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Ten Important Questions To Ask Your Accountant

asking your accountant for advice

Ten Important Questions To Ask Your Accountant

As the owner of a small business, it is of utmost importance that you have professional accountant advice you on important matters concerning the growth, finances, and other financial-related elements of your business.

 

However, irrespective of the experience you have gathered by working with an accountant, there are certain things you wouldn’t know unless you ask. You shouldn’t just sit there and ponder on those questions all by yourself, go ahead and ask your accountant for answers to any questions (business-related) that might be bothering you.

 

Are you lost on the right questions to ask?

Here are some questions you could ask:

1. What information do I need to give?

Being aware of the necessary information and document to share with your accountant is very significant to your relationship with him or her. As soon as you have the right answers to this question, you can be sure that you are in safe hands progressing.

 

To ensure that you don’t stress yourself roaming about in search of important documents when the tax season is around the corner, ensure you ask this question as early as possible.

2 . How can you assist me in my preparation for tax season?

Accountants offer several services, ranging from audit services, payroll and HR services, preparation of transfer pricing documents, etc., but the tax season is one of the primary reasons why most individuals hire accountants.

 

Certainly, when the tax season arrives, we all want to leave all the work to our accountant. However, to get the best out of working with a tax expert, you should assist your accountant during this period.

 

The responsibility to provide your accountant with important info and documents falls on you, and by asking questions regarding how they will assist your preparation, you can be certain that you are keeping the right invoices, receipts, including statements throughout the year.

asking questions to accountant

3. How can you assist the growth of my business

Although it is your duty to ensure that your business experiences steady growth each year, with the advice of an accountant, you can get effective growth hints that may end up helping your business. But before doing so, you must find the right accountant, one that understands your business and industry.

Enquire from them how they can assist in the growth of your business and ensure you are attentive to all they say.

4. Am I doing the right thing?

A very important characteristic of any working relationship is sincerity. For the sake of your business, you must know what you are doing wrong, and only a sincere accountant can tell you this.

 

Little unchecked errors could affect your business, so instead of waiting for someone to suggest a fix, ask for the advice of your accountant. They will be very glad to help you.

5. Are there any unique considerations for my line of work?

Some industries are different; these industries do not go through the same accounting problems that others experience. To put this in check, you must ask for the advice of your accountant. Based on their versatile experience, they should be able to tell you what to do.

sustainability reporting

6. What business expenses can I subtract?

On your tax return, subtracting business expenses is feasible, but not all businesses are made alike. You can choose to subtract things such as cars, office equipment, travel expenses, etc., provided it is a genuine business expense.

To make things very easy for you, ask your accountant to specify which expenses you can remove. Accountants can assist you in reducing your tax liabilities, and preventing any punishment that may arise from deducting the wrong expenses.

7. Which laws and modifications that apply to my business should I take note of?

Each tax year comes with several modifications. Certain changes that affect you and your business can sometimes be unclear, so the best thing to do is to ask your accountant for regular updates regarding new and important rules and regulations.

Accountants can help you keep close tabs on the political and legal aspects of your industry, and prepare for cash flow difficulties that arise from the need to invest in new things such as software, equipment, etc.
asking questions to accountant about tax

8. Is there a way that I can save on taxes this year?

Just as the New Year brings new tax laws, it also brings new ways to save some cash. Contact your accountant, and talk to him or her concerning the investments and projects you have begun. They should be able to tell you if you have done anything in that tax year that could potentially mitigate your liabilities.

9. What are the available alternatives if I can’t afford my task bill?

There is nothing as challenging as you being unable to pay your task bill at the end of the year. Being proactive is the best solution here. Ask the necessary questions from your accountant as soon as possible. With their expertise, they can provide you with alternatives, including budgets and plans for things that you can afford and those you can’t.

10. How do you keep the documents I provide you with?

In this period, where there exist a plethora of hackers out there, securing sensitive documents is paramount. To ensure that your mind is at rest, ask your accountant how he or she stores your documents.

If you aren’t satisfied with the way your sensitive documents are stored, you can provide effective alternatives. The aim of this is to ensure that your documents don’t get to the wrong hands. Therefore, you must ask your accountant this question before handing over your documents.

