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Tax avoidance or tax planning?

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Tax avoidance or tax planning?

There is a popular saying that “the only constant thing in life is change”. This means that there is always an evolution going on somewhere and we can choose to acknowledge it or not.

This however has proven to be much truer in the business world. The ways and processes of conducting business in the last decade is dramatically different from the ways in which we conduct business operation in this era.

These change has permeated all fibers of the business end and in this blog post, we’ll be discussing one of the issues that has changed the face of business.

In a bid to maximize profit and minimize cost including taxes, companies and organizations around the world now have strategic planning and thinking processes that allow them to make more money with reduced cost of business.

One of the very cost they try to avoid is tax and one of the best ways in which they perpetuate this legal reduction in their cost is through transfer pricing.

How To Use Transfer Pricing?

The concept of how transfer pricing is used in tax avoidance can be explained in a situation as follows:


A company which has another related party company based in a different country transacts with each other at a discounted or excessive price for the goods or services with the intention of achieving a tax advantage.


The companies may be under the same management, share the same parent company or simply share a strategic partnership. Imagine that company A is a subsidiary of company B. Company A produces rice in Malaysia and exports to company B.


Company A, in the process of trying to reduce its taxes decides to sell its product to company B at a price that is lower than the average market price. This would result in a lower tax outflow for Company A and ultimately a higher profit for the Group as whole.


In a nutshell, a tax advantage is achieved by tweaking the prices between organizations. It’s also common for profit earned in the trade to be transferred to a lower tax jurisdiction.


Hence, most governments these days, including Malaysia have introduced their own transfer pricing regulation. Transfer pricing in Malaysia is well regulated and watched to avoid shady type of tax avoidance schemes.


These companies fail to understand that while their actions might seem profitable to them in the short term, it is at the detriment of the economy and ultimately the country.


To know more details about transfer pricing, 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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Types Of Transfer Pricing

transfer pricing

Types Of Transfer Pricing

Transfer price is defined as the price at which two parties transact with each other. For example, during the trade of supply or labor between the two departments. These prices are used when two individual parties of a big multi-entity firm are treated as though they are run separately. This is common in very large corporations. A transfer price is also called transfer cost.

There are five types of transfer pricing methods that can be applied. Three of the five are traditional pricing methods while the last two are transactional pricing methods.

Traditional Pricing Methods

Traditional transaction methods work by measuring the terms and conditions of actual transactions between independent entities and compares them to a control transaction. There are three types of transfer pricing under this method:

1) The CUP Method

The CUP method is a method that compares the terms, conditions and the price of a controlled transaction to those of a third party transaction. In this method, there are two types of third party transactions. The first type is a transaction between the taxpayer and an independent enterprise. This is known as internal Cup. While the second type is a transaction between two enterprises known as external Cup.

2) The Resale Price Method

This is also called the “Resale Minus Method.” The beginning of this method takes note of the price at which an associated enterprise sells products to a third party. This price is known as the “resale price.” This resale price is then altered with a gross margin, this is done by comparing gross margins in comparable uncontrolled transactions.

When this is done, the costs associated with the purchase or the products, such as custom duties are deducted from the price. After all the deductions, what is left is the arm’s length price for the controlled transaction between associated enterprises.

3) The Cost Plus Method

This method compares gross products to the cost of sales. The first thing to do is to determine the costs incurred by the supplier in a controlled transaction for products sold to a related purchaser. After that, an appropriate mark-up is added to the cost in order to make a profit.

After adding this markup to the cost, it can then be considered at arm’s length. When applying this method, you are required to identify a mark-up on costs applied for comparable transactions between independent entities. This has to be done before this method can be applied.

Transactional Pricing Methods

Unlike the traditional method, this method does not measure actual transactions. Rather this method measures the net operating profits that are gotten from controlled transactions and compares them to profit level realized by independent enterprises that are engaged in comparable transactions. There are two types of price transfer methods under this.

1) The Transactional Net Margin Method (TNMM)

In the TNMM, you will need to calculate the net profit of a controlled transaction of a related enterprise. This net profit is then compared to the net profit realized by comparable uncontrolled transactions of independent entities.

This method requires that the transactions are broadly similar before they can be compared. For this method, a comparable uncontrolled transaction can be between a related enterprise and an independent enterprise or between two independent enterprises.

2) The Profit Split Method

There are times when associated enterprises engage in transactions that are interrelated. This means that these transactions cannot be examined on separate basis. For transactions in this category, associated enterprises just split the profits realized.


