Do I need audited accounts to apply for funding

Do I Need Audited Accounts to Apply for Funding

Your need for audited accounts hinges on the funding scheme and your company's size. Some schemes accept management accounts or statements prepared under the SME Financial Reporting Framework (SME-FRF). Larger loan guarantees, however, require a full statutory audit. Check the scheme's specific guidelines before preparing your application.

Funding Application Audited Accounts Hong Kong

Hong Kong government funding schemes demand financial documents proving your company's position. The Trade and Industry Department, which administers several major schemes, generally requires statements prepared by a certified public accountant. Smaller enterprises may submit management accounts or internally prepared statements at the initial stage. Larger funding amounts or post-approval conditions trigger the need for audited accounts.

BUD Fund Financial Documents Required

The Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) requires documents verifying your company's operations. The BUD Fund guidelines ask for the latest audited accounts if they are available. For newer companies without a statutory audit, the Trade and Industry Department may accept management accounts certified by the company's directors. Submit these with the Business Registration Certificate and proof of the company's financial position.

SME Financing Guarantee Scheme Accounts

The SME Financing Guarantee Scheme provides government guarantees on loans from participating lenders. This scheme demands more rigorous financial documentation because it involves loan guarantees. Lenders request audited accounts for the most recent financial year, plus management accounts for the current period. They use these documents to assess your company's financial position and determine the loan amount and guarantee ratio.

Technology Voucher Programme Financial Requirements

The Technology Voucher Programme supports technology adoption to improve productivity or upgrade business processes. The Innovation and Technology Commission requires applicants to submit financial statements demonstrating their ability to fund the project. For most applications, the programme accepts financial statements prepared under the reporting exemption under section 359 of the Companies Ordinance (Cap. 622). This exemption allows qualifying companies to use the SME-FRF and SME-FRS with reduced disclosure requirements.

Government Funding Financial Statements

Most Hong Kong government funding schemes ask for supporting documents that include financial statements, the Business Registration Certificate, and evidence of the company's operations. The specific financial requirements vary by scheme:

What to Check Before Applying

Review the scheme's official guidelines on the Trade and Industry Department website or the relevant administering body's website before preparing your application. The guidelines state whether audited accounts are mandatory, if management accounts are acceptable, and what period the financial statements must cover. If your company qualifies for the reporting exemption under section 359, you may prepare financial statements under the SME Financial Reporting Framework rather than full HKFRS. Confirm the funding scheme accepts this framework.

If your company has not yet completed its first statutory audit, contact the scheme administrator directly to confirm what alternative financial documents they will accept. Some schemes allow startups and newly incorporated companies to submit management accounts with a directors' declaration confirming the accuracy of the financial information.