7 Best Accounting Software in Hong Kong for SMEs

Keeping businesses competitive requires leveraging the right accounting software in today’s fast-paced environment. Accounting software helps automate bookkeeping, manage financial records, and ensure compliance with local regulations, saving time and reducing errors.

In this article, we discuss the benefits of accounting software in Hong Kong for SMEs, the key criteria for choosing the right solution, and the best online and cloud accounting systems.

With our guide, you can streamline your financial management and boost the efficiency of your business in Hong Kong, whether you choose a robust accounting app or free accounting software.

Overview of accounting software in Hong Kong

What is accounting software?

Accounting software has become essential for businesses in Hong Kong to manage their finances efficiently and stay compliant with local regulations.

These tools simplify a range of critical financial tasks, including bookkeeping, expense tracking, payroll processing, tax filing, and financial reporting.

Types of accounting software businesses

There are three primary types of accounting software businesses can choose from:

Desktop accounting software

This traditional software is installed directly on a business’s computer and is best for companies that require offline access and greater control over their financial data. Desktop accounting software is often purchased with a one-time fee, but it does not offer the same flexibility or scalability as cloud-based solutions.

Cloud-based accounting software

Cloud-based accounting software is hosted online, offering businesses real-time data access, automatic updates, and the ability to collaborate with multiple users from anywhere. Cloud accounting software is particularly popular among SMEs and startups for its scalability, ease of use, and flexibility to manage finances on the go.

Enterprise Resource Planning (ERP) systems

ERP systems are designed for larger organizations that need a more comprehensive solution. Additionally, this accounting system also integrates other business functions such as inventory management, procurement, and customer relationship management (CRM).

Each of these software types offers unique benefits, allowing businesses to select the best fit based on their size, needs, and growth trajectory.

Open source accounting software

Open-source accounting software, such as Odoo Accounting or GNU Cash, provides businesses with the source code, allowing for deep customization and adaptation to unique operational needs.

This means that businesses with in-house developers or access to technical support can modify the software to integrate with specific workflows, generate custom reports, or adhere to niche regulatory requirements.

While the flexibility of customization is a large advantage, the need for technical skills can be a disadvantage.

Online accounting software

Online accounting software typically refers to web-based tools emphasizing accessibility and ease of use through web browsers. These solutions prioritize simplicity and convenience, allowing businesses to manage their finances remotely without complex installations.

Features are typically focused on core accounting tasks, such as invoicing, expense tracking, and basic reporting. These platforms often offer mobile apps for on-the-go management and integrate with other online services, such as payment gateways and e-commerce platforms.

Industry-specific accounting software

Industry-specific accounting software addresses the distinct financial and operational challenges of particular sectors. For example, construction accounting software includes features for job costing, progress billing, and compliance with construction-specific regulations. For retail, the tool prioritizes inventory management, point-of-sale integration, and multi-location reporting.

These specialized solutions offer functionalities, pre-configured reports, and industry-specific workflows that enhance efficiency and accuracy,

Features of accounting software

Accounting software is an essential tool for businesses, and here’s how it helps businesses run smoothly:

• Invoicing and billing: The software automates the creation and delivery of invoices, keeping track of payments and outstanding balances and ensuring businesses never miss a payment.
• Expense tracking: It records and categorizes expenses, allowing businesses to easily monitor spending and maintain control over their budgets.
• Financial reporting: The software generates key financial reports, such as profit and loss statements, balance sheets, and cash flow analyses, helping businesses understand their financial position and make data-driven decisions.
• Bank reconciliation: This matches financial transactions in the software with bank statements, ensuring consistency and helping to identify errors quickly.
• Payroll management: The software calculates wages, taxes, and deductions, making payroll processing smooth and accurate.
• Tax compliance: Accounting software helps businesses track tax liabilities, prepare tax reports, and file taxes efficiently, ensuring compliance with local regulations.

As a result, accounting software is a must for small businesses and small companies in Hong Kong who are looking to streamline their financial management.

