COUNTRY

Vietnam

BOOKKEEPING AND ACCOUNTING SERVICES IN MALAYSIA

We at Relin Consultants are always eager to supply you with expert and comprehensive accounting and bookkeeping services in Malaysia. 

WHAT IS BOOKKEEPING?

The recording of a company’s financial transactions on a regular basis is referred to as bookkeeping. Companies can track all information on their books to make crucial operational, investment, and financing choices with effective bookkeeping.

Regardless of your company structure or the location of your company, bookkeeping is a very important aspect that you should take note of. There are a lot of key elements when it comes to bookkeeping, and fortunately for you, we have listed those elements, which you can see below.

WHAT EXACTLY IS BOOKKEEPING IN MALAYSIA?

Bookkeeping entails tracking and categorizing all financial activities in your company. It records how much money your company spends and how much money it gets. Depending on the sort of accounting system used by the company, each financial transaction is documented using supporting documentation. That paperwork might be a receipt, an invoice, a purchase order, or any sort of financial record demonstrating that the transaction occurred.

Bookkeeping transactions can be documented manually in a journal or electronically using a spreadsheet tool such as Microsoft Excel. Most companies today keep records that show their financial activities using specialist bookkeeping computer applications. To record financial transactions, bookkeepers can utilise either single-entry or double-entry bookkeeping.


WHAT IS THE DIFFERENCE BETWEEN BOOKKEEPING AND ACCOUNTING?

Bookkeeping is an important but preliminary role in the accounting function of a business. A bookkeeper gathers evidence for each financial transaction, writes it in an accounting journal, categorises it as one or more debits and one or more credits, and arranges it according to the company’s chart of accounts.

Although all financial transactions are documented, they must be summarised at the conclusion of specified time periods. Some businesses need quarterly reports, while other smaller businesses may simply require reports at the end of the year in order to file taxes.

The accountant takes over at the conclusion of the relevant time period and analyses, analyses, interprets, and reports financial information for the company entity. The accountant also compiles the company’s year-end financial statements and accounts. The accountant’s year-end reports must correspond to the standards specified by the Financial Accounting Standards Board (FASB), or often referred to as the Generally Accepted Accounting Principles (GAAP).


IMPORTANT ELEMENTS IN BOOKKEEPING IN MALAYSIA

Understanding the company’s fundamental accounts is required for effective bookkeeping. The chart of accounts for the company is made up of these accounts and their sub-accounts. The accounts that comprise the balance sheet of a company are assets, liabilities, and equity.

Assets

Assets are the things that the company possesses, such as inventory and accounts receivable. Fixed assets, which are often the plant, equipment, and land, are also included in the definition of assets. When you look at the arrangement of a balance sheet, you’ll notice that the asset accounts are displayed in the order of their liquidity. Since cash is fully liquid, asset accounts begin with it.

Following the cash account are the accounts for inventories, receivables, and fixed assets. These are tangible assets, and you can touch them. Intangible assets, such as customer goodwill, may also be included on a company’s balance sheet.

Liabilities

Liabilities are what the company owes to its suppliers, bank and business loans, mortgages, and any other debt on the records. A balance sheet’s liability accounts comprise both current and long-term liabilities.

Accounts payable and accruals are common examples of current liabilities. Accounts payable often refer to what the company owes to its suppliers, credit cards, and bank loans.

Equity

The investment that a business owner and any other investors have in the company is referred to as equity. The equity accounts comprise all of the owners’ claims against the company.

The business owner has made an investment, which may be the company’s lone investment. If the business has taken on more investors, this is shown here.

At the end of the year, you need to balance your bookkeeping records. The bookkeeper must maintain close track of these elements and ensure that transactions involving assets, liabilities, and equity are recorded appropriately and in the correct place. You may use a simple formula to ensure that your books are always balanced, which is called the accounting equation. 

The formula is as follows: – 

Assets=Liabilities + Equity

The accounting equation states that whatever a company has (assets) is weighed against claims made against the company (liabilities and equity). Liabilities are demands for money owed to suppliers and lenders. The remaining assets are subject to claims by the owners of the business (equity).