This method looks at the terms and conditions of these transactions by extrapolating the division of profits that independent enterprises would realize from participating in those transactions.


These are the different types of transfer pricing. Still have questions? Please feel free to get in touch with us.

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Accounting Vs Bookkeeping

accounting vs bookkeeping-3

Accounting Vs Bookkeeping

As a small business owner, you will need your financial data to be very accurate and also current as this will help your business to maintain healthy cash flow. However, as your business starts to grow and expand, the act of financial management becomes more cumbersome because now more money is flowing in and out of the business. At this point, you will not be able to manage your finances on your own because it will be time-consuming and you will not have that time.

When your business gets to this level, you will need help but most business owners are confused on what kind of help to get. Should they hire a bookkeeper or an accountant? Sometimes both works are used interchangeably but are they really the same thing? The answer is No.

So how does a bookkeeper differ from an accountant?

Bookkeeping vs. Accounting

Importance of Vacancy Tax

Bookkeeping is defined as the process of recording the day-to-day transactions of a business and it is the bases of building a financially successful business. So what are the things that are done in bookkeeping?

Bookkeeping is made up of activities like:
  • Recording Financial transactions
  • Posting debits and credits
  • Producing invoices
  • Making sure that the subsidiaries, general ledgers and historical accounts are balanced.
  • Managing payroll.

Managing the general ledger is the key component in bookkeeping. This general ledger is the document where the bookkeeper records amounts of sales and expenses that were made. The process of doing this is called posting. A ledger can be created with a software, or a computer excel spreadsheet or simply using a piece of paper depending on the choice of the business.

These are the functions of the bookkeeper and the thing is, the work gets more complex as the business increases in size. This is because all the transactions must be recorded and if the amount of sales and purchases keep increasing, the work gets more tasking.
accounting vs bookkeeping-2

Accounting

The accounting process is a high-level process that uses the information compiled by a bookkeeper or a business owner to general financial models that will help the business move forward.

The process of accounting is different from bookkeeping because accounting is subjective while bookkeeping is transactional. The accounting process is comprised of:
  • Recording expenses that have been made but not yet recorded in the bookkeeping process.
  • Preparing the financial statements of the business.
  • Running analysis of operation costs.
  • Completing income tax returns.
  • Helping the business owner to understand the impact of his financial decisions.

The accounting process provides reports that merge the important financial indicators of a business. The result is that the business owner better understands the state of his business and is aware of how profitable the business is.

The accounting process takes the information in the ledger and breaks it down in such a way that it reveals the bigger picture of the business. This helps the owner to plan and set down strategies for growth and business advancement.
accounting vs bookkeeping

The Difference

Basically the difference is that while the bookkeeper is tasked with recording that transactions and keeping the business financially organized, the accountant helps to make the sense of the financial records. The accountant is more like a consultant.


So now that you know the difference, you need to ask yourself: What do I need for my business? Is it an accountant or a bookkeeper?


If you are still confused, you can simply employ the services of an accounting firm in Malaysia, who will help you manage your finances and you will not have to worry about a thing. Feel free to get in touch with us.


Your finances is the most important part of your business. Take it seriously.

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8 Reasons Why Bookkeeping Is Essential For SME

bookkeeping

8 Reasons Why Bookkeeping Is Essential For SME

Bookkeeping is very vital for SME businesses because it helps them to maintain accurate financial records. Despite its being important, many business owners fail to employ it in their business process. Most of them do bookkeeping because it is required under law not because they see it as necessary.

 

But the truth is that bookkeeping can take your business to a whole new level.

Why Bookkeeping Is Essential For SME

1) It Helps Your Budget

Bookkeeping helps you to maintain your budget. When you have all your income and expenses outlined in an organized manner, it becomes easier to perform an audit to know where you stand as a business.


With your budget intact, you can plan ahead and decide where you want your business to be financially in the near future. It also helps you to plan for future expenses.

budgeting

2) Tax Preparation

In Malaysia, businesses are required to file a tax return every year. But what happens most times is that when it’s time to file the report, many business owners are trying to get the paperwork right because their book is not well organized. This makes the whole process tedious and annoying.

However, with bookkeeping, the tax filing process becomes easier. You don’t have to mess up your office looking for missing paperwork. So when bookkeeping is in place you are prepared for tax time.
tax preparation

3) Analysis

Bookkeeping is an analysis tool, it helps you to analyze your business and determine where your business is based on performance. When you do bookkeeping, you generate financial statements and these statements helps you to analyze the business properly.

