Invoices and records for a Hong Kong small business

Choose useful columns for the record

Useful columns include date, order reference, counterparty, description, currency, amount, payment, refund, platform fee, bank settlement and an evidence link. Orders, invoices and receipts record different stages: an unaccepted quote is distinct from a completed sale, and an issued invoice does not establish payment. Manage references consistently in your own system and preserve revisions or correction records rather than silently overwriting the original transaction. Keep a clear route from a summary row to the supporting document.

For example, a deposit and later balance link to the same order while retaining separate dates and payment references. If a platform deducts a fee before settlement, record that fee separately instead of inferring gross sales from the net bank amount. Link a refund to the original order and record initiation and completion. This example organises transactions rather than prescribing revenue recognition. Take the complete evidence to an accountant when the classification or treatment is uncertain.

Reconcile monthly and retain the evidence

At month-end, match bank and payment-platform entries, separating unpaid invoices, unallocated receipts, duplicates, pending refunds and fee differences. Locate evidence before changing payment status instead of relying only on a customer's statement. Record cash transactions and retain receipts, organising expenditure, stock, assets and liabilities as needed. If an account contains both personal and business money, distinguish them clearly and ask about treatment; the presence of an expense does not establish tax deductibility.

Hong Kong business records must allow assessable profits to be ascertained, with relevant transaction records generally retained for at least seven years; cessation does not automatically remove retention duties. Keep original documents, the working sheet and backups, and test whether you can retrieve a selected invoice. Use suitable permissions when sharing with an accountant and minimise unrelated personal information. An accounting app is a tool: exported records still need a traceable connection to original transactions and evidence.

What to do, step by step

1. Identify the actual seller, customer, date, items, quantities, currency and payment terms on each invoice, adding addresses and order references where appropriate. Preserve originals and reasons for cancellation or correction. A sequential reference helps locate missing records without silently renumbering older documents.
2. Record gross sales, platform charges, refunds and net bank settlement separately. Identify deposits and unpaid balances. Categorise transfers between business and personal accounts distinctly so that every credit is not treated as revenue. Ask the accountant how owner funding and withdrawals should be presented for the chosen structure.
3. Reconcile bank and wallet statements monthly and investigate unmatched items. For goods, keep quantity records and year-end stock-count evidence; for services, retain contracts, completion and acceptance records. A payment reference should connect to the commercial activity rather than sitting in an unexplained miscellaneous account.
4. Back up reports and original attachments by year and test reading, searching and restoration. Limit access, set retention responsibilities and provide for staff handovers. Before changing systems, export readable historical information and verify attachments, rather than discovering years later that only summary balances survived.

A practical example

An illustrative shop sells goods for HK$1,000 and receives HK$970 after a HK$30 platform deduction. It records the sale, fee and settlement separately, connecting the order, platform statement and bank entry. A later refund links back to the same order rather than becoming an unexplained expense. These figures demonstrate reconciliation only; they are not a claim about any provider's fee rate or the tax treatment of every transaction.