Frequently Asked Question
What is bookkeeping?
Bookkeeping is the process of recording financial transactions related to a business. In Malaysia, bookkeeping is done in accordance with the Financial Reporting Standards (FRS). Bookkeepers are responsible for recording all financial transactions of a business, such as sales, purchases, receipts, payments and expenses. They also prepare financial statements and other reports such as cash flow statements and profit & loss statements. In addition, they may be responsible for PAYE (payroll) and GST (Goods and Services Tax) registration and filing.
What is the purpose of bookkeeping?
The purpose of bookkeeping is to provide information that is needed to make informed decisions about a business or individual’s finances. This information includes the amount of money that is owed to, or by, a business or individual; how much money was spent on different items; and how much money is currently in a business’s or individual’s bank account. Bookkeepers use different methods to track financial transactions, including cash-based accounting, accrual accounting, and modified accrual accounting.
Why is bookkeeping important?
Bookkeeping is important for several reasons. First, it provides a systematic way to track organizational expenses. This information is useful in making decisions about future spending and budgeting. Second, it can help prevent fraud and theft by providing a paper trail of financial transactions. Third, it can help businesses manage their inventory levels and keep track of accounts receivable and payable. Fourth, well-organized financial records are required for tax filing purposes. Finally, good bookkeeping practices can provide valuable insights into a company’s overall financial health and performance.
How does bookkeeping help a company?
Bookkeeping is the recording of financial transactions, and it helps companies track their expenses, profits, and other financial aspects of their business. In Malaysia, bookkeeping services are often provided by professional accountants.
This ensures that your company’s financial records are accurate and up-to-date. By keeping track of your finances, you can make better business decisions and avoid making costly mistakes. Additionally, good bookkeeping practices can help reduce your tax liability. If you’re looking for a reliable and professional bookkeeping service in Malaysia, please contact us today.
How to manage the proper bookkeeping of a company?
In Malaysia, there are different ways to manage a company’s bookkeeping. The most common method is the Double-Entry Method, which entails recording each and every financial transaction twice – once as a debit and once as a credit. This provides a more accurate record of a company’s financial dealings and helps to prevent fraud.
Another commonly used bookkeeping system is the Cash Basis System, which simply records all cash inflows and outflows. While this system is simpler to operate, it can be less accurate as it does not take into account non-cash transactions.
Both systems have their advantages and disadvantages, so it is important for business owners to consult with an accountant to decide which system would work best for their company.
What is the advantage of professional bookkeeping?
There are a few key advantages of professional bookkeeping. Perhaps the most important is that it can help businesses to save money. Good bookkeeping can help businesses to identify waste and inefficiencies, and to make more informed decisions about where they can cut costs.
Professional bookkeepers in Malaysia can also help businesses to stay compliant with financial regulations. As well as helping businesses to keep track of their income and expenditure, professional bookkeepers can also provide advice on tax planning and compliance. This can be particularly helpful for small businesses who may not have the resources to employ their own in-house accountant.
Finally, professional bookkeeping can help businesses to build a strong financial foundation which will support growth over the long term.