Tax and Accounting Services in Hong Kong

With the everyday work and challenges of running a company, activities like auditing and accounting are the last things that you want to be added to the to-do list. However, they are crucial and must be done correctly for both compliance and business growth. The best way to get it right is outsourcing tax and accounting services in Hong Kong. In this post, we will tell you the main benefits of using outsourced Tax and Accounting services and how to pick the best expert for the job.

A Brief about Tax and Accounting in Hong Kong

According to the Hong Kong Companies Ordinance, all companies incorporated in the island must maintain their books of accounts and meet the set statutory requirements for audits per year. Starting from January 2005, the island adopted a set of reporting rules based on the International Financial Reporting Standards (IFRS) by the International Accounting Standards Board (IASB).

The accounting standards in Hong Kong, commonly referred to as the Hong Kong Financial Reporting Standards (HKFRS), outline the recognition, measurement, disclosure, and presentation of financial reports in a company.

When handling bookkeeping in Hong Kong, it is also important to understand the tax obligations of the company. The most notable of these is the corporate tax, which follows Hong Kong’s two-tiered system, where the first HK$2 million is charged 8.25%, while anything more attracts the normal rate of 16.5%.

Well, these are only a few of the things that you need to factor when running a company in Hong Kong. It is pretty challenging, not just for a new company but also for well-established firms. However, a team of experts from an accounting agency will easily accomplish the goals. See: let the experts handle accounting and Tax matters so that you can concentrate on the core areas of growing the enterprise, such as product development and marketing.

What to Expect from Tax and Accounting Services in Hong Kong

The tax and accounting services in Hong Kong use certified public accountants with a lot of experience in areas of accounting. One of the areas that most companies in Hong Kong outsource is the management of the accounts receivable/payable. These services mainly include invoice approval, expense reporting, and online payment approval. Still in this category, the experts can help with invoice imaging, check processing, order management, and customer billing.

Apart from accounts payable/receivables, outsourced firms for tax and accounting services in Hong Kong can help with the following:

•       Bookkeeping services: This involves activities such as balancing ledgers and employee expense management
•       Creating financial reports: These are financial documents used for both external and internal purposes of a company. These tasks are crucial in identifying and addressing cash flow problems in a company.
•       Financial planning services: Outsourcing this service helps to provide your company with an in-depth analysis of its financial position. Therefore, it is crucial that the analysis is done well by expert accountants because the information will be crucial in decision-making.

Benefits of Using Expert Tax and Accounting Services in Hong Kong

When you outsource accountants to assist with tax and accounting services in Hong Kong, you are sure of cutting down costs with a significant margin. For example, you will not need to pay salaries or allowances to the experts because they have already been cleared by their respective firms. Other benefits include:

•       Your accounts and bookkeeping are done professionally
•       The tax you should pay is calculated accurately
•       Filing tax-related reports is done correctly and on time
•       You get a correct assessment of your company’s financial health
•       Can help you craft good strategies for growth

If you want to get it right on tax and accounting matters for your company, the best method is working with professionals. The benefits we have highlighted above are only a few of what to expect by seeking the assistance of the best tax and accounting services in Hong Kong. Working with experts in tax and accounting matters can help you accelerate the growth of your firm to the targeted levels.