Proper Bookkeeping Records? Why we care?

After all this time it still amazes me that business owners don’t understand the importance of having good records. They usually hire a clerk to do their taxes and then forget about it.

The problem – it’s not enough. I truly believe that a business where the owner understands the importance of good numbers is one of the main things that separate successful businesses from those that failProper Bookkeeping Records
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Bookkeeping Tips for Entrepreneur

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.

Bookkeeping_Tips_for_Entrepreneur1. 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

How to lower risk of being tax audited by the Inland Revenue

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.

  1. 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.

  1. Math Errors

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.

  1. 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

Malaysian Source Income

Malaysia income tax is based on territorial concept. Tax on income derive from Malaysia for resident/non-resident. Thus employment and business income that exercised in/rendered in Malaysia liable to tax, regardless place of payment/contract is signed.

However, with effect from the year of assessment 2004, income received in Malaysia from outside Malaysia is exempted from tax. Hence, an individual, either or non-resident, is taxable only on income accruing in or derived from Malaysia.
Malaysia source income
Taxability of income in short: –
a)X capital (sell properties/share)
b)Derived during the year
c)In Malaysia
d)By any person (any age) Read more

Good Trademark Tips

Not all trademarks are created equal. There are five categories of trademark strength, and the category that your company’s name fits into impacts how well you can protect your trademark against infringes.Good Trademark Tips

If you do end up going to court, all jurisdictions apply a multi-part test to assess the likelihood of a consumer confusing two companies’ trademarks. The first test gauges the similarity in sight, sound and meaning, between the two marks, while the second one considers the similarity of the goods or services being sold. 
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How to lower risk of being tax audited by the Inland Revenue

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.How to lower risk of being tax audited by the Inland Revenue

  1. 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. Read more

Reducing resistance of new technology

Keep in mind that the source of resistance is not always straightforward, so we must never assume that the technology itself is always the catalyst. In cases where technology truly is the issue, five steps can reduce the headaches and frustrations on both sides.

1. Communicate the Objective to each person on how they will help to achieve it

2. Show support for the technology from all angles

3. Show support for the people within your organisation

4. Relate the technology to the person

5. Involve the person who is affected



GST Formula overview

It is most important to understand GST formula in filling GST return of the business. The simple equation is Output tax minus input tax, which most of the employer always tell the account personnel “Hello, how hard GST is?  It is just output minus input“ LOL, Go ahead reading as we learn how.

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How Evernote change office life and your lifestyle

Evernote is a web-based note taking application.  It is useful and flexible and an ability to synchronize itself across multiple platforms and devices. I have it installed on my office PC, my home PC, my laptop and my Android phone.  It visible to others automatically once shared.


Notes can be tagged and stored in different notebooks.  It can be text, pictures, or audio files.  It’s easier to discuss how it can be used.

I use Evernote as an illustration,  it increases productivity and upgrade lifestyle.

I use Evernote at work by clipping content from the internet that I have to read later. I keep a to do list for work related items. While I’m out at the office, Evernote’s audio note function allows me to record a note for action when I return to desk.  This allows me to capture notes from emails quickly.  I use Evernote to write these blog posts as well. The tagging system allows a post to move from an “Idea” to “work in process” and finally to a “blog posted”. Unfinished posts can be accessed anywhere and anytime that I am about to write.

Evernote is also for personal use.  When plan to go grocery weekly I make a “to do” a list and save as Grocery list note.  When I run out of something I access the list on the phone at the grocery store or even at hardware and warehouse club as well.  Additionally, a new purchased book or manual can also be stored in Evernote.  Just go to manufacturer’s website, download pdf file and send it to Evernote, it is PAPERLESS.  Hotel reservations and recent trips can store in note too.

I find the uses of device differently. My phone is primarily used to capture data quickly and for simply viewing data. The PC application is better on organization and for clipping content off web pages. I might take a picture of something and put the phone back in my pocket.  For example, I found Doube A A4 paper rim in TESCO at low price. I took a picture on it and tagged on our firm’s private forum to let evernote user know about it so they could tell clients where to find it.

Evernote is free to install and use. They offer a premium service with higher data limits and the ability to save any file. I only recently upgraded to premium. The free account is good enough for the majority of users, as I used it for months before upgrading.

I will blog again after my firm is ready to go paperless and virtual office by upgrading to Evernote Business.

Firing Clients


Clients come in many varieties. Some are thoughtful, professional, and cooperative and always pay on time. Then there are the other ones. When a client goes beyond “difficult,” to being such a burden on your resources and other client suffer.

Every small business has this kind of clients: The problem child. The screamer. Mr. or Ms. Picky. The micro scope scanner. The late payer. Risk taker.

Maybe your client never returns your calls, or, on the flip side, needs to instant-message you at all hours. Their flaws may differ, but the bottom line is the same: They’re your worst client.

This client is way more work to deal with than the rest of your client list, pays way less or way slower, or all of the above. Perhaps the best thing you can do is get rid of them.

Why would you do such a thing — especially in this awful economic climate? Difficult clients cost you energy, waste your resources which include time cost of your staff. It’s exhausting and possibly even annoying to deal with them. Your workplace becomes less desirable, too — making it harder to keep good employees on the payroll. Then, you may simply lose the drive to find new business as you run around trying to meet your hell-client’s impossible demands.

