Preparing Financial Statements

n   The Inland Revenue Ordinance requires you to keep sufficient records (in English or Chinese) to enable your assessable profits to be readily ascertained. All records must be retained for seven years from the transaction date. It is an offence not to keep adequate records. You can be penalised for not doing so by being fined up to $100,000 per annum.

n   These include invoices, receipts, cash register tapes, banking records, cheque butts. The good record keeping is the essence of book keeping. A proper bookkeeping will save you time and money in the long run.

n   Assist in preparing the financial statements according to accounting standards.