Accounting
All businesses and companies in Hong Kong are required to do bookkeeping and audit these accounts. HKWJ is here to assist you in this area.
Although accounting requirements in Hong Kong seem to be quite burdensome (compared to some other jurisdictions where such requirements do not exist or where exemptions apply), for purposes of creating tax substance, it is quite an advantage to have these management and audit accounts in place.
Having organised accounts in place help to have a good understanding of your company’s financial performance.
Our accounting services
When signing up for our services, we will provide you with the following resources and deliverables:
Traditional bookkeeping
- Dedicated account managers
- Input of accounting data
- Preparation of bookkeeping or management accounts including month/yearly profit & loss statements and balance sheet
- Payment processing
- Consultation on general accounting issues
- Reminder on audit before tax submission
- Filling profits tax returns
Cloud accounting
- Online bookkeeping service
- Quickbooks training
- Financial reporting
- Preparation of bookkeeping or management accounts including month/yearly profit & loss statements and balance sheet
- Annuals audit assistance
- Filling of profits tax returns
Traditional bookkeeping
Our different packages and custom-made services can assist you with all your accounting matters from bookkeeping to auditing. We currently use the MYOB system for most of our traditional bookkeeping clients as this is commonly used in Hong Kong by not only the clients’ companies but also by the auditors.
We charge our clients a service fee a fixed fee per month, which depends on factor such as the number of transactions that have been processed through the accounts, business complexity and turnover. We can also provide auditing services such as corporate audit.
Cloud accounting
As 5G technologies roll out, bookkeeping services are transitioning to smart services. Cloud computing and the Internet of Things are necessary tools that are popular amongst startups, entrepreneurs, SMEs and even large corporations. E-commerce business set up around platforms like Shopify and other platforms benefit from online accounting integrations. Therefore, besides the traditional bookkeeping we offer a reliable online bookkeeping and accounting services through Quickbooks, a cloud accounting software.
We can assist your company in the set up or transition to a smart accounting system model. We will provide training, bookkeeping, annual audit coordination and preparing profits tax filing as well as providing you with insights on how to improve the financial performance of your business and resources.
HKWJ CAN HELP
We offer tailor-made accounting solutions for your needs
Why work with HKWJ?
Internationally educated staff
Personal attention
Professional and fast service
Competitive pricing
The best accounting solution for you
If you are undecided on which accounting model is suitable for you, please contact us for an accounting consultation. We gladly take the time to understand your business model and accounting needs and recommend you with the best tailor-made accounting and audit solution for your current business, start-up or freelancer activities.
FAQ
Some of the cloud accounting advantages are:
Easy invoicing: Fast moving businesses need fast tools to create and send invoices, receive payment updates and have an instant pending invoices report in place.
Mobile & remote: As businesses go global, remote immediate access to your accounts, check balances, uploaded receipts and invoices sent out to customers is necessary. You will be able to do so even from your smartphone or tablet anywhere at anytime.
Multi-currency consolidation: With cloud bookkeeping you will easily be able to reconcile foreign currency accounts and see exchange rates updated on hourly basis.
You need to consider that using a cloud bookkeeping system also may have disadvantages such as that clients have access to the system and mistakes may occur when client accidently input or changed entries without notifying us.
Additionally, poor internet access may slow down the accounting process and security breaches in the cloud server as well as server breakdown may occur, so additional security measures, stable internet connection, and backup measures will need to be implemented.
Finally, some cloud accounting solutions may limit your ability to work with foreign currency in terms of input and invoicing or may request extra fees related to the platform.
As an incorporated company in Hong Kong, you need to comply with the Hong Kong Financial Reporting Standards (HKFRS) when preparing financial statements to record your transactions. Not only is this important for keeping accurate and updated accounting records, but also for proper profits tax filing to the Inland Revenue Department (IRD).
Your company’s annual financial statements must be audited by a Hong Kong-licensed Certified Public Accountant (CPA) and submitted to the IRD, together with the Profits Tax Returns.
Every Hong Kong incorporated company in general needs to file an annual Profit Tax Return and tax computation for each respective year of doing business. The tax calculation will show the amount of tax your company has to pay after deducting all applicable expenses and applying exemptions, depreciation allowances and incentives.
We charge our clients a service fee a fixed fee per month, which depends on factor such as the number of transactions that have been processed through the accounts, business complexity and turnover.
Proper accounting is complicated, time-consuming and requires (up-to-date) knowledge. Therefore, many SMEs and start-ups choose to outsource their company’s accounting functions.
To learn more, read our post with the 7 Benefits of Outsourcing Accounting Services for Small Businesses in Hong Kong.
