Malaysia in the last few years has entered into the realm of impressive economic growth and is continuing on its path to betterment with warp speed. It is opined by many that Malaysia`s upward trend of economic growth will continue not just for 2019 but for many years to come given the continued and relentless efforts of the Malaysian government to attract investment with its pro-business initiatives. If you are looking to invest in Malaysia as there are many industries that are set to boom in 2019, then you may like to know the benefits of outsourcing accounting and bookkeeping services in Malaysia.
Why Outsource Accounting And Bookkeeping Services in Malaysia?
There are many benefits of outsourcing financial accounting and bookkeeping services in Malaysia.
- It is a cost-saving practice that not only big corporations make use of but many small and medium-sized enterprises too. Cost-saving through outsourcing will give you a chance to invest this saving towards your core business activities or towards research and development efforts to improve the quality or add more features to your products.
- You don`t need to buy any accounting software to comply with the sales and services tax of Malaysia. If you outsource accounting and bookkeeping service to seasoned professionals then, they probably already do possess the right software and this will indeed help you save thousands of dollars.
- With the recent changes in the indirect tax system of Malaysia, your in-house staff might be prone to commit some errors in accounting and bookkeeping due to lack of updated knowledge. However, by outsourcing accounting services your in-house staff won`t have to worry about deadlines to avoid penalties.
- You won`t be encumbered by constant training of staff to keep abreast of the changes in the accounting standards.
- Outsourcing usually and in almost all cases lead to better and meticulously prepared financial reports that are up-to-date with the latest standards of accounting and audit practice. The reports will be prepared keeping the requirements of the auditors in mind so that you don`t personally have to address their endless list of questions. This way you would avoid any disruptions from external auditors.
- Financial reports prepared by experts will help you analyze how your business is doing financially with the help of easy to comprehend graphs and data tailored to meet your business needs. It will also help you analyze weakness in your business operations so you may timely seek advice to overcome these weaknesses.
- It will help you streamline your business activities with the lowest possible costs.
- Outsourcing these services increases the efficiency of business operations with the maximum possible amount of returns.
- Forecast reports to better compartmentalize your capital and profits for investment and expansion of business operations.
Financial Accounting Standards Malaysia
Financial accounting standards in Malaysia for all sorts of enterprises are issued by the Malaysian Accounting Standards Board (MASB). MASB has made sure that the accounting standards of Malaysia are in accordance with the International Financial Reporting Standards (IFRS). These have been prepared and issued with the permission of the IFRS Foundation. The types of financial accounting standards in Malaysia for different types of entities are-
- Malaysian Financial Reporting Standards (MFRS) - It is an accounting standard for entities other than private entities.
- Malaysian Private Entities Reporting Standards (MPERS) - It is an accounting standard for private entities as the name suggests itself.
The financial reporting standards in Malaysia are not very hard to comprehend but it is a prudent and pragmatic practice to outsource accounting and bookkeeping services so that your business operations can be made more efficient and effective. Especially, if you have recently applied for company registration in Malaysia for your new business ventures in Malaysia then do go for these services from the very beginning and focus more on the core activities of your business and efficiently utilize your capital.
While producing financial reports and financial statements things that should be adhered to are-
- All sorts of investments made by your company must be accounted for in the reports.
- The information must be explicit and comprehensive for auditors to comprehend easily so that they don`t have to bother your accountants at every page of the report.
- The fair value of all the investments must be mentioned.
- The various kinds of financial statements that need to be produced include profit and loss statement, income statement, and a statement that gives a clear picture of your company`s financial position at the beginning of the comparative period.
If you have incorporated a company in Malaysia and are looking to reduce the burden from the shoulders of your in-house staff then outsource accounting and bookkeeping services. Don`t let your inactivity stretch on and take steps while the iron is hot and ask for assistance. The experts at Business Setup Worldwide will be your indispensable resource to prepare financial reports that are in compliance with the Malaysian financial reporting standards. Keep your mind free to strategize your company`s plan and make better business decisions. Contact us to talk to our experts who are equipped with accountancy expertise and can also help you with company registration, intellectual property services, and company secretarial services in Malaysia.