In a Nutshell

Many business owners tend to ask the wrong questions from their accountants, while others don’t see the need to ask. Asking the appropriate questions can go a long way in ensuring that you don’t make terrible mistakes. If you aren’t clear on something, or if you need advice regarding a troubling issue, don’t be shy to ask.


An accountant will be more than willing to assist you by answering your questions. For more information, get in touch us.

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Types Of Accountants You Can Hire For Your Business

types of accountant

Types Of Accountants You Can Hire For Your Business

1. General or Staff Accountants

These are accountants who have no specific specialization in any of the sub-disciplines but maintain broad knowledge in accounting. In other words, they are general accounting practitioners. They can cover a wide range of accounting responsibilities like financial statements, maintenance and reconciliation of company accounts, cash management and payroll and HR services.

 

Staff accountants can help your business grow financially by offering multi-accounting responsibilities since they have knowledge in virtually all areas of accounting.

2. Auditors

Auditors are specialized accountants whose duties are to ascertain if all business records are accurately compiled and recorded, review tax payments to ensure accuracy and compliance for business, individual and government entities.

 

A lot of accounting firms in Malaysia and also in other parts of the world engage in auditing services, and it is better to hire an external auditor, i.e. one not associated with the company in question because there will be no bias whatsoever.

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3. Management Accountants

Management accountants are responsible for planning and budgeting, external financial reporting, risk management, profitability analysis, amongst others.

These serve to give an all-round view of the financial health of an organization, whether the company is making profits or not, and this, in turn, helps the company in making relevant decisions to improve on the weak areas.

4. Cost Accountants

The role of a cost accountant is to find ways to save costs for the company. They examine every expense in the company to see where the bulk spending occurs and recommend ways to minimize these expenses. A certified cost accountant from an accounting firm in Malaysia will possess a Certified Cost Accountant (CCA) certification.

5. Certified Public Accountants

The role of a cost accountant is to find ways to save costs for the company. They examine every expense in the company to see where the bulk spending occurs and recommend ways to minimize these expenses. A certified cost accountant from an accounting firm in Malaysia will possess a Certified Cost Accountant (CCA) certification.

6. Forensic Accountants

Forensic accountants play a vital role in companies to uncover financial frauds that may have eaten deep into the company’s finances. Just like auditors, they sweep through the companies accounting records, and if there’s anything that breaches standards and laws, they draw the attention of authority.

 

A forensic accountant must possess the curiosity and senses of a detective, and they are quite different from auditors because their investigation is primarily for criminal or civil court proceedings.

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7. Government Accountants

These types of accountants are relevant to Local, State, Federal and district governments. The role of a government accountant is to ensure that tax payments are duly made, recorded, and spent wisely. A government accounting firm may be an agency like the Internal Revenue Board (IRB).

8. Project Accountants

Project accountants are accountants hired for handling the financial aspects of certain projects in the company. As opposed to general and staff accountants, a project accountant’s services are required for only projects and not the entire business activity of the organization.

 

They often work with project managers and help minimize the cost of the project, handle invoicing, budgeting and approving expenses.

In a Nutshell

Different accountants perform varying accounting services, and there is hardly any organization that would need the services of all the types. It is, therefore, crucial to hire the right fit accountant who has the right skillset for your company’s needs as this aids efficiency.


So before seeking an accountant or any accounting firm in Malaysia, be sure first to identify what key accounting services you require and find an accounting company that offers those particular services.


For more information, get in touch with us.

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What Do Tax Accountants Do

auditor

What Do Tax Accountants Do?

Tax accountants are individuals who utilize their expertise, experience, including their knowledge of tax legislation and control to proffer help to their customers or clients in paying taxes in the best and efficient way possible, while adhering to the rules and procedure of the government.

Tax accountants also make recommendations to companies and clients on how to reduce the impact that tax payment has on their company. Before we move further, why don’t we take a brief look at what tax accounting is?

What is tax accounting?

Tax accounting is an accounting strategy that has its focus on taxes instead of the presenting of public financial statements. This type of accounting is usually controlled by the IRB (Inland Revenue Board), which outlines the specific rule that individuals and organizations must adhere to in the preparation of their tax returns.
auditor

Important points

  • Tax accounting is a type of accounting that focuses on the preparation of tax returns including tax payments
  • This type of accounting is utilized by people, businesses, corporations and other organizations
  • In the case of an individual, tax accounting focuses on the income of such individual, qualifying deduction, donations, including any investment profits or losses.
  • In the case of a business, tax accounting is more complicated, with greater evaluation regarding how funds are spent and what is taxable, including what isn’t.

