Accounting and Bookkeeping
Hong Kong’s Main Tax Types and Filing Requirements
Peace of mind at tax filing time
Starting a company is not easy. There are many matters to manage, particularly finances and legal obligations, which can place a heavy burden on business owners. As a business grows, especially a small or medium-sized enterprise, its accounting needs can become increasingly complex. For those unfamiliar with accounting, these tasks can create additional pressure, and mistakes may even result in financial liability.
In these circumstances, appointing a professional accounting firm to handle your company’s finances can be a wise choice. M & N Business provides accounting services for SMEs to help monitor and manage financial processes, ensure compliance, and save time and money. From bookkeeping and tax filing to other company accounting matters, our professional services offer comprehensive support.
We also understand that every business has different financial needs. We therefore tailor our accounting service packages and fees to the nature of your business, providing value for money without excessive costs.
What Are Business Accounting Services for SMEs?
Business accounting involves recording and analysing a company’s financial position. At M & N Business, we specialise in comprehensive accounting services for SMEs, helping companies increase profits, reduce unnecessary expenditure, and collect outstanding payments effectively. Our professional accounting support aims to save SMEs time and reduce the pressure of financial management and bookkeeping.
Our accounting team consists of experienced professionals who use the latest accounting systems to ensure accurate financial statements. We maintain precise accounting records and manage all income and expenditure, giving you a clear view of your company’s financial position and making it easier to monitor business development.
Benefits of Accounting Services
Why use professional accounting services? Here are 4 benefits.
1. Save Time
Some SMEs lack the time and expertise to manage their accounting and may overlook financial details, wasting time and increasing the risk of mistakes. Professional accounting services reduce the workload on your internal team, lower the risk of errors, and save time during audits.
2. Increase Profits
Professional SME accounting services help identify potential operational problems early and propose practical solutions. This can reduce unnecessary expenditure and direct funds towards more valuable investments. With more resources available, your company can improve its profitability.
3. Reduce Risk
Appointing a reliable accounting firm allows a professional team to take on financial responsibilities and reduces the risks involved in financial management. A professional accounting firm ensures accurate accounting processes and helps prevent employees from misappropriating company assets. Professional accounting services ensure complete and accurate financial information and help businesses avoid errors at important stages such as tax reviews.
4. Advanced Technology at a Lower Cost
Advances in technology have made sophisticated accounting software available to support financial and accounting work. We use advanced software to organise and record financial data and provide professional accounting services. For a monthly accounting service fee, you can benefit from current software and professional expertise, helping to reduce administrative costs substantially and make business operations more systematic.
Every Company Needs to Prepare for Tax Season
M & N offers one-stop professional services covering accounting, bookkeeping, and tax filing. We understand the challenges business owners face at tax filing time:
We understand the challenges each tax year , brings for business owners :
- What if receipts are missing?
- How can income and expenditure be calculated accurately?
- Facing a large tax bill every year?
M & N considers every detail and helps you prepare thoroughly, taking the worry out of managing your business.
Accounting Service Fees and Transparent Pricing
Our company accounting fees are fair and transparent, with flexibility to reflect different service needs. Whether you need comprehensive financial reporting, bookkeeping, or regular financial reviews, we tailor a service package to your company’s requirements and budget.
As a professional accounting firm, we understand that each business has different needs. Our scope of service and fee structure can therefore be adjusted to your circumstances, helping SMEs maximise financial efficiency and reduce operating costs.
Accounting and Bookkeeping Services
Keeping Business Records
Under section 51C of the Inland Revenue Ordinance:
- Every person carrying on a trade, profession, or business in Hong Kong must keep sufficient records of income and expenditure in English or Chinese to enable assessable profits to be readily ascertained.
- Records must be retained for at least 7 years
- Failure to comply with the Inland Revenue Ordinance without reasonable excuse carries a maximum fine of HK$100,000
- Records Specified in the Inland Revenue Ordinance
M&N Accounting Services Include
- Books recording receipts and payments
- Vouchers, bank statements, and invoices
- Receipts, records of assets and liabilities, and other supporting records
Monthly accounting from $1000
Year-end accounting: fee by quotation
M&N Tax Services Include
- Organising accounting books
- Preparing and submitting financial reports
- Calculating tax and filing various types of tax returns, and more.
Why Do So Many Entrepreneurs Choose M&N Business Services?
- A licensed Hong Kong service provider: M&N Business Services Limited is a licensed secretarial services company recognised by the Hong Kong Government, providing reliable services you can depend on.
- Comprehensive one-stop solutions: From company incorporation and secretarial services to accounting, tax filing and virtual offices, we provide everything in one place, saving you the trouble of dealing with multiple providers.
- An experienced team: Over the years, we have helped countless SMEs and start-ups register their companies successfully and have developed the expertise to handle complex situations.
- Clear, transparent pricing: Every service plan has clearly stated prices with no hidden charges, so you can engage our services with confidence.
Related Accounting and Bookkeeping Services
Company Incorporation Services
Company Secretarial Services
Tax Filing Services
Virtual Offices
More Accounting and Bookkeeping Insights
Profits Tax and Business Tax Filing 2025: Rates, Allowances and Filing Procedures for Unincorporated Businesses and Limited Companies
What Happens If You File a Hong Kong Tax Return Late? Penalties and Steps to Take
eMPF Guide: Features, Benefits and Registration Steps for Digital MPF Management
Hong Kong Company Tax Filing Guide 2025: Profits Tax Rates, Deductions and Extension Deadlines
Frequently Asked Questions
Common year-end dates in Hong Kong are 3/31 or 12/31(month/day) for tax purposes. A company’s first basis period may be up to 18 months. Failure to submit a tax return by the specified deadline is an offence and may result in a penalty. A newly incorporated company may choose a first financial year of 18 months for its first financial statements, followed by financial years of 12 months. The chosen financial year must not exceed 18 months.
You should complete your company’s accounting records as early as possible, before receiving the tax return, and arrange for them to be audited by a practising accountant. Contact us if you need assistance.
Please provide the following documents so that we can prepare your accounts and reports:
- The previous year’s audit report, if available
- Monthly bank statements
- Invoices for sales of goods or other income
- Invoices or receipts for purchases and processing charges
- Invoices or receipts for expenses
- Invoices or receipts for purchases or sales of fixed assets and other relevant documents⋯⋯
Yes. A company is established for profit. Even if the Hong Kong company only collects and makes payments on another company’s behalf, it still needs accounting and an audit. The accounts should set out the complete collection and payment process, after which the circumstances determine the Hong Kong company’s actual income.
If your company cannot complete its accounting and audit on time and consequently fails to file its Profits Tax return, or if the return contains errors, you may be fined. Failure to pay tax and penalties may result in a court summons.
M & N is a professional accounting firm offering one-stop support for your company’s financial arrangements. Please contact us for more information about our accounting fees.
References
Consequences of Late Tax Payment
Under section 71(1) of the Inland Revenue Ordinance (Cap. 112), tax charged under the Ordinance must be paid in the manner specified in the notice of assessment on or before the date stated in that notice. Tax not paid accordingly is treated as being in default.
If the first instalment remains unpaid after the date specified in the notice of assessment, the second instalment becomes immediately due. The entire unpaid amount in the notice is treated as overdue tax and may be recovered immediately by the Inland Revenue Department.
The Commissioner of Inland Revenue may immediately take statutory recovery action under Part XII of the Inland Revenue Ordinance to recover the outstanding amount, including imposing a five per cent surcharge, issuing recovery notices to third parties, and commencing legal proceedings.
Source: Inland Revenue Department