+85268416177
legal@vitaliberta.com 

Accounting and Bookkeeping in Hong Kong



Hong Kong Accounting and Bookkeeping service

Finance and Accounting Service

Every incorporated and registered company in Hong Kong is required to maintain proper records and books of accounts. Under the Hong Kong Companies Ordinance, all registered companies in Hong Kong are required to comply with statutory audit requirements annually. Records need to be maintained and complied with under the International Financial Reporting Standards (IFRS) framework named Financial Reporting Standards framework (HKFRS).


Accurate and clean business records and books will allow your business:

  • Make more effective financial decision-making.
  • Reduce the cost of the audit.
  • Provide better image to investors.
  • Submit accurate tax returns and minimise risk of problem with tax authorities.

What accounting service include?

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.

Payroll outsourcing in Hong Kong

  • 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

Bookkeeping service in Hong Kong

  • 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.

Hong Kong corporate tax filing and audit arrangements  

Every company incorporated in Hong Kong is required to file corporate tax returns. 

Inland Revenue Department issues overlooks this. 

Companies are  required to submit their profit returns.

Also based on the previous year’s figures of the company, provisional tax is charged.


All registered companies in Hong Kong are required to get their accounts audited once per year. 

Hong Kong Accounting and Bookkeeping service price

Small

from 450€

Estimated price. More accurate price is quoted case by case

  • Up to 120 transactions a year.

  •  Up to 30 receipts per month.

  •  Payroll service for 1 employee.

  •  Balance sheet, income statement, trial balance and general ledger.

  •  Audited financial statements with directors report.

  •  Tax computation.

  •  Preparing and submit Profits Tax Return.

  •  Subscription to online accounting software.

  •  ReceiptBank subscription.


Medium

from 950€

Estimated price. More accurate price is quoted case by case

  • Up to 240 transactions a year.

  •  Up to 60 receipts per month.

  •  Payroll service for 4 employee.

  •  Balance sheet, income statement, trial balance and general ledger.

  •  Audited financial statements with directors report.

  •  Tax computation.

  •  Preparing and submit Profits Tax Return.

  •  Subscription to online accounting software.

  •  ReceiptBank subscription.


Vita Optimal

from 1200€

Estimated price. More accurate price is quoted case by case

  • Up to 600 transactions a year.

  •  Up to 100 receipts per month.

  •  Payroll service for 8 employee.

  •  Balance sheet, income statement, trial balance and general ledger.

  •  Audited financial statements with directors report.

  •  Tax computation.

  •  Preparing and submit Profits Tax Return.

  •  Subscription to online accounting software.

  •  ReceiptBank subscription.



Order accounting services in Hong Kong


A GUIDE TO KEEPING BUSINESS RECORDS

Why should you keep business records of your Hong Kong Company

Hong Kong Inland Revenue Department obliges companies to keep sufficient business records (in English or Chinese) to correctly assess profits of a Hong Kong company. 

Records must be kept for seven years from the transaction date. 

It is an offence not to keep adequate records with a fine of up to $100,000.

What kind of business records you must keep? 

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.

Records which must be kept by all businesses in Hong Kong

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. 

Additional Records - Businesses Dealing in Goods

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).

Additional Records - Businesses Providing Services

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.

How to Keep your Records in Hong Kong

1. The paper based method

Paper based record keeping implies maintaining:

  • All invoices for sales and for purchases.
  • All cheque butts.
  • Copies of your bank deposit slips.
  • Bank statements. 

These will form the basis of the entries in your cash book.

Using the paper based method of book keeping one must make sure to keep all records in a legible and well organised manner.

 

2. The computer method - electronic one.

 Advantages in using a computer to keep records include:

  • Most computer accounting programs will give you an up-to-date picture of how your business is going, and help you plan and forecast your future situation.
  • A computer can improve the accuracy of your record keeping, and find recorded information more quickly if you need it later.
  • Lists of items that change from time to time (for example, a register of your fixed assets) can be updated much more easily if they are kept on a computer.
  • Information that may be required by the IRD can be produced by the computer, provided it has been recorded correctly in the first instance.
  •  If IRD decide to audit your records, it can be made a lot easier by using computer-stored information. The audit can be finalised more quickly and this will cause less disruption to your business. 


It is important to back up the information on the computer. Keeping all your records on computer without proper backup bears a high risk.

While keeping computer records, it is still important to keep documents on paper such as cheque butts, invoices, bank deposit slips and bank statements to substantiate your income and expenses.

