AP & AR
Aged receivables report
An accounts receivable ageing report is prepared monthly for Hong Kong companies, showing balances by current, 30, 60 and 90-plus day buckets, giving your CPA a clean starting point for the receivables section of your annual audit.
Aged receivables
Illustrative client · August 2026
HKD
| Customer | Current | 1-30 | 61+ | |
|---|---|---|---|---|
| Customer A | 18,400 | - | - | - |
| Customer B | 9,250 | 4,100 | - | - |
| Customer C | - | 6,780 | 2,200 | - |
| Customer D | 12,600 | - | - | - |
| Customer E | - | - | - | 1,450 |
| Total | 40,250 | 10,880 | 2,200 | 1,450 |
Illustrative. An example of the document, not a client's figures.
AR ageing built for the Hong Kong audit cycle
An accounts receivable ageing report is prepared each month, showing what customers owe and how overdue it is, broken into current, 30, 60 and 90-plus day buckets. Balances are reconciled to invoices and payments received, and any invoice under dispute or on a payment plan is noted rather than left unexplained.
Because every active Hong Kong company undergoes a statutory audit with no small-company exemption, receivables are one of the areas an auditor tests most closely. A month-by-month ageing history, kept current all year rather than assembled at year end, gives your CPA a documented trail to work from and can shorten the audit fieldwork on this section.
Bad debt is your call
Accounts moving into a higher-risk bucket are flagged for your review, and bad-debt candidates are surfaced before any write-off. Whether to write off a balance, and how that is treated for Profits Tax purposes, is a decision for you and your Hong Kong CPA, not something we decide on your behalf.
Cross-border customers
Where your customer base spans Hong Kong, mainland China and the wider region, ageing is tracked against each customer's local payment terms and currency, so a HKD invoice and a USD invoice sitting in the same bucket are still being compared on an apples-to-apples basis for risk.
Questions
Frequently asked questions: Aged receivables report
How often is the Hong Kong AR ageing report updated?
Monthly, with an updated view available on request if you need to check a specific customer sooner.
Does a clean ageing history actually help at audit time?
It typically does. Receivables are commonly tested closely in a Hong Kong statutory audit, and a documented month-by-month history gives your CPA a clear starting point rather than a balance built from scratch during fieldwork.
Does a written-off bad debt affect our Profits Tax position?
It can. A bad debt written off in the books is not automatically deductible for Profits Tax; that treatment is confirmed with your practising Hong Kong CPA alongside the annual return.
Can the ageing report be broken out by customer or by entity?
Yes. The report can be filtered down to an individual customer, and if your company runs more than one Hong Kong entity, ageing is prepared separately for each one so balances are never mixed together on one view.
Do you decide when a receivable should be written off?
No. We flag balances that have aged past a threshold you set, but the decision to write off a debt, and the Profits Tax treatment that follows, is confirmed by you together with your practising Hong Kong CPA.
How often is the aged receivables report updated?
Monthly as part of close, with an updated view available on request if you need to check a specific customer sooner.
Do you decide when to write off a bad debt?
No. We flag the candidates and the history behind them. Writing off a balance is a decision you or your tax preparer make.
Who reviews the work before it reaches us?
Every deliverable under aged receivables report is reviewed by a senior reviewer before it reaches you. You keep access to the underlying file at every stage, so nothing about the work happens somewhere you cannot see it.
What is included in aged receivables report?
Aged receivables report covers monthly aged receivables report broken into current, 30, 60 and 90-plus day buckets and customer balances reconciled to invoices and payments received. The exact scope is agreed and set out in writing before work starts, so you know precisely what is and is not covered before the first deliverable arrives.
Related services
- AP & ARCollectionsOverdue invoices are followed up on a set cadence, with reminders sent and calls logged, so slow-paying customers get consistent attention without you having to chase them yourself.
- AP & ARCash applicationIncoming customer payments are matched to the right invoice and posted to the correct account, so accounts receivable reflects what is actually still owed.
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.