As required by the Malaysia Companies Act and Income Tax Act, every company registered in Malaysia must keep proper books of accounts. The primary purpose of bookkeeping would be to prepare annual reports at the end of financial year to meet compliances, and also to see how your business has been progressing. Newly incorporated companies in Malaysia, from the get-go, must begin to practise good maintenance of financial records of income and expenditure, while familiarising themselves with legal matters pertaining to compliance and reporting.
Keep All Your Records
All companies incorporated in Malaysia are required to retain their books and accounts for 7 years, more specifically, every company and its directors and managers must keep sufficient accounting and other records to explain transactions and financial position for 7 years after the completion of the transactions or operations. Failure to do so can result in penalties and cancellation of licenses. Examples of some of these financial records include invoices, serially numbered receipts, income records, purchase and business expense records, accounting and statement records.
Monitor Your Expenses
Monitoring your expenses will not only help during the tax filing process but also in making crucial business decisions, and also to avoid incurring unforeseen debts and massive tax bills that could compromise the financial stability of your business. If you prefer the accrual basis of accounting, monitor the account payables and account receivables continuously to create a robust financial plan. Concisely, through monitoring, you will be able to identify expenditure trends and areas that you can change to enhance the financial stability of your business.
Compliance and Obligations
Having a clear picture of your overall financial stanting will help you to budget and set aside money for all the stipulated legal compliance and requirements early. This step will prevent you from missing taxes or bills, as well as help you manage your finances more efficiently. Proper accounting and bookkeeping with the help of Malaysia Accounting Services will help you to achieve this objective.
Invest in a Bookkeeping System
There are some bookkeeping systems that you can invest in to assist you to keep track of your expenses and records. The systems will help you manage your company better and assist government agencies to monitor your business activities accurately. Make sure that the bookkeeping secretary understands how to input data into the system and monitors it to avoid any inconveniences down the road.
Malaysia Accounting Services
Finally, you can outsource bookkeeping tasks to a reputable and licensed Malaysia Accounting Firm and bookkeeping company. Doing so will help you to save time and money of going through all the documents for JB accounting or KL accounting, and submitting them to the relevant government agencies. Bookking and Accounting Services you can employ include:
- Bookkeeping and general accounting
- General ledger maintenance
- Accounts payable ledger maintenance
- Account receivable ledger maintenance
- Bank reconciliation
- Fixed assets ledger maintenance
- Management reports (Monthly, Quarterly and Year-End Review)
- Books clean up
- Coordinate with CPA on Accounting and Tax Functions
Benefits of Well-maintained Bookkeeping and Accounting
- clearer financial foresight and understanding of your company’s overall financial health and business performance
- early discovery of any possible internal fraud or financial mismanagement
- better tracking of your company’s expenses and ways of conserving your resources, monetary or otherwise
- peace of mind, knowing your financial records are kept in order and up to date
- well facilitated filing of annual returns and taxes with regulatory authorities