1. What are the official requirements of accounting in Hong Kong from the government?
All Hong Kong incorporated companies are statutorily required by the Companies Ordinance to audit their financial statements on a yearly basis.
These financial statements are essentially accounting documents prepared by a Certified Public Accountant (CPA) on behalf of a business, with the aim of providing financial accountability to the company’s stakeholders. For private companies, financial statements are not required to be filed on public records.
For corporate entities, financial statements are required and must be prepared, in order to comply with the disclosure requirements set out in the Hong Kong Companies Ordinance, Hong Kong’s Financial Reporting Standards, and the Rules of The Stock Exchange of Hong Kong Limited for listed companies.
2. Which online accounting system do we use?
The FastLane Group utilizes a cloud-based accounting software named Xero. Xero offers businesses a simple, yet powerful, way to manage their finances. Comparing with traditional accounting systems or Excel, Xero users can access their business finances wherever they are, collaborate seamlessly with other parties, and can even improve their cash flow through online invoices.
The FastLane Group started our journey with Xero in 2013 and is certified as one of the Xero Advisors and Xero Platinum partners. We recognize the importance of assisting small businesses and SMEs and are committed to helping our clients build better businesses. Our team are Xero experts and can guide you through the benefits of Xero and transform how you do your bookkeeping, run your credit control and even pay your employees. To affirm our position as a leading Xero Partner, the FastLane Group has been awarded the Xero Award for Accounting Partner of the Year 2019!
3. How do we calculate transactions?
We determine the number of transactions per month as the number of transactions conducted in a corporate bank account. This includes all deposits, withdrawals, sales invoices, and business expenses.
At the FastLane Group, we take special care not to double-count transactions. For example, if a company transfers funds between different bank accounts, we count this as one transaction. We also take into consideration whether the company makes several receipts for one sales invoice, or has similar recurring transactions through merchant accounts (Paypal, Stripe, Payoneer, Neat, etc). Other service providers may not account for such transactions.
If you are unsure of how many transactions your company conducts in any given month, don’t hesitate to reach out to us at FastLane. We can review the necessary documentation to help determine!
4. Why outsource accounting services?
As a small business owner, it’s likely that you’ve taken on the task of bookkeeping yourself in order to stay mindful of your expenses. Most business owners discover that their time is better spent focusing on their goods and services rather than accounting debits and credits as their company expands.
Outsourcing accounting services in Hong Kong allows small businesses and SMEs to access and utilize more resources as compared to relying on in-house accountants. The key benefits of outsourcing accounting services to a professional accounting firm are as follows:
- Save time to focus on other key business activities
- Save money by accessing professional knowledge and avoiding penalties
- Provide a better understanding of the company’s financial performance
- Improve cash flow management
- Seamless audit coordination
You may outsource everything from day-to-day accounts receivables to payables, payroll, transaction coding, accounting, filing your Profits Tax Return, and even financial reporting.
5. Can I handle my own bookkeeping?
Yes. However, it is not recommended. Bookkeeping is an essential part of a business as they are responsible for managing the day-to-day accounts. For business owners who wish to devote their time to business-generating activities, hiring a bookkeeper can ensure that they are able to do so.
According to Xero, without proper bookkeeping, “it would be easy for transactions to go unrecorded, left to pile up until the end of the financial period. Mistakes could be made and important details could be lost or forgotten”. Having a bookkeeper can lighten a load of a business, improving its efficiency.
Parties who require bookkeeping support but are not ready to completely outsource these related roles can consider setting up a Xero system. The FastLane Group’s cloud accounting services get you started with Xero, provide training on the system and manage all receipts you upload onto the platform!
6. What are the key differences between traditional accounting and online accounting?
The following are the 4 major differences between traditional and online accounting:
1. Users
- Traditional accounting: 1 person at a time
- Online accounting: Unlimited for Xero
2. Accessibility
- Traditional accounting: A license is purchased per computer and not conductive to remote work environment and is unable to access real-time data
- Online accounting: Can access the real-time data at anytime and anywhere and using any devices including PC, laptops, tablet or smartphone
3. Automation and Data Backup
- Traditional accounting: Little to no automation
- Online accounting: Data is backed up 24/7 by secure and off-site systems. Automation is supported with applications and most bank feeds sync automatically and is easier to complete reconciliation
4. Updates
- Traditional accounting: Updates annually or when a migration is forced
- Online accounting: Can be as frequent as every 3-6 weeks and the software is automztically updated across all platforms
7. Should you move your accounting to online accounting software?
Cloud accounting is a smarter, more efficient way to handle your business finances. Cloud accounting solutions, unlike traditional bookkeeping software, are hosted on remote servers and allow information and applications to be accessed from anywhere at any time on any device.
As stated by Marc Benioff, CEO of Salesforce.com, “cloud computing is a better way to run your business”. Moving your accounting work to the cloud is no exception. Businesses who use cloud accounting platforms such as Xero can enjoy increased efficiency through automation functions, increased data security and improved financial control over compliance matters. In addition, cloud platforms are typically designed with scalability in mind, allowing users the ability to pick and choose which functions they want to pay for and utilize.
8. How much does it cost for our accounting services?
We charge accounting services fees based on an hourly rate or a fixed fee per month depends on the number of your company transactions and business complexity. Nothing unexpected will appear on your bills!
