Delaware (USA)
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United Kingdom 
As one of the world’s leading financial hubs, Hong Kong has a thriving economy with a diverse range of businesses, from small start-ups to large multinational corporations. With the complexity of the financial landscape, businesses in Hong Kong often rely on the expertise and guidance of accounting firms to help them navigate these challenges. Let’s explore more in this article.
Overview of Hong Kong accounting standards
When doing business in Hong Kong as an offshore company or even a domestic company, your business must follow the regulation of Hong Kong.
For accounting duty, you must follow the Hong Kong accounting standards to give a “true and fair” view of your company’s financial situation.
For instance, you’ll have to submit the following documents to the authorities:
The balance sheet;
Fixed assets of the company like stocks, and securities;
Present liabilities on taxation, finance lease obligations, or creditors’ loans;
Shareholders retained profits and capital reserves and similar equities;
Profit and loss account and summaries of turnovers, profit before tax, dividends; and
Retained profits of the fiscal year.
Due to the complexity of the standards, some companies find it difficult to stay compliant and maintain good financial standing. Most of them agree that hiring an accounting firm is a solution to keep the business running smoothly and legally.
Professional accounting firms have the knowledge to not only save you time and money, but they will also provide solid advice about business financial planning and projection. Read on to find out how you can find the perfect accounting firms for your business.
What you should know about accounting firms in Hong Kong
With the abundant number of accounting firms in the Hong Kong market, finding the most suitable one can be quite difficult.
To identify which accounting service is right for you, make sure you have a basic understanding of the firms and the services available.
What does an accounting firm mean?
An accounting firm in Hong Kong is an entity providing accounting services to businesses, from preparing financial statements and annual returns to providing accounting advice and guidance.
To provide such a service legally, an accounting service provider must be licensed and adhere to the accounting standards set out by the Hong Kong Institute of Certified Public Accountants (HKICPA).
Commonly, accounting firms in Hong Kong can be divided into two distinct categories:
Full-service accounting firms
A full-service accounting firm offers a comprehensive range of accounting and financial services to its clients such as forensic accounting, business valuation, risk management, and information technology consulting.
These firms also have a team of professionals with diverse backgrounds and expertise, from certified public accountants (CPAs) and tax experts to financial analysts and business consultants. Businesses can have their financial needs met in one place, rather than having to work with multiple service providers. This can save time, reduce costs, and provide a more holistic approach to financial management.
Specialty accounting firms
A specialty accounting firm provides specialized services focused on a specific area or niche of accounting and financial services. Some examples of specialty services include forensic accounting, tax consulting, business valuation, risk management, and information technology consulting.
The advantage is that businesses can receive highly specialized and tailored services that address their specific needs. For example, a company that is facing a complex tax issue in Hong Kong may benefit from working with a tax consulting firm that has extensive experience and knowledge in this area. Similarly, a business that needs to evaluate the worth of its assets may benefit from working with a valuation firm that specializes in business valuations.
Services provided by accounting firms
A misconception about accounting firms is that they all provide the same kind of accounting service. However, accounting firms can provide services that depend on their size, areas of specialization, and the needs of their clients.
Here are some common categories of services that accounting firms in Hong Kong typically provide:
Accounting services
This includes bookkeeping, financial statement preparation, payroll services, and other services related to the maintenance of financial records.
Audit and assurance services
These services involve conducting an independent examination of a company’s financial statements to ensure they are accurate and comply with relevant accounting standards.
Tax compliance services
Accounting firms in Hong Kong can assist clients with complying with tax regulations, preparing tax returns, and providing tax advice.
Advisory services
This category of services includes financial planning, business valuation, risk management, corporate finance, and other services aimed at helping clients make strategic business decisions.
Company incorporation and secretarial services
Many accounting firms in Hong Kong can help clients incorporate a new company, manage ongoing compliance requirements, and provide other secretarial services.
