Cash flow & budgeting in Hong Kong
Cash flow & budgeting in Hong Kong
Cash flow & budgeting in Hong Kong

Guide to cash flow & budgeting in Hong Kong

We explain what cash flow and budgeting mean, what the government expects from you, and how to organise these processes

Learn what it takes
  • Companies RegistryTC006825
  • CPACertified Public Accountants
  • Xero Platinum PartnerXero
    Platinum Partner
  • Chartered SecretariesChartered Secretaries
What Is Cash Flow?

What Is Cash Flow?

Cash flow, simply defined, is the amount of cash or its equivalent that is being transferred in and out of the business. A cash flow is positive if a company has more liquid cash coming in rather than going out. It’s a show of company’s robust financial health.

Financial means of any business are distributed across many areas — for example, its assets, outstanding invoices, and investments. One of the surest ways to determine a company’s financial performance is checking its cash flow statements.

What is Budgeting?

What is Budgeting?

A business budget is the financial plan of the company. It is an adjunct to the overall business plan which lays out, in numbers, what the company hopes to achieve that year in terms of money. It contains detailed and data-backed forecasts of annual projected sales, profits, revenue, and expenses of a company.

Why is positive cash flow important?

Why is positive cash flow important?

More cash in hand allows companies to settle their debts, pay shareholders and expenses, and invest in business growth. Every business must be diligent about recording and tracking its cash flow. Bills, expenses, invoices, instalments, premiums, or incoming payments – big or small – must all be appropriately tracked. Most companies use automated or freelance accounting services in Hong Kong to monitor and manage their cash flow.

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Why should business owners track their cash flow and work with a business budget?

Budgets and forecasts are an essential tool for running businesses efficiently and expanding it. It is a monetary depiction of an organization's strategy. Using budgeting and forecasting strategies allows business owners and managers to identify the resources needed to meet their goals.

In fact, an integral and critical part of every business budget is a cash flow forecast that predicts future sales figures, or the likely cash flow into and out of a company’s bank account in a year. It consists of information regarding cash from operations, cash from investments, and cash financing activities.

We help small business owners with hassle-free outsourced accounting

At Osome, we take over accounting routine from busy entrepreneurs. We organise docs, file tax reports with all available exemptions, and make sure you don’t have to pay any fines.

Our accounting packages come as they are, no extra charges — simple and straightforward. If you pay upfront for the whole year, you get 20% off.

Starter

HK$600 /m if billed annually HK$720 if billed monthly

  • 20 transactions a month
  • 40 receipts a month
  • Quarterly Management Report by Chartered Accountants
  • Multicurrency Accounting for additional HK$200/m

Booming

HK$1,800 /m if billed annually HK$2,160 if billed monthly

  • 40 transactions a month
  • 80 receipts a month
  • Monthly Management Report by Chartered Accountants
  • Multicurrency Accounting for additional HK$200/m
Most Popular

Rocking

HK$3,500 /m if billed annually HK$4,200 if billed monthly

  • 80 transactions a month
  • 125 receipts a month
  • Monthly Management Report by Chartered Accountants
  • Multicurrency Accounting for additional HK$200/m

Unicorn

HK$6,500 /m if billed annually HK$7,800 if billed monthly

  • 160 transactions a month
  • 250 receipts a month
  • Monthly Management Report by Chartered Accountants
  • Multicurrency Accounting
Your financial data protected

Your financial data protected

We set up a direct connection with Xero and your bank to exchange your data securely. All your documents will always be in one place protected with bank-level encryption

Additional things you may need:

One-off services upon your request

Audit liasing

HK$2,000 per year

We help with the audit you need to pass every year

Consolidated unaudited report

HK$5,000 per subsiduary

Profits tax return (BIR51) filing

HK$1,000 per return

For nil profits or a Dormant company

Holdover of provisional profits tax application

HK$2,000 per application

For clients using Accounting services

Offshore profits tax exemption

from 

HK$10,000

We handle replying to questions regarding your company’s qualification.
We calcualte the fee for each case individually

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See Osome in action — schedule a free demo

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Q&A

  • What are the budgeting compliance requirements for Hong Kong businesses?

    Every Hong Kong company must submit an annual report called Profits Tax Returns or PTR. Here’s what exactly you need to file:

    • Your balance sheet for the year of assessment
    • Auditor's report
    • Profit & Loss Account
    • A tax computation that shows clearly how you arrived at the final amount of assessable profits or adjusted losses
    • Report of Employers Return (ER) for year April to March

    For newly incorporated companies, PTR is due within 18 months since the company registration. For others, the timeline depends on the accounting end date

    Accounting Year End DateDue Date
    between 1 April to 30 November 201930 April 2020
    between 1 to 31 December 201915 August 2020
    between 1 January to 31 March 201915 November 2020
  • How can I manage my budgeting and cash flow?

    Maintaining cash flow and budgeting information accurately is vital to ensure the smooth running of a business. And it can only be realized if the company invests in excellent bookkeeping practices. For this, you can either outsource your accounting services to freelance accounting and bookkeeping service providers in Hong Kong or pay for an automated budgeting app for your Hong Kong office. We do both: provide a software solution and a team of experts backing it up. You can always ask their advice on difficult matters while the platform provides accurate data and daily updates.

It takes 3 minutes to get your paperwork in order

All you need to do is sign up. We’ll answer questions and take over documents straight away.

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