Category: Accounting Software

5 Accounting Tips for First-time Business Owners

Congratulations on the set up of your first company, or at least being almost there to having a business registered under your name. It must have not been an easy task to summon the courage, not to mention the funds as well, to take the step towards entrepreneurship. To help you sail through your journey, we share our expertise to compile 5 accounting steps for setting up a new business in Malaysia:

1. Open a business bank account
This is the first step that you would need to do, as you would need an account to receive payment from your customers, and to pay your suppliers or vendors. Never use your personal account for business purposes; there should be boundaries between personal and business finances even if you may think that it is okay if you are the sole company owner. If you have one or more partners, also consider opening a payroll, investment and general operation accounts which will help you to segregate your finances better.

2. Register with LHDN
You will need to register your company with Lembaga Hasil Dalam Negeri (LHDN)/Inland Revenue Board (IRB) for tax filing. Fortunately, the registration can now be done online. The tax returns and deadline for submission depends on your company’s ownership, whether the business is a sole proprietorship, partnership, private limited (Sdn Bhd) or Limited Liability Partnership (LLP).

3. Check for SST qualification
The Sales & Service Tax (SST) was introduced on 1st September 2018 to replace the Goods and Services Tax (GST). Sales taxes are charged at 10% while service tax is at 6%. However, there are products that are exempted from sales tax, such as basic food, pharmaceutical products and steel products. There are also items that are taxed a lower rate of 5%, such as prepared fruits, vegetables and meat, mobile devices and printers. If your company manufactures taxable goods with an annual sales value exceeding RM500,000 or provides taxable services exceeding RM500,000, you will have to register your company for SST. There are exceptions that apply, so check at your local customs office for further details.

4. Subscribe to an accounting software like SQL
You may do your accounts in MS Excel for a start, but you will soon find it overwhelming especially when it comes to computing your company’s taxes. We suggest starting with an accounting software right away, so that you wouldn’t have to spend time later transferring data from Excel into your new accounting software later on. Factors to consider when scouting for an accounting software include the integration with other existing software, user-friendliness, report features and real-time availability.

5. Plan your bookkeeping
You have some time for this until the business has acquired more cash flow. With data from your accounting software, prepare the three most important financial statements that will form the backbone of your bookkeeping – profit & loss statement (P&L), balance sheet, and cash flow statement. Many SMEs engage the help of accountants for this task, so you don’t have to overwhelm yourself in producing these financial statements which can be difficult for someone without an accounting background.
We hope that by laying out these tips, we are able to give you a kick-start in your business.

How To Choose The Best Accounting Software In Malaysia For Business?

When choosing accounting software for your business, there are a few things you need to keep in mind to find the right software. There are many Accounting Softwares in Malaysia on the market that will be able to run your business, but you are not sure if it is the right software for your business or not. You will find the software that will manage the accounting for you, but you do not want the dry accounting software to work as a calculator and dairy.

Online or offline

There are two types of software. Online software is always better than offline software because online software provides more services than offline software. It helps store your data without any risk of data loss as it stores your data in the Cloud. Therefore, in the event of any untoward incident or accident, you always have a data backup.

Customizable

Appropriate software is one that business owners need most. Appropriate accounting software for your business will help you operate more easily, and it is easy for your employees to learn, so it will make the job easier and does not have to take long to start using this software.

Customer satisfaction

Customer satisfaction is the key to business improvement, so when this software can help customers, it will always be remembered. Software that helps serve your customers is better by tracking the purchase of customers and high-value customers and others, as conditions that must be possessed. Customer satisfaction can increase more customers & the number of loyal customers.

Integration

To have a smooth flow in work and harmony among the software, look for software that provides integration easily.

Access and security

Easy access allows you to work wherever you want, and good security controls are a must because you store business data and keep your account for the entire business in this software.

Make sure the software you choose allows you to access through some gadgets such as iPad, Tab, Mobile Phone, Laptop, so that you can get the latest information on your business and work anytime, even when you are not in the office. Get software that gives you high security and has access to restrictions menu so you can limit certain areas in your software from employees for security.

Best Accounting Software in Malaysia Features

It is a user-friendly software that automates your business and ensures tax accounts, inventory, sales, purchases, and more easily. It helps in streamlining your expenses and reducing expenses in the business.

Reach is accessible anywhere and provides high bank security for your data. It also increases customer satisfaction and leads to the improvement of your business.

The main features are:

  • Business management
  • Tax management
  • Income management
  • Expenditure management