Forensic accounting and investigation services
Some accounting firms specialize in providing forensic accounting services, which involve investigating financial fraud or misconduct.
Technology and digital services
With the rise of technology, many accounting firms in Hong Kong are now providing services related to digital transformation, such as cloud accounting, cybersecurity, and data analytics.
These are just some of the common categories of services that accounting firms in Hong Kong provide. The specific services offered by each firm may vary depending on their areas of expertise and the needs of their clients.
Why consider using an accounting firm in Hong Kong?
Besides the main purpose of staying compliant with the Hong Kong accounting standards, using the accounting service has other significant impacts on your business.
Freeing resources and encouraging growth
By engaging a professional accounting firm in Hong Kong, you can save time and money compared to managing your accounting tasks in-house. An accounting firm can help you prepare financial statements, analyze your financial data, and provide valuable insights into your business performance.
You only have to pay one monthly service fee for access to the accounting expertise of an entire team, eliminating concerns about hiring costs and employee turnover, so you can save time and resources to invest in other areas of your business.
Many accounting firms in Hong Kong also offer business advisory services, such as strategic planning, risk management, and corporate finance. These services can help you make informed decisions about the future of your business such as expansion and hiring and preventing potential risks that could threaten or delay the success of the business.
Compliance with local laws and regulations
Hong Kong has a complex and ever-changing regulatory environment, and it can be difficult for businesses to keep up with all the latest requirements, as well as manage paperwork and prepare financial reports.
Accounting firms in Hong Kong are well-versed in reporting laws and financial statement procedures, so they can help you overcome any difficulties with the preparation of your report and ensure there will be no mistakes or errors that can affect your business’s standing.
Tax planning and optimization
Hong Kong has a relatively low tax rate compared to other jurisdictions, but there are still many opportunities for businesses to optimize their tax position.
An accounting firm can help you navigate the tax system and minimize your tax liabilities by identifying applicable tax breaks and exemptions. Professional accountants who understand Hong Kong’s regulations can make sure companies are getting the relevant tax rebates and expense deductions that they are entitled to.
If you’re planning to expand overseas, accounting firms can use their deep understanding of international tax treaties to prevent issues such as double taxation, offering benefits for savings and deductions.
Some drawbacks of using accounting firms
Although accounting firms can provide businesses with invaluable services, it is important to be aware of some of the drawbacks of choosing an accounting firm.
Lack of control
By outsourcing accounting activities to a third party, you may have less control over financial operations, which can be a concern if you want to maintain a high level of oversight over accounting and financial activities.
Communication issues
Communication can be a challenge when working with an external accounting firm, particularly if the firm is located in a different location. This can lead to delays, misunderstandings, and other issues that can impact the quality of the service provided.
Security risks
Accounting firms typically have access to sensitive financial information, which may create security risks for your business. You should carefully evaluate the security measures and protocols of your chosen firm to make sure their system is safe and secure.
What factors should you consider when choosing an accounting firm in Hong Kong?
The firm specialty
When hiring an accounting firm, you need to make sure that they have enough expertise in your industry. Though the accounting task might seem to be similar from the look of it, each industry can be slightly different from one another.
Let’s say a real estate business needs help with tax planning and financial reporting. If the business hires an accounting firm that specializes in healthcare, it may not be compatible. The accounting firm may not be familiar with the specific tax regulations and financial reporting requirements that apply to the real estate industry, which could result in inaccurate financial reporting or missed tax savings opportunities.
Therefore, do your research to understand that the service you’re going to hire is the perfect match for your business to make sure your outsourcing method can be fruitful in the future
The level of involvement
Depending on your Hong Kong business, it is best to know the extent of involvement an outsource provider can help you with.
For instance, if your business only needs help with bookkeeping and managing business records in Hong Kong, then finding a small accounting provider is the best option for the price.
On the other hand, if you want a thorough service, finding a one-stop shop can provide you with many benefits not only for accounting-related needs but also can play a vital role in the strategy of your business in the near future.