Certainly, accountants provide an extensive array of services such as the preparation of transfer pricing document, payroll and HR services, auditing, etc., but when it boils down to tax accounting, a tax accountant is a right expert to call. An accounting firm is home to tax accountants who can assist you in preparing your tax returns and save you the stress of trying to prepare it yourself.

There exist two categories of tax accountants, corporate tax accountants, and personal tax accountants. Corporate tax accountants work for organizations either as part of an accounting firm or as a member of the accounting department, to make sure that the company pays the right amount of money due for taxes based on the law and regulations.

 

On the other hand, personal tax accountants work for individuals, normally with an accounting firm, offering recommendations and help with the payment of tax.

Most tax accountants out there work for a specific accounting firm, as a staff of the company, or they can work for the national government. Accounting firms don’t usually work with large businesses, rather, they work with small and medium scale businesses and individuals who are in search of help in the preparation of their tax returns or any help regarding their taxes.

Some tax accountants do not like the idea of working for a company; instead, they prefer being self-employed and work alone from any firm or organization, providing their services to individuals in need of their help.

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Primary responsibilities of a tax accountant

The following is a comprehensive list of the popular tasks tax accountants are needed to complete.

1. Obtain any important tax data on clients or companies

  • Evaluating financial books including balances
  • Reviewing financial records, systems, budgets
  • Carrying out audits including face-to-face meetings with clients to obtain extra information
doing auditing on the computer

2. Examine obtained information to look for any possible tax exemptions

  • Evaluating tax liabilities
  • Creating effective measures to reduce the liabilities
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3. To set up meetings with clients and supervisors

  • Explaining tax laws and regulations in a way that is easily understood by the clients and supervisors
  • Offering effective ways to lessen payments
tax accountants

4. Creating effective measures to lessen tax payments

  • Searching for deductibles
  • Understanding all that tax laws and clauses entails finding deductions
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5. Tendering tax reports in time

  • Finishing and presenting tax return forms before the D-day
  • Going through past tax returns and reports to see if they contain any errors and making corrections where necessary
filing tax

6. Representing clients or employers during meetings with tax authorities

  • Negotiating tax payment problems with the tax authorities
  • Analyzing discrepancies (for instance, income and expenses figures not balanced as they ought to)
  • Searching for the best solutions for problems and discrepancies
representing clients in meeting

In a Nutshell

The preparation of tax returns is a complicated task, especially if this is to be prepared for a company and not an individual. A tax accountant has the necessary expertise, experience, and knowledge to help you with not just the preparation of your tax returns, but with any issues regarding your taxes.


To ensure that you adhere to the rule and regulations of the IRC, ensure you outsource the preparation of your tax returns to a competent and skilled tax accountant.


For more information, get in touch with us.  In case of any query, IRBM is always contactable through the online system, the Live Chat of HASIL and Help Line of HASIL at 03-89111000.

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Five Reasons Why Sustainability Reporting Is Important

sustainability reporting-3

Five Reasons Why Sustainability Reporting Is Important

The capability of a company to positively affect social and environmental change has, over the years, turned out to be a massive thought for several businesses. Several factors, such as environmental, governance, and social factors, encapsulate a panoply of problems that covers everything ranging from company culture, employee compensation, the effect of climate, and sourcing standards.

Of course, we can blame bigger companies for excluding themselves from financial reporting, but these companies still note the immense influence that ESG has on the relation of investors, market behaviour, and financial achievement. In fact, a huge percentage of the Fortune Global 500 companies make use of a well-known framework in sustainability reporting.

 

About 80% of the biggest companies in the world make use of the Global Reporting Initiative (GRI) standards. The Global Reporting Initiative standard provides openness to investors, clients, including other stakeholders.

While for several years, public companies have embraced the act of sustainability reporting; but historically, it has been restricted (to some extent) to smaller businesses that don’t have the necessary resources to invest in analysis and reporting initiatives.

