Supports growth
and operational
efficiency
Accounting services in Malaysia support businesses in managing bookkeeping, financial reporting, tax compliance, and regulatory obligations in line with local requirements. For growing companies and foreign-owned entities, outsourcing these functions provides a structured and scalable way to maintain accuracy, reduce operational burden, and ensure compliance with authorities such as the Companies Commission of Malaysia and the Inland Revenue Board.
Accounting is a critical component of business management, providing a structured approach to recording, analysing, and reporting financial transactions. For businesses, effective accounting services encompass a range of essential functions, including bookkeeping, tax planning, payroll processing, and financial reporting.
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.
Understanding Business Accounting Dynamics in Malaysia
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
Core Aspects of Accounting and
Finance Solutions
Financial Statements: Balance Sheet and Income Statement
Financial statements are essential for any business, offering a clear view of the company’s financial health and performance. These documents are vital for accurate tax filings and regulatory compliance. They not only inform internal decision-making but also provide crucial insights for external stakeholders.
The process of preparing comprehensive financial statements includes:
- Keeping complete and precise accounting records, such as the General Ledger, Fixed Asset listings, GST listings, 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 Malaysian Financial 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 tracks 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 5-7 years.
Our skilled accountants and bookkeepers are dedicated to maintaining your Book of Accounts, ensuring they accurately reflect 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.
Service and Sales Tax (SST) in Malaysia
The Service and Sales Tax (SST) in Malaysia is a consumption tax that replaced the Goods and Services Tax (GST) in September 2018. The SST is divided into two parts: the Sales Tax, imposed on manufacturers and importers at the point of sale, and the Service Tax, levied on specific services provided by businesses. The Sales Tax rates typically range from 5% to 10%, depending on the goods, while the Service Tax is generally set at 8%.
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.
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
In Malaysia, timely and accurate payroll processing is essential to avoid substantial penalties. Having a dependable payroll system and a skilled professional to manage it ensures compliance 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
Enhancing Your Business Efficiency Through Outsourcing
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 as Your Accounting Services Provider in Malaysia
Accounting plays a crucial role in the success and growth of any business. With the ever-changing business landscape in Malaysia, it is important for companies to have reliable and efficient accounting services to ensure accurate financial reporting and decision making. With the help of professional and experienced accountants, businesses can navigate through complex financial processes and comply with regulatory requirements. Therefore, investing in high-quality accounting services in Malaysia is essential for businesses to thrive and achieve long-term success.
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.
- 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.
- Outsourcing gives you access to a full team of qualified professionals at a fraction of the cost of a single full-time hire. It also eliminates recruitment risk, keeps you covered when staff are unavailable, and ensures your accounts are always prepared by someone current on Malaysian compliance requirements such as LHDN, SSM and SST regulations.
- Yes. Under the Malaysian Companies Act 2016 and requirements from the Inland Revenue Board (LHDN), all registered companies must maintain proper books of accounts including receipts, invoices and financial statements.
- 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