The cost of service
The price of the service is another thing that needs to be considered carefully. Make sure to do research and look for references or testimonials to make sure that the value you get from the chosen firm is equal to the money you spend. Your chosen firm should have transparent pricing with no hidden fees, so you don’t have to worry about blowing your budget.
Moreover, accounting firms may have different fee structures, such as hourly or fixed fees, and may charge additional fees for certain services or expenses. By discussing pricing issues upfront, businesses can avoid any surprises or misunderstandings about the cost of services.
The availability and responsiveness of the accounting firm
Accounting and reporting obligations are due on a specific date, and being late for this deadline could result in penalties and sanctions for your company. Thus, you need an accounting firm that is responsive and provides service in a timely manner.
Top accounting firms in Hong Kong
To help you make an informed decision on which accounting firm to engage with for your needs, here are the top 10 accounting firms in Hong Kong:
Deloitte Touche Tohmatsu
Deloitte is one of the most extensive professional services that have networks globally. It offers a wide range of services, aiming to help its clients in various industries. Known for its professionalism, quality of service, and deep understanding of the local business environment, making it a top of mind when thinking about choosing an accounting firm.
Pros:
Is the largest of the Big Four firms
High expertise in the technology, media, and telecommunications industries
Has global presence and expertise, allows it to provide comprehensive solutions to complex accounting issues for multinational companies
Quick to adapt to new technology and implementation of advanced analytics tools to improve the accuracy and efficiency of accounting processes
Provides a range of specialized services, famous for its risk management and consulting, that can be beneficial to businesses.
Provide added credibility and assurance to businesses that work with them.
Cons:
The cost may be relatively high, which could make their services cost-prohibitive for some smaller businesses
May not offer the same level of personalized attention and support that a smaller, local accounting firm could provide.
Who should choose this option?
Deloitte’s accounting services are primarily designed for large corporations with complex financial needs and significant financial resources. As a result, their services may be more suitable for clients with higher budgets and more complex accounting requirements.
PricewaterhouseCoopers (PwC)
PricewaterhouseCoopers (PwC) is another one of the largest accounting firms globally founded in 1998, offering a wide range of services, including audit and assurance, tax consulting, financial advisory, and risk advisory. It is known for its focus on technology and digital transformation, enabling it to provide cutting-edge solutions to its clients to help drive business success.
Pros:
The 2nd largest of the Big Four firms
Has a strong consulting practice
Has global presence and expertise, allows it to provide comprehensive solutions to complex accounting issues for multinational companies
Provides a range of specialized services, famous for its strong presence in the healthcare industry.
Apply digital solutions, such as artificial intelligence and blockchain, to help clients streamline their operations, reduce costs, and improve efficiency.
Cons:
As one of the top accounting firms, the price for hiring PwC is not cheap, especially for small companies with a tight budget
PwC has faced legal challenges and controversies in the past, which could be a concern for clients who value stability and reliability.
Who should choose this option?
Large corporations, international businesses, and companies expanding internationally are best suited to PwC services. However, thanks to its fame in consultant service, PwC is also an attractive option for start-ups and emerging companies if the fee does not play a vital role in the selection process.
Ernst & Young
Ernst & Young, also known as EY, is a multinational professional services firm that provides assurance, tax, transaction, and advisory services to businesses in various industries. EY has a strong presence in Hong Kong and is one of the leading accounting firms in the region.
Pros:
One of the Big Four accounting firms
Provides a wide of accounting-related services, well-known for its transaction advisory services
Serve many industries, but most famous in the healthcare industry
Has a high-expertise workforce and global reach
Implementation technology in its service
Cons
As one of the big four, EY may not offer the same level of personalized attention and support to SMEs
The cost of the accounting service can be a high-end choice for some businesses
Who should choose this option?
EY’s accounting services can be beneficial for a wide range of clients, especially multinational corporations and global organizations that operate in multiple industries and geographies. EY’s global reach, industry knowledge, and expertise in risk management and innovation can help these clients navigate complex challenges and stay ahead of the competition.
