Malaysia’s Leading Accounting Firm

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Malaysia Accounting2024-03-15T12:19:30+08:00

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

In Malaysia, companies are obligated to maintain statutory financial statements in compliance with the accounting standards set forth by the Malaysian Accounting Standards Board (MASB). For foreign companies listed on the stock exchange, their financial statements should adhere to the International Financial Reporting Standards (IFRSs).

There are specific accounting standards applicable to different types of entities. Private entities are required to follow the Malaysian Private Entities Reporting Standards (MPERS), while entities that do not fall under the private entity category should adhere to the Malaysian Financial Reporting Standards (MFRSs).

It is imperative for companies to ensure that their financial statements are prepared in accordance with the relevant accounting standards applicable to their entity type. Compliance with these standards ensures accurate and transparent financial reporting 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.

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Your Questions, Answered

We’ve picked the top 5 questions that we get asked the most when it comes to accounting services in Malaysia.

What are the benefits of outsourcing accounting services in Malaysia?2023-07-27T17:09:53+08:00

Outsourcing your accounting function allows you to save money by avoiding the costs associated with hiring and maintaining an in-house accounting team. It also enables you to allocate your time and resources to core business activities, ensures compliance with deadlines, and provides access to professional expertise and up-to-date knowledge of regulations.

Can an accounting firm assist with tax compliance in Malaysia?2023-07-27T17:08:20+08:00

Yes, accounting firms in Malaysia often provide tax compliance services alongside their accounting services. This includes tax filing and computation, payroll tax reporting, advisory services, and ensuring adherence to tax regulations set by the Inland Revenue Board of Malaysia (IRBM).

What is XBRL, and how does it relate to accounting in Malaysia?2023-08-08T09:23:26+08:00

The eXtensible Business Reporting Language (XBRL) serves as a standardized format employed to process financial data. In Malaysia, registered companies utilize the Malaysian Business Reporting System (MBRS), an XBRL-based platform, to submit both financial and non-financial information. Through this system, financial components like financial statements, annual returns, and exemption applications are filed in XBRL format, ensuring consistency and facilitating seamless information exchange.

What are the statutory requirements for bookkeeping in Malaysia?2023-08-08T09:21:59+08:00

All companies operating in Malaysia are obligated to uphold meticulous records and accounts. This encompasses the diligent preservation of financial documents, including invoices, receipts, income records, purchase and business expense records, as well as accounting statements. Such records are of utmost importance for the seamless execution of the accounting process, serve as valuable business references, and ensure full compliance with regulatory requirements.

Can a sole proprietorship or partnership in Malaysia avoid annual financial statement audits?2023-07-27T16:53:08+08:00

Malaysian law does not require sole proprietorships or partnerships to have their financial statements audited annually. However, it is still important to maintain proper accounting records and comply with tax and reporting obligations.

Are there specific deadlines for submitting financial statements in Malaysia?2023-08-08T09:20:59+08:00

Yes. As per the Companies Act 2016 in Malaysia, companies are required to submit their financial statements to both the Companies Commission of Malaysia (SSM) and the Inland Revenue Board of Malaysia within specific timeframes. These deadlines are determined based on the company’s financial year-end.

Companies must ensure adherence to the prescribed deadlines to remain compliant with the regulatory requirements. The exact submission deadlines for financial statements may vary depending on when the company’s financial year concludes. It is essential for businesses to keep track of their financial reporting obligations and submit the required documents in a timely manner to avoid any penalties or non-compliance issues.

Are there specific regulations for the content of annual financial statements in Malaysia?2023-07-27T16:50:35+08:00

Yes, annual financial statements in Malaysia must provide a true and fair view of the financial position and performance of the company and its subsidiaries. Additionally, the statements should include information on director’s remuneration, retirement benefits, compensation for loss of office, loans and dealings in favor of directors, and auditor’s remuneration.

Do all companies in Malaysia need to prepare financial statements?2023-07-27T16:49:19+08:00

Yes, every company in Malaysia is required to prepare financial statements. The Companies Act 2016 mandates that companies must prepare financial statements within 18 months from the date of incorporation and subsequently within six months of their financial year-end.

What are the accounting standards used in Malaysia?2022-07-07T14:07:18+08:00

The two most common accounting standards are the USGAAP and the IFRS.

Is Malaysia using IFRS?2022-07-07T14:07:01+08:00

All companies in Malaysia have adopted the IFRS standards and the IFRS for SMEs Standard.

How often do I need to do my accounting?2022-07-07T14:06:48+08:00

Depending on your volume of activity, some companies do daily, weekly, monthly or even yearly accounting. As long come the company’s financial year end, there is reasonable accuracy achieved in compiling accounts for accurate tax reporting.

Is a professional accountant necessary for businesses?2022-07-07T14:06:35+08:00

It is highly encouraged for every business to have a professional accountant to comply with the annual compliance and avoid penalties.

What should I look for when hiring an accountant or accounting firm in Malaysia?2022-07-07T14:06:21+08:00

It is important to know if they are chartered or certified. Hiring and engaging an accounting firm that has relevant experience in your field will definitely be a plus. You should also consider engaging a local accounting firm, so they are updated with the latest regulations.

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:

1. Reinvestment of Cost Savings

By outsourcing your accounting function, you can save money that would have been spent on hiring and maintaining a full-time accounting team. These cost savings can be reinvested into other areas of your business, such as marketing, product development, or expanding operations. Outsourcing allows you to optimize your financial resources and allocate them strategically for growth and profitability.

2. Efficient Allocation of Time Resources

Engaging accounting services provides you with “instant employees” who are skilled and experienced in handling accounting tasks. This saves you the time and effort required for recruiting, training, and managing an in-house accounting team. By outsourcing, you can redirect your focus and resources towards core business activities, such as sales, customer service, and strategic decision-making. This allows you to make the most of your time and expertise, ultimately driving business success.

3. Elimination of Deadline Worries

Meeting financial deadlines, such as tax filings and financial reporting, can be a significant burden for business owners. By outsourcing your accounting function, you can alleviate the stress and pressure associated with these deadlines. Professional accounting firms have the expertise and systems in place to ensure timely and accurate completion of financial tasks. You can have peace of mind knowing that your financial obligations are being handled efficiently, allowing you to concentrate on managing and growing your business.

4. Superior Quality of Work

Outsourcing your accounting function to a reputable accounting firm ensures that you receive high-quality services. These firms employ certified and chartered accountants who possess in-depth knowledge and expertise in accounting principles, regulations, and best practices. Their professional qualifications and ongoing training enable them to deliver accurate financial reports, maintain compliance with relevant laws and regulations, and provide valuable insights to support your business decision-making processes. Outsourcing guarantees that your accounting tasks are handled with precision and attention to detail.

5. Up-to-Date Knowledge of Regulations

Staying abreast of changing accounting and tax regulations can be challenging for business owners. By outsourcing to a professional accounting firm, you can rely on their expertise to keep you informed and compliant with the latest regulations. Certified accountants constantly update their knowledge and stay informed about changes in accounting standards, tax laws, and reporting requirements. This ensures that your business remains in full compliance and minimizes the risk of penalties or legal issues.

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

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