Accounting is one of the major core processes of any business, and basically, the reason why all businesses can thrive. Keeping track of your financial transactions is essential to keeping your company afloat: a company that either makes mistakes in their accounts or worse yet, fails to keep their accounts updated, risks running into a number of problems.
Auditing and accounting regulations tend to slightly vary from country to country, just as your average human resources company Hong Kong would be different depending on what country you plan to visit. This is usually of no consequence to businesses that work on a national or lower level, but for the companies who plan to establish an international presence, this becomes a very important aspect to focus on and properly understand. Generally, countries tend to have a variety of agreements and the like in order to help offshore and outsourced business companies from other countries (as well as companies who plan to establish branches in other countries), and there are also a number of consultation services providing companies with the professional advice they seek.
Amongst one of the most popular locations in Asia for companies to establish a presence is Hong Kong. As one of the financial capitals of the Orient, this special administrative region of China invites foreign companies to open up branches on its soil, and takes its duty very seriously in order to enhance transparency and a high level of security for its population of businesspersons. Trusted Accounting services in Hong Kong are one such service that is heavily regulated, but that does not mean that you can leave everything up to a third party service. Here are some things you should be aware of when it comes to accounting in Hong Kong:
Audit reports – auditing, according to the laws of most countries, are required annually when it comes to listed companies and corporations. That said, the first audit can sometimes be delayed beyond this deadline, and in Hong Kong’s case, you need to submit your first audit within the first three months after you receive your Profits Tax Return (which you will receive after around eighteen months, or a year and a half). Once you submit the audit report for the first year, keep in mind that you will receive the tax returns yearly, at which point you will be expected to submit audit reports annually.
Necessity of audit reports – keep in mind that not all businesses have to periodically submit audit reports. Amongst the exceptions are companies who have not yet officially started their business activities – they can report their status to the specific authority instead. Likewise, offshores that do not take part in business transactions within Hong Kong (i.e. no profit is generated) are also exempted from the requirement.