KPMG
KPMG provides diverse services for companies in various industries, the company is dedicated to delivering high-quality, practical solutions that help its clients achieve their financial goals.
Pros:
One of the Big Four firms
Has a strong presence in forensic accounting.
Has global presence and expertise, allows it to provide comprehensive solutions to complex accounting issues for multinational companies
KPMG is known for its work in the energy and natural resources sector while still being able to serve other industries.
Cons:
As one of the Big Four accounting firms, KPMG’s fees may be higher than those charged by smaller firms.
Due to KPMG’s large size and client base, some clients may feel that they do not receive as much personal attention as they would with a smaller accounting firm.
KPMG may have relationships with other companies that could pose conflicts of interest for some clients.
Due to KPMG’s large number of clients, they may not always be immediately available to address client concerns or questions.
Who should choose this option?
KPMG’s accounting services are suitable for larger corporations with complex financial needs, but they also offer services for small businesses and individuals. Their expertise in tax and advisory services, along with their global presence, make them a recommended choice for multinational corporations and businesses with a significant international presence.
Mazars Hong Kong
Mazars is a global organization that provides a wide range of professional services, including audit, accountancy, tax, legal, and advisory services. Presenting in 89 countries with a team of over 40,000 professionals, Mazars is an integrated and independent organization that can help businesses ease their accounting tasks.
Pros:
Have a long reputation for its auditing services
Deep native knowledge to help clients navigate through the complex regulatory environment
Takes a personalized approach to each client’s needs and goals, developing tailored solutions that are customized to their unique situation
Cons:
Mazars Hong Kong also have it fees relatively high since it also claims to be an international accounting service
For clients operating in Hong Kong or other regions in Asia, there may be cultural and language barriers to working with Mazars Hong Kong or other international firms. This can create communication challenges and may require additional effort to build rapport and understanding.
While Mazars Hong Kong is part of a global network, there may be differences in service quality or consistency across different regions or offices. This can create inconsistencies or gaps in service delivery, particularly for clients operating in multiple markets.
Who should choose this option?
Mazars is a versatile firm that can serve the needs of a wide range of clients in Hong Kong. However, the firm put a strong focus on serving SMEs in Hong Kong, offering services such as accounting and bookkeeping, tax compliance, and advisory services to help SMEs navigate the complex regulatory environment in Hong Kong. They also have a specialized team of experts to serve the needs of multinational corporations (MNCs) and technology companies.
Baker Tilly Hong Kong
Baker Tilly is also a highly recommended candidate for the qualified accounting firm, providing global resources and expertise, while still maintaining a local focus. With a team of experienced professionals and a commitment to providing high-quality services, Baker Tilly is a trusted partner for businesses of all sizes, helping them to navigate the complexities of the financial landscape and achieve their goals.
Pros:
Takes a client-centric approach to its services, offering customized solutions to meet each client’s unique needs and goals.
Have a deep understanding of various industries, including financial services, real estate, technology, and manufacturing.
As part of the Baker Tilly International network, Baker Tilly Hong Kong has access to a wide range of resources and expertise from around the world.
Cons:
A limited workforce can limit its ability to offer accounting-related services
Some clients may find the firm’s tailored solutions and industry expertise to be overly complex or difficult to implement.
Who should choose this option?
Baker Tilly Hong Kong provides a range of accounting and advisory services that can benefit businesses across various industries, such as SMEs requiring expertise in accounting, financial reporting, and tax planning; start-ups seeking corporate finance services to manage risks and develop growth strategies; MNCs requiring cross-border transaction expertise; NPOs needing financial management and reporting guidance; and family-owned businesses requiring succession planning and wealth management services.
Lawrence Cheung CPA
Lawrence Cheung C.P.A. Company Limited (“LCCPA”), a professional accounting business, was established in 1978 and is registered with the Hong Kong Institute of Certified Public Accountants under the Professional Accountants Ordinance. Nowadays, LCCPA is a top company of CPAs (certified public accountants) and business consultants offering a comprehensive array of services with a dedication to excellence across the board.
Pros:
A cost-effective solution for small businesses to outsource their accounting tasks
Having a strong background in Hong Kong accounting expertise
Focus on building long-term relationships with clients
Cons
May not be suitable for those who prefer in-person support from a local accountant, as they primarily offer remote services
Have the limited capacity to take on new clients or handle larger projects, which may result in longer turnaround times or delays in service delivery.
Who should choose this option?
Lawrence Cheung CPA offers tailored accounting services for SMEs, startups, sole proprietors, non-profit organizations, and professional services firms to help them manage finances, comply with regulations and succeed in their respective industries.
SJH Global
The firm is said to put much dedication to providing consumers with professional services of the highest caliber at fair prices. Company formation, company secretarial services, accounting and tax preparation, virtual offices, and other services are all included in their one-stop business solution services.
Pros:
Get much more attention than working with a large accounting firm
Cost-effective
Have other service fitting for the post-incorporation corporation
Cons:
Have the limited capacity to take on new clients or handle larger projects, which may result in longer turnaround times or delays in service delivery.
Some clients may find the firm’s tailored solutions and industry expertise to be overly complex or difficult to implement.
Who should choose this option?
SJH Global Limited offers a one-stop shop for incorporation and accounting services, that can be particularly beneficial for SMEs, startups, and MNCs wanting to expand their presence in Hong Kong. By providing these services under one roof, SJH Global can simplify the process of starting and maintaining a business in Hong Kong, allowing business owners to focus on their core operations.
Premeia TNC
This is a leading business consulting and accounting firm in Hong Kong, providing services for companies in various locations such as Hong Kong, Singapore, Vietnam, Taiwan, Malaysia, and Korea.
Premia TNC has offered high-quality services to Hong Kong’s local businesses and international businesses, SMEs, and MNCs since 2003.
Pros:
Can help free up time for clients to focus on other aspects of their business, such as sales and marketing.
May be more cost-effective than hiring a full-time accountant or bookkeeper.
Accounting service providers can offer a flexible solution that can adapt and scale up to meet the needs of growing businesses.
Cons:
Have the limited capacity to take on new clients or handle larger projects, which may result in longer turnaround times or delays in service delivery.
Some clients may find the firm’s tailored solutions and industry expertise to be overly complex or difficult to implement.
Who should choose this option?
Premeia TNC offers accounting services that cater to the needs of small business owners, startups, large corporations, non-profit organizations, and individuals.
Kenneth Chau & Co
Established in 1960, Kenneth Chau & Co. has a strong reputation and technical know-how of a group of Certified Public Accountants and Certified Tax Advisors. Their skilled staff has years of experience in delivering services in audit, taxation, and corporate secretarial & advisory.
Pros:
Specialized knowledge and expertise in managing financial information, tax laws, and regulations in Hong Kong
Although there is a cost associated with hiring an accounting firm, it may be more cost-effective than hiring a full-time accountant or bookkeeper.
Cons:
Have the limited capacity to take on new clients or handle larger projects, which may result in longer turnaround times or delays in service delivery.
Some clients may find the firm’s tailored solutions and industry expertise to be overly complex or difficult to implement.
Who should choose this option?
Kenneth Chau & Co offers accounting services suitable for small to medium-sized businesses, startups, large corporations, non-profit organizations, and individuals.
To sum up
Accounting firms play a crucial role in helping businesses in Hong Kong manage their financial affairs, stay compliant with regulations, and achieve their long-term financial goals. With a wide range of services available, businesses can choose a firm that meets their specific needs.
In case you need to find out more about accounting firms for your business, feel free to discuss more with our team via [email protected] for more practical advice. Contact G2B today to achieve your goal of expanding your business to HongKong!
