638 Words｜3 Mins Reading｜16/5/2020
Accounting is often referred to as “Language of Business”. It is an important function to track income and expenditures, analyze performances and ensure statutory compliance for audit and tax. It is a means of communicating financial information to different users for decision making. At YYC, we have the expertise to prepare your accounts.
A typical set of accounting reports or financial statements would consist of a profit and loss account that shows income, cost of sales, gross profit, operating expenditures & net profit for a particular period; a balance sheet that indicates the financial position on a particular date; and cash flow statement that reports on company’s cash movement and liquidity position.
Business owners need to keep their financial statements up to date and in a time of recession, having accurate and updated financial statements is crucial for immediate planning and decision making.
Here are 4 reasons why you need your updated accounts:
The Companies Act of Malaysia requires the directors of every company to maintain a proper set of financial statements and the directors must lay the audited financial statements at the company’s AGMs. The audited financial statements must give a true and fair view of the state of the company’s affairs. If any director fails to comply with this requirement, the person is liable to a fine upon conviction.
Hence, good and timely accounting will help you to ensure statutory compliance when it comes to your duties as a director.
Accounting helps to provide historic financial records and future financial projections which are needed for securing loan financing. First and foremost, banks would need new applicants to submit the latest management accounts and audited financial statement for credit assessments. Without your audited financial statements would result in loan applications being rejected.
With up to date accounting will make it faster for you to secure loan financing with good credit rating and lower interest rates.
At YYC, we are a group of passionate financial and strategic advisors with a brand promise to empower SMEs and businesses in Malaysia success on their growth journey. By having updated accounts, you can maximize your potentials by engaging YYC as your advisors to scale up your businesses.
At YYC, we provide professional accountants, cloud accounting, tax consultants, outsource CFO, and business advisory. We conduct business school and do a review for your accounts, cash flow planning, and tax planning. Please contact YYC for an appointment.
The financial statement is like a business report card. It shows the performance of a company. It can be used to calculate a company’s revenue growth and profitability. It can be used to measure a company’s efficiency by comparing it with previous periods or benchmarking your company’s financials with other companies in the same industry. In other words, financial statement helps you to understand what is going on with your business.
To harness valuable information from your financials, it is important for bookkeeping and accounting to be done on time and all records are always up to date.
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