5 international accounting software most suitable for Hong Kong cross-border businesses

In Hong Kong, expanding into international markets is a common strategy for businesses seeking growth and opportunities, yet navigating the landscape of cross-border business brings its unique challenges – for starters, managing multiple currencies and adhering to diverse financial compliance and tax regulations across different countries and regions can be daunting. International accounting software plays a crucial role in simplifying these complexities. 

Here, we will dive into the essential features of international accounting software and compare the 5 most common options in Hong Kong, so you can make an informed decision without getting bogged down by administrative burdens. 

What is international accounting software?

Simply put, international accounting software is engineered to streamline the accounting needs of cross-border businesses. Essential features include:

• Multi-currency management

• Tax calculation and management

• International invoicing and automated currency conversion

• Multi-currency expenses management

• Accounts payable and receivable management

• Compliance and reporting 

• International GST & VAT 

• Integration with other business systems

International accounting software vs. hiring an accounting firm

The key difference between using international accounting software and hiring an accounting firm boils down to cost-effectiveness and scalability.

International accounting software offers a streamlined, relatively budget-friendly solution that empowers your in-house accounting team to manage multiple currencies and navigate compliance across borders. As your business grows, the software can scale accordingly without a huge cost increase. 

In contrast, an accounting firm offers personalised services and expert advice for complex financial scenarios, but these often come at a higher cost and less flexibility. There is also a greater risk of human errors and a lack of real-time data access which is crucial for cross-border businesses needing to make timely decisions.

International accounting software vs. general accounting software

When comparing international accounting software to general accounting software, as the name implies, the difference centers around their capabilities to handle global financial complexities. 

International accounting software is designed specifically to manage multi-currency transactions and ensure compliance with international tax laws, helping cross-border businesses streamline their accounting procedures and financial operations across multiple countries.

On the other hand, general accounting software usually focuses on single-currency transactions and is best suited for businesses that operate in a single country. Although it includes similar features such as invoicing, expense and bill management, and systems integration, it lacks the advanced features to handle international tax regulations and multi-currency accounting.

Why should businesses use international accounting software?

For businesses engaging in cross-border transactions, international accounting software can help alleviate the burdens of complex global commerce. Here’s how:

• Reduce errors: international accounting software can automate multi-currency transactions and calculations, significantly lowering the risk of errors in accounting entries and currency conversions.

• Avoid penalties: through international accounting software, you can ensure your transactions and reporting comply with international tax laws and financial regulations. This helps prevent costly penalties and legal issues.

• Achieve operational efficiency: streamline intricate international financial operations and allow teams to focus on strategic tasks. Experience enhanced productivity and unlocked business growth, while reducing costs.

The pros and cons of international accounting software

Every coin has two sides - international accounting software is no exception. Let’s take a look at its advantages and limitations:

Pros:

• Efficiency in operations: automate time-consuming accounting tasks and currency conversion to free up resources and reduce manual labor

• Accuracy in financial reporting: auto-sync your transactions with your international accounting software to minimise human errors and improve data reliability

• Cost-effectiveness: international accounting software can accommodate growth when you expand into new markets without a significant increase in operational costs

• One-click compliance: international tax laws and financial regulations are built-in features of international accounting software

Cons:

• Implementation complexity: if you already have a system in use, it may require significant time and resources to set up and integrate

• Staff training requirements: if your team is new to accounting software, they may need comprehensive training to fully utilise the software features

• Over-dependence and security issues: reliance on a single software provider can pose risks to business operations, particularly if technical or security issues arise

How to choose the most suitable international accounting software for Hong Kong cross-border businesses

When choosing the right international accounting software for your cross-border business, consider the following aspects:

• Supporting currencies: Ensure the software supports all currencies you transact in

• Compliance features: The software should be able to ensure compliance with international financial regulations across all the regions you operate in

• Integration options: It should integrate smoothly with your existing business systems to streamline your operations

• Language support: From system interface to invoice issuance, ensure the system supports the language in your operating markets

• Cost: Consider both initial and ongoing costs, such as additional features, new users, and maintenance costs

• Offline use: Some businesses may require software with capabilities for offline access for added security

5 most popular international accounting software in Hong Kong

While all international accounting software supports multi-currency transactions and international compliance, each platform has unique features such as automation, advanced reporting, and extensive integration options. Below, we compile essential information on the five most popular international accounting software to help you make an informed decision.

Choosing the right international accounting software for your cross-border business hinges on understanding your specific operational needs and scale. For instance, while Sage 300 offers comprehensive all-in-one tools, QuickBooks might be a more cost-effective and suitable choice for a Hong Kong-based eCommerce business operating across the Asia Pacific.

Take time to evaluate the features and benefits of each international accounting software to maximise your investment.

Integrating Airwallex with your international accounting software

Airwallex is a robust one-stop financial management platform that simplifies accounting procedures and enhances operational efficiency for cross-border businesses. By integrating Airwallex with your international accounting software, you can:

Auto-sync multi-currency balances

Airwallex’s Global Account enables you to collect and transfer funds in 23+ currencies, and manage all currencies from a single platform with ease. This centralized approach allows for easy conversions and fund transfers, without the need to jugge multiple bank accounts, simplifying your accounting processes.

Gain clarity and insights into international cash flow

Through Airwallex’s payment gateway and payment link capabilities, you can easily collect payments from customers in over 180 countries almost instantly. This feature not only provides real-time visibility into your financial status, but also facilitates quick adaptations to changing market conditions.

Save time on reconciliation

With Airwallex Borderless Card, you can issue Visa cards in just a few clicks for your team to settle urgent and routine employee and business expenses. All card transactions can be automatically synced to your accounting software, reducing the time spent on reconciliation. 

Time to embrace a smarter way of managing your international finance needs. Sign up today and transform how you handle global transactions.

Sources:

Information on Xero, Quickbooks, Sage 300 cloud, ABSS and SunSystems Financial Management System was retrieved as of July 2024. Information provided is for reference only. Please refer to the official website of the international accounting software for the most up-to-date details.

Disclaimer: The information was based on our own online research and we were not able to manually test each tool or provider. The information is provided for educational purposes only and a reader should consider the specific requirements of their business when evaluating providers. This research is reviewed every 6 months. If you would like to request an update, feel free to contact us at [email protected].