What is accounting?

Accounting is the preparation of financial statements of the company. The process begins with book-keeping, which is to record the company's business transactions.

The financial statements are reports that allow interested parties to evaluate the profitability and solvency of a business.

These reports include the following financial statements:

  •   Balance Sheet
  •   Income Statement
  •   Statement of Owner's Equity
  •   Statement of Cash Flow

Why accounting work is required?

Legally required

Accounting and business records keeping is compulsory according to Hong Kong laws Guide to keeping business records.

Practically required

Accounting work is required for several major reasons:

  •   Tax department
  •   Management
  •   Fund provider such as shareholder and banker

Only the requirement by tax department is mandatory.

Hong Kong individual and company are not required to file tax return on monthly basis. It is required on annual basis.
Therefore, many SMEs prefer to have formal accounting work be done once a year.

 

 

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Hong Kong Most Valuable Companies Award 2014

Hong Kong's most proactive local and foreign companies setp upstage to be honoured with the Hong Kong's Most Valuable Companies Trophy of Excellence. Thanks again for the nomination from Mediazone Group 2014.