Top 7 best accounting software in Hong Kong for SMEs

Choosing the right accounting software for Small and Medium-Sized Businesses is critical to ensure financial compliance, streamline operations, and enable strategic growth.

Here’s a closer look at five of the top accounting software options available in the market, each designed to meet different business needs.

Xero

Xero is a cloud-based accounting platform popular among small and medium-sized enterprises (SMEs) for its user-friendly interface and robust integrations. Designed to simplify financial management, Xero provides real-time access to financial data.

Key features

• Cloud-based platform accessible from any device
• Automated bank feeds for streamlined reconciliation
• Powerful reporting and real-time financial dashboards
• Integration with over 1,000 third-party apps, including payroll and inventory tools
• Multi-currency support, ideal for global businesses

Pricing plan

Xero offers three main subscription tiers:

• Starter Plan: US$29/month for basic accounting needs
• Standard Plan: US$46/month with unlimited invoicing and bills
• Premium Plan: US$69/month, including multi-currency functionality

A 30-day free trial is available for new users.

QuickBooks Online

QuickBooks Online by Intuit is a cloud-based online accounting software created for SMEs and freelancers. Known for its ease of use and scalability, it supports both local and international businesses.

Key features

• Customizable invoicing and payment tracking
• Real-time expense tracking via mobile apps
• Robust reporting with customizable templates
• Tax calculation and compliance tools, including VAT/GST tracking
• Integration with various apps like PayPal, Shopify, and Stripe

Pricing plan

QuickBooks Online offers four tiers (currently 50% off)

• Simple Start: US$9.5/month for single users
• Essentials: US$14/month for managing multiple users
• Plus: US$20/month with project tracking and inventory management
• Advanced: US$38/month with advanced reporting and automation

A 30-day free trial is available for all plans.

Sage 50

Sage 50, formerly known as Peachtree, is a desktop-based accounting software for small business with advanced tools for detailed financial management. It’s often preferred by established small businesses with complex needs.

Key features

• Comprehensive bookkeeping, including inventory and job costing
• Advanced payroll management with tax compliance
• Strong security features, including role-based access
• Integration with Microsoft Office for seamless data sharing
• Forecasting and budgeting tools

Pricing plan

Sage 50 operates on a subscription model:

• Pro Accounting: Designed for solopreneurs and small businesses, this plan starts at $625 per year (approximately $52 per month) for a single user.
• Premium Accounting: Suitable for growing businesses, this plan begins at $1,043 per year (approximately $87 per month) for up to five users.
• Quantum Accounting: For larger teams and more complex accounting needs, this plan starts at $1,780 per year (approximately $148 per month) for up to five users.

Sage 50 does not offer free trials; however, they provide a Test Drive option, allowing potential users to explore the software with sample data.

ABSS (Formerly MYOB)

ABSS is a popular choice for SMEs in Asia, offering reliable desktop-based accounting solutions. With a focus on user simplicity, ABSS is ideal for businesses transitioning from manual bookkeeping.

Key features

• Efficient GST compliance tools tailored for Hong Kong regulations
• Payroll processing with statutory compliance
• Job tracking for project-based businesses
• Invoicing and accounts receivable/payable management

Pricing plan

ABSS (formerly MYOB) offers accounting software solutions to small and medium-sized enterprises (SMEs) in Hong Kong. The pricing varies based on the specific product and the number of user licenses.

ABSS Accounting Software Pricing:

• Accounting: Approximately HK$4,188 for a single-user license.
• Premier: Approximately HK$4,788 for a single-user license and HKD 8,688 for up to three-user licenses.
• Premier Plus: Approximately HK$5,888 for a single-user license and HKD 10,488 for up to three user licenses.

These prices include software installation, user manuals, company files, and training sessions

NetSuite

NetSuite by Oracle is an all-in-one, cloud-based ERP solution that includes robust accounting capabilities. It caters to mid-sized and large enterprises requiring comprehensive financial and operational management.

Key feature

• Real-time financial consolidation and reporting
• Integrated modules for CRM, inventory, and project management
• Advanced automation for recurring billing and revenue recognition
• Multi-language and multi-currency support for global businesses
• Scalability to handle large transaction volumes

Pricing plan

NetSuite operates on a customized pricing model based on the size, requirements, and features needed by the business. The pricing typically starts at approximately $999/month for the base license.

