Entrepreneurs who start small businesses often deal with different agencies and other sectors.
These interactions with agencies add to the day-to-day engagements to support company operations, such as customer service, management, and accounting and tax filing.
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Many entrepreneurs do not find the nuances of dealing with agencies appealing. Most of these works required handling piles of financial documents and accounting reports. This may add to the stress of operating a company.
This is where Reachtop KSHK CPA Limited can help you. We work with many Hong Kong companies by assisting with their papers works and we can show you the best Hong Kong accounting and bookkeeping services.
We provide professional services for small companies looking for high-quality accounting and bookkeeping services.
We prepare financial statements following the Hong Kong Accounting Standards and the promulgations of the Hong Kong Companies Ordinance.
Nature of Hong Kong Accounting and Bookkeeping Service
The proper maintenance of accounting records is crucial if decision-makers want insightful and relevant information.
With appropriate bookkeeping and presentation of financial data, entrepreneurs and decision-makers are better positioned to make decisions for their organizations.
Bookkeepers and accountants in Hong Kong concern themselves with guiding and planning the financial framework of a company.
These professionals provide accounting services to ensure that the entity’s expenses, income, and all other transactions are recorded accordingly in the company’s financial books.
As an international business hub, Hong Kong currently experiences increasing demand for dedicated accounting or corporate services.
Recent data provided by the Hong Kong Trade Development Council shows that HK is home to 5,769 establishments offering accounting, tax consultancy, bookkeeping, and auditing services.
Range of Services of Accountants in HK
Accountants in HK who obtained their practicing certificate from the HKICPA offer statutory audit services, company listings, tax advisory, corporate finance, secretarial support, liquidation, and due diligence services.
Accounting firms with practicing certificates also provide other accounting services such as business advisory, financial planning, corporate management, and internal audits.
Accountants who are not practicing certificate holders offer general accounting, bookkeeping, year-end financial reporting, company secretarial, and filing of a tax return.
Compliance with the Inland Revenue Department and Hong Kong Companies Ordinance
Companies in HK have to prepare their financial statements following accepted accounting standards. Adherence to these standards is critical to filing annual returns to the Inland Revenue Department.
Businesses that present correct company transactions and financial data are likely to enjoy a good reputation in the business community.
In addition, Hong Kong companies must meet the statutory requirements of the Hong Kong Companies Ordinance.
According to the Ordinance, all Hong Kong incorporated companies must maintain proper books of accounts. Companies in HK must also comply with statutory audit requirements, vital for tax filing purposes.
Role of the Hong Kong Institute of Certified Public Accountants
Moreover, the Hong Kong Institute of Certified Public Accountants (HKICPA) oversees the accounting profession in Hong Kong.
The HKICPA has a wide range of responsibilities for developing the accounting profession in HK. For example, it promotes the postgraduate qualification program, which ensures the quality of education and skills of people who gets into the accounting profession in Hong Kong.
The HKICPA also promulgates financial reporting, auditing, and ethical standards in the city-state. Its role is to regulate and promote efficient accounting practices, which is essential to maintaining and protecting the status of HK as an international financial center.
7 Tips for Hiring Accountants and Bookkeepers in HK
Experience in providing accounting services
Bookkeepers and accountants play a significant role in holding together. An accountant will assist you in your business, so you may want to consider their relevant bookkeeping and accounting experience in an entity similar to your industry.
A previous experience in your industry will allow an accountant to think ahead and anticipate issues that may affect your company.
A background in a similar sector will allow them to better understand the unique bookkeeping experience of your Hong Kong company.
You will be entrusting the financial aspect of your company to your accountant. Some of these financial aspects are:
- recording of transactions
- preparation of financial statements, such as the income statement, balance sheet, and cash flow statements
- provision of additional accounting services such as tax and payroll services
The crucial role of an accountant in your operation means you need to consider their years of accounting experience.
You’d like the assurance that your accountant knows what they are doing concerning your company in Hong Kong.
Training and education
A good bookkeeper should have strong business acumen and the ability to keep abreast of recent changes in accounting regulations affecting their practice.
The Hong Kong Institute of Certified Public Accountants recently adopted a qualification program.
This program aims to ensure that professional accountants have the skills, work ethics, and experience to cater to the various needed of local and international businesses in Hong Kong.
Requirements to become a Certified Public Accountant in Hong Kong.
To qualify as a Certified Public Accountant in Hong Kong, a candidate must have the following qualifications:
A university degree or equivalent
A candidate who wishes to become one of the chartered accountants in HK must complete a degree in an HKICPA accredited university.
Completion of the Institute’s qualification program (QP)
A certified accountant’s job requires dealing with financial reporting, tax filings, and other accounting services.
The QP postgraduate requirement allows candidates to immerse themselves in various aspects of accounting tasks and corporate services.
Practical work experience
A person wishing to attain the CPA designation in Hong Kong must complete at least three years of practical work experience.
The HKICPA requires that the work experience is gained under an employer that is HKICPA-recognized.
Professional fitness
It is also essential that the CPA candidate demonstrate that they are fit to become a Hong Kong Institute of Certified Public Accountants member.
