Many are the times when investors prefer to do all the business and financial work on their own to cut on cost. But it does not take long before realizing they are wrong. More than 50% of businesses fail because of poor accounting.
The financial aspects of a business and the essential roles of the management require special services of dedicated accounting experts. When you engage the right accounting experts, they bring a huge wealth of knowledge that your company can use to map growth from one level to another. Here is an account of why Hong-Kong company accounting is very important.
Assisting businesses in managing expenses
This is the most important role of company accounting. Accountants follow the business operations to track all expenses to identify overheads and how to trim them.
When overheads are identified and reduced, the cash can be redirected to the right areas such as product development and marketing. It is important to identify the areas with high expenses so that a lot of resources do not go to waste. Your accountant or contracted accounting firm can assist to draw new ways of managing the expenses prudently.
Timely and correct filing of tax information
Hong Kong is a business economy. This means that the administration puts a lot of emphasis on taxes that come from businesses. Therefore, failing to do the company accounting appropriately and filing returns can attract hefty penalties. If you opt to do the accounting on your own, the result is incorrect filing and huge penalties.
Engaging the right Hong-Kong company accounting experts guarantees you the procedure will be completed professionally. Accountants are trained in filing tax returns and ensuring your company completes the process on time.
Hong-Kong Company accounting experts advice businesses on methods of lowering taxes
One of the main reasons why businesses come to Hong Kong is because of the low tax regime. For example, a business can qualify for 0% taxes if all the transactions are conducted outside the jurisdiction. But it is not this direct. In many cases, the definition of a transaction done outside Hong Kong is complex and warrants assistance from an accountant. But this is not all.
Hong-Kong company accounting professionals work with business managements to help them understand the tricks of qualifying and enjoying DTAs. These are agreements signed between Hong Kong and other countries to provide preferential treatment to its companies. The accountants will help you to demonstrate Tax Substance and get the Tax Resident Certificate that is required to guarantee a company of special treatment under DTAs.
Advising businesses on their accounting
When you engage an accountant, the services offered surpass the contractual agreement. When carrying the company audit, accountants find areas that require adjustments. They will particularly advise you on better bookkeeping, asset protection, increasing streams of revenue and engaging partners. The accountants bring in fresh ideas and focus that your business needs to grow to the next level.
No matter the level of your business, getting the right accounting services is the best lever to catapult the enterprise to success. Once you engage the services of an accountant, ensure to keep him/firm close so that all the decisions strengthen the business focus on growth.