Common Questions

Single-entry records each transaction only once, like a personal cheque book. Double-entry records every transaction twice—as a debit in one account and a credit in another—which creates an automatic system of checks and balances. Double-entry is what HKFRS requires for accurate financial reporting, and it’s what we teach because it catches errors before they become costly problems.

The accounting equation (Assets = Liabilities + Equity) must always balance. After you post all journal entries to the ledger, you run a trial balance—a list of all account balances that should add up to zero on both sides. If it doesn’t balance, you’ve found an error to investigate. Most mistakes are either reversed debits/credits, transposition errors (like writing 123 instead of 132), or posting to the wrong account.

Yes—especially if you’re filing financial statements with the Hong Kong Inland Revenue Department or need audited accounts. HKFRS (Hong Kong Financial Reporting Standards) sets out how you classify accounts, value inventory, record depreciation, and present your financial position. You don’t need to memorize all 40+ standards, but you need to know the fundamentals that affect how you record everyday transactions.

Monthly reconciliation is best practice. Compare your bank statements, supplier invoices, and customer payments against what you’ve recorded in your ledger. Catching discrepancies early—within 30 days—makes it much easier to trace where things went wrong. We recommend setting aside 2-3 hours at month-end for this, depending on your transaction volume.

You must keep all source documents (invoices, receipts, bank statements, payroll records) for at least 5 years. The IRD can ask for them if you’re audited. Beyond documents, you need organized ledger accounts, a trial balance at year-end, and detailed records of any adjustments. If you’re VAT-registered, record-keeping requirements are even stricter.

Absolutely. The fundamentals—the accounting equation, debits and credits, journal entries—aren’t mysterious once they’re explained clearly. Most people grasp double-entry principles within a few hours of hands-on practice. We’ve taught everyone from restaurant owners to HR managers who had zero accounting background. What matters is that you understand why each entry is recorded, not that you have a finance degree.