When you are analyzing your finances, you will be able to track your cash flow. It helps you know what is working in your business and what is not.
analysis

4) Helps you Plan

Bookkeeping gives you the past financial performance of your business. This past performance helps you to plan for the future. This is because when you have a view of the past you will see areas of the business that needs adjustments and areas that you may have to cut off totally.

business planning

5) Helps you report to investors

At one point or the other in your business, you would need investors and they will want to know how your business is performing financially. They will want to look at your balance sheet, your income statement and your cash flow statement.

These statements are all products of bookkeeping and it helps your investors to know where the business is and how to invest. When you practice bookkeeping, these financial statements will be easily available and it will show your investors that you are serious with business.
investor report

6) Financial Management

Bookkeeping is essential because it allows you to be in control of the finances of your business. It shows you how much money you spend and also gives you an overview of how much money you owe. This way you are informed and you make good decisions based on that information.

financial management

7) Monitor Profit and Growth

Many business owners do not even know if their business is growing or not because they do not have any indicator for monitoring growth. But if you practice bookkeeping or will help you to know the profitability of your business.

You will know if you are making a profit or running at a loss. It will help you know if your business has taken a quantum leap or not. Understanding the growth of your business goes a long way in managing your business effectively.
profit and growth

8) Better Cash Flow

Finally bookkeeping helps you to maintain a good cash flow in your business. Money is not held up in unnecessary debts and your business is taken to a whole new level.

cashflow
The importance of bookkeeping cannot be overemphasized. It’s something you have to do if you are an SME in Malaysia. It’s vital for your growth. To find out more about bookkeeping services in Malaysia, feel free to get in touch with us.
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What You Should Prepare For Your First Business Audit

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What You Should Prepare For Your First Business Audit

Most business owners are scared of the word “audit”, it has been made to look like a bad word because once it is mentioned, and the business owner starts thinking about the Inland Revenue Board (IRB). However, they fail to understand that the IRB tax audit is not the only type of audit on the planet, there are others which a beneficial for your business.

Many businesses, mostly multinationals do internal self-audits per annum to make sure that their books are accurate. External audits may be necessary if your business is applying for certifications or any other programs. And if your tax return is not accurate then the IRB can audit you.

But the question is, what is an audit?

For a small business, an audit is an examination of the accounting books and tax returns of the business to ensure that that are correct and are compliant to the relevant laws.

How is a small business audit conducted?

There are different types of small business audits but all of them share the same characteristics and they involve similar processes. The auditor is the person who performs the audit, he can either come from within the organization if it’s an internal audit or from outside the organization for an external audit. The auditor will then do a careful evaluation of your accounting books and financial statements.


For your auditing process, you can either give the auditor a physical copy of your books or you can give the auditor access to your accounting software. Usually the auditor goes through a year’s worth of financial data. If you want the auditing process to be faster you will have to make sure that your books are organized and not messy. This means that you would have to maintain a good bookkeeping process.


When the auditor is done, he sends you an audit report. This report is a statement that contains the auditor’s identity, the scope of the audit and if the financial records of your business is accurate or not.

Types of Small Business Audits

There are basically three types of small business audits.

1) Internal Audit

This is an audit conducted within the business by the business owner. It is carried out by the accounting department of the business. This is usually done once a year and it is not submitted to any external body. It is solely for the good of the business and its owner. An internal audit can also be outsourced to an audit firm in Malaysia.

2) External Audit

An external audit is also called an independent audit. It is carried out by someone outside the business. It is independent because the auditor is not loyal to the business and will not compromise the results of the audit.

This type of audit is carried out in order to comply with a legal requirement or maybe to get a certification. After the audit the external auditor will provide you with an audit report.

3) IRB Audit

If your tax returns shows discrepancies then the IRB will impose tax penalty on the discrepancies during tax audit on your business. If you are innocent, this is not a process to be scared of. It is actually something you should embrace as it shows transparency.

How do you prepare for an audit?

You prepare first of all by getting your books in order. Make sure that your books are organized. Then after that you can conduct your internal audit to make sure everything is in place before submitting your business for an external audit or an IRBM audit.

 

Still have questions? Please feel free to get in touch with us 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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How Does Transfer Pricing Work In Malaysia

transfer pricing in Malaysia

How Does Transfer Pricing Work In Malaysia

Transfer Pricing Malaysia

Transfer pricing is an accounting practice by which inter-company generally makes reference to companies who are part of the same Group or related companies.

