Accounting - Do It Right Or Close It Down

PETALING JAYA, Malaysia - Oct. 14, 2016 - PRLog -- Andrew Lim never saw it coming. His event management was doing very well and he took the accounting part for granted since he just started his company not long ago. The lack of commitment in financial accounting and report for taxation has led him to face statutory audit from the government. The one thing he said to the reporter was: "If I knew this was coming, I would have spent the small fraction of money to get over with accounting"

When we asked what he experienced for the past few weeks, he responded:"It caught us like a wild fire. One thing stacks up to another, when you thought you are getting somewhere with current mess, another challenge arises. Overall, it was a nightmare!"

The government wants to audit his business for as long as 7 years. All the transactions, track records, invoices, receipts, pay rolls and others are asked to be presented. For Andrew's case, it will be two years of records since the beginning of his company establishment.

It's a common belief in Malaysia that newly formed company will not get audited for the first 5 years. Although common, it's not law-biding. By right, every registered company should present their company financial statement every year without fail for taxation and regulation.

According Christina Ling, a Certified Public Accountant: "all financial reports of a company must be presented to the government before the due date. It doesn't matter the amount of transactions your company have in, everything must be tracked and recorded in the right format."

For more information on how small businesses can prepare and be ready in financial accounting services for themselves, visit http://www.accountingmalaysia.com for more.