Account Service for Hong Kong companies

Prism Consultancy provides accounting consultation and bookkeeping service through cloud-based accounting software, Xero.

Under the Inland Revenue Ordinance, every company is required to keep sufficient records to enable assessable profits to be readily ascertained. All records must be retained for seven years from the transaction date. Even after the company ceases trading, the company record-keeping obligations continue until the seven year period has expired. It is an offence not to keep adequate records. The company can be penalized for not doing so by being fined up to $100,000.

There are also many other sound reasons why the company should keep accurate business records. Here are some:

  1. Accurate records allow the company to be in better control of the business.

  2. A company portray a more professional image that makes it easier to deal with the company’s bank and business partners.

  3. Appropriate records enable the company to file an accurate profits tax return


  • Consulting on company accounting structure and policy set up

  • Book-keeping

  • Maintenance of proper records and computerized system

  • Professional Financial Report

  • Customize Financial Analysis

  • Arrange Independent Auditor

  • Consultation on company internal control

  • Act as Tax Representative for you

  • Tax Planning for corporations, partnerships, sole proprietors and individuals

  • Tax computation and tax return filing

  • Handle Inquiries from Hong Kong Inland Revenue Department

  • Assist in tax objections and appeals


Business accounting is highly related to financial management.

Accounting has always been a method for any business to keep track of operations and financial health.

An accountant prepares reports that help owners understand the financial health of their business which include profit and loss statements, balance sheets, cash flow statements and budgets.

The accountant has to analyze the business finances. The analyzed results are the data or evidence for the company owner to make better decisions and improve company operation.

In business accounting, it involves systematic recording, analyzing, interpreting and presenting of financial information.

Accounting also helps company owners to meet their compliance obligations.

Financial management tends to be strategical. It involves a strategic plan on how a business should earn and spend money. The decisions include raising capital, borrowing money, budgeting, and setting financial goals.

The accounting operation may be done by one person in a small business, or by different teams in large sized companies.

The four main objectives of financial reporting are:

Analyze assets, liabilities and equity of the business owner: From these reports, the decision maker of a business can work out what to expect in the future, and what can be done for the preparation.

Track cash flow: Is the business making a profit or loss? Where is the money of your business coming from? Where is the money going? This indicates whether the business is able to cover debts and grow gradually.

Provide information to investors: From this, investors will know how cash is being reinvested in the business, and whether capital is being used efficiently. Financial reporting informs investors whether your business is a good place for their cash.

In general: Financial reports adhere to a group of taxation, accounting and legal requirements which is a standard that can be understood by all accountants globally.


What you can get from cloud-based accounting includes:

  • With a computer-based software, you actually will have to install the software and have it run on your computer. Unlike a workstation (or computer) based software, cloud-based accounting software is web browser base and does not require the end user to take care of software updates. One less technical concern for the end user. You do not even need to install the software on your computer.

  • The security of your accounting data is handled by your cloud-based service.

  • Multiple users can work on the same piece of data at the same time, without having to worry about data inconsistency.

  • You can access your accounting data and reports on your mobile phones (including Android and iPhone), as long as you have internet/wifi connection. This means for all business owners, they can work from wherever they want.

  • You can get automatic bank feeds update in your software, once you have set it up.