Accounting & Tax
Every Hong Kong company must prepare financial statements and have them audited each year. We close the books, make the year-end adjustments, prepare the statements under the right reporting framework and carry the file through the audit, so your profits tax return and annual return follow without a scramble.
How we help
Bank, receivables, payables and intercompany balances reconciled, with every adjustment explained in a schedule your auditor can follow.
Statements prepared under the framework that fits your company, with the notes and directors' report the Companies Ordinance requires.
Audit schedules, supporting documents and answers to auditor queries, managed by us so the audit finishes on time.
Audited statements handed straight into the profits tax computation, and the annual return timed alongside them.
Every Hong Kong company must keep proper books, prepare annual financial statements and have them audited by a certified public accountant in practice. Those audited statements are then filed with the profits tax return. A disorganised year end delays the audit, which delays the tax return and can push the business past its filing deadline.
Most private companies prepare statements under HKFRS for Private Entities, or full HKFRS where shareholders or lenders require it. Qualifying small companies can use the SME Financial Reporting Framework (SME-FRF). We confirm which framework applies before we start, because it changes the disclosures and sometimes the numbers.
We prepare the audit file: trial balance, lead schedules, reconciliations and supporting documents. We then act as the single point of contact for your auditor’s queries, so your team is not pulled away from running the business. Primasia’s role is audit coordination unless otherwise agreed with the client. The appointed practising auditor carries out and signs the audit; we coordinate with your existing auditor or help arrange an introduction.
Year end sits alongside other annual obligations. For local private companies, the annual return (NAR1) must be delivered to the Companies Registry within 42 days after each incorporation anniversary. Re-domiciled companies use their re-domiciliation anniversary. The employer’s return is normally issued on April’s first working day and due within one month of issue unless extended, and business registration must be renewed. We map all of these into one calendar for your company.
Audited statements feed directly into the profits tax computation and return. Many clients also use the year-end close to set up monthly management reporting through Xero, or bring in our Virtual CFO service for budgeting and board reporting.
Year-end closing
Year end
Tell us your year end and the state of your books. We will set out the timetable to audited accounts and your tax filing.
FAQs
Hong Kong companies are generally required to have their annual financial statements audited by a certified public accountant in practice. Limited exceptions exist, for example for dormant companies.
Primasia’s role is audit coordination unless otherwise agreed with the client. We prepare the accounts and audit file and liaise with the appointed practising auditor, who performs and signs the audit. Any different arrangement is agreed with you explicitly.
A simplified version of Hong Kong Financial Reporting Standards designed for private companies without public accountability. Qualifying small companies can use the SME-FRF instead.
A local private company must deliver its NAR1 to the Companies Registry within 42 days after each incorporation anniversary. Re-domiciled companies use their re-domiciliation anniversary.
It depends on the state of the books and your auditor's schedule. With monthly bookkeeping in place, we typically move from year end to audit-ready accounts in a matter of weeks.
Other services in Accounting & Tax
Related services
Cloud bookkeeping, management reporting, profits tax filing and annual audit coordination for Hong Kong entities.
05Primasia is a Xero Silver Partner with a full team of Certified Advisors, from migration and training to daily operation.
07Senior finance leadership on a part-time basis: reporting, cash flow, budgets, board packs and investor reporting.
Tell us where the business is heading. We will tell you what it takes to get the structure, books and filings in order.
