Which companies need to maintain a Full Set Account?
Not Only Companies Need Proper Accounts
- Full Set Accounts are not required only for Sdn. Bhd. and Berhad
- Sole Proprietorships and Partnerships are also required to maintain proper accounting records
Audit and Accounting Are Different Matters
- Sole Proprietorships and Partnerships are generally not required to undergo an audit
- However, they are still required to maintain complete accounting records
Why Are Full Set Accounts Important?
- To understand the company's financial performance and profitability
- To support accurate tax reporting
- To assist in financial management and business decision-making
What Are the Risks of Not Maintaining Proper Accounts?
- The company may be unable to calculate its taxes accurately
- Tax filings may become inaccurate or incomplete
- If the tax authority suspects tax evasion
- The company may not be able to provide sufficient records as evidence
Proper Record Keeping Is Essential
- Companies should maintain complete accounting records and supporting documents
- For tax reviews and other statutory purposes
How Long Must Records Be Kept?
- Under the Companies Act and Income Tax Act
- Accounting records and related documents must be retained for at least 7 years
Summary
- Whether it is a Sdn Bhd，Berhad，Sole Proprietorship, or Partnership
- Proper accounting records should always be maintained
- Full Set Accounts are important not only for tax compliance
- But also for effective financial management and corporate governance