Sustainability reports are often prepared by accountants. Peradventure, you reside in Malaysia, and you need to know more about sustainability reporting, or you wish to get one for your business, you can contact an Accounting firm in Malaysia. An accounting firm in Malaysia boasts of accountants with the relevant skills and expertise, and they are all capable of providing you with whatever you need regarding sustainability reporting.

Irrespective of how big the company is, the following are some reasons why sustainability reporting is important to every business.

1. It is greater than the environment

While climate change was surprisingly a reason for the increase in ESG reporting, governance and social factor are turning out to be very significant. ESG reporting is quite potent; it has the ability to impact change faster than either the government or nonprofits, including the younger race after seeing their dollar investment as another extension of individual value.

According to a US SIF foundation, in the year 2008, investors retained $11.6 trillion in assets associated with the criteria of ESG, an increase from the $8.1 trillion that was retained in the year 2016. It was displayed by a TD Ameritrade survey that 19% of investors (ESG investors) view human rights as one of the most significant factors whenever they choose to make a decision.
sustainability reporting-1

2. More success less profit

A significant indicator of the long-term achievement of a company is non-financial performance.

With ESG metrics, a business can recognize when its adopted tactics need a complete renovation; it also assists in determining the practice that is connected with certain upcoming risks, even if it is effective at the moment.

For instance, is the manufacturing duty of the company being outsourced to countries that are prone to change in traffic or inflating the cost of labor? Does the hiring strategy of the management help in the retention of e employees? Indeed, traditional financial reporting doesn’t tackle so many important issues.
sustainability reporting-2

3. Individuals are significant

The workforce of today tends to hold their employers at a very high standard compared to that of several years ago when working conditions, the morale of employees, health initiatives, and general culture were considered as being very significant.

 

With sustainability reporting, these issues can be taken care of; it does this by offering the best understanding into the relative compensation of a company, its diversity, and retention rate. This isn’t just important for reeling in customers but for recruiting and maintaining talent as well.

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4. The key is openness

According to a TD Ameritrade survey, it was noted that 67% of ESG investors are primarily after advancing social and environmental causes rather than an investment rate of return. Millennials who make up about a quarter of the U.S population, portray a certain possibility of striking a connection with companies that boast of a rigid purpose and ethical governance standards.

 

Based on a 2005 Nielsen survey, which was conducted on 30,000 customers in 60 countries, it was observed that there were about 73% of millennials that were keen on paying more for sustainable goods and products.

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5. There exist some cheap tools

ESG reporting is quite expensive, but upon the inception of B Lab, that trend has been altered.

To make use of the B Lab assessment, you don’t have to be a B Corp. The B Lab assessment offers its users the best knowledge into significant and crucial ideas normally missing from the financial performance interaction. These ideas can be used to set a standard and scrutinize how a business can adjust the values of the business alongside that of its stakeholders.
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In a Nutshell

Aside from market differentiation and satisfying customer needs, by reporting on ESG consistently, the enterprise value of such a business will skyrocket, and it will turn out to be more accessible than it ever was. Aside from preparing sustainability reports, accounting firm in Malaysia also offer payroll and HR services.

 

Although other professionals also offer payroll and HR services, accountants are in fact, more skilled in that aspect. For more information on sustainability reporting or accounting and auditing, get in touch with us. 

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Accounting Trends to Look Forward to in 2020

Cloud based offices

Accounting Trends to Look Forward to in 2020

Over the past decade, there have been several changes in offering accounting services in Malaysia — with technological advancements and an increase in the number of accounting firms around the world.

All these firms are always on the lookout for new or improved trends to incorporate in their firms to stay on top of their game and be ahead of the competition.

Running an accounting firm at a time like this, with all that technology, means data will be processed faster and easier. Therefore, you should be aware of what’s currently working and what will be working later to choose the best strategy for your business.

Here are the accounting trends to look forward to in 2020.

1. Automated Accounting Processes

More accounting processes are becoming more automated. The automation of these processes takes away the confusion and reduces or eliminates errors in the process. Because of this, accounting firms are now investing in automated solutions for their business.

Since the automated process depends solely on computers, businesses are open to fraud and compromised security. However, these challenges have increased the demand for internal auditors to check for inaccuracies in the process.

As a result, there’s no need for in-house accounting services in Malaysia to worry about being replaced by computers.

