How do I switch accountants or bookkeepers and get a clean handover?
Give notice under your engagement terms, then ask the outgoing firm for the ledger, supporting documents, working papers for past years, and the closing trial balance. Directors have a statutory right to inspect and copy the company's accounting records, so the records are yours. Agree a date for the handover and a cut-off.
Before you move
- Read the current engagement letter: notice period, fees owed, how files are returned.
- Choose a cut-off date, ideally a month end or year end.
What to request
- Ledger and trial balance up to the cut-off, in a usable electronic format.
- Bank reconciliations, receivables and payables listings, fixed-asset register, stock and payroll records.
- Prior-year financial statements, tax computations and filing copies, and any agreed adjustments.
- Supporting documents held by the firm.
- Passwords, software access and bank-feed connections, with admin rights moved to the company.
- A list of open items: queries, pending filings, deadlines.
Your rights. The company's accounting records must be open to inspection by the directors at all times free of charge, and the company must provide copies on request (ss.374-375). A court can authorise inspection on a director's behalf if needed (s.378).
Auditors are different. Changing the auditor follows statutory steps, including a statement of circumstances from an outgoing auditor in some cases (ss.419-427). Ask your advisers about that process separately.
After handover, have the new firm reconcile opening balances to the last accounts so that errors are caught at the start.
Legal basis
- Companies Ordinance (Cap. 622), ss.374-375, 378, 419-427
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
- Can a director demand copies of the company's accounting records?Yes. Directors may inspect the company's accounting records at any time without charge, and the company must let them copy the records and give copies free of charge if asked. A court can also authorise someone to inspect on a director's behalf.
- 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.
- How long must a Hong Kong company keep its accounting records?Seven years. Under section 377 of the Companies Ordinance, a company must keep its accounting records for 7 years after the end of the financial year to which the last entry relates. The Inland Revenue Department separately requires business records to be kept at least 7 years after the transactions they relate to.