A GUIDE TO KEEPING BANKING RECORDS

Bank Accounts

It is healthy practice of any business to maintain separate bank accounts for personal and business purposes. Never mix it.

Bank Statements

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.

Cash Book

Cash book is a document where you record all your business transactions involving cash. It is the minimum bookkeeping system for any business.


Why you should use a cash book?

  • It records all receipts and payments whether by cash or cheque.
  • Monitoring your cash flow: how much money is coming into your business and how much you are paying out.
  • Reconciliation of your books with bank statements.
  • To know where your receipts have come from, and where your expenses are going to preparation of your profits tax return is made simpler, saving you money.
  • You can provide IRD with a complete record of your business transactions, if necessary.
  • It provides a convenient way of checking past transactions.

A GUIDE TO KEEPING RECORDS OF INCOME

You must maintain documents that record and explain all sales transactions

These are called ‘source documents’. They are he documents from which the entries in the ‘receipts’ section of your cash book are made:

  • Cash register tapes.
  •  Receipt books.
  •  Invoices issued.
  •  Exercise books or note books.
  •  Goods taken for own use diary.
  •  Credit notes for returned goods.

Receipts

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.

Invoices issued

Please, use sequence in numbers of your invoices for goods or services you supply to your customers. Your invoices must contain the following information inside:

  • Invoice number.
  • Date of issue.
  • Customer’s name and address.
  • Your business’s name and address.
  • Date of transaction.
  • Description of goods or services, including quantities and prices.
  • Total price. 

A GUIDE TO KEEPING RECORDS OF PURCHASES AND EXPENSES

Recording purchases

You must maintain records that record and explain ALL purchase and expense payment transactions.


There are a number of ways of recording your business purchases. Some examples include:

  • Cheque butts.
  • Receipts issued for payments made.
  • Cash register tape receipts.
  • Account statements.
  • Diary or day book.
  • Invoices received.
  • A petty cash system for small cash purchases.

Cash purchases

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.

Receipts obtained

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.

Credit card purchases

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

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.

Recording business expenses

The procedures for recording your business expenses such as rent, electricity, telephone, insurance and motor vehicle expenses are essentially the same as those for recording purchases. Methods of recording business expenses include:

  •  Cheque butts.
  •  Receipts obtained for payments made:

         - Cash register tape receipts.

         - Account statements.

         - Diary or day book.

  •  Invoices received.
  •  Log books.
  •  Diaries.
  •  Petty cash payments.

A GUIDE TO KEEPING RECORDS OF ASSETS

Acquisition of Assets

The following records need to be kept:

  •  The dates of purchase each asset, and the cost.
  •  The dates of sale of each asset, and the price of sales.
  •  Dates, amounts of any other spending taken with actions with the assets.


It may be the following documents:

  •  Copies of contracts of purchase and sale.
  •  Market valuations (where the item was acquired or disposed of otherwise than by sale).
  •  Statements of account, invoices and/or receipts for services rendered, (e.g. legal fees).
  •  Agent’s commissions and broker’s fees.
  •  Stamp duty.
  •  Any expenditure in improving the asset.

Fixed Asset Register

A fixed asset register in a form of tables is a good way of maintaining your assets.

A GUIDE TO KEEPING CASH RECEIVED AND EXPENDED

You need to record all money received and expended

 A a daily record of all money received and expended by your business must be kept.

It is probable that if you keep a full set of accounting records and settle small purchases and expenses through a petty cash system, you will already be keeping a daily record of money received and expended. However, if you do receive or expend money that is not recorded anywhere else in your records i.e. as sales, purchases and expenses, or assets you must keep records of the

amounts received and expended. 

  • Register your company in Hong Kong
  • Hong Kong Corporate Secretarial Service
  • Hong Kong Registered Office Address Service
  • Apostille Service in Hong Kong & Notary
  • Employment in Hong Kong
  • Taxation in Hong Kong
  • Bookkeeping and Accounting Services
  • Transfer of shares in Hong Kong
  • Trademark Registration in Hong Kong
Vita Liberta Limited 
Office room 77, 7/F, Woon Lee Commercial Building, 7-9 Austin Ave, Tsim Sha Tsui, Kowloon, Hong Kong

 

legal@vitaliberta.com

+85268416177

Place an order




Thanks for your order

Your order has been accepted for processing.


We will contact you shortly

Оформить заявку