In 2020 and beyond, automated accounting systems will take over the industry, and guide accountants in arriving at data-driven decisions faster, along with profit improvement.
accounting software

2. Rise of Accounting Software Solutions

The addition of technologically-driven solutions in the accounting world will intensify in 2020. Because the demand for computerized accounting will grow, accounting software companies will satisfy this need with robust solutions.

The software offers a wide array of functionalities, including those that accountants value the most, such as optimizing accounting processes and reducing manual tasks.

There is a strong demand for software platforms to manage spreadsheets and have a better understanding of tax management around the world. It is predicted that the accounting software market will grow at a CAGR of 8.5% between 2019 and 2024.

The software will also help accountants who offer tax advisory services provide better tax solutions for their clients.
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4. Utilizing Social Media

The use of social media encompasses different industries, including accounting. Social media helps to increase brand awareness, sales, and drive traffic to your website.

Accountants have discovered that social media is a powerful branding and sales tool that boosts exposure and sales while demonstrating their expertise.

In 2020, an effective social media strategy will contribute tremendously to the profitability of any accounting firm in Malaysia. The social media platforms like Facebook, LinkedIn, blogs, and community forums will help firms keep in touch with clients.

Social media also helps accounting firms monitor what competitors are up to and learn new industry trends.
social media

5. Real-time Connections

2020 will be a year when accountants will connect with their clients in real-time and also enjoy greater security, transparency, and accounting services in Malaysia, using their company App.

Also, recording transactions that usually would take hours or days will now take minutes or seconds. And, if there’s a change made by one party, it will be updated in real-time for everyone with access to see.

Additionally, using digital tools like mileage trackers offers the perfect first step in engaging clients with digital technology, keeping the clients and accountants connected.

For instance, the tracker will automatically detect a trip so that the accountant’s App on the client’s phone tracks his movement. It means that there will be less chasing for the client’s business mileage when compiling the end of the year tax return.

Also, the details of the trip can be sent to the accountant with one click of a button or via email as an attachment.
analysis
Do you wish to find out how automated accounting can help to leverage your business and increase your business competitiveness in the long run?   Take a look at all the services we offer or get in touch with us to know more.
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Eight Reasons Why You Should Hire An Accountant

accounting

Eight Reasons Why You Should Hire An Accountant

Growing your business to greater heights involves you considering the right steps and strategies to take and ensuring that your financial goals are duly met in a given period. Every registered business is tax liable, and taxes can cut a deep hole in your business if appropriate measures are not taken.

Also, there will likely be a host of financial documents to fill from time to time, and since your primary focus is to make more money from your business, you may lack the technical know-how in handling taxes and filling these forms correctly in a way that would benefit you in the long run.

 

An accountant is highly skilled in all areas of managing the finances of any business.

Eight reasons why you should hire an accountant

1. Filling your tax forms

Filling your tax forms can be a simple matter, especially when your business is of a very simple nature, but even at that, a lot of business owners still fall victim to tax issues. Seemingly irrelevant mistakes made when filling these forms may pose a huge threat to your finances later on.

 

When you fail to fill and submit necessary tax forms — such as a tax return — before the deadline, then you could be asked to pay a fine. When you hire an accountant, he or she will ensure that all tax forms are filed correctly and submitted on time to avoid unnecessary issues.

filing tax

2. Planning for tax liability and tax incentives in Malaysia

An accountant would not just prepare your financial documents for you but would consider the best way to put you and your business at a tax advantage, and help you qualify for certain tax incentives in Malaysia. These are some special accounting services which an accountant would bring to your table when hired.

3. Cutting down on your taxes

This is also one of the several accounting services Malaysia which an accountant would provide you with when hired. He keeps track of the frequently changing tax laws and ensures that whatever tax you pay is minimal.

4. Rendering valuable financial advice to help grow your business

An accountant who has worked with you for several years would have developed some level of sensitivity into your business, and know just what touch to give the business to take it to the next level. Advice obtained from a reputable accountant is worth more than gold. Ensure you seek their advice before making any business decision.

accounting vs bookkeeping

5. Time savings

As a sole proprietor or freelancer, your time would be better spent on doing what you know how to do best, and that most certainly does not pertain to accounting. Some people do not want to hire an accountant because of the accountant fees.

But when you attempt to do your accounting yourself, you’d be wasting useful time, which you should be using to make more money. It would save you valuable time when you leave accounting for the accountant.