WHO IS IN NEED OF BOOKKEEPING SERVICES IN MALAYSIA?

Bookkeeping services are adequate for the majority of businesses, particularly in Malaysia, albeit they may want accounting services for other reasons. Every company is required by the “Suruhanjaya Syarikat Malaysia (SSM)” and the “Lembaga Hasil Dalam Negeri Malaysia (LHDN)” to have properly accounted financial documentation and records.

WHY SHOULD I OUTSOURCE MY ACCOUNTING AND BOOKKEEPING IN MALAYSIA?

There are several good reasons why you should outsource your accounting and bookkeeping to a professional firm like ours. Below are the 4 main reasons why you should do so: –

  • Financial reporting that is accurate and significant – Keeping your books up to date and accurate, as well as helping you understand your business’s numbers.
  • A comprehensive solution – Providing you with a complete financial picture of your company and assisting you in creating budgets, predictions, and tax planning throughout the year.
  • Concentrate on development – Freeing up time to focus on growing your business without interruptions.
  • Cost-efficient – Save money on recruiting, hiring, training, compensation, taxes, and employee benefits.

What are the accounting services in Malaysia that I should know of?

S.No Accounting Services in Malaysia Details
1. Audited Accounts Quarterly, half-yearly, and yearly accounting preparation
2. Profit Loss Profit and loss accounts
3. Ledger Ledger book building
4. Balance sheet Balance sheet

BOOKKEEPING FEES IN MALAYSIA

The bookkeeping fees in Malaysia can vary depending on the complexity of the work involved, the size of the business, the experience and qualifications of the bookkeeper, and other factors. However, here are some general guidelines for bookkeeping fees in Malaysia:

Hourly rates – Bookkeepers may charge hourly rates ranging from RM30 to RM150 per hour, depending on their qualifications, experience, and the type of work they do.

Monthly fees – Some bookkeepers may charge a monthly fee ranging from RM300 onwards, depending on the size of the business and the amount of work involved.

Transaction-based fees – Some bookkeepers may charge a fee based on the number of transactions they handle each month, with prices ranging from RM1 to RM5 per transaction.

Project-based fees – For specific bookkeeping projects or tasks, bookkeepers may charge a fixed fee, which can range from a few hundred to several thousand ringgit.


WHY SHOULD I USE THE SERVICES OF RELIN CONSULTANTS FOR THE BOOKKEEPING OF MY BUSINESS?

We are pleased to inform you that by outsourcing your business’s bookkeeping to us, we will cover the following items: –

  • Monthly, quarterly, and yearly bookkeeping services.
  • Statutory reporting on financial statements.
  • Bank account reconciliation.
  • Financial budgeting and thorough accounting analysis.
  • Consolidation of group accounts.
  • Advisory to optimize financial accounting process.
  • Accounting system setup and implementation.
  • Accounting Standards compliance.

If any of the items above entices you, don’t hesitate to contact us enquiry@relinconsultants.com. We will do everything that it takes to ensure your company or business’s bookkeeping is optimized.

FAQs

What exactly is the distinction between a bookkeeper and an accountant?

A bookkeeper keeps track of and categorises a company’s daily financial activities. An accountant expands on the data supplied by the bookkeeper.

How can I obtain an accounting report while travelling abroad?

As an accounting report, it will be generated every month and delivered through email which can be checked and examined abroad.

Should I outsource the bookkeeping and accounting of my company if my company is just a small business in Malaysia?

Yes, accounting and bookkeeping are critical for business success in Malaysia, regardless of the size of your company. You will be able to gain valuable insights in business planning by outsourcing your bookkeeping to a professional team like Relin Consultants.

Why do smaller companies require bookkeeping services?

An accurate, well-kept set of books is a good place to start when it comes to running a profitable business. Below are the reasons. 

