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:
Accounting and business records keeping is compulsory according to Hong Kong laws Guide to keeping business records.
Accounting work is required for several major reasons:
Only the requirement by tax department is mandatory.