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Hong Kong Accounting & BookkeepingUpdated February 2026

1.46 Million Companies in Hong Kong Face Mandatory Audits & HK$100,000 Fines for Poor Records... Yet Finding Qualified, Affordable Accounting Help Takes Weeks

Every Hong Kong company must prepare annual audited financial statements under the Companies Ordinance. With IRD penalties reaching HK$10,000 for late filings plus up to 3× the tax owed, and 7-year record retention requirements, getting your accounting right is non-negotiable. We help you compare verified HKICPA-certified providers with transparent pricing.

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Hong Kong Accounting & Bookkeeping: Complete Comparison Guide 2026

What is Accounting & Bookkeeping in Hong Kong?

Accounting and bookkeeping services in Hong Kong help businesses maintain compliant financial records under the Companies Ordinance (Cap. 622) and Inland Revenue Ordinance. From daily transaction recording to annual statutory audits by HKICPA-certified CPAs, these services ensure your company meets IRD requirements and avoids penalties of up to HK$100,000 for improper records.

Basic Bookkeeping

Daily recording of transactions, bank reconciliations, accounts payable/receivable management, and monthly financial reports. Essential for maintaining the 7-year records required by Hong Kong law.

Management Accounting

Financial reports, analysis, budgeting, and business insights

Financial Statement Preparation

Preparation of profit & loss statements, balance sheets, and cash flow statements compliant with HKFRS standards. Required documentation for your annual statutory audit.

Statutory Audit Services

Annual audit by HKICPA-registered CPAs as mandated by the Companies Ordinance. Includes audit report, management letter, and IRD submission support. Costs typically range from HK$8,000-HK$30,000 for SMEs.

Tax Filing & Compliance

Profits Tax Return (BIR51/BIR52) preparation, tax computation, and IRD correspondence. Includes Employer's Return (BIR56A) filing and provisional tax management.

Company Secretarial Support

Annual return filing with Companies Registry, AGM documentation, director/shareholder changes, and Significant Controllers Register (SCR) maintenance, often bundled with accounting packages.

Payroll & MPF Administration

Monthly salary processing, MPF contributions to MPFA-approved schemes, IR56B form preparation for employees, and year-end tax reporting for staff.

Key Considerations for Hong Kong Businesses

  • Mandatory Audit: All Hong Kong companies must have annual audited financial statements prepared by a registered CPA, no exceptions except dormant companies
  • Record Retention: Companies must keep accounting records for at least 7 years under the Companies Ordinance, IRD can request verification anytime
  • Reporting Standards: Financial statements must comply with HKFRS or SME-FRS as issued by HKICPA, aligned with international IFRS standards
  • Tax Filing Deadlines: Profits Tax Returns due within 1 month of issue, late filing triggers HK$10,000 fines plus estimated assessments

Why Your Hong Kong Business Needs Professional Accounting

Hong Kong's regulatory environment is strict, the IRD and Companies Registry actively enforce compliance. With mandatory annual audits, 7-year record retention requirements, and penalties that can exceed HK$100,000, professional accounting isn't optional. Here's what's at stake for your business.

HK$100,000

Maximum Fine for Poor Records

Directors face personal liability under the Companies Ordinance for failure to maintain proper accounting records. The IRD can also issue estimated assessments if books are incomplete.

1 Month

Tax Filing Deadline

Profits Tax Returns must be filed within 1 month of issue. Miss this deadline and face HK$10,000 fines plus up to 3× the tax owed, and potential prosecution for repeated offences.

100%

Mandatory Audit Requirement

Every Hong Kong company must have annual financial statements audited by an HKICPA-registered CPA. No exemptions for active companies, only officially dormant entities are excluded.

7 Years

Record Retention Period

The Companies Ordinance requires all accounting records to be kept for at least 7 years. The IRD can request documents anytime, missing records trigger automatic penalties.

Up to 40%

Potential Cost Savings

Professional accountants identify legitimate tax deductions, claim allowances correctly, and avoid costly errors. Poor DIY accounting often costs more in penalties than professional fees.

