Companies registered under Hong Kong Inland Revenue Ordinance and Companies Ordinance are required to maintain a proper book of accounts which give a "true and fair view" of the company's financial position.
All companies are required to prepare annual financial statements including statement of profit or loss, statement of financial position, cash flow statement and statement of changes in equity. The financial statements that prepared should follow the accounting standards in Hong Kong, which is known as Hong Kong Financial Reporting Standards.
The company is required to maintain accounting records for at least 7 years since the end of financial year and carry out audit on its annual financial statements, except for dormant company.
Failure to comply with the record-keeping requirements under the Hong Kong Inland Revenue Ordinance will be guilty of an offence and subject to a fine up to HK$100,000 (Level 6).
Companies can subcontract its accounting and book-keeping duties in order to minimize its operation costs and maximize the time to explore more revenue opportunities.
We provide all aspects of work and consultancy relating to financial and accounting requirements, including but not limited to bookkeeping, preparation of budgets and management accounts and compilation of financial statements; and operation of client bank accounts including acting as signatories, and preparation of accounting manuals.
Bookkeeping is the process of recording the company’s financial transactions into organized accounts on a daily, monthly, quarterly, and annual basis. It can also refer to the different recording techniques businesses can use. Bookkeeping is an essential part of accounting process to keep transaction records updated and to generate accurate financial reports that help measure business performance of companies. Detailed records will also be useful and necessary in the event of a tax audit.
In accordance with the requirements of the Hong Kong Companies Ordinance, companies incorporated in Hong Kong must prepare and maintain proper accounting records and must satisfy statutory audit requirements on an annual basis.
In Hong Kong, financial statements should be prepared in accordance with the Hong Kong Financial Reporting Standards (HKFRSs) which includes all Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards (HKAS), and Interpretations issued by the Hong Kong Institute of Certified Public Accountants (HKICPA).
HKFRSs set out recognition, measurement, presentation and disclosure requirements dealing with transactions and events that are important in general purpose financial statements. HKFRSs are based on The Framework for the Preparation and Presentation of Financial Statements, which addresses the concepts underlying the information presented in general purpose financial statements. HKFRSs are fully converged with International Financial Reporting Standards (IFRSs).
The Hong Kong Institute of Certified Public Accountants (“HKICPA”) is the only body authorized by law to register and grant practising certificates to certified public accountants in Hong Kong. HKICPA is a statutory organization responsible for licensing and regulating accountancy professionals in Hong Kong.
An accounting manual contains pertinent accounting rules and other information for a business or organization. It is a manual that is internally developed and contains information specific to the organization for which it was developed. The accounting manual works as a guideline for accounting personnel and as a training manual for new employees.
An accounting manual usually contains information such as the various departments in the firm, the types of accounting used, special instructions for maintaining ledgers, reporting requirements, and budgetary information.
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