FA​Q

If you have not completed your accounts for years, it is important to take action as soon as possible. Here are some steps you can take:

1.       Determine the status of your accounts: You should first determine the status of your accounts and identify the years that have not been completed. This will help you understand the extent of the problem and what needs to be done to rectify it.

2.       Contact a professional: It is advisable to contact a professional accountant or tax advisor who can help you with the process of completing your accounts. They can provide you with guidance on the necessary steps to take and ensure that your accounts are completed accurately and in compliance with the relevant regulations.

3.       Review the relevant regulations: You should review the relevant regulations and guidelines to ensure that you are aware of the requirements for completing your accounts. In Malaysia, the Companies Commission of Malaysia (SSM) and the Inland Revenue Board of Malaysia are the two main regulatory bodies that oversee business and taxation matters.

4.       Prepare your financial statements: You will need to prepare your financial statements for the years that have not been completed. This includes your balance sheet, income statement, and cash flow statement. You may also need to prepare other reports such as notes to the accounts and directors’ report.

5.       Submit your accounts: For companies, once your accounts have been completed, you will need to submit them to the relevant authorities. In Malaysia, you will need to submit your financial statements to the Companies Commission of Malaysia (SSM) and the Inland Revenue Board of Malaysia.

6.       Pay any outstanding taxes: If you have any outstanding taxes, you will need to pay them as soon as possible. Failure to do so can result in penalties and legal action.

To gain additional information or seek any help, contact us at Zentrusted.

This content is for informational purposes only and does not constitute professional advice. Always refer to the official websites/guidelines/regulations of the relevant authorities for detailed information and consult with a professional for personalized guidance.

If your accounts have not been audited for years, you may be in violation of the Companies Act 2016. However, there are certain exemptions that may apply to your company.

According to the Practice Directive No. 3/2017, a private company in Malaysia may be exempted from appointing an auditor if it falls under one of the following categories:

• Dormant company
• Zero revenue company
• Threshold qualified company

A dormant company is one that has not been active since the day of incorporation or has had no financial transactions throughout the current and preceding financial year.

A zero revenue company is one that has had no revenue in the current financial year and the immediate past two financial years, and whose total assets in the current statement of financial position do not exceed RM300,000 for the current financial year and the immediate past two financial years.

A threshold qualified company is one that has a revenue of less than RM100,000 and whose total assets in the current statement of financial position do not exceed RM300,000.

If your company falls under any of these categories, you may opt for audit exemption. However, you must lodge your unaudited financial statements with the Registrar accompanied by the required certificate in compliance with sections 258 and 259 of the Companies Act 2016.

If your company does not fall under any of these categories, you must appoint an auditor for each financial year of the company for purposes of auditing its financial statements.

To gain additional information or seek any help, contact us at Zentrusted.

This content is for informational purposes only and does not constitute professional advice. Always refer to the official websites/guidelines/regulations of the relevant authorities for detailed information and consult with a professional for personalized guidance.

If you have not filed your income tax returns for years, you may face fines, penalties, and even imprisonment. According to the Inland Revenue Board of Malaysia (LHDN), if you fail to pay your taxes on time, you will incur a 10% increment on your payable tax. If you forget to file your income tax returns altogether, you could face prosecution, a fine of RM200 to RM20,000, or imprisonment of not more than six months.

However, the LHDN has introduced a Special Voluntary Disclosure Programme (SVDP) 2.0 that provides an opportunity for eligible taxpayers to come forward voluntarily to report their income and tax computations that are accurate and orderly in line with the IRBM rulings that are in force as well as encouraging taxpayers to pay taxes within the stipulated period. The implementation period of SVDP 2.0 is from 06 June 2023 until 31 May 2024.

To avoid missing tax deadlines next year, consider setting a digital calendar reminder that repeats annually. The income tax deadline is usually on April 30 (manual submission) or May 15 (e-Filing), so you could set it some time at the start of April to give yourself extra time if anything goes wrong.

To gain additional information or seek any help, contact us at Zentrusted.

 This content is for informational purposes only and does not constitute professional advice. Always refer to the official websites/guidelines/regulations of the relevant authorities for detailed information and consult with a professional for personalized guidance.