Over the years, Malaysia has become one of the fastest growing business hubs in the world because of her business friendly environment and central location. More than half of the world’s population lives within a 5-hour radius of Malaysia, and several business tycoons are looking to establish their companies on her soil.

Due to this, tax audit activities have intensified especially for Transfer Pricing. Tax payers who are involved in related company transactions must prepare “transfer pricing documents” which needs to be submitted to the tax authorities when requested.

Transfer Pricing Obligations in Malaysia

Malaysia has a list of items that should be included in the Transfer Pricing Documentation as follows:
  • The organizational structure, containing an organization chart which shows the parties involved in any controlled transaction.
  • Nature of business/ industry and market conditions
  • The controlled transaction.
  • Pricing policies
  • Assumptions, strategies, as well as information pertaining to factors influencing the pricing policy established.
  • Functional, comparability, and adequate risk analysis.
  • Selection and Application of the transfer pricing method.
  • Financial information
  • Documents used in developing the transfer pricing system index.
  • Any other relevant information or document for determining price.
Note that all transfer pricing documentation must be written in English or Bahasa Malaysia. Also note that it is not mandatory to submit transfer pricing documentation when filing a tax return. Nevertheless, these documents must be provided to the Malaysian Inland Revenue Board (IRB) within 30 days, and it must be kept in the administration for 7 years.

The Transfer Pricing Guidelines now has two other requirements in addition to the transfer pricing documentation. These are the Country-by-Country reporting, and the Master File.

Country-by-Country Reporting (CbCR)

This applies only to Multinational Enterprises (MNEs) with consolidated revenue of RM3 billion or more in the previous financial year.

In the event that the Malaysian company is the ultimate holding company of an MNE that fulfils the requirement above, the company should prepare and submit the following documents:
  1. Complete the notification for reporting entity to notify the Director General in writing if it is the ultimate holding entity on or before the last day of the reporting FY (i.e. 31 December 2019 if the tax payer’s year end is 31 December 2019). Please note that the notification letter will have to include details of all Malaysian and foreign non-reporting constituent entities
  2. Complete the CbyCR and submit it to the tax authorities on or before 12 months from the last day of the reporting FY (i.e. 31 December 2020 if the tax payer’s year end is 31 December 2019).


Malaysian companies who are subsidiaries of the MNE (either Malaysian based or foreign based ultimate parent) only has to fill up and submit the notification letter to notify the IRB in writing of the identity and tax residence of the reporting entity.

Master File

The IRB has also mandated the submission of a Master File alongside the transfer pricing documentation (also known as Local File) and CbCR. Any MNE which meets the criteria for submitting the CbCR in Malaysia, must also present the Master File.


What would happen when you fail to comply with the rules of transfer pricing Malaysia?


The following penalties or fines will be imposed on you when you fail to comply with the rules:

  • Omission or understatement of income will attract a 45% penalty
  • Failing to provide a contemporary transfer pricing documentation will attract a payable tax of 35%;
  • If transfer pricing documentation is not prepared according to the guidelines, a payable tax of 25% is the fine.

For more information, feel free to 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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Tips For Auditing Your Malaysian Company For The First Time

tips for auditing your malaysian company

Tips For Auditing Your Malaysian Company For The First Time

Do you own a startup company in Malaysia and wish to have this company registered as a private limited company?

 

If you do, it is worth knowing that it is mandatory and a core requirement under the Companies Act of Malaysia for every private limited company carrying out commercial activities in the country to appoint a qualified and registered independent auditor, audit firm in Malaysia, or accounting firm Malaysia, for auditing the company’s account annually and reporting to the company.

 

An audit in Malaysia involves procedures in order to obtain assurance and clarity as to a Malaysia company’s accounts and financial statements, and certifying that these statements were prepared according to the statutes of Malaysia Private Entities Reporting Standard / Malaysia Financial Reporting Standards for private limited companies and the Companies Act 2016.

 

Auditing is essential and compulsory for every private limited company in Malaysia regardless of the size or age of the company. In other words, whether or not you’re just starting out your company, if indeed you are seeking to have your company registered as a private limited company in Malaysia, you must ensure that you have an auditor in your service to qualify you to have a Malaysia company registration.

 

And before appointing an auditor, ensure the financial statements of your company are in accordance with the statutes of Malaysia Private Entities Reporting Standard / Malaysia Financial Reporting Standards for private limited companies and the Companies Act 2016.

