What Are Accounting Services in Malaysia?
AAccounting services in Malaysia cover bookkeeping, financial reporting, SST and tax compliance, payroll, and the statutory filings required under Malaysian law by the Companies Commission of Malaysia (SSM) and the Inland Revenue Board (LHDN). For foreign-owned entities and newly incorporated subsidiaries, getting this structure right from the outset avoids compliance exposure and gives finance leadership clear reporting visibility over a Malaysian operation run from abroad.
Outsourced accounting services in Malaysia hand these functions to a qualified external team instead of an in-house hire, covering bookkeeping, SST, e-Invoice readiness, financial reporting, and LHDN compliance under one accountable partner. This keeps records accurate, filings on time, and cash flow visible, so you can focus on growth rather than administration.
These services ensure accurate financial records, compliance with regulatory requirements, and insightful analysis for strategic decision-making. By optimising financial performance and managing cash flow, professional accounting services support long-term growth and operational efficiency.
What Do Outsourced Accounting Services in Malaysia Include?
To meet legal and regulatory requirements, businesses that opt for outsourced accounting and bookkeeping services often find them highly effective. These services include, but are not limited to:
- Financial reporting and record-keeping
- Expense and revenue tracking
- Accounting system setup and implementation
- Compliance with the Malaysian Private Entities Reporting Standards (MPERS)
- Preparation of financial statements
What Does Our Accounting Service in Malaysia Cover?
Financial Statements: Balance Sheet and Income Statement
The balance sheet, income statement, and cash flow statement give a clear, standards-based view of a company’s financial health and are required for tax filing and audit in Malaysia. Prepared accurately, they guide internal decisions and satisfy external stakeholders such as auditors, lenders, and SSM.
The process of preparing comprehensive financial statements includes:
- Keeping complete and precise accounting records, such as the General Ledger, Fixed Asset listings, SST records, and bank statements.
- Performing regular bank reconciliations
- Recording, summarising, and reporting financial transactions
- Generating key financial reports, including balance sheets and income statements
Compliance with Malaysian Private Entities Reporting Standards (MPERS)
Compliance with the Malaysian Private Entities Reporting Standards (MPERS) ensures that businesses adhere to the highest accounting and financial reporting practices. These standards, aligned with international financial reporting guidelines, provide a framework for consistent and transparent financial statements. Adhering to MPERS not only enhances the reliability of financial reports but also fosters investor confidence and supports regulatory compliance.
Accounting and Bookkeeping Services
According to Malaysian Financial Reporting Standards (MFRSs), every Malaysian company must maintain accurate financial reports that comply with accounting standards. These records include:
- A detailed Profit and Loss Account
- A Balance Sheet showing the company’s financial health
- A Cash Flow Statement tracking money flow
- An Equity Statement illustrating changes in ownership
Additionally, Malaysian companies must adhere to local bookkeeping compliance requirements. For example, the Inland Revenue Board of Malaysia (IRBM) mandates that companies keep proper records and accounts, including receipts and invoices, for a minimum of 7 years, under Section 82A of the Income Tax Act 1967 and Section 245 of the Companies Act 2016.
Our skilled accountants and bookkeepers are dedicated to maintaining your Book of Accounts and ensuring it accurately reflects your company’s financial status. We assist with financial reporting and analysis for various reporting periods, whether monthly, quarterly, semi-annually, or annually.
Accounting System Setup
Setting up a strong and supported accounting system is vital for precise financial operations. We assist with the implementation of accounting software such as Xero and provide thorough staff training. Xero is a cloud-based solution that simplifies financial tasks and offers real-time financial performance insights.
Its easy-to-use interface and robust capabilities make it perfect for business owners looking to manage their finances effortlessly.
Sales Tax and Service (SST) in Malaysia
Sales and Service Tax (SST) in Malaysia is a consumption tax charged as Sales Tax of 5%-10% on goods and Service Tax of 8% on taxable services; it replaced GST in September 2018. Sales Tax applies to manufacturers and importers at the point of sale, while Service Tax applies to specific services provided by registered businesses.
The scope of SST expanded significantly from 1 July 2025 to bring financial services, rental and leasing, construction, and private healthcare and education into the service tax net, with full enforcement from 1 January 2026. Foreign-owned businesses providing or receiving these services in Malaysia should confirm their registration and invoicing treatment under the expanded scope.
Companies need to be vigilant about SST compliance for several reasons:
Regulatory Compliance
Adhering to SST regulations is mandatory for businesses operating in Malaysia. Non-compliance can lead to severe penalties, fines, and legal issues.
Financial Accuracy
Proper management of SST ensures accurate financial reporting and helps avoid discrepancies in tax filings, which is crucial for maintaining the integrity of financial records.
Operational Efficiency
Being aware of SST regulations helps companies streamline their accounting and financial processes, ensuring timely and correct tax filings.
Cost Management
Understanding the specifics of SST can aid in better cost management and pricing strategies, as businesses can accurately account for tax liabilities.
Reputation Management
Compliance with SST regulations enhances a company’s reputation with stakeholders, including customers, investors, and regulatory bodies, by demonstrating a commitment to lawful and transparent operations.
E-Invoicing Compliance
Malaysia’s e-Invoice framework (LHDN’s MyInvois system) requires businesses to validate and transmit invoice data to LHDN in near real time. As of 2026, e-Invoicing is mandatory for businesses with annual turnover above RM1 million; those below RM1 million are currently exempt, though the threshold is expected to be reviewed. Phase 4 businesses (RM1-5 million turnover) operate under a relaxation period, and any single transaction of RM10,000 or above must be issued as its own individual e-Invoice. We align your accounting systems, master data, and invoice fields with these requirements as part of standard bookkeeping support.
