What is accounting?
The primary role of an accounting firm is to prepare, examine and keep financial records. Their role becomes very clear when you need to comply with income taxes. Accountants help your business run efficiently by keeping all your financial transactions accurately and on time. They review your financial statements and check them for error or omissions that can become costly if left unchecked.
The accounting profession is carefully regulated in Malaysia and the title accountant is protected by a license requirement delivered by the Malaysian Institute of Accountants (MIA).
While you will need a license to open an accounting business in Malaysia, you can work as an accountant in the corporate world with a certification title such as the Association of Chartered Certified Accountants
(ACCA), or Chartered Institute of Management Accountants (CIMA) in Malaysia to name a few.
In order for accountants to prepare any form of statutory financial statements in Malaysia they need the authorisation status from MIA; Public Practicing Accountant. Public practice is the term used to describe accounting firms that are operated by individuals as sole proprietorship or groups of individuals in partnership.
This organisation is meant to allow flexibility but also reliability. Having Public Practice authorisation from MIA guaranties you that the accounting firm you engage with has the appropriate level of education needed to tackle the complicated task of accountancy. And you will know that they will comply with all the statutory compliance in Malaysia.
Further to this, there is two other authorisation a firm can obtain. Non-audit firm (NF) and Audit firm (AF). Each nomenclature, AF or NF, covers a list of possible accounting activities they can do. In simple terms though, NF can do all type of accounting minus auditing that is reserved to AF.
An NF company can prepare auditing work but only a firm with AF number has the authorisation to authenticate the audit work, as it often happens.
Keeping good transactions records
As we have established earlier, a big part of accounting is keeping good records of all financial transactions but it is also about predicting or projecting financial situations. Thanks to existing records and known cost of doing business, a good accountant can assist you in your planning and affect your bottom line positively. For the least, he will help you avoid known financial or taxation trappings.
Indeed keeping records is only the basis of their work as their knowledge of the tax codes can help you save substantial amounts of money legally.
Their knowledge of business practices, legislation and regulations are a must for any company that wants to endure and succeed in the competitive business world we live in today.
Why should you use an accounting firm?
To start with, some company formations in Malaysia are legally bound to do statutory reporting and get their records reviewed and audited once a year.
Having said that, the benefits of having an accounting firm for any business will always out weight the cost it generates. The time saved is undeniable, allowing you to focus on running your business rather than prepare tax returns, financial statements or GST reports.
Accounting services vary from firm to firm. Some accounting firms stretch themselves to offer bookkeeping, tax liquidation, company secretarial, corporate advisory and administration services such as payroll and HR services.
It is important to know that in Malaysia many of these services need special licensing so accounting firms sometimes collaborate across firms to offer a broader variety of services to their clients.
What accounting tasks do you need?
First, It is important to know what accounting responsibilities you need an accounting firm for. Take into consideration your own financial level skills. Do you have the time and the knowledge to carry out some accounting tasks or do you need an accounting firm to take over those responsibilities?
While it may look like an unnecessary expense, remember again that even if you have the skills, accounting is a time-consuming job that may be better used growing your clients base or sales revenue.
The experience a good accounting firm brings to the table adds value to the company in many ways. They help you save cost, increase revenue and lower taxes paid every year thanks to an in-depth understanding of regulations.
These days there is a growing demand to outsource bookkeeping and accounting and not only that, clients are seeking consulting services as well.
If you find a good accounting firm they may take a CFO role in your company and help you grow faster in the early stages of your company’s lifetime.
There is a huge cost benefit to this approach saving you the time to find, hire and pay for a CFO salary. It is, of course, important to establish a good relationship with your accounting firm before you are able to form this partnership approach, but it will have a huge value for your company.
As mentioned above, with some company entities like public limited and public listed and the Malaysian entity Sendirian Berhad (SDN BHD) you are legally bound to produce an annual statuary report that is prepared by an accounting firm and revised by an audit firm. If you set up a sole proprietorship or partnership you are not obligated for the same requirements.
This leaves you with a choice as an entrepreneur when incorporating your company if you will need an accounting firm for the financial statements and annual reports.
Complying with statutory standards and rules, accounting firms help you with not only financial statements and annual reports but also your GST reports and more importantly an overall overview of your bottom line profit margin, which is a great indicator of the financial health of your company and long-term viability.
Joolah makes it easy for you to get in contact with 3 accounting firms to help you with any task you need. Our network of accounting firms are eager to help. Get 3 non binding offers for free, it only takes 5 minutes.Submit my request today
How much does it cost?
Cost can greatly vary depending on the tasks needed. The time needed to complete the task is in direct correlation with its cost. For example, a yearly preparation of tax returns will take a lot of time and therefore more costly.It becomes more complex finding the right service at the right cost as each accounting firm will have different prices for the same service or benefit. They can charge you by the hour and there is a wide range of cost/hour on offer. For audit firms, on the other hand, MIA has set a fixed minimum fee an audit firm should charge. The fee size depends on your gross turnover or on a total assets basis of your company.
To make sure you get a fair price, is the strength of Joolah.my. It allows you to compare 3 quotes for the same requested service so you can make the right choice.
Joolah is a game changer, as it allows you to get quotes only from accounting firms experienced in their line of the business ensuring quality service.
Everyday, thanks to our dedicated platform, we facilitate the pairing between you and our accounting partners. Joolah fosters healthy competition, transparency and helps the accounting experts experience the benefits and efficiency of the internet can bring.
Our commitment is to find you the best accounting firms for your query. Joolah is completely free, we match your needs with 3 relevant accounting specialists and you discuss your situation and get the most optimal quotation.
This provides you with better service and in most cases keeps the fees at competitive prices.
Our service is also non-binding and that’s important to guaranty you only accept quotes from our partners when you are satisfied with the offer.
How does it work?
Joolah is very easy to use.
- Simply give a brief description of your query in our request form.
- Enter your contact information
- We provide a callback if additional information is needed, and shortly after, connect you with 3 qualified accounting firms.