  1. a) You can ensure that you are earning more money than you are spending.
  2. b) You will have accurate financial data for planning and budgeting purposes.
  3. c) You can predict and avoid a cash crisis by keeping track of when you need to pay suppliers and when you might expect payment from consumers.
  4. d) You are more likely to discover improper payments (or even fraud) that might cost you money.
  5. e) You are capable of completing accurate tax returns.

f) Having your financial information organised makes it easy to collaborate with others, such as lenders, investors, and accountants.

How does the bookkeeping process work?

Recording and reconciliation are the two most crucial duties in proper small company bookkeeping. Further explanations of the recording and reconciliation process are as follows.

Recording every transaction

  • Keep records of your sales. Traditionally, this was accomplished by entering them into a cash book or punching them into a spreadsheet. Sales data from point-of-sale or invoicing software is increasingly being downloaded straight into the books of business owners.
  • Keep track of your transactions. Every business-related purchase must be documented.

If you intend to claim the expenditure as a tax deduction, you should also save the evidence of purchase. Again, you may record this information in a book or spreadsheet. Alternatively, you may automate the process so that all debits from your company bank account go into your bookkeeping software.

  • Depending on whether you use cash or accrual accounting, you might record income and costs at various periods.

Reconciling every transaction

  • Reconciliation is routinely comparing your business records to your bank accounts to ensure that the transactions and balances match – and determining why they don’t. Bank fees, interest payments, deposits, and payments that have not yet been received in your bank accounts must frequently be accounted for.
  • Depending on the number of transactions in your organisation, you may perform bank reconciliation daily, weekly, monthly, or less regularly. However, you will very certainly be forced to reconcile your records before submitting tax returns.
  • The sooner you reconcile transactions, the sooner problems may be discovered and fixed. It might be a good idea to do it daily so that the work doesn’t pile up.

How can the usage of software help in the bookkeeping process?

Many smaller companies utilise online bookkeeping software to expedite these tasks and reduce the likelihood of human data input mistakes. These tools can do the following.

  1. a) Retrieve transaction data directly from POS systems, invoicing applications, and banks.
  2. b) Significantly accelerate bank reconciliation.
  3. c) Automatically pay invoices.
  4. d) Send automated invoice reminders to individuals or entities that owe you money.
  5. e) Receive notifications when sales invoices are paid.
  6. f) Monitor cash flow from your phone.

What are the common abbreviations used in bookkeeping?

Among the common abbreviations that are used in bookkeeping are: – 

A/c : Account

A/R : Account receivable

A/P : Account payable

B/S : Balance sheet

G/L : General ledger

P/R : Payroll

TB : Trial balance

EAT : Earning after tax

PAT : Profit after tax

Depr : Depreciation

Can a bookkeeper claim to be an accountant?

Usually, the work of a bookkeeper is monitored by either an accountant or the small business owner whose books they are completing. As a result, a bookkeeper cannot call himself or herself an “accountant.”

What exactly does GAAP mean, and what are its objectives?

The Generally Accepted Accounting Principles (GAAP) are a collection of accounting rules and regulations for financial reporting that are generally followed. GAAP aims at enhancing the clarity, uniformity, and comparability of financial information communication.

RELATED BLOGS

Singapore has a goal to transform its economy and establish itself as a global leader in business, technology, and innovation. The Productivity Solutions Grant (PSG) aims to assist businesses and organizations in utilizing equipment and technology to enhance their operations. It includes many small and medium-sized businesses (SMEs), e-commerce, and food. It provides sector-specific solutions [...]

Corporate taxes may impact a company's capacity to hire more employees and make operational investments. Corporate tax considerations are a major deciding factor in Singapore company registration. In Singapore, the corporate tax rate is 17%. Singapore is a desirable tax haven for businesses globally due to its low corporate tax rate and tax policies that [...]

Although there are many advantages to operating an online store in Singapore, many small businesses face difficulties with running out of cash. This could be the result of the fact that many business owners in Singapore manage their online ventures without complying with e-commerce accounting procedures. Since there are more transactions and sales in e-commerce, [...]