Accounting Services

Monthly bookkeeping organizes accounts and produces reports each month, suitable for companies with frequent transactions. Annual bookkeeping is done once a year, suitable for companies with fewer transactions. Monthly is more expensive but offers better financial oversight.

Mainly bank statements, invoices (issued and received), receipts, and contracts. We provide a document checklist and upload guide to make the process simple.

Accounting organizes your books and produces reports. Tax filing uses those reports to declare to the Inland Revenue Department. Good accounting makes tax filing smooth -- the two go hand in hand.

Based on monthly expense across 5 tiers: Tier 1 (< HK$15,000/mo), Tier 2 (HK$15,000–50,000/mo), Tier 3 (HK$50,000–100,000/mo), Tier 4 (HK$100,000–200,000/mo), Tier 5 (≥ HK$200,000/mo, contact for quote).

Yes. We coordinate the handover with your current accountant to ensure continuity. Transfer typically takes 1-2 weeks.

Seven years under both regimes: section 51C of the Inland Revenue Ordinance runs seven years from completion of the transaction, while the Companies Ordinance runs from the end of that financial year. Keeping records in annual batches by year-end covers both. Failing to keep adequate records carries a fine of up to HK$100,000, and it is a standalone offence — independent of whether any income was understated. The bigger cost is evidential: no receipt, no deduction.

The choice mainly decides how much filing time you get. The IRD groups companies by accounting date: 1 January to 31 March is code M, extendable to around mid-November of the same year if a tax representative is appointed; 31 December is code D, extended to around mid-August — roughly three months less; year-ends between April and November are code N, with the least room. A first accounting period cannot run longer than 18 months from incorporation.

Three things. In the books it becomes a loan from the company to the director, held in a director current account, and that balance must be disclosed — your auditor will always look at it. For tax, private and domestic expenses are expressly non-deductible. In law, Part 11 of the Companies Ordinance prohibits loans to directors without approval from members, exempting only small transactions under 5% of net assets or paid-up capital.

The test is whether the expense was incurred in producing chargeable profits. Four categories are expressly non-deductible: domestic or private expenses, capital expenditure, amounts recoverable under insurance, and tax itself — fines and traffic penalties are out too. Entertainment is generally fully deductible in Hong Kong, with no 50% restriction of the kind found elsewhere, but it needs a business-purpose record. Employer MPF contributions are capped at 15% of the employee remuneration.

Four signals, and spotting two of them usually settles it: you have hired staff (payroll, MPF and employer returns mean three authorities with three separate deadlines), you carry inventory, you have cross-border or multi-currency transactions, or you have simply started falling behind. With a dozen or so documents a month, no staff, no stock and a simple model, doing it yourself still works. Most SMEs land on a hybrid: day-to-day entries in-house, year-end and audit handover to us.