What is bookkeeping?
Bookkeeping is a systematic recording and organization of financial transactions within a company on a daily basis. Proper bookkeeping is essential in ensuring that a company is organized, which will make it have the ability to trace all its transactions, operations, investments, and other vital financial decisions. Bookkeepers are individuals who professionally assist a company in keeping its financial records and data. They will enable a company to understand their financial obligations and their financial positions.
What are some of the activities that are included in bookkeeping?
- Loan payment information
- Monitoring the depreciation of assets
- Generation of financial reports
- The payment of invoices for the consumers
- All the expense payments to the suppliers
What are the benefits of bookkeeping?
There are many benefits of bookkeeping, including:
Bookkeeping helps in budgeting. When a company properly organized its financial transactions, it can track all its financial flows. Organizing the income and expenses of your company will make your company manages and understands its financial resources and expenses easier. Therefore, you will be able to plan well for your business activities and meet your company obligations.
- Tax Preparation
All businesses in Hong Kong should remit their taxes to the Hong Kong tax authorities. The tax filing process will be easier if a business has an accurate bookkeeper. The bookkeeping process will significantly help you file all your tax obligations by having all your relevant financial information ready for taxation. Besides, organized bookkeeping will help save time as you will not have to scramble over the receipts or invoices. The bookkeeping process will help you to ease the tax remittance and enable you to do it in time.
Being organized is a relevant skill in managing your business. Every business owner should be organized and one way to ensure this is the ability to find or access all relevant financial information anytime they are required. Some parties will be interested in the financial information of your business. They include IRS, employees, customers, investors, and lenders. The tax revenue authority might request the financial information at any time, and if you are unable to provide it, it might attract a fine or penalty. Generally, going by the definition, bookkeeping involves the organization of relevant financial information; thus, bookkeeping implies the process of making your company organized.
Bookkeeping is vital as it helps in the process of analyzing the company prospects and its future. In other words, bookkeeping is an important tool that is used in managing and analyzing business performance. It is used to analyze financial statements and help the business owner track the cash inflows and outflows with ease.
- Helping in Decision Making
The analysis of the financial statements and cash flows is essential in decision making. For you to make a better decision in a business, you should gather all the relevant information that bookkeeping will readily provide. Proper financial analysis will expose how the individual sectors are operating and help you make decisions on where to improve.
- Better Cash Flow
Proper records that indicate the revenues, expenses, liabilities, and receivables will allow you to track all your relevant operations. It will give you an insight into how to manage your debts and credits. Proper management of debtors and creditors accounts will help you in receiving and making the payments in time.
- A requirement under the law
All companies in Hong Kong must keep and update their books of accounts for easy audit. A relevant authority to request to access the information any time to check if your company is filing their taxes correctly. The better way to do this is bookkeeping, as the law will require you to keep your personal expenses from your business operations.
What are some of the benefits of outsourcing a bookkeeper?
The accounting and booking services in Hong Kong can be prepared annually as the law only requires the directors to have the company’s clear records. Running an accounting department that will only have to present bookkeeping once in a year can be costly, which is why most Hong Kong companies opt for outsourcing a bookkeeper. Outsourcing a bookkeeper will not only help you cut unnecessary expenses but will also help you in saving time in the long run. More benefits of outsourcing a bookkeeper as opposed to employing one include:
Cutting on the expenses
Outsource the bookkeeping service can help a company to reduce unnecessary spending and costs resulting from numerous benefits that an employee requires, like; insurance, compensation, training, and the recruitments process itself. Therefore, outsourcing for a bookkeeper will not burden your payroll.
Save time and minimizing paperwork.
One of the benefits of outsourcing a bookkeeper of using a virtual bookkeeper is to enable you on saving time that you would otherwise have lost when analyzing and reconciling the records. Therefore, outsourcing bookkeeping services will permit you to buy your time at a relatively lower price as you concentrate on other managerial roles and opportunities.
Access to robust centralized cloud-based bookkeeping system the modernized bookkeeping.
Outsourcing the bookkeeping services allow your company to access to robust centralized cloud-based bookkeeping system the modernized bookkeeping. Your company does not have to operate merely on pen and paper for bookkeeping anymore. Centralizing the information makes the data flexible as the bookkeeper focuses on the daily activities of the business.
Reducing errors and maximizing accuracy
Accuracy is an essential aspect of accounting and bookkeeping. Making an error or omitting some figures, either knowingly or unknowingly, can attract hefty charges or lead to penalties. The moment that you hire a virtual bookkeeper, you will enjoy experienced service delivery without incurring training and mentorship expenses.
What are some of the services that we will provide you with?
Paul Hype Page is a Public Accounting Firm with Accounting and Corporate Regulatory Authority (ACRA). Paul Hype Page can provide you:
- Accounting and financial reporting services
- Managing your payroll and human resources management
- Assistance in bank account management
- We will also help you in processing your orders and invoices
- System Migration Support
- Post-merger integration
- Guidance on tax remittance procedures and requirements in Hong Kong.
We are experienced in bookkeeping services, and we will help you prepare your periodic tax returns and help you make forecasting services for your company. These activities will help you to monitor your results, thus leading to successful business operations.
In summary, the bookkeeping process might be complicated and demanding in Hong Kong, especially if you do not have the relevant skills and know-how. Therefore, you should find a professional to help you keep your books of accounts not because it is a legal requirement in Hong Kong, but because of its numerous benefits to both the business and the owner. If you are unsure where to begin, you don’t have to worry anymore since Paul Hype Page consulting services will be readily available for you. Our team of experts has vast experience and skills in the Hong Kong taxation law requirements that will form the bookkeeping process’s fundamentals.
Outsourcing your Bookkeeping FAQs
The merits of bookkeeping in accompany are obvious. However, you might face the following challenges with bookkeeping;
- Legal obligations to the authorities
- Inaccurate data
- The cost of bookkeeping
- Transparency and Obligation
Bookkeeping is one of the crucial aspects of managing a business. It makes it much easier when budgeting. Weighing the expenses against income will enable you to organize and easily review your financial obligation.
It is a requirement that all financial statements, profits, and taxes to the government be audited by an independent third party. Therefore, all companies in Hong Kong must have their financial statements and accounts audited.
Many business owners assume they save money when they do bookkeeping in–house. However, it is better to outsource a bookkeeper. By doing so, your employees can use the time to conduct business activities that can generate more revenue for the company.
The two possible ways that you can outsource a bookkeeper in Hong Kong are either working with a freelancer or with a firm. A freelance bookkeeper might either work with you in person or online. A firm is relatively more reliable as most of them have experience in their work.