Here are the steps you can take to manage the situation:

1.       Review your accounting processes: Take this opportunity to review your accounting processes and identify any areas that need improvement.

2.       Hire a replacement: Start the recruitment process as soon as possible to minimize the impact of the resignation on your business. Consider hiring a temporary employee or a contractor to fill the gap until a permanent replacement is found.

3.       Consider outsourcing the accounting function: If you don’t have the resources to hire a full-time replacement, you might want to consider outsourcing your accounting function to a third-party provider. This can be a cost-effective solution that allows you to focus on your core business activities while ensuring that your accounting needs are met.

To gain additional information or seek any help, contact us at Zentrusted.

 This content is for informational purposes only and does not constitute professional advice. Always refer to the official websites/guidelines/regulations of the relevant authorities for detailed information and consult with a professional for personalized guidance.

Here are some steps you can take to address the issue:

1.       Identify the root cause: The first step is to identify the reason why your accounting staff is not able to complete the accounts on time. Some common reasons include lack of resources, poor communication, inadequate training, or unrealistic deadlines.

2.       Communicate with your staff: Once you have identified the root cause, communicate with your accounting staff to understand their perspective and work together to find a solution. Encourage them to share their concerns and ideas for improvement.

3.       Re-evaluate your expectations: If the issue is unrealistic deadlines, re-evaluate your expectations and adjust the deadlines accordingly. Make sure that the deadlines are achievable and that your accounting staff has the necessary resources to complete the accounts on time.

4.       Provide additional training: If the issue is inadequate training, provide your accounting staff with additional training to help them improve their skills and knowledge. This could include training on new accounting software, accounting principles, or communication skills.

5.       Consider outsourcing: If your accounting staff is overwhelmed with work, consider outsourcing some of the accounting tasks to a third-party service provider. This could help reduce the workload and ensure that the accounts are completed on time.

To gain additional information or seek any help, contact us at Zentrusted.

 This content is for informational purposes only and does not constitute professional advice. Always refer to the official websites/guidelines/regulations of the relevant authorities for detailed information and consult with a professional for personalized guidance.

If you have no time to do your accounts, you can either hire accounting staff or outsource your accounting. Here are some pros and cons of each option:

Hiring Accounting Staff

Pros:

• You have more control over the accounting process.
• You can train your staff to meet your specific needs.
• You can build a long-term relationship with your staff.

Cons:

• Hiring accounting staff can be expensive. You will need to provide a salary and benefits, and there are tax considerations associated with a new hire.
• You will need to manage your staff and ensure they are meeting your expectations.
• You will need to provide office space and equipment for your staff.

Outsourcing Accounting

Pros:

• Outsourcing accounting can be more cost-effective than hiring in-house staff.
• You can access specialized skills and services that may not be available in-house.
• You can free up your time to focus on other aspects of your business.

Cons:

• Outsourcing accounting can be less flexible than hiring in-house staff.
• You may have less control over the accounting process.
• You may have less communication throughout the accounting process

Ultimately, the decision to hire accounting staff or outsource your accounting depends on your specific needs and budget.

To gain additional information or seek any help, contact us at Zentrusted.

 This content is for informational purposes only and does not constitute professional advice. Always refer to the official websites/guidelines/regulations of the relevant authorities for detailed information and consult with a professional for personalized guidance.

To incorporate your business into a company (Sdn Bhd) in Malaysia, you need to fulfill some basic requirements. According to the Companies Act 2016, the incorporation of companies in Malaysia can be made by individuals who intend to form a company. The basic requirements are:

Private company:

• At least one (1) director who ordinarily resides in Malaysia by having a principal place of residence in Malaysia.
• One (1) promoter.

Public company:

• At least two directors who ordinarily reside in Malaysia by having a principal place of residence in Malaysia.
• Minimum one promoter.

The incorporation process can be done online using one of the two methods:

• Direct incorporation – combination of name reservation and incorporation process.
• Name reservation - submitting the incorporation application within 30 days or such longer period as the Registrar may allow (maximum of 180 days) after the name is approved.

