What accounting services are provided?

• Accounting setup.
• Monthly, quarterly, year-end review.
• Balance sheet.
• Income statements.
• Financial analysis.
• Management reporting.
• Preparing closing allocations entries.
• Comparative statements with the prior year.
• Cash flow/budgeting.
• Financial statements & reports.
• Payroll and reporting.
• Fixed assets, lease, and loans management.

• Employee wage statutory deductions calculation
• Payment arrangements to employees
• Payment arrangements to governments
• Payment arrangements to vendors
• Expense reimbursement arrangements
• Provident fund contribution calculation
• Payment arrangements to Provident Fund trustees
• Employee benefits calculation
• Year-end tax forms preparation for employees
• Personal tax returns preparation
• Payment arrangements for severance packages

• Printing and delivering payslips to employees

• Complete employee record maintenance

• Payroll reports

• Statutory tax reports

• Provident Fund remittance statements for trustees

• Periodic MIS (Management Information Systems) reports

• Bank statements entries.

• Bank reconciliations.

• General ledger reconciliation.

• Cash entries.

• Purchase entries from purchase order.

• Accounts payable management.

• Accounts receivable management.

• Credit card receipts reconciliation.

Business records which must be retained contain docs that give a record of your business transactions, or which enable these transactions to be traced and verified through the accounting system from beginning to the end. These records, that is documents are: invoices, receipts, cash register tapes, banking records, cheque butts.

All these documents must be kept for at least seven years after the date of the transactions concerned.

Even after you stoped your business and closed the company, your record keeping obligations continue until the seven year period has expired.

If you have losses from earlier years of assessment that have been set off against profits in later years, it is a good idea to keep all of the records until 7 years after the end of the year in which the losses have been fully set off.

To confirm the calculations of your expenses, revenues and profits, your business records must contain:

• The books of account recording receipts and payments, or income and

expenditure.

• The underlying documentation necessary to verify the entries in the books of account; such as vouchers, bank statements, invoices, receipts and other relevant papers.

• A record of the assets and liabilities of your business.
• A day by day record of all sums of money received and expended by your trade, profession or business together with supporting details of the receipts or payments.

You must also keep records relating to all your business assets and liabilities at the end of each year, including:

• 
  Lists of debtors and creditors.
• 
  Stocktake figures. 

In addition to the records/documents that must be kept by all Hong Kong businesses, if your business deals in goods, you must maintain records relating to your purchases and sales. 

This includes full particulars of all goods purchased and all goods sold.

Copies of the invoices for the transactions must show goods, and the buyers and sellers, in sufficient detail to enable the Commissioner to readily verify:

• The quantities and values of the goods.
   
• The identities of the sellers and buyers.

Most times, the relevant purchases and sales invoices issued for the transactions will satisfy this requirement. If, however, the relevant details are either absent from or not clear on an invoice, you should make additional notations on it to clarify any doubtful points.

It may be practically difficulties in complying with this requirement if your business is engaged in retail trade traditionally conducted in cash, particularly as regards recording the identities of all purchasers. A concession therefore exists for those taxpayers engaged in retail trades, professions and businesses which are normally conducted in cash. They are not required to keep the specified details records of all goods sold. If the concession applies to you, you must nevertheless keep full records of your purchases and full details, recorded on a day by day basis, of all sums of money received and expended by your business.

The inclusion in your accounts of the correct value of trading stock on hand at the end of the accounting year is essential in determining the correct profit for that year. You must prepare and keep statements (including quantities and values) of trading stock on hand at the end of the accounting year (together with the stocktaking records from which the trading stock statements have been prepared).

Business involved in providing services must keep records of all services provided in sufficient detail to enable the Commissioner to readily verify the entries in the business’s day to day record of all monies received and expended. 

If you provide services, you must keep a record all services rendered. The amounts charged and paid for services have to be traceable through the books of account to the statement of income and expenditure.

Bank statements are the bank’s record of the transactions you have conducted with it.

Bank statement is an important part of your account keeping. 

Do time to time reconciliation of your bank statements and cash books.

Receipts are used to record all payments you receive. The most suitable type of receipt is one that is pre-printed and consecutively numbered with duplicates. The name of your business should appear on every receipt.

All payments should be made by cheque whenever possible. However, where cash is used for small or sundry purchases, it may be more convenient to account for it through a petty cash system. If you spend any of the cash you have received before banking it, a record of the cash appropriated for cash payments is essential.

You should ask for a receipt when paying a business expenses - whether you pay by cash or cheque. This will help to prove accounts have been paid and eliminate risk of unrecorded expenses. The details  on a receipt are must be present:

• 
  Date.
• 
  Name of supplier or service provider.
• 
  Amount paid.
• 
  Description of property, goods or services being paid for.

 Where receipts are not available, an invoice, account statement or cheque butt may used to provide the necessary substantiation.

For payments with a credit card, the following records are acceptable as documentary evidence of the payment:

• 
  Your credit card dockets.
• 
  Payment receipts.
• 
  Monthly card statements. 

Invoices usually contain more information than a receipt or other docket and provide additional evidence to support the payment or the purchase. All invoices received should be retained.