Should I do my own bookkeeping, hire a bookkeeper, or outsource it?
It depends on transaction volume, your time and the complexity of the business. Doing it yourself suits very small, simple businesses with discipline. A part-time or outsourced bookkeeper suits growing businesses. Whichever you choose, the directors remain legally responsible for adequate records.
Do it yourself
- Suits: very few transactions, simple sales, an owner who will reconcile monthly.
- Risks: it is easy to fall behind, mix personal and business items, or misclassify. Your time may be worth more elsewhere.
Employ a bookkeeper
- Suits: steady daily volume, payroll, stock, or multiple bank accounts.
- Points: you need supervision and a cover plan for absence; the employee cost includes MPF and leave.
Outsource
- Suits: businesses that want professional processes without a full-time hire, or that need coverage and continuity.
- Points: agree scope in writing (what is recorded, how often, who approves), who owns the files, how you access the data, and what happens at hand-over.
What does not change
- The directors must take all reasonable steps to secure compliance with the record-keeping rules (ss.373, 377). Delegating the work does not delegate the duty, though a reasonable belief that a competent and reliable person is responsible is a defence (s.373(7)).
- The statutory audit is performed by an independent auditor, not by whoever does your bookkeeping.
Review every month: bank reconciliation done, receivables chased, payroll and MPF filed.
Legal basis
- Companies Ordinance (Cap. 622), ss.373, 377
Sources
Applies to 2026 · Last reviewed 29 October 2026
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.
Related questions
- What are the minimum and maximum relevant income levels for MPF contributions?For monthly-paid employees the minimum relevant income is HK$7,100 and the maximum is HK$30,000. Below the minimum, only the employer contributes. Above the maximum, each side's contribution stops at HK$1,500 a month. Daily-paid staff have levels of HK$280 and HK$1,000 per day.
- What are management accounts, and does a Hong Kong SME need them?Management accounts are internal monthly or quarterly reports, usually a profit and loss, balance sheet and cash summary, that help owners run the business. No law prescribes their format. They are not a substitute for audited financial statements, but they let you spot problems long before year end.
- What is the difference between bookkeeping and accounting in Hong Kong?Bookkeeping is the day-to-day recording of transactions: sales, purchases, payments and receipts. Accounting uses those records to prepare financial statements, interpret results and support tax and audit work. In Hong Kong the law cares about both: the company must keep adequate records, and its directors must prepare financial statements from them.
- Is a Hong Kong company legally required to keep accounting records?Yes. Section 373 of the Companies Ordinance (Cap. 622) requires every company to keep accounting records that explain its transactions and show its financial position and performance at any time. Directors who fail to take all reasonable steps risk a fine of HK$300,000, and up to 12 months' jail if the failure is wilful.
- What must a Hong Kong company's accounting records contain?The law names two things: daily entries of all money received and spent, with what each was for, and a record of the company's assets and liabilities. Beyond that, the records must be sufficient to explain transactions and show the financial position accurately at any time.