AP & AR
Cash application
Incoming customer payments for Hong Kong companies, whether by bank transfer, FPS, cheque or card, are matched to the right invoice and posted to the correct account, so accounts receivable always reflects what is actually still owed.
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.
Cash application in a multi-rail market
Hong Kong customers pay through several rails at once: bank transfer (TT), the Faster Payment System (FPS), cheque and card. Each incoming payment is matched to the invoice or invoices it settles, and processor or bank fees are separated from the gross amount received so the receivable balance reflects the real payment, not a distorted net figure.
Partial payments and overpayments are flagged for your instruction rather than applied by guesswork, and any deposit we cannot immediately identify is held on a short list until the customer is confirmed. Keeping this current matters in Hong Kong specifically because your annual statutory auditor will test cash receipts against the receivable ledger, and an unreconciled deposit sitting unexplained for months is exactly the kind of item that slows an audit down.
Multi-currency deposits
Where a customer pays in USD or RMB rather than HKD, the payment is matched at the rate received and reconciled against the invoiced amount, with any exchange difference recorded rather than absorbed silently into the balance.
A short list, not a growing one
The goal is to keep the unidentified-deposit list short and current, checked every week rather than left to accumulate. A deposit that sits unmatched for one week is a quick question to a customer. The same deposit sitting unmatched for six months is a much harder reconstruction, and exactly the kind of gap a statutory auditor flags.
Questions
Frequently asked questions: Cash application
Which payment methods do you reconcile for Hong Kong companies?
Bank transfer, FPS, cheque and card payments are all matched to invoices as they land, regardless of which account or processor they arrive through.
What happens when a customer pays in a different currency than invoiced?
The payment is matched at the rate actually received, reconciled against the invoiced amount, and any exchange difference is recorded rather than absorbed into the balance without explanation.
Why does unreconciled cash matter for our audit?
Your annual statutory auditor tests cash receipts against receivables. An unexplained or unmatched deposit is a common source of audit queries, so we keep this reconciled weekly rather than let it build up.
What happens when a payment cannot be matched to any invoice?
It is logged as unapplied cash and flagged to you within the same reconciliation cycle rather than left sitting unexplained. We ask you to confirm which invoice, or which customer, it belongs to before it is posted anywhere.
Do you handle partial payments against an invoice?
Yes. A partial payment is applied against the invoice it references, the remaining balance stays open on the ageing report, and the shortfall is flagged if it looks like an error rather than an agreed part payment.
What happens when a customer pays the wrong amount?
We hold it as an open item, note what does not match, and ask you how to apply it rather than guessing.
Do you handle payments across multiple bank accounts or processors?
Yes. Deposits from Stripe, PayPal, ACH and wire all get matched back to invoices regardless of which account they land in.
What is included in cash application?
Cash application covers incoming payments matched to the invoice or invoices they settle and partial payments and overpayments flagged for your instruction. 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.
How is cash application priced?
Pricing for cash application depends on your transaction volume, the software you use, and how much cleanup is needed before ongoing work starts. Current ranges are published on the pricing page, and your exact fee is confirmed in writing before anything begins.
Related services
- AP & ARAged receivables reportAn aged receivables report is prepared each month, showing what customers owe and how overdue it is, so you can see collection risk before it becomes a cash problem.
- AP & ARInvoicingCustomer invoices are created and sent on the schedule your contracts call for, with terms, quantities and pricing checked against the underlying agreement before anything goes out.
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.