This article talk about accounting and Xero software, one of the best accounting software that is built on the cloud.

This scenario is that an entrepreneur has incorporated her online business in Hong Kong one and a half years ago. Recently this business owner has received her first profits tax return letter from IRD (i.e. Inland Revenue Department). It is the time to pay taxes. The company’s annual turnover is below a certain amount.

One viable solution is to find and use a reliable, honest and low cost CPA (i.e. certified public accountant) to do the taxation. What do accountants actually do? Let’s consider the five aspect of accounting duties below (which include):

  • Pension
  • Foreigner currency
  • Quarter end
  • Taxes
  • External auditors

Pension

  • Pension reconciliation and distribution of reports at the beginning of each month.
  • Attend pension asset meetings and the corresponding valuation of liability meetings.
  • Review pension distributions.
  • Calculate vacation liability to accrue for vacation carry forwards.

Foreign currency

  • Update currencies with new rates at the beginning of each month.
  • Reconcile currencies at the end of each quarter.

Quarter end

  • Enter reports from customers.
  • After quarter, prepare reports to send out to customers.

Taxes 

  • Help to prepare taxes.
  • Record and pay tax deposits.

External auditors

  • Prepare data for auditors.
  • Pull the required and supporting information for items that were questioned by auditors.
  • Explain complex entries to auditors.

Accounting software: Introduction and setup

Nowadays, accountants do make use of technologies including the Xero accounting software. This specific technology available is a cloud based practice. Xero was established in 2006. When you have signed up a Xero account as a partner, you get a “practice edition” which contains a free Xero organization for you run your practice. You can quote, invoice, get paid, manage expenses, manage payroll, and more. Xero Projects allows you to manage jobs in Xero which are Projects. In Xero Projects, you can add timesheets and expenses. 

Xero connects your business (especially small businesses) with the trusted advisors and provides you with instant visibility of your financial position. As said before, Xero is a cloud based solution that can be accessed from any device with an active internet/wifi connection. Xero’s accounting features are robust. You can view your cash flows, transactions and account details from any location in the world. Translations related to banks are automatically imported.

Another advantage is that Xero’s data is saved on the cloud. It means in case of accidents or natural disaster, your important data is still save.

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