As you own an incorporated company in Johor Bahru, you have to ensure that your accounting books are always up to date to make the process of tax filing easier. Otherwise, calculating taxes is going to be your worst nightmare. Fortunately, you may apply some accounting systems to automate a lot of the bookkeeping procedures. What is more important is that you have to employ an accounting firm in Johor Bahru to keep an eye on the accounting systems as you pay more attention to various other vital tasks.
Below are some vital bookkeeping tips for new businesses in Johor Bahru.
Track Your Expenditures
Besides helping you in the proves of tax filing, keeping track of your expenditures will also aid in making vital decisions for your business. If you don’t, you may find yourself facing with unpredicted debts as well as substantial tax bills that could cause your firm’s financial stability to collapse. If you choose the accrual basis of accounting, you should always track your account receivables as well as the accounts payables regularly to produce sturdy financial planning. Briefly, if you track your expenditures, you are going to be able to determine the trends of the expenditures and the parts that you could adjust to boost the financial stability of your firm.
Always Keep All Your Records
All incorporated companies in Johor Bahru should keep all their files and accounts. If they fail to do so, they may be subjected to penalties as well as cancellation of licenses (Also see Common Bookkeeping Errors that You Should Avoid). There are some records that you have to keep, including records for purchase and business expense, serially numbered receipts, invoices, income records, as well as records for statements and accounting. The law demands firms to keep these records for a minimum of five years.
Obligations and Compliance
If you have a clear understanding of your finances, you will be able to plan for the budgets as well as allocate costs for the specified legal compliance and needs in advance. By doing so, you will not miss any bills or taxes, and you can handle your finances more effectively. Proper bookkeeping and accounting will aid you in achieving this purpose.
Make an investment in a Bookkeeping System
There are several bookkeeping systems which you may purchase to help you in keeping track of your expenditures and records as a result of the improvement in technology (Also see How does Technology Set Path for Future Accounting?). These systems are going to assist you in handling your business better as well as help government agencies to keep track of the activities of your business efficiently. Keep in mind to ensure that the bookkeeping secretary knows the correct way to key in information into the system, as well as tracks it to prevent any problems later on.
Lastly, you may outsource bookkeeping chores to a trusted and professional accounting firm in Johor Bahru. If you do so, you will be able to save money and time that you will be invested in reviewing all the records and sending them to LHDN and other government departments if you are handling the accounting-related chores on your own.