Additional charges are incurred per user, starting at approximately $99/user/month. Additionally, they also offer product demos upon request.

SunSystems Financial Management System

SunSystems is a financial management system designed for larger organizations with complex requirements, particularly in sectors like financial services, hospitality, and non-profits. As a robust accounting system software, it offers advanced features for financial consolidation, reporting, and analysis.

Key features

• Strong capabilities for generating detailed financial reports.
• Streamlined processes for accurate data input.
• Robust handling of transactions in various currencies.
• Ability to combine financial data from different company units.
• Flexible options, from single-user PCs to complex multi-server environments and cloud hosting.
• Connection with other enterprise systems.

Pricing plan

Pricing is customized based on specific needs, with initial year costs typically starting around US$25,000 and subsequent annual self-hosting costs ranging from US$1,000 to US$5,000.”

Express Accounts Accounting Software

Express Accounts is a budget-friendly accounting tool designed to be helpful for small businesses. It focuses on essential accounting tasks. Hence, Express Accounts is best suited for sole proprietors and freelancers, SMEs, and businesses on a tight budget needing a desktop-based solution.

Key features

• Cross-platform compatibility, available for both Windows and macOS.
• Sales and accounts receivable tracking for managing sales transactions and tracking customer payments.
• Records and automates repeat transactions (i.e., orders and invoices)
• Quote, sales order, and invoice generation

Pricing plan

For teams of fewer than five users, the accounting app is available completely free with no expiration, providing core accounting functionalities.

For those requiring additional features, a one-time license for Express Accounts Basic is available for US$79.99 (currently on sale). The fully featured, single-installation license Plus package is priced at $129. This is also the most popular choice.

How do you choose reliable accounting software in Hong Kong?

When choosing reliable accounting software in Hong Kong, businesses should prioritize several key factors to ensure they select the right solution for their needs.

First, consider the range of features. The software should offer essential tools such as invoicing, financial reporting, expense tracking, and tax compliance. Advanced features like inventory management or multi-currency support are crucial for businesses with more complex operations.

Support and security are also critical. Choose software with strong customer support channels, ideally available in your local time zone, to resolve any technical issues promptly. Additionally, robust security measures, such as data encryption and secure cloud storage, are essential to protect sensitive financial information.

Finally, scalability is vital. As your business grows, your accounting software should be able to accommodate increasing transaction volumes and new financial processes. A scalable solution ensures that your software continues to meet your needs without requiring a major switch down the line.

What accounting software does BBCIncorp utilize for our services?

At BBCIncorp, we recognize that effective financial management is vital for business success. We provide comprehensive accounting services in Hong Kong, from bookkeeping and tax filing to annual reporting, designed to simplify your operations and ensure compliance through cost-efficient and customizable packages.

We believe in leveraging technology to enhance our services, and we have chosen Xero as our primary accounting software to deliver exceptional value to our clients.

Xero’s platform is straightforward, intuitive, and designed with the user in mind, making it an ideal solution for small business owners and those without an extensive accounting background. It’s a cloud-based system, which means your financial data is always accessible, whether you’re in the office or working remotely.

As your business grows, Xero scales with you, handling more complex financial tasks and multi-currency transactions, which is essential for companies operating globally.

What really sets Xero apart is its ability to comply with international financial reporting and tax regulations. Simply put, Xero provides the tools and flexibility needed to manage global finances efficiently and effectively.

To wrap up

In conclusion, selecting the right accounting software in Hong Kong is essential for businesses looking to stay efficient and compliant. By focusing on key factors like features, support, security, and scalability, companies in Hong Kong can ensure they choose a solution that grows with them.

At BBCIncorp, we specialize in providing tailored corporate services, helping businesses navigate their financial and operational needs with ease. If you’re looking for expert advice or assistance in choosing the best accounting software for your business, we’re here to help. Let us guide you toward the right solution for long-term success.

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