You may think you need the business, but the reality is as soon as you give a nightmare client the goodbye kiss, you’ll probably find twice as much work elsewhere. The negativity a bad client puts into your life tends to keep you from finding quality clients.

29da5769-440e-43ec-86c1-9a2176ac47a6 If 3 of the following 6 signs are present in  any of your working relationships, I  strongly suggest you fire that client.  Chances are, they are impacting your      bottom line and your personal sanity.

 1. They Stop Respecting You

 Do you remember when you landed them  as customer? Did everything out of your  mouth seem like gold to them, like words  of wisdom from some guru high on a  mountain top? We all knew this  honeymoon won’t last forever. There will  come a time when your words no longer  carry the same weight and, in fact don’t  carry any weight at all. Instead of looking  at how to implement your ideas, or  merely asking for some clarification and  justification for them, the clients starts  demanding more. You’re met with  responses like, “Well I checked with my  wife’s brother’s friend’s son who took a  course on it last year and he said we  shouldn’t be doing it that way. Why do  you think we should?”

They are now valuing the opinions of strangers who don’t know the ins and outs of their business more than you do. There is nothing ever wrong with your clients getting a second opinion, but when they put more value in the opinion of strangers, you know you have a relationship problem.

2. They Don’t Value Your Time

Many business owners forget that time is money especially those traders who is not services orientated and you can’t waste time making the client happy. Just think how many times you’ve shown up on time for meetings, and they make you wait, and they keep postponed meeting date last minute.

Along these lines if your client is within a reasonable commute, how often do they insist you come into their offices for a physical meeting when a telephone meeting would have sufficed? Start adding up all the travel time plus the meeting time and you’ll quickly see that a 1 hour meeting is actually eating upwards to a ½ day of your time. Is the client getting invoice for a ½ day consultation? (See point 3)

3. Questioning Your Time

When generating client invoices always make sure to invoice for all the travelling, meetings, emails and phone calls. Do they question these times even you did not put into such detail? I had clients once who kept saying, “When I call you, you have the answer I want in generally less than 30 seconds how come you’re billing so much?“ ‘’Your report is just 2 piece of paper how come you’re billing so much?’’ These are not an unreasonable question, but how they respond to your answer is an indicator that it might be time to think about “firing the client”.

My typical answer is, when you call or email, I have to stop what I’m doing, respond to you, then remember where I was and start up again. All this takes time. The fact that I know the answer off-top of my head is because I work at keeping up to date. I read about the field all day long and apply what I learn to your needs and therefore I need to charge for that effort. I would able to summaries your solution or analysis in just 2 pages is because I have the know-how skill to save your time go into the detail works.

4. You Are Working for Pennies!

In the world of consulting and project base services, we are frequently required to do our best efforts at estimating how much time something is going to take and provide a fixed quote for it. If you estimated wrong that’s your fault and not the clients. Yet there are many clients who will try to take advantage of the fixed price and try to squeeze additional deliverables and then play the helpless game (“We need this little thing done as well, but I don’t have budget. I know you can help us”), which works extremely well if the client’s reprehensive is an extremely good looking person of the opposite sex.

I don’t advocate saying no to everything, but start keeping track. All those little things add up very quickly and you might see what you thought was a decent hourly rate start dropping to a level you wouldn’t have never taken on the job for. Remember time is money and time not spent on the needy (and unwilling to pay client) is time not spent finding a more profitable clients.

5. High rate of job risk and complexity

Rates 1 to 10 of your client risk and the potential liability a client brings to the business. Whether it is an audit client in a high-risk industry, management attitude or lack of controls, or a tax client that constantly pushes the limit on deductions and income reporting, or legal service client that may drag you into potential lawsuit, some clients pose a higher risk to the your business than other clients.

The pressure you sustained for rate of 7 and above is a long term health killer to your personal life and as well for the business. Even though the reward is handsome or fees you billed is profitable, it still might pose a great risk to your business. Most of your time end up handling their lawsuit when risk outburst, probably include you. The least bad scenario would happen is extra energy needed to counter finger-pointing and blaming game.

6. Where Did the ROI Go?

Think about how you felt when you landed the client or project. Did you see RM signs jumping up and down? Make sure to keep track of everything related to the project. On a monthly basis, add up all your costs and compare them against your billable. Now calculate your ROI. Is this the kind of return on your investment you were planning on at the start? If not, you need to talk to your client about fees increases or other forms of compensation for your time. Do this according to the terms of your contract as the contract comes up for renewal. Is the client willing to work with you on a new rate of fees? Are they inflexible? How does the ROI compare to your other clients? Can you easily replace this client with higher ROI clients if you had more time to do so?

Ultimately all parties have to make a reasonable profit (ROI), and if the client doesn’t think your ROI is worth it from their perspective, most likely they’re not the client for you. Rest assured your client is thinking the same thing about you with every invoice they pay. Did I get my money’s worth from this guy? Remember, if you’re not delivering you know they will fire or drop you as soon as they can.