At our accounting firm, we take pride in being the leading provider of professional accounting services in Malaysia. With years of experience and a team of highly skilled experts, we offer comprehensive accounting solutions to meet the diverse needs of businesses in various industries.
Malaysia Accounting Services
In Malaysia, we offer a range of accounting services to help businesses achieve their financial goals and meet reporting requirements. Here are some of the common accounting services we provide:
1. Cash Flow & Working Capital Analysis
We assist small and medium enterprises (SMEs) in identifying, assessing, and addressing gaps in the management of their working capital and cash flow. This analysis helps businesses optimize their financial resources and improve liquidity.
2. Account Consolidation Services & Financial Statements
We empower company shareholders by providing consolidated financial statements, which give a comprehensive view of the company’s financial status. This service helps stakeholders understand the overall financial performance and position of the company.
3. Management Reports & Accounts
We offer accurate and timely financial and statistical information to managers. These reports aid in making informed day-to-day and short-term decisions, enabling effective financial management within the organization.
4. Financial Planning & Budgeting
Our services help SMEs structure and implement proper planning and budgeting practices. We assist in managing financial resources effectively, setting realistic financial targets, and monitoring performance against the budget.
5. Other Accounting Services
We provide a range of additional accounting services to support businesses, including:
Our aim is to support businesses in Malaysia with their accounting needs, enabling them to streamline their financial processes, make informed decisions, and meet their financial goals effectively.
Accounting Standards in Malaysia
Determining the Financial Year-end Date for Malaysia Companies
As per the provisions of the Companies Act 2016 in Malaysia, companies have the flexibility to determine the date of their financial year-end. Unlike some jurisdictions that prescribe a specific financial year-end, Malaysian companies have the autonomy to choose a date that aligns with their business operations and preferences.
However, regardless of the chosen financial year-end, every company is obligated to prepare financial statements for a period not exceeding 18 months from the date of incorporation. These financial statements serve as crucial documents that provide an overview of the company’s financial performance, position, and cash flows.
Once the financial statements are prepared, companies are required to submit them to two important regulatory bodies in Malaysia: the Companies Commission of Malaysia (SSM) and the Inland Revenue Board of Malaysia (IRBM). This submission ensures compliance with regulatory requirements and facilitates transparency in financial reporting.
While companies have the freedom to select their financial year-end, it is common for many companies in Malaysia to choose either the last day of the calendar year, 31 December, or the last day of a quarter, such as 31 March, 30 June, or 30 September, as their financial year-end. These dates often coincide with the natural conclusion of accounting periods, making them convenient options for financial reporting and analysis.
Meeting Accounting and Tax Compliance Requirements in Malaysia
1. Bookkeeping
In Malaysia, adherence to regulatory guidelines mandates that every company maintain accurate and comprehensive records of their financial transactions. These records encompass invoices, receipts, income records, purchase and expense records, as well as various accounting and statement documents. By implementing effective bookkeeping practices, businesses gain several advantages, including obtaining a clear financial outlook, developing a deeper understanding of their performance, swiftly identifying potential financial mismanagement, and effectively monitoring company expenses.
2. Annual Financial Statements
Under the Companies Act 2016, it is the responsibility of company directors in Malaysia to prepare annual financial statements within 18 months of the company’s incorporation and within six months after the end of the financial year. Prior to distribution, these statements must undergo an audit and subsequently be provided to company members, recipients of general meeting notices, auditors, and debenture holders. Public companies are further required to present their financial statements at the annual general meeting. Directors failing to comply with these obligations may face penalties.
The annual financial statements play a vital role in accurately depicting a company’s financial position and performance. This includes disclosing director’s remuneration, retirement benefits, compensation for loss of office, loans and other transactions involving directors, and auditors’ remuneration. Private companies must file their financial statements and reports in XBRL format with the Companies Commission of Malaysia (SSM) within 30 days of distributing them to company members.
3. Annual Audit
In Malaysia, most companies undergo an annual audit, except those meeting specific criteria for audit exemption. Such exemptions apply to dormant companies (not involved in business activities or accounting transactions), zero-revenue companies (with no revenue in the present and past two financial years, and total assets below RM 300,000), and threshold-qualified companies (meeting specific criteria for annual revenue, total assets, and employee count). However, sole proprietorships and partnerships in Malaysia generally enjoy exemption from annual financial statement audits.
4. XBRL (eXtensible Business Reporting Language)
Malaysia has adopted XBRL as the standard format for processing financial data, offering advantages in terms of cost-effectiveness, enhanced efficiency, and improved accuracy. The Malaysian Business Reporting System (MBRS) serves as an XBRL-based platform through which registered companies can submit both financial and non-financial information. Financial components covered by XBRL include financial statements and reports, annual returns, exemption applications, as well as key statements such as the income statement, balance sheet, statement of changes in equity, and cash flow statement.
Compliance with these accounting and tax requirements is of paramount importance for companies operating in Malaysia. By fulfilling these obligations, businesses can ensure accurate financial record-keeping, maintain transparency, and uphold regulatory standards. Ultimately, compliance fosters trust, stability, and credibility within the business environment.
Your Trusted Malaysia Accounting Firm
With years of experience in the industry, we have a full range of computerised accounting and bookkeeping services.
Your company’s accounting function is in good hands with our professional accountants.
Malaysia Accounting Articles
Deep dive into Malaysia accounting standards and beyond to understand more about the regulatory compliance needed.
Why Outsource Your Accounting Function
In today’s fast-paced business environment, outsourcing your company’s accounting function to a professional accounting firm in Malaysia can offer numerous advantages. Here are compelling reasons to consider outsourcing:
Outsourcing your accounting function offers significant advantages, including cost savings, time efficiency, deadline compliance, superior quality of work, and access to up-to-date regulatory knowledge. By partnering with a trusted accounting firm in Malaysia, you can streamline your financial operations, enhance your business performance, and focus on strategic initiatives that drive long-term success