Audit Liaison
An audit liaison is the essential link between a company and its external auditors during the audit process. At InCorp Malaysia, our accountants engage with clients’ auditors to provide answers and clarifications on the prepared financial statements. This role demands a comprehensive understanding of the company’s operations, financial processes, and the specific areas being audited.
As the primary point of contact between the company and external auditors, our accountants facilitate clear, consistent, and effective communication. They ensure that both parties fully understand each other’s needs, questions, and responses.
Payroll Services
Payroll services in Malaysia cover accurate, on-time salary processing plus statutory contributions to EPF, SOCSO, and EIS, and monthly tax deductions (PCB); late or incorrect filing carries substantial penalties. A dependable payroll system and an experienced professional to run it keep you fully compliant with local regulations.
Business Support
In addition to payroll services, companies may need assistance with various other accounting-related functions. We offer a range of business support services, including:
Invoicing
Tracking Accounts Payable (AP) and Accounts Receivable (AR)
Supporting banking transactions
Analysing cash flow
Why Outsource Accounting Services in Malaysia?
Outsourcing accounting services is a strategic solution for businesses seeking to improve operational efficiency. By delegating accounting tasks to external experts, companies can reduce the workload and stress on their internal staff, eliminating the need for extensive training and costs.
Crucially, outsourcing allows businesses to focus on their core competencies and strategic goals, rather than financial administrative tasks. This approach not only optimises resource allocation but ensures specialised accounting functions are managed with precision.
As a result, businesses benefit from improved financial accuracy, better regulatory compliance, and more time to focus on growth and innovation. Outsourcing accounting services streamlines operations and enhances overall business performance.
Why Choose InCorp Malaysia as Your Accounting Services Provider in Malaysia?
InCorp Malaysia is an established accounting services company, trusted by 20,000+ clients worldwide with a 40+ year track record across corporate, tax, and outsourcing services. In Malaysia’s fast-changing regulatory landscape, reliable and standards-compliant accounting is essential to growth, and our seasoned accountants keep your reporting accurate, your filings on time, and your compliance risk low.
A committed and experienced accounting services team is essential for delivering top-notch service and expert advice, easing the burden of financial management. At InCorp, our team of seasoned accountants provides valuable insights and strategies to meet all your accounting needs, helping you avoid unnecessary financial complications.
We utilise advanced software tools to streamline financial operations, allowing business owners to focus on strategic planning. This approach enables you to spend more time on core business activities while our team efficiently manages your financial administrative tasks.
20,000+
Clients Worldwide
1,500+
Professional Staff
40+
Years Track Record
20+
Global Partners
Here’s what our
customers have to say
Trusted by 1,000+ Malaysia businesses and global clients
“Very happy with their service. Have been with them for 5 years now and wish I had found them earlier. Full range of services make them a great one stop centre for us. Keep up the good work guys!”
Kul Sachdev
“Outsourcing my secretarial and accounting needs to this firm was a game-changer! Their professionalism and attention to detail are unmatched. They handle paperwork seamlessly and provide accurate financial records. Friendly and reliable, they’re a must-have for any business. Highly recommended!”
Seng Yong Poh
FAQs for Accounting and Bookkeeping Services
How much do accounting services cost in Malaysia?
- Fees vary based on your company size and transaction volume. Business owners typically pay around RM700 to RM3,000 monthly for outsourced accounting services, with the fee determined based on the number of transactions per business entity. Newly incorporated foreign subsidiaries typically sit toward the higher end of this range initially, given additional reporting requirements during the first financial year; costs generally normalise once statutory processes are established.
- The main factors are: the volume of transactions per month, the type of entity (sole proprietor, Sdn Bhd, LLP), the frequency of reporting (monthly, quarterly or annual), whether SST compliance is required, and whether payroll processing is included. Bundled packages that combine accounting, secretarial and tax services generally offer better value than paying for each service separately.
- Bookkeeping covers the day-to-day recording of financial transactions — sales, expenses, payroll entries and bank activity. Accounting goes further, using that data to prepare financial statements, analyse performance, manage tax compliance, and advise on business decisions. Most businesses need both, which is why our service covers the full scope.
- Yes. Outsourcing does not shift legal responsibility away from your directors. Your provider must keep records compliant with the Companies Act 2016 and applicable reporting standards (MPERS or MFRS), integrate with LHDN's e-Invoicing system to avoid penalties of RM200 to RM20,000 per invoice, and stay current on SST, PCB, EPF and SOCSO filings. Strong data governance and internal controls at your provider matter just as much as their technical accuracy.
- Under the Companies Act 2016 and the Income Tax Act 1967, every Sdn Bhd must keep records that give a true and fair view of its finances. This includes general ledgers, sales and purchase invoices, receipts, bank statements, payroll records covering EPF, SOCSO and EIS, and a fixed asset register. Transactions must be entered into the books within 60 days and all records retained for 7 years at the company's registered address in Malaysia.
- Non-compliance can result in penalties from LHDN, SSM fines, failed audits and potential legal action. SSM can impose penalties of up to RM50 per day for delayed annual returns, while MBRS/XBRL filing delays may attract fines up to RM10,000 plus daily compounds
