Accounting is the system of recording, verifying, and reporting of the value of assets, liabilities, income, and expenses in the books of account (ledger) to which debit and credit entries (recognising transactions) are chronologically posted to record changes in value (see bookkeeping). Such financial information is primarily used by lenders, managers, investors, tax authorities and other decision makers to make resource allocation decisions between and within companies, organisations, and public agencies.

Bookkeeping is the recording of financial transactions. Transactions include sales, purchase, income and payments by an individual or organisation. Bookkeeping should not be confused with accounting. The accounting process is usually performed by an accountant and uses the information created by the bookkeeping process. Bookkeeping is usually performed by a bookkeeper. There are some common methods of bookkeeping such as the Double-Entry Bookkeeping System and any process that involves the recording of financialtransactions is a bookkeeping process.

In Hong Kong, Section 51C of the Inland Revenue Ordinance requires every carrying on a trade, profession or business in Hong Kong to keep sufficient records in the English or Chinese language of his income and expenditure to enable the assessable profits to be readily ascertained. Such records shall be retained for a period of not less than 7 years. Failure to comply with the requirements of the Ordinance without reasonable excuse may be liable to a maximum fine of $100,000. The records prescribed in the Ordinance include (i) books of accounts recording receipts and payments, or income and expenditure; (ii) vouchers, bank statements, invoices, receipts etc. You may download a copy of the Information Pamphlet
"A GUIDE TO KEEPING BUSINESS RECORDS" for reference.