Ability to adapt to new technology
The advancement of information and technology and globalization requires the adoption of accounting software to help small business owners.
A bookkeeper and accountant should be adept at using computers and software, especially since most businesses today have adopted cloud accounting in managing their accounts.
As an entrepreneur, you would like to hire the right bookkeeper who knows the way around your accounting software.
They should be adept at using different cloud accounting, as software is a common tool to perform transactions online.
Popular cloud accounting software in HK
The digital transformation that affected most industries across the globe has not exempted the accounting profession.
In recent years, accounting professionals saw a significant change that required them to adapt to cloud-based accounting systems. Below are some of the most common accounting software used in HK:
Sage business solutions
Sage is popular among entrepreneurs in HK for its simplicity. This cloud accounting software allows users to create invoices, process payments, and track accounts. In addition, users get assurance of the security of their data.
Express accounts software
Express accounts software is an affordable accounting tool, which is ideal for most startups with simple accounting needs.
It helps accountants and entrepreneurs record recurring orders and invoices. It has a feature that allows tracking of sales and accounts receivable.
Xero cloud accounting
Xero is an excellent tool for entrepreneurs and accountants looking to automate most of their major tasks and business transactions.
It is ideal for SMEs as this software is approved and compliant with the tax regulations in HK.
SunSystems financial management system
This accounting software is designed to cater to various sectors and larger entities. It is recommended for organizations with expansion analysis requirements and operations in multiple locations.
Quickbooks
With Quickbooks, accountants and entrepreneurs can track their transactions in one place. It is also available in different business plans, so it is ideal for those looking to expand their operations.
Attention to detail
Your bookkeeper and accountant will assist in maintaining the monthly bookkeeping for your company’s operation.
This means they must have keen attention to detail, mainly since they will deal with critical financial transactions such as your financial reports and management accounts preparation.
Credit and cash flow management experience
Bookkeeping is essential, especially when it comes to cashflows. The bookkeeper or accountant should not only concern themselves with recording transactions.
A reliable accountant is expected to consider factors, such as taxes, business seasons, and recurring events, among others, to anticipate cash flow patterns.
Communication skills
Business accounting has its complexities, and a Hong Kong business owner must hire an accountant who has the right qualifications, including good communication skills.
As an entrepreneur, you would like to focus on the day-to-day operation of your business and leave the professional accounting work to your accountant.
Therefore, your accountant must be able to communicate even the most complex accounting terms in the simplest way possible.
Consider the needs of your business.
As previously stated, Hong Kong is home to more than 5000 accounting firms serving the needs of various businesses in the region.
However, when deciding to engage the services of these firms, you may want to first consider the needs of your company.
Are you looking to engage the services of a firm for company formation, or do you want them to create accounting plans for your business?
ReachTop KSHK CPA Limited offers services that cater to the needs of your business, including the following:
- filing of the profits tax return for your company
- support for your finance department, such as helping with your bookkeeping and w0rking with your bank statements, general ledger, trial balance, accounts payable and other accounts
- preparation of financial statements such as balance sheet and income statement
- ensuring that you comply with statutory requirements, including keeping an eye on your filing deadlines
- helping with business expansion
Hiring an Accountant and Bookkeeper in Hong Kong FAQs
What are accounting outsourcing services?
Accounting outsourcing refers to the employment of an accounting or corporate services firm to help handle the accounting aspect of a business.
The business owner leaves the financial reporting aspect of their business to a firm that provides accounting services.
The goal is to forego the need to employ an in-house expert and instead leave the monthly bookkeeping, tax filings, and even the entire accounting process to a provider of accounting services in Hong Kong.
Why do business owners need to outsource accounting services?
Outsourcing accounting services allows small business owners to increase productivity and save costs. By outsourcing accounting services, an entrepreneur frees up valuable time better spent in the business.
In addition, outsourcing bookkeeping services in Hong Kong is a cost-saving strategy since you will only pay for the accounting work.
You will not have to pay for the costly employment package of hiring a full-time or part-time employee to work on your business accounts.
What is the requirement of the Companies Ordinance with regards to the financial statements of companies in Hong Kong?
Every business in HK must follow and respect the pronouncements of the Hong Kong Companies Ordinance.
The Ordinance sets guidelines that regulate how every business owner should keep the accounting aspect of their business operations.
The Ordinance wants to ensure that, as a business owner, you carry out your business operations legally.
The Ordinance requirement is for all Hong Kong Incorporated companies to have their financial statements audited annually.
A Certified Public Accountant prepares these financial documents on behalf of the organization.
How can ReachTop KSHK CPA Limited Help With Your Accounting Services
These accounting and reporting requirements for entrepreneurs in Hong Kong can be challenging.
It can be challenging to deal with paperwork, and you just want to spend valuable time in your business.
This is where ReachTop KSHK CPA Limited comes in. Reachtop KSHK CPA is a licensed CPA firm based in Hong Kong.
You can trust us to provide real-all-rounded services, from incorporation, company registration, expansion, and tax planning.
As your dedicated accountant, we provide monthly bookkeeping, annual maintenance like accounting & auditing, secretary & virtual office, and other additional services.
