Business Excellence

Guide for SMEs

• Why Financial Management Matters to SMEs

• How to Choose an Accountant for Your Small Business Needs
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CONTENTS

Introduction 1

Why Does Financial Management Matter for Small and Medium-sized Enterprises
2
(SMEs)?

Key Elements of Financial Management

• Planning
4
• Accounting and Reporting
• Analysis

Success Story 9

Who is an Accountant?
• About MIA 10
• Accountants in Various Sectors

Employing an Accountant for Your Business 12

Competency Requirement of Accounting Personnel 14

Engaging a Professional Accountant in Public Practice 15

Key Criteria in Choosing a Professional Accountant in Public Practice 18

Questions to Ask Your Prospective Professional Accountant in Public Practice 19

How to Build a Good Accountant-Client Relationship 21

Where to Find a Public Practice Firm and a Chartered Accountant 22

INTRODUCTION
Good financial management is essential for businesses, including small and medium-sized
enterprises (SMEs) to prosper. In many cases, failure could have been avoided if the owners
had applied sound financial principles to all their business decisions. Entrepreneurs need to
understand basic financial management even if they plan to leave the more complicated work
to qualified accountants.

Entrepreneurs usually start their businesses wearing many different hats to fulfil the various
roles required for the operations of a new business. Over time, as the business grows,
it becomes increasingly necessary to delegate certain functions, such as taxation and
accounting, to subject matter experts. The process of employing an in-house accountant or
engaging an external accounting firm that provides public practice services represents an
important decision-making process throughout the business life-cycle.

Having an expert advising you on financial affairs means you will be alert to financial issues
affecting your operations. It is always better to have your accountant tell you this rather than
the authorities such as the Inland Revenue Board (IRB).

This booklet aims to:

• Raise awareness among the business community of the importance of financial advisory
and management;
• Educate the business community about the important considerations when choosing
to either employ an accountant internally or to