Accounting & Taxation
Accounting is a statistical presentation of the value of all companies operations into numbers. Every company needs to prepare an account book for the local Inland Revenue Department to investigate the tax payable and accounting accuracy. In accordance with section 379 of the Hong Kong Companies Ordinance, directors of each limited company must prepare annual financial statements. Annual financial statements can present a company’s financial status and operation result effectively by bookkeeping, sub-ledger management, etc.
With a rich experience in accounting and taxation services, Wingate CPA & Company’s accountant can provide the best solution for clients within the accounting standards. Clients can enjoy our professional accounting services with lower costs and focus their attention without fears on business development.
Detail of services:
- Preparing invoices, vouchers and sub ledgers
- Preparing financial statements (Monthly, quarterly or annually)
- Management accounting for projects (Events, Government subsidized projects)
- Branch accounting
- Advisory on internal controls & Analysis on financial ratios
Documents to be provided for quotation:
- Bank statements for the period
Frequently asked questions:
- Is sole proprietorship required to maintain books and records?
- Although sole proprietorship is not governed under Hong Kong Companies section 51C of the Inland Revenue Ordinance to submit the Annual Financial Statement, however the Inland Revenue Ordinance specifies that each business should keep sufficient records for at least 7 years. Therefore, a sole proprietorship still has to maintain books and records.
- Should I have separate bank accounts for my business?
- Under the legal concept of a separate legal entity, directors and shareholders are separated from limited companies. To maintain proper records and avoid potential challenges, we advise clients to have separate bank accounts.
- What type of documents should I keep?
- Basically, all documents generated in or received from daily operations should be kept. These documents include but are not limited to contracts, orders, invoices, receipts, transportation and customs documents, tenancy agreements, bank letters and filings to the Government.
- Can I pay salaries to myself?
- Directors may take up employment on top of the office of director. We advise our clients to sign a formal employment contract stating terms clearly.
- What is the difference between salaries and dividends?
- Salaries are payments to employees for their services provided while dividends are investment returns to shareholders for capital injected. Salaries are expenses before tax and tax deductible while dividends are an after tax item.
- When can I declare dividends?
- Dividends can be declared at any time as long as the retained earnings of the company are positive. Normally, directors consider declaring dividends after the accounts have been audited.