1. How do you get a qualified or approved auditor?

The Companies Act of Malaysia stipulates that the annual audit of your private limited company must be done by an approved company auditor, audit firm or accounting firm in Malaysia. An approved company auditor is an auditor certified by the Malaysian Ministry of Finance. Whoever you appoint to audit your companies account must be approved and certified by this Ministry and if not, your audit will not be valid.


Any applicant wishing to be your company’s auditor must be an approved member of the Malaysian Institute of Accountants (MIA) and must be able to present a valid certificate of academic qualification, as well as an audit licence approved by the Ministry of finance, and must have relevant professional experience.


Note that whoever you appoint as your company auditor must be external or independent, and not an employee in your company’s payroll. An audit firm or an accounting firm in Malaysia may be appointed as auditors in the firm’s name.

2. What to expect from the auditor's report

The auditor’s report following the financial statements issued in a company’s yearly report gives the guarantee to users of the financial statements that these statements are free from errors. In Malaysia, the MIA stipulates that audits must be performed in accordance with the approved auditing standards to ensure quality of work.


Whatever the auditor encounters while auditing the financial statements must be documented as required by the standard on Audit Working Papers, but these documentation used to be kept secret from the users of audit reports. What users get is simply a conclusion or opinion of the auditor. But this practice changed when MIA introduced ISA 701, Communication of Key Audit Matters (KAM) into the auditor’s report for listed issuers.


The auditor’s report is now required to include an additional paragraph at the bottom, disclosing salient issues of the greatest significance during the audit process. This will enlighten the users involved in the critical areas of the audit, as well as why and how the auditor arrived at his/her conclusion.

Even at that, the public still clamors for the audit process to be more transparent.


All in all, ever since MIA issued ISA 701 in 2016, it has been a new dawn in Malaysia auditing process. Information that was hitherto privy to only the auditor and his or her client, is now required by law to be included at the end of the auditor’s report. This information is regarded as the most critical or significant point of the auditing process, and such information must be disclosed to you, being in charge of the company.


For more information, feel free to get in touch with us. 

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Sustainability Reporting For Malaysian SME

sustainability report

Sustainability Reporting For Malaysian SME

Several top-listed companies in Asia are carrying out sustainability reporting, but these companies or organizations still have a long way to go when it comes to enhancing the quality of their reports. Sustainability reporting comes with several benefits. With sustainability reporting, companies can now consider the impact they have on an extensive array of sustainability issues.This helps them to have a clearer insight of the dangers and opportunities they encounter.

 

The term sustainability reporting is seen as the ideal initiative for imparting sustainability performance and effects. A sustainability report shouldn’t be seen as a complicated document; this report is simply about the environmental and social performance of a company or an organization. A sustainability report is very significant, thus it’s recommended that all organization prepares one. Internationally, there are calls for organizations to enhance their sustainability practices and reporting.

Is Sustainability Reporting Mandatory?

In some countries, sustainability reporting is mandatory. In Malaysia, for instance, this report is currently mandatory for listed issuers. It, however, offers organizations a wide array of benefits. A sustainability report is also beneficial to SME, and most SMEs in Malaysia adopt it to measure, grasp, and discuss their economical, social, governance performance, and then set aims, and handle change in an effective way.

 

Accounting firms in Malaysia aren’t left out as well; they also embrace sustainability reporting which helps improve their accounting services in Malaysia and also help them to provide real and genuine proof of their sustainability level.

 

As several firms have accepted sustainability reporting, the most used framework has been the Global Reporting Initiative (GRI) sustainability reporting framework. This term is very similar to various terms for non-financial reporting, corporate social responsibility (CSR) reporting, and triple bottom line reporting. Breeding trust in governments and businesses as well as maintaining the reputation, it is significant to accomplish a sustainable economy.

 

Each day, several decisions are made; these decisions always have a direct effect on their stakeholders, like civil society, financial institutes, labor organizations, and how much they trust them. These decisions aren’t only based on just financial details; they are also based on an appraisal of various dangers and opportunities by adopting information on several current and future problems.

 

However, there is a rising trend around the world to regard SMEs as a congregated group when considering sustainability issues. SMEs in Malaysia aren’t left out in this latest trend. Although, having this consideration should be regarded as one of the most significant issues in the business world of today, managements of most SMEs are not aware of the significance of sustainability reporting to business activities in the recent economic world.

What Should a Sustainability Report Contain?