The incorporation information that needs to be completed includes the following:

• Proposed company name
• Status of a private or public company
• Proposed type of business
• Address of registered office
• Complete details of directors and promoter
• Declaration from directors and promoter
• Declaration of compliance from individuals responsible for incorporation

Additional documents may be required. The registration fee for a company limited by shares is RM1,000 and RM3,000 for a company limited by guarantee. A certificate of incorporation will only be issued upon application made with the prescribed fee. A company secretary must be appointed within 30 days after the incorporation of the company.

To gain additional information or seek any help, contact us at Zentrusted.

 This content is for informational purposes only and does not constitute professional advice. Always refer to the official websites/guidelines/regulations of the relevant authorities for detailed information and consult with a professional for personalized guidance.

Starting a business can be an exciting and rewarding experience, but it can also be challenging. Here are some steps you can take to start your business in Malaysia:

1.       Identify your business idea: The first step is to identify what type of business you want to start. You should consider your interests, skills, and experience when choosing a business idea.

2.       Conduct market research: Once you have identified your business idea, you should conduct market research to determine if there is a demand for your product or service. You should also research your competition to see what they are offering and how you can differentiate yourself.

3.       Create a business plan: A business plan is a written document that outlines your business goals, strategies, and financial projections. It is an essential tool for securing funding and attracting investors.

4.       Register your business: You will need to register your business with the Companies Commission of Malaysia (SSM). The registration process can be done online or in person.

5.       Obtain necessary licenses and permits: Depending on the nature of your business, you may need to obtain licenses and permits from various government agencies.

6.       Open a business bank account: You will need to open a separate bank account for your business to keep your personal and business finances separate.

7.       Hire employees: If you plan to hire employees, you will need to register with the Social Security Organization (SOCSO) and the Employees Provident Fund (EPF).

8.       Comply with tax requirements: You will need to register for a tax identification number and comply with all tax requirements.

9.       Get insured: You should consider getting insurance to protect your business from unforeseen events.

10.   Stay informed: Keep up-to-date with the latest regulations and laws that affect your business.

To gain additional information or seek any help, contact us at Zentrusted.

 This content is for informational purposes only and does not constitute professional advice. Always refer to the official websites/guidelines/regulations of the relevant authorities for detailed information and consult with a professional for personalized guidance.

If you are planning to secure a bank loan, it is important to have your accounting records in order. This will help you to present a clear picture of your financial situation to the bank and increase your chances of getting the loan approved.

However, if your accounting records are in disarray, you can take the following steps to get them in order:

1.       Organize your financial documents: Gather all your financial documents such as bank statements, invoices, receipts, and other financial records. Sort them out and organize them in a systematic manner.

2.       Reconcile your accounts: Reconcile your bank accounts, credit card accounts, and other accounts to ensure that your financial records are accurate and up-to-date.

3.       Create a balance sheet and income statement: Create a balance sheet and income statement to provide a clear picture of your financial situation. This will help you to identify areas where you need to improve and take corrective action.

4.       Seek professional help: If you are unable to get your accounting records in order, consider seeking professional help from an accountant or bookkeeper. They can help you to organize your financial records and provide guidance on how to improve your financial situation.

Once you have your accounting records in order, you can approach the bank with confidence and increase your chances of getting the loan approved.

To gain additional information or seek any help, contact us at Zentrusted.

 This content is for informational purposes only and does not constitute professional advice. Always refer to the official websites/guidelines/regulations of the relevant authorities for detailed information and consult with a professional for personalized guidance.

To file your tax returns in Malaysia, you need to have the following documents and records ready:

1. Statement of Remuneration (EA form): This form should be provided to you by your employer by the end of February each year.
2. Income Statement for your sole-proprietorship business if applicable.
3. Any documents, forms or receipts relating to other income that you have earned from Malaysia during the year (rental, royalties, etc.).
4. EPF statement, receipts, etc. if you plan to claim personal reliefs and rebates.

It is also important to keep all files regarding businesses in Malaysia and retain them in the country. All required documentation could be in the form of electronic format, physical or written books of accounts as well as paper-based source documents with the inclusion of computer printouts.

To gain additional information or seek any help, contact us at Zentrusted.

 This content is for informational purposes only and does not constitute professional advice. Always refer to the official websites/guidelines/regulations of the relevant authorities for detailed information and consult with a professional for personalized guidance.