4 Helpful Bookkeeping Tips for Small Businesses in Malaysia
Bookkeeping is important for three main reasons:
For these reasons, bookkeeping is essential to ensure the success of every business entity in Malaysia.
Many startups and small businesses fail within the first few years of their establishment due to financial mismanagement and poor bookkeeping services. Therefore, to avoid incurring debts and secure the company's financial stability, bookkeeping must not only be a priority but, more importantly, be done properly.
One of the ways to ensure proper bookkeeping is to separate personal from business transactions. "It's become a common mistake for business owners to merge personal and business accounts for ease and convenience. But that's not truly the case. Not only does combining accounts make tracking business finances challenging, but it also increases the risk of overlooking transactions that will affect tax compliance. As such, it's important to provide a clear distinction between personal and business expenses by having a separate corporate account," stated Mr Jason Wong, Team Leader of Accounting at Bestar Consulting.
When engaging in bookkeeping, cash flow is an important aspect to consider.
According to Mr Wong, "Cash flow details incoming payments and outgoing transactions to help entrepreneurs manage their finances. However, when incoming payments arrive later than outgoing expenses, this may lead to significant financial struggles. That's why it's important for business owners to monitor cash flow regularly."
He further added saying, "Monitoring financial transactions can be taxing and time-consuming when done manually. Fortunately, online bookkeeping services are available to speed up the process and reduce the chances of making errors. Therefore, small businesses need to invest in reliable bookkeeping software with comprehensive tools such as invoice reminders, payroll features, and tax compliance to properly and conveniently manage their finances."
Alternatively, entrepreneurs can also outsource bookkeeping services from accounting firms in Malaysia. This way, they can free up valuable time in their schedule to work on business development.
Bestar Consulting provides high-quality bookkeeping services (https://bestar.com.my/
+60 3 23893099