Sustainability reporting lacks a standardized format but typically involves disclosing a company’s environmental, social, and governance (ESG) goals, along with detailing the company’s progress and efforts in achieving these goals. Beyond ESG initiatives, sustainability reporting also encompasses financial elements. This type of reporting provides stakeholders, such as investors, with valuable insights into a company’s performance that extend beyond traditional financial metrics.

Sustainability reporting for Malaysia SMEs comes with lots of benefits which are highlighted below:

  • High comprehension of several businesses risks and opportunities
  • Emphasizing the connection between financial performance and non-financial performance
  • Affecting business plans, including long-term management techniques
  • Comparing achievements internally, and between companies and other sectors
  • Preventing issues like being implicated in publicized environmental, and governance failures
  • Streamlining several procedures, mitigating costs and enhancing efficiency
  • High comprehension of several businesses risks and opportunities
  • Emphasizing the connection between financial performance and non-financial performance
  • Affecting business plans, including long-term management techniques
  • Comparing achievements internally, and between companies and other sectors
  • Preventing issues like being implicated in publicized environmental, and governance failures
  • Streamlining several procedures, mitigating costs and enhancing efficiency

Examples of sustainability reports:

  • Reducing the negative impact of environmental, social and governance activities, as well as enhancing reputation and loyalty of brands
  • Making external stakeholders grasp the genuine value of the organization, including real and unreal assets.
  • Proving how organizations control, and are controlled by expectations regarding sustainable growth

In a Nutshell

In fact, it’s advisable for all businesses to have sustainability reporting, which comes with several benefits, such as allowing a company to stay away from danger and be responsive to any oncoming opportunities.

 

To find out more about sustainability reporting, please feel free to get in touch with us.

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Choosing The Right Accounting Firm For You

choosing the right accounting firm

Choosing The Right Accounting Firm For You

Each passing year legislators alter tax laws, leaving the averaged individual puzzled when confronted with financial choices such as selling investment properties or obtaining a tax deduction for a home office.

Accounting firms in Malaysia are accustomed to the new tax laws, and many of these firms provide excellent advice and assist people, including little business, make necessary budgets and set reachable financial targets. Immediately you decide that it’s high time you require the help of an accounting services in Malaysia, the next thing to do is to select the accountant to hire.

It’s crucial that you take your time to search for the right accounting firm in Malaysia, and there exist some few things you would like to consider before doing this. You’ll need to look at things like the geographical location of the accountant, the workload division, and the type of accounting software you adopt.

Also, ensure you go for an accounting firm in Malaysia that is well accustomed to the various Tax Incentives in Malaysia. Carefully consider the rate of the accountant, and whether they can help in solving your financial issues. If you are trying to choose between the vast amounts of accounting firms in Malaysia, here are five points to have in mind.

What Qualifications Do They Have?

Every accountant has to be qualified; this is a must!

You must scrutinize the qualifications of individuals working at any prospective accounting firm in Malaysia. Most accountants have taken a finance-related bachelor’s degree, while some own a postgraduate degree as well.

Also, accountants in Malaysia must belong to one of the seven accounting bodies:

 

To become a member of these accounting bodies, an individual would have to undertake some professional exams or courses prepared by the respective accounting bodies, to prove their skill level.

 

When your accountant boasts one of these memberships, it offers you greater confidence and security. If peradventure an issue arises, you can make a complaint with that body directly.

Do They Offer A Range Of Accounting Services?

For businesses especially, you will need an accounting firm in Malaysia that offer a range of accounting services, like financial management, auditing, succession planning and cash flow analysis.


A firm like this will effectively complete your tax returns; they can offer you the best advice concerning the financial situation of your business.

Are They Familiar With Your Industry Or Individual Situation?

When you contact a prospective accounting firm, ask them about their current customers. Have they handled individual business? You’ll have to find an accounting firm that is well accustomed to your industry or personal problem, as this denotes that they are equipped with the necessary experience to provide you with the best accounting services.

What Are Their Fees Like?

Fees are a very significant consideration, after all the fees your accountant charge you will have to conform to your budget. Most accounting firms calculate their fees in either per hour or at a fixed rate.


How these fees are evaluated, and the general amount charged hinges on the accounting firm, so ensure that you know the cost of everything before agreeing to use their services.

Conclusion

When hiring an accountant, it is paramount that they have access to crucial information regarding your finances. It is therefore significant that you hire the services of a genuine and trustworthy accounting firm in Malaysia. Ensure that you like whoever you eventually choose, to build a good relationship.

 

To find out more about our services, please feel free to get in touch with us.

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