Why it is advisable to provide engagement letters when performing bookkeeping services?
(1) It’s a way to add value to the engagement, and
(2) it’s a way to protect yourself from potential litigation.
In all engagements, we want to state exactly what we are doing. Because the client hired us to do and what they have not to do. You need an engagement letter that specifies monthly bookkeeping and nothing else. We should obtain a signed engagement letter for bookkeeping services, even though not required by standards that include a statement that the bookkeeping service is not designed to detect or prevent fraud.
To start with, the following information below are shown on the engagement letter for Bookkeeping Services:
Each receipt must include the vendor’s name and address, transaction date and the amount paid.
The deadline to file taxes slowly approaching, you start ransacking your home on a mad hunt to cull all those receipts from business trips, work lunches and any other necessary expenditure that might help you improve your chances of reduce your chargeable income. Many find that itemizing every penny spent throughout the year is nearly impossible. Dedication to the plan to retain every receipt has waned — much like that New Year’s resolution to work out three days a week or quite smoking within 1 week.
We would say keeping receipts is still the best way to assess your business annual spending accurately. The key to success lies in commitment to a system that makes it more like a daily habit than a chore.
Malaysia is an exceptionally nation in terms of taxes. Income taxes similarly low compared to other country.
All persons staying in Malaysia for more than 182 days are considered as residents under Malaysian tax law, regardless of nationality. All persons staying less than 182 are regarded non-residents and are taxed on a different scale.
The income tax of non-residents is calculated on a three-step tax rate, 27%, 15% and 10%, depending on the type of income.
The income tax rate for residents is calculated on the amount of income and is much more precise. The income is classified into 8 different tax groups ranging from 0% to 26%.
Changes in Tax Rates for Resident Individuals Read more
If you are a freelance bookkeeper (or are planning to become one) you need to be aware of some useful habits to ensure success with your bookkeeping business. These habits won’t make or break you, but they will help your business run more smoothly and prevent frustration in the long-run.
Some bookkeepers are morning people and others don’t get into their groove until the afternoon rolls around. Find the time that you feel most productive and use that time for the work that requires the most concentration. Read more
Bookkeeping and accounting is both relevant tool in communicating the financial activity, performance and condition of a business entity. The important role of bookkeeping and accounting in every business has increased the demand for bookkeeping and accounting job or services worldwide. Because of the high demand, it made bookkeeping and accounting as two of the most profitable and rewarding profession in the world.
A bookkeeper (or book-keeper), sometimes called an account clerk, is a person who records the day-to-day financial transactions of an organization. A bookkeeper is usually responsible for writing up the “daybooks.” The daybooks consist of purchase, sales, receipts and payments. The bookkeeper is responsible for ensuring all transactions are recorded in the correct daybook, supplier’s ledger, customer ledger and general ledger. The bookkeeper brings the books to the trial balance stage. An accountant may prepare the profit and loss statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper. Read more
Accounting and Fintech are different industries in the world that hit each other. But what are the difference of the two? Accountants are the first to call of business owners in terms of financial advice and has an obligation to know about fintech lending to get significant opportunity on the competition.
Fintech Investment Financial Internet Technology Concept
The most successful entrepreneurs and executives are savvy business people first, and experts in their field second. This may seem counter-intuitive to technologists, especially in an era when technology seems to be driving the world. Yet the sad truth is that a technology not focused on a real problem is not a business, and will probably fail in the marketplace.
It still amazes me how many entrepreneurs can sustain a moderate market shares in their respective industry, but fail to comprehend the big picture requirements for positive cash flow and profit.
A new book by Kevin Cope, “Seeing the Big Picture”, does a great job of outlining the basics of business acumen for executives, and helped me assimilate some practical ideas on building the essential elements:
1.Reserve time daily to research the market, as well as technology. Learning is a never-ending requirement for every entrepreneur. At best, all they teach you in school is how to learn. In these days of rapid change, most experts believe that the facts college students learn as a sophomore is obsolete before they exit their senior year. Read more
Do you have more work than you can handle? Are you thinking of bringing someone on to help out? Should you hire them as an employee, or make them a contractor? Here are some points to consider:
To help determine the degree of control and/or independence and thus the proper classification of an individual – Behavioral, Financial and Relational.
– if the details of the work performed are the key to evaluation, then the individual should probably be made an employee,
– if the end result alone is the key to evaluation, then the individual should probably be considered a contractor.
– if the employer controls the schedule and resources, then the individual should probably be made an employee,
– if there is no set schedule and the resources are owned by the individual, then the individual should probably be considered a contractor.
Financially, the greater the potential for the individual to lose money as a result of the work performed (for non-reimbursed expenses such as tools), the greater the likelihood that they should be considered a contractor.In
In relation, if you hire the individual with the expectation that the relationship will continue indefinitely (rather than for a specific project or period), the individual should probably be considered an employee.
Small business owner or entrepreneurs tend to keep a lot of the financial details of their business in their heads. Problem is; that would not be the only thing that occupies their mind. Furthermore, as the number of transaction increase by day, the chances of forgetting the details are too risky. When you have a system and some processes in place, unpleasant surprises can be avoided, goals can be easily monitored and important paperwork can be done timely. Getting a better handle on your money can help you to make and keep long-term goals, smooth out the seasonal ups and downs of your cash flow and maybe improve your profits. It can also help you to stay out of trouble with the Internal Revenue Service. Below are five bookkeeping tips for entrepreneurs.
1. PLAN AHEAD FOR MAJOR EXPENSES You’re less likely to miss business opportunities or have to scramble for a loan when the expenses become unavoidable. Put major events like a computer upgrade on the calendar a year in advance or, ideally, three to five years ahead. Acknowledge the seasonal ups and downs, something many entrepreneurs are reluctant to do. This helps you to be honest about the fact that it’s coming and plan for it. You’ll avoid taking money out of the company during the flush periods only to find yourself short in the slower months, when costly projects like upgrading computers or replacing factory components usually happen. Read more
The basis of selecting a tax audit are totally random, and there’s nothing that the individual taxpayer can do about them, many audits are actually instigated by the taxpayers themselves. To that end, below is a list of indicators that can cause your return to be selected by the Inland Revenue Board (IRB) for audit.
over claiming Personnel Deduction/Relief Amounts
Personnel reliefs are claimable by taxpayers if they meet the conditions as stipulated by the relief claimed. Unfortunately many, if not most, taxpayers either aren’t aware of this, or simply choose to ignore this fact and claim reliefs beyond reasonable level.
While this may sound simple, many returns are selected for audit due to basic math errors. Make sure that the columns add up. Also make sure that the total value of gains and/or losses are properly calculated. Even a small error can raise eyebrows.
Failure to Sign the Return
Don’t be a part of that number! Failure to sign the return will almost guarantee that it will receive additional scrutiny. Read more