1.46M+

Companies Competing in HK

Hong Kong hit a record 1.46 million registered companies in 2024. Clean financials and timely audits are essential for bank accounts, investor confidence, and business credibility.

Hong Kong : Accounting Services Available

Basic Bookkeeping

HK$740 – HK$1,500

What's included: Transaction recording, bank reconciliations, accounts payable/receivable, monthly financial summaries, receipt organization

Best for: Startups with minimal transactions, sole proprietors, dormant companies with occasional activity

Limitations: No audit preparation, no tax filing, no financial statements, you'll need additional services at year-end

Advantages: Lowest cost entry point, keeps daily records compliant

Full-Service Bookkeeping

HK$1,500 – HK$3,500

What's included: Everything in Basic plus: monthly P&L and balance sheet, cash flow tracking, expense categorization, quarterly management reports

Best for: Growing SMEs with 50-200 monthly transactions, e-commerce businesses, trading companies

Limitations: Audit and tax filing typically charged separately, budget an additional HK$15,000-30,000 annually

Advantages: Real-time financial visibility, better decision-making data

Accounting + Audit Package

HK$2,500 – HK$5,000

What's included: Full bookkeeping, HKFRS-compliant financial statements, statutory audit by registered CPA, audit report for IRD submission

Best for: Established SMEs needing full compliance, companies with investors or bank financing requirements

Limitations: Tax filing may be separate, no ongoing advisory, reactive rather than proactive service

Advantages: Meets all Companies Ordinance requirements in one package

Full Compliance Package

HK$3,500 – HK$8,000

What's included: Complete bookkeeping, financial statements, statutory audit, Profits Tax Return filing, Employer's Return, company secretary services, Annual Return filing

Best for: Most Hong Kong SMEs, handles all IRD and Companies Registry obligations with zero hassle

Limitations: Higher upfront cost, but eliminates risk of missed deadlines and penalties

Advantages: True all-in-one solution: never worry about compliance deadlines again

Virtual CFO / Advisory

HK$8,000 – HK$25,000

What's included: Everything in Full Compliance plus: cash flow forecasting, budgeting, financial strategy, investor reporting, board meeting support, tax planning

Best for: Scale-ups seeking funding, companies with complex structures, businesses expanding regionally

Limitations: Premium pricing, overkill for simple businesses with straightforward finances

Advantages: Strategic financial partner, not just compliance support

Industry-Specific Accounting

HK$4,000 – HK$15,000

What's included: Tailored bookkeeping for your sector: inventory management (retail/trading), project accounting (construction), fund accounting (asset managers), F&B cost controls

Best for: Restaurants, trading companies, construction firms, licensed financial services, healthcare providers

Limitations: Requires accountants with specific industry expertise, fewer providers available

Advantages: Understands your business model, proper revenue recognition, industry-specific reporting

How to Choose the Right Provider

Selecting the right accounting partner is crucial for your business success. Consider these key factors

Business Size & Complexity

Match the provider's expertise to your needs

  • Startups: Digital-first providers (Sleek, Osome) offer best value
  • Growing businesses: Mid-tier firms (Bestar, Premia TNC) provide scalability
  • Large enterprises: Established firms (Big 4, Kaizen) handle complexity

Red Flags to Watch Out For

Be cautious if you encounter any of these warning signs when evaluating providers:

  • No clear pricing or hidden fees
  • Not registered with HKICPA or no qualified CPAs on staff
  • Poor online reviews or complaints about responsiveness
  • Unwilling to provide references from similar businesses
  • Pressure to sign long-term contracts without trial period
  • No clear data security or backup procedures
  • Limited technology integration capabilities

Frequently Asked Questions: Accounting for Foreign Entrepreneurs in Hong Kong

Running a Hong Kong company from abroad? Here are answers to the most common accounting and compliance questions from non-resident business owners, based on IRD requirements and Companies Ordinance regulations.