To run any business successfully in Hong Kong, you must know how to handle and organize all your company’s paperwork. Here’s where accounting services are essential as a business owner.
Every company needs to comply with the financial reporting systems to provide financial statements of their transactions. These statements are important for keeping records updated and for filing business taxes to the Inland Revenue Department. Thus, the need for hiring a professional financial accountant for the job.
Financial managers can also help you to record and interpret your company’s financial data and make better business decisions, especially when it comes to company funds.
Read on to get a detailed overview of the benefits of hiring a financial manager and why you need one for your business:
Benefits of Hiring a Financial Accountant in Hong Kong
Managing company accounts involves a lot of responsibility. As such, you need a professional, competent, and trustworthy manager to handle the task.
Once your business starts growing, keeping track of your financial records and filing taxes become more complicated and demanding. Thus, the need to hire a professional who has the experience for the job.
Here are the top five reasons why you should use accounting services for your business in Hong Kong:
Preparing a Business Plan
Hiring a Hong Kong Accountant when creating a business plan has many benefits and may lead to some great ideas for operating the business once started. A manager can provide you with accounting software that shows you possible financial projections and other reports for the business.
This can easily help you develop a more realistic and professional business plan, thereby increasing your chances of starting a successful business.
Hiring a finance manager at the early stages of your business has many benefits because of their financial knowledge and ability to provide the right financial advice. Doing so can save you a lot of time and money in comparison to hiring one later.
Company Financial Data Management
Every company in Hong Kong is required to keep its financial books up-to-date and in order. Hiring a finance manager ensures that all your financial data is stored, updated, and managed properly. This information must be compliant and accurate with the IRD’s requirements.
Therefore, should anything go wrong, like filing the wrong financial data, you may face hefty penalties in the future. However, hiring a finance manager guarantees that all your financial records are secured, managed, and filed appropriately.
Help in Choosing the Company’s Legal Structure
There are several different company structures you can choose from in Hong Kong as per your business’s needs and objectives. These include Sole Proprietorship, Business Liability Company, Foreign Company Office, and Partnership.
You must consider each company structure carefully before choosing the one that suits your company best.
NOTE: a Limited Liability Company offers protection of the business owner’s personal assets from business risks and liabilities. It is also the most common company structure used by many businesses.
By hiring a finance manager, you put your business in a better position in deciding the best legal business structure that suits the business.
Keeping in Regulatory Compliances
When you hire a professional finance manager for their accounting services, they do their best to make business accounts and records in order. Professional finance managers can handle any regulatory compliances and requirements. They ensure your income and expense reporting is accurate and follows applicable government rules.
Financial Analysis and Reports
When preparing your business’s financial statements, it can be quite difficult to analyze all reports and transactions properly. That is why hiring a finance manager is always the best move and can be your best resource when making financial decisions about your business’s future.
You will also need a finance manager to manage your company’s payroll and measure financial charts. This data allows you to determine the ratio changes of your financial reports over time. You will be in a better position to monitor your company’s financial data while keeping track of important processes like cashflow.
Factors to Consider When Hiring an Accountant for Your Business in Hong Kong
Now that you know the benefits of hiring a finance manager for your business, you should know whether you are hiring the right person for the job.
Here’s a checklist of what you should look for when hiring a finance manager for your business:
Knowledgeable in Hong Kong Taxes
Of course, you will want a professional finance manager who knows and understands Hong Kong taxes. You want a finance manager who has a diverse knowledge of Hong Kong’s taxation rules.
Although the process of submitting business tax returns is straightforward in the region, it is still best to have someone who is well-versed with taxation rules.
Experience in Handling Accounts
A professional accountant knows a lot more about accounting other than just recording journal entries and preparing business ledgers. You want to hire a finance manager who knows all the accounting elements and understands all the concepts of the accounting part of the business.
Good Knowledge of the Latest Accounting Software
It’s always great to hire a professional finance manager who has extensive knowledge and background in accounting. It’s even better to hire a finance manager whose accounting skills align perfectly with your business idea.
Any professional finance manager will always have the latest accounting software to help them prepare financial statements and records. Accounting software and programs also eliminate simple errors like additions or omissions when calculating complex financial figures.
A finance manager’s work is very confidential and deals with company-specific, sensitive material. As such, you will definitely want a finance manager who you can trust and rely on to protect your financial data.
Look for a trustworthy, punctual, and determined finance manager who also strives to ensure the long-term success of your business.
Excellent Customer Service
The best finance manager will have a clear picture of all your business accounts and help you make great financial decisions to better the company. You want someone who can interact with other people easily and delivers all ideas clearly. Such finance managers are always major assets for businesses.
As much as you want a good finance manager who has the experience to handle your financial records, you also need someone you can trust to handle your company’s sensitive materials. This excerpt should provide you with everything you should know when hiring an accountant and the benefits of hiring one.