For most companies, investors, and startups, Hong Kong is a tested business launch-pad they can use to rapidly grow and reach multinational status. It is a liberal democracy that has cut a name for progressive policies, making it win the tag of the freest economy on the planet, according to the Heritage Foundation. To operate in this jurisdiction, companies are required to adhere to all rules of operation, especially on matters of accounting and taxation.
However, accounting is never easy for companies operating in Hong Kong. Many are those that get stuck or end up getting penalized for not following the Hong Kong Financial Reporting Standards. The best solution is outsourcing accounting service in Hong Kong from Primasia.
What is Accounting Outsourcing?
If you are new to business, perhaps after recently registering a company in Hong Kong or expanded into a new jurisdiction, one question that might be running through the mind is, “what exactly is accounting outsourcing?”
Accounting outsourcing is the process of contracting a third-party service provider to help with the accounting functions of your company. Most accounting activities, as we are going to see shortly, are complex. This means they can easily take the bulk of your time that could have gone into handling other core tasks of your company. Other reasons why companies in Hong Kong, China (check our accounting services in China) and neighboring markets outsource accounting services from Primasia include:
The companies are scaling up and unable to handle some or all of their accounting activities.
When seeking to work with the best experts in accounting, payroll management, and tax matters without actually hiring them permanently.
When a company is scaling, perhaps opening new branches in China and Singapore, and wants to work with an accounting firm that can guarantee compliance.
When the policies on accounting standards and rules and related legislations change. Since the experts only focus on a few services, such as accounting and tax matters, they can make adjustments promptly to help your company with compliance.
No matter what is making your company find accounting challenging, know that Primasia can help.
A Brief about Accounting Standards in Hong Kong
In 2005, Hong Kong adopted new Financial Reporting Standards (FRS) that strongly borrows from the International Financial Reporting Standards (IFRS). The new Hong Kong FRS defines the rules that govern how every company should handle financial transactions. It also defines the minimum levels of financial disclosure allowed on the island.
According to the Hong Kong FRS, the way you handle the company’s accounting makes it easy for authorities to get a true and fair view of the financial status of the enterprise. Also, the accounting standards come in handy in helping companies meet their environmental, social and governance (ESG) reporting needs. Here are other highlights about FRS for Hong Kong.
The accounting standards are used for financial reporting of all profit-oriented entities.
Financial statement prepared in line with Hong Kong FRS provides a clear financial position of the company.
The reports also highlight the comprehensive income of the organization, changes in equity, and cash flow for the selected period.
Although this is the main guide for accounting for all companies operating in Hong Kong, there are other legislations, such as the Companies Ordinance and the Inland Revenue Ordinance of the island that you need to follow. We must say that adhering to these standards, plus other applicable policies and international standards, is never easy. This is one of the reasons why you should allow Primasia experts to hold your hand for timely and accurate company accounting.
You can Outsource the Following Accounting Services
The good thing about outsourcing accounting service in Hong Kong is flexibility. This means that you can contract Primasia to handle one or all the accounting tasks. Here is a brief summary of the services that you can outsource from them:
Accounts Receivables/Payable Management: These are the two most outsourced accounting functions in Hong Kong. The service involves tasks such as invoice approval, expense reporting, check processing, online payments, order management, and collections management to ensure your clients are paying on time.
Bookkeeping: This is a repetitive activity that can take a lot of time. However, Primasia uses cloud bookkeeping applications to simplify the process. Activities involved in bookkeeping include, balancing ledgers, procure to pay/e-payment handling, and employee expense processing.
Preparing Financial Reports: Preparing financial reports for internal and external use requires a lot of expertise. Today, additional reporting guided by frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD) falls into the accounting departments. The good thing is that Primasia has internationally accredited accountants and ESG experts that you can count on for all finance-related reporting.
In addition to these three activities, you can also outsource controller services, financial planning and analysis, cost and forensic accounting.
Special Benefits of using Accounting Service Hong Kong from Primasia
The primary reason why companies in Hong Kong and neighboring markets seek the assistance of our accounting services at Primasia is to be able to access and use the best experts. So, you do not have to hire and maintain accountants because Primasia has already taken care of that. Other benefits of using experts in accounting are:
Helps to Cut Down Costs
Another significant advantage of outsourcing accounting services is the ability to keep the cost low. We must say that this process is pretty expensive. Even after hiring staff, you must dig deeper into your pocket to buy accounting software, and regularly pay the benefits, taxes, and salaries. When you work with Primasia, all of these expenses are shoved away because the firm takes care of them. The agency will pay the experts and acquire all the required tools without passing the costs to your company.
Avoid Turnover and Time-Off Issues
If you have an in-house team, the risk of turnover and time-off issues are likely to arise. This means that if your staff in charge of accounting is away or opts out, the vacuum can compromise the running of the accounting department’s operations. The challenge can also impact the operations of other areas, such as payroll management. You can say goodbye to all of these issues by outsourcing accounting service in Hong Kong from Primasia.
The agency works with a team that strictly follows the terms and conditions drawn on the contractual agreement. Therefore, you will not have to worry that an accountant is absent or left the company. All that you can expect is top-notch results all the time.
Help in Strengthening Your Company Strategy
Your company is as good as the strategies it uses for operations. This brings about the big question, “how do you craft or improve your company’s operating strategy?” The answer is working with experts from Primasia.
When analyzing your books and preparing financial reports, Primasia’s experts will be able to identify areas of weakness and opportunities that you can take advantage of. Again, they have worked with other companies in the past and can tell you with a high level of certainty what works and what does not. So, go ahead and use their expertise to set your company on a path for success.
As you can see, outsourcing accounting service in Hong Kong from Primasia comes with so many benefits that your company should not miss. In addition to offering the best accounting services to your company, Primasia also provides other executive assistance, including payroll management, filing tax returns and company incorporation. So, do you need these services in addition to accounting assistance?
Talk to our professionals now for all the assistance that you need in accounting. With Primasia on your side, you cannot go wrong in company accounting, payroll management, and tax matters.