of the allotment.
Services included in bookkeeping
As per the Hong Kong Companies Ordinance, all companies must maintain up to date accounting records. This is where Startupr comes in. We can help you in maintaining all the records of your business transactions according to the Hong Kong accounting standards.
Our Bookkeeping services include:
- Preparation of financial statements
- Forming monthly reports
- Developing management accounts (Profit and Loss, Balance Sheet, Trial Balance, General Ledger)
- Bank reconciliation
The software we use in bookkeeping
As soon as you organize all the company documents in one place, the next issue to address is which accounting software is best for your company? After all, this software will be important for maintaining all the records of the business accounts. When the records of the transactions are managed properly, it will help analyze the performance of the business accurately.
Let’s see a brief explanation about the types of bookkeeping software we use:
- QuickBooks – For most of our clients, the bookkeeping software that we use is Quickbooks. This is a small and medium sized business accounting software that is used to keep a track record of bills, expenses, managing sales, and also preparing the profit and loss report. This bookkeeping software can be used for generating reports for planning, tax filing, and invoicing customers. In Quickbooks, you can quickly create your financial statements. Whether you are operating a small or mid-sized business, this bookkeeping software can help manage every document efficiently.
- Xero – We also use Xero, a small business accounting software. This application is a cloud-based software and accessible from any computer or device. This software is worth it for small businesses because of its plans, such as accounts payable, inventory management tools, and estimates, which are generally available in top-tier plans. In fact, the best part about this software is that it is easy to use.
Price packages for bookkeeping services
Startupr has different affordable pricing for all types of organizations. Our accounts are following Hong Kong Accounting Standards. While managing your company books, we maintain high-quality procedures. The Pricing Page for our bookkeeping services outlines all of our accounting options.
Accounting for Hong Kong Businesses
Following the rules of Hong Kong Financial Reporting Systems, every incorporated Hong Kong company needs to prepare financial statements to record their transactions. This is also required for recording paper documentation, creating the accounts, and eventual tax filing. When you hire us to provide accounting services for your company, we will do our best to make your business accounts in order.
All these financial statements are required to be signed off by a certified public accountant. So, within the 18 months of the incorporation date of your company, the first audited financial statements should be conducted.
Some other services offered by Startupr
We will not only help you in bookkeeping and accounting services in Hong Kong, here are some other services we offer to our clients:
Financial Statements and Reports
For recording your business transactions, Startupr will help generate and manage the financial statements and reports of your business. To be more specific, we help you with:
- Recommendations based on information related to actual performance
- Accurate financial reports of your business at predefined time intervals.
- Professionally presented reports that stakeholders will have confidence in
- Support to your external accountants for their performance enhancement
- Professionally controlled figures that are in correct order
Taxation Services in Hong Kong
There is no denying the fact that tax is an important part of every organization. In Hong Kong, companies need to file the PTR for each respective year when conducting business, which is issued by the Hong Kong IRD. In fact, they are also required to manage all the accounts to be submitted to a Certified Public Accountant. After submission, the accounts will be audited and then filed to the government.
Profits Tax Return (PTR) Filing
In Hong Kong, companies need to file the PTR for each respective year when conducting business, which is issued by the IRD. They also need to submit the audited report of the company generated by a Hong Kong CPA.
Generally, the very first PTR of your company will be issued by the IRD after 18 months of incorporation. Startupr can help you in submitting the PTR and audit financial statements provided by an independent CPA firm for your business.
Employer’s Return (ER) Filing
In Hong Kong, employers are also required to file the employer’s return (ER) to the IRD. This filing is used to report the essential information related to an employee’s remuneration; like salaries, pensions, and wages in the relevant year of assessment to the HK government.
The IRD will issue the ER form to the employers, and the company will need to file it with the relevant information within one month from the issued date to the IRD. Startupr also provides corporate services for filing Employer’s Returns for Hong Kong companies.
Individual Tax Return (BIR60) Filing
Another form that should be filled by every taxpayer in Hong Kong is the individual tax return form (BIR60). If you earn taxable income during the year, you will usually receive this form at the end of the fiscal year, normally in April or May. Otherwise, you should inform the IRD about your reported income.
By now, you may have a better idea about the accounting, bookkeeping, and taxation services in Hong Kong for your business entity. If you want to be in compliance with the accounting regulations in Hong Kong and are looking for professionals to help manage and record all the financial statements of your business, Startupr can help!
We can help to manage your company’s bookkeeping records, generate your accounting financial statements, and give you an overall picture of your business. Contact us for more information!