Yearly Account Service….

Recently, SSM officers came to our office for a routine inspection.

Normally, we are the auditor asking questions.
That day, we became the auditee.

😂😂😂

The officer did not start with our audited financial statements.
They requested our accounting records,
selected several transactions and compared:

Transaction date.
Posting date.

Suddenly, the 60-day rule was no longer something written inside a thick Companies Act.
It was sitting in front of us.

Then we remembered an advertisement we saw on social media.
“Yearly Account Service, RM444 onwards.”

After year-end, pass the accountant:
12 months of bank statements.

One big plastic bag of receipts.
A few missing invoices.

Then say,
“Boss, settle for me.”

😂

Let’s be fair.

Yearly accounting is not automatically wrong.
RM444 is also not the problem.

It can work if someone is already maintaining the accounting records regularly,
and the accountant only performs the year-end closing.

The problem starts when nobody records anything for 12 months.

Under the Companies Act 2016 and Income Tax Act 1967,
business transactions must generally be entered into the accounting records within 60 days.

Not 60 days after year-end.
Within 60 days of each transaction.

Under the Companies Act, non-compliance can, upon conviction, carry a fine of up to RM500,000, imprisonment of up to three years, or both.

Now we also have e-Invoice.

Where consolidation is allowed,
the consolidated e-Invoice must generally be submitted within seven calendar days after month-end.

Your accountant may come once a year.

e-Invoice exemption is not bookkeeping exemption.
Audit exemption is also not accounting exemption.

Monthly bookkeeping is not about paying an account personnel every month just to key in receipts.

It is about knowing, before it is too late:

Who still owes the company money.
Why the bank balance is getting lower.
Whether salaries can be paid next month.
Whether somebody claimed the same expense twice.

Read the full content in our blog
https://lnkd.in/g-iQsr59