6. Making financial statements

When you hire a reputable accountant such as one from an accounting firm in Malaysia, rest assured that he or she would be highly skilled in preparing financial statements.

 

A financial statement involves summarizing and giving report periodically on all your business’s financial transactions in such a way that would clearly highlight the direction in which the business is moving, and what exactly is responsible for that movement. By so doing, important financial decisions can be made to enhance business growth.

7. Maximizing profits

An accounting firm would help a business reduce costs while maximizing profits. It seeks out financial information about your environment and uses business tactics and dynamics to help you attach costs to your goods in such a way that would boost your sales and provide maximum profit.
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8. Dealing with financial problems

A business can sometimes run into a financial problem such as taxes, fines, bankruptcy, court cases, etc. As a freelancer or sole proprietor, you may be at a loss of what to do. Having a professional accountant by your side during this storm is like finding water in a desert.


If at all the problem is beyond the accountant’s scope, he or she is likely to be acquainted with a lawyer or any other professional which could be of immense help to you.

In a Nutshell

There are certain things you simply don’t have the expertise to do as a business owner, and one of these things are issues regarding financial analysis such auditing, drafting out financial correct statements, etc. Hiring a professional accountant incurs an expense, but with their services, you will end up preventing your company or business from losing cash unnecessarily.

The services an accountant provides are aimed at indicating hiding issues regarding the finances of your company and offering you the best solution on how to tackle such issues. Save yourself the stress of overthinking and consider hiring the services of a professional accountant.
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Why Should You Audit Your Company?

Why Should You Audit Your Company

Why Should You Audit Your Company

Auditing comes with several benefits. A good auditor can help your company in many ways such as clearing your issues quickly and enhancing your company via the excellent auditing services he or she provides.

 

Though the primary reason for auditing is associated with business and legalities, you should not ignore the psychological facet that is quite significant when handling entities such as banks, clients, and shareholders.

If you perform auditing regularly, you will attract more confidence from the individuals you work with, including government institutions as well. For businesses in Malaysia, there are several audit firms in Malaysia that offer audit services.

Before you are made to understand the benefits of carrying out an audit on your company, you should know what a financial audit is.

What is a Financial Audit?

As soon as an auditor gets to your company, they will carry out a complete and thorough examination of the financial records of your company, including other statements tendered by your accountant(s).

The job of the auditor is to examine and discover any detail that was inadvertently or intentionally left out by your system and put them in a report. While conducting an audit internally is possible, it is advisable to hire an auditor from an accounting firm who isn’t in any way connected to the company so that the report is objective.
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Below are a few reasons why you should audit your company:

1. You will be presented with a thorough overview

As soon as the auditors are done with their findings, you will be presented with the final report. Afterwards, you will have a comprehensive overview of how your business is functioning.

Even if you have splashed lots of cash in ensuring that your company has clear records and adhere to every rule, there are going to be little mistakes that ought to be corrected. Also, the report by the auditor will display to you the stable regions of your company.

2. Your company becomes more reliable

If you are the owner of a big company that boasts of upper management or corporate investors, a consistent audit can make your clients and investors believe that your business is going in the right direction. Even if you own a small business or just starting out, you will derive several benefits from the reliability your company will display to tax authorities.

Because you have an audit report, tax officials will be able to depend on these reports to ascertain your level of taxation or other matters that interest them.
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3. Gives you insight into the direction of your company

With an audit carried out by an expert, you will have the best insights into the aspects of your business that are performing well and those that are underperforming. For areas that display no error, you will know that those areas don’t require any recalculations to your original business plan.

While those areas that display the issues, however, requires a careful inspection such as: how they are activated and how you can rectify the problems before they end up hurting the company.

4. Enhance your credit rating

If you own a business that is quite strong and expands at regular intervals, your shareholders, banks, and investors should know all about this business of yours. Having a consistent audit report will enhance your relationship with stakeholders or financial bodies that you are in business with.

Your investors will want to know how successful your business is, and a financial statement is the best way to do that. Also, before a bank offers you a loan, it would want to be sure that you are capable of replaying the loan; an audit report is the best proof to display that you have the required resources to repay the loan.
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In a Nutshell

The regular audit of your company’s financial statements is essential to the reliability of your company. With an audit, you can indicate and resolve any internal problems that might ultimately bring down your company.


