Whatever the nature and size of your business, accounting take an important role in a business and is essential for management, director and shareholders to evaluate the financial performance of the business. A good accounting system is the fundamental of the future success of a business. Do you feel headache when you are preparing your taxation filling? No worries. Keep reading and you will discover the useful information to get ready for your taxation period.
Decide Your Financial Cut-Off Date
31 Dec & 31 March are the common days that many Hong Kong companies set as their financial cut-off date. You could decide both of one as your company’s financial cut-off date based on your needs. Normally, companies from overseas would like to set the dates at 31 Dec because it will be convenience to match up with their overseas accounts. As to the local companies, they prefer to set 31 March because they could match up with the Hong Kong Government ‘s cut-off day. Meanwhile, “The Budget” will be published by HK Government in March. The new financial policies will be implemented in April. Therefore, company who set the cut-off date at 31 Mar. They can enjoy the advantages of “The Budget” immediately.
What Startup Company Need To Do?
As a local registered startup company no matter your business market is targeted either Hong Kong or overseas, you also need to prepare audited financial statement and filing together with the company’s profit tax return every year and hand in your audit report with completed tax return. Basically, IRD (Inland Revenue Department) will delivery the first profits tax return in around one and a half years after the date of your company formation. You have to submit the related documents within 3 months after you received from IRD. For example, if a company was formed on 01 January 2021, it will receive its first Profit Tax Return around June 2022. Meanwhile, this company will need to submit the documents before September.
What Can I Do If I Have No Idea How To Manage the Accounting & Audit Work?
Many people might have difficulties on handling annual accounting & audit issue. Especially some foreign companies, they might not fully understand the HK taxation system. Hence, you could assign your accounting & audit to be managed by professional services provider. It is a benefit to establish a good financial report structure such as balance sheet, profit & loss accounts and booking system for your company. Also, assigning to professional firm is the method to reduce your extra working time on accounting issue.
KPC Business Centre has 12 years experiences with providing outstanding accounting & audit services. Looking for a professional accounting consultant? Please feel free to drop us an email at [email protected] / Whatsapp us +852 9168 9205 anytime.
尖沙咀商務中心擁有12年的經驗提供專業的會計和審計服務。 尋找專業的會計顧問？ 請隨時通過[email protected] / Whatsapp給我們+852 9168 9205。