In this course · 4 of 6
Course 2
Set up your books
6 lessons · 6 min
- 1How to Set Up Accounting When Starting a Hong Kong Company
- 2Should a Hong Kong company use cash or accrual accounting?
- 3Chart of Accounts for a Small Hong Kong Business: How to Set One Up
- 4How to Choose Accounting Software for a Small Hong Kong Business
- 5Bookkeeping in Hong Kong: Do It Yourself, Hire or Outsource?
- 6How Much Does Bookkeeping and Accounting Cost in Hong Kong?
The short answer
Choose software that handles your currencies, keeps a tamper-evident audit trail, produces the reports your accountant needs, and lets you export your data. The law lets you keep electronic records if they can be reproduced on paper and are protected against falsification.
The Companies Ordinance does not name any software. It sets outcomes, so test candidates against them.
Legal and compliance checks
- Reproducible records: electronic accounting records must be capable of being reproduced in hard copy (s.376(3)).
- Falsification safeguards: where records are not in a bound book, the company must guard against falsification and make it possible to discover any (s.376(4)). Look for an audit trail that logs who changed what and locks closed periods.
- Retention: records must be kept 7 years, so check the data stays accessible and exportable if you cancel the subscription.
- IRD electronic records conditions: integrity, legibility, and retention of origin and date details.
Practical checks
- multi-currency support with exchange-rate handling;
- bank feeds or statement import;
- sales and purchase invoicing, receivables and payables ageing;
- fixed-asset and inventory features if needed;
- payroll or a clean link to payroll and MPF records;
- user roles, so the bookkeeper cannot approve their own payments;
- Chinese and English document support if you issue bilingual invoices;
- easy access for your accountant and auditor.
Run a trial with one month of real data before committing.
Legal basis and sources
The law
- Companies Ordinance (Cap. 622), s.376
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
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