By auditing your company, you tend to prove to your investors and shareholders that you have the best intention for your company, and this can enhance the trustworthiness of your company. Looking for a reliable auditing firm, get in touch with us. 

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Duties of Auditors in Malaysia

Duties of Auditors in Malaysia

Duties of Auditors in Malaysia

In Malaysia, a qualified auditor is someone that has been approved by the Ministry of Finance.

 

According to Company Law in Malaysia, all registered companies — publicly listed, private equity firms, joint venture capital — are required to have a professionally certified auditor. The auditor is charged with the responsibility of going through the company account and ensuring that all necessary procedures are followed in the preparation of the account. It is important to know that the account are not to be prepared by the auditor but to be verified by him or her.

 

The standard procedure is to create an end to end checkup system for the company account such that there are no discrepancies whatsoever. While the directors of the company are required to prepare the account of the company, the auditors are required to check for any imbalanced rationales or factors.

 

At the end of every business year, companies are required to present their shareholders the audited financial statement at the annual general meeting (AGM) that points to how business was operated throughout the year and possibly the expectation of the business for the new year.

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Duties Of An Auditor

1. The number one duty of an auditor is to check that the companies account has been drawn up properly and that they follow the Malaysia and Companies act of 2016.These duty perhaps is the drive that makes an auditor wear the face of a stranger while performing their duties for their organization. They are responsible for cross checking every little detail that goes into the financial accounts of their organization.

 

2. An auditor is responsible for giving informed opinion about the position of the account of their organization.

They can tell whether the account of the company truly implies the financial position of the company and that the shareholders and the public (in a case where they are publicly listed) are not charmed with an engineered financial accounts of the company.


3. Their job involves making sure that no member of the organization regardless of their power or position is allowed to tamper with the true financial position of the company. The auditors’ license and most importantly goodwill and reputation lies on this.


They must give the shareholders a complete assurance that the financial statement of the organization is untampered with.


4. An auditor must ensure that all accounting papers, and necessary records stipulated to be kept by the Malaysia and Companies act are all well-kept without any speck of atrocity.


5. Other responsibilities of an Auditor in Malaysia include:

  • Auditors are responsible to the shareholders of a company. They understand that while their duties are completely to the company, their loyalty is to the shareholders.
  • Auditors have the right to enquire any member of the organization about any information that will shed light on the true financial position of the company.
  • An auditor is expected to attend all annual general meeting (AGM) with the shareholders and any emergency meeting as deemed fit by the company.
  • In a case where the company has subsidiaries, auditors of the organization at all the branches are requested to submit their findings to the general auditor for the audition of a consolidated financial statement. Auditors at the subsidiaries are also required to give access to their books as requested by the general auditor.

For more information about auditors and accountants, fell free to get in touch with us.

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Avoid These Common Malaysian Tax Offences

tax payment

Avoid These Common Malaysian Tax Offences

If there is anything that business people cringe at, it’s at the thought of paying taxes. In 2017, a lot of Malaysian top notch celebrities were owing taxes and the Malaysian tax authorities were right on their tail.

One would think that since these people earn a lot, paying taxes shouldn’t be a problem to them but just like it is a problem when you earn so little money, it is even a bigger problem when you earn a higher income. The logic behind thus is not far-fetched.

The Malaysian tax system is progressive in nature and so, there is a range of higher income you earn that your taxes will become higher in rates than those earning less than you. Those earning less than the stipulated government range get a fixed tax rate that they must deliver on unfailingly.

In this blog post, we’ll be showing you some common tax offences you should avoid an all cost.

1. Bad Tax Advice

The first worst thing that can happen to anybody in any issue like tax payment that they are naive about us getting a compelling bad advice. It’s like putting the wrong foot first in a dance, every other step will definitely be a bad movement.

If you feel you need to understand how a few things work about taxes and maybe having a streamlined advice for your own tax payment, it is always better to find a professional to dish that advice not just someone who perhaps read economics in school.

The importance of having a professional advice you cannot be overemphasized. If you find out that you cannot get any professional advice from people around you then it is best to visit the nearest Lembaga Hasil Dalam Negeri (LHDN) around you.
counting taxes

2. Failure to submit tax return forms

Everyone is expected to submit their personal tax return form by the 30th of April and for those doing business, the 30th of June every year unfailingly.

It becomes an offence if these date passes and you as a rightful taxpayer did not make your submission. You can be liable to a fine raging from RM200 to RM20,000 or face imprisonment for not exceeding 6 months or both.

In addition, if not submit for 2 years or more, the fine is increased to RM1,000 to RM20,000 and special penalty equal to treble the amount of tax or additional tax. If you are unsure whether you are required to submit tax return and pay the income tax, it is advisable that you visit the tax agent to assist you on this matter.

In a case where you’ve already started paying taxes and filing tax return forms, then you shouldn’t ever forget to keep you from rolling in on it before the stipulated date.

3. Not disclosing your true income

This is a terrible offence to commit and it is classified under one straightforward order- tax evasion. The Malaysian law does not take it easy on those evading taxes. Penalty for omission or understatement of income can be equivalent 100% of the tax undercharged.

 

Therefore, to ensure that you calculate your tax return figures properly and if you can’t do that yourself, employing the skills of an audit firm in Malaysia is a viable option especially for business owners.

 

One other important thing is that the intricacies of tax laws change yearly and as such, tax payers must ensure that they evolve with the trend as it goes. Any slack in the knowledge gap about your supposed tax system can have government tax officials knocking on your door years later when the money is probably even finished.

 

To understand your standings about taxes, get in touch with us today on our website.  In case of any query, IRBM is always contactable through the online system, the Live Chat of HASIL and Help Line of HASIL at 03-89111000.

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What Does It Take to Register Your Company in Malaysia?

registering your company

What Does It Take to Register Your Company in Malaysia?

One of the best steps a business will ever take is registering as a legal entity. Business registration gives the business and its owners of administrators a proper perspective of what business truly is. Doing business without proper registration is just illegal.

The business is just there, unregulated by any institution yet it keeps making money from the economy of the country. In fact, unregistered business faces higher risk by not being a legal entity because a lot of government support for business will not pass through their way at all.

They will not be entitled to credit facilities from standard organizations, and in a civilized environment like in Malaysia, consumers might not even purchase their goods or services if the business is not properly registered.

The process of company registration in Malaysia especially for foreign companies is an easy one. The most important factor is to have the necessary papers and documents. Also, following due process in the incorporation process is very important.

While seeking for a work permit for your company, you should first decide on what the structure of your business will be like. Is it going to be a 100% foreign control company or a joint venture company with some Malaysian parties?

100% Foreign Controlled

This type of business structure is when the proposed company will be bringing all the workers and expatriates from their own country. Though the Malaysia government allows this on a very rare cases where the company’s operations can only be handled by staff that are well trained for it and such well-trained personalities are not present in Malaysia.

While the 100% foreign ownership might be learnt in some sectors of the economy, some secrets have been specially placed as a matter of law that there cannot be a 100% foreign ownership. A few examples of these sectors are: Education, Petroleum (Oil and Gas), Tourism, Agriculture, Banking and Finance.

This list however changes from time to time and as such business owners should always make sure to do their due diligence on a consistent basis to avoid falling on the wrong side of government laws.

The minimum Paid up capital for consultancy and advisory services and business is RM 500,000. And a minimum of RM 1million for import, export, trading and restaurants business.
shaking hands

Joint Venture Company

This type of business structure involves the participation of Malaysian nationals in the business. At least a minimum of 50% ownership must be held by the Malaysian business counterpart. The business is required to have a minimum paid up capital of RM 350,000.


  1. Define the focus of the business, know what type of business you’re about to embark on and go through all regulations related to such sector. Ensure that you decide on what structure of business you want to take and how you would run the processes. Make up your mind that all processes you’ll go through will be legal. This will ensure that you put a good foot forward on starting your business.
  2. Decide on who the directors of the companies will be. Leadership is very important in a business, the more so, you’ll need to fill their names and those of the shareholders in the business.
  3. Choose the name you’ll like your business to bear. This process is very important because it must not clash with the business name or identity of another business. You’re to run theses proposed names on the business name availability check.
  4. Prepare the requested registration documents and check that they all need standards.
  5. The commissioner’s office will get back to you either with your incorporation certificate or a request to update some document that is required to process not application.


For more information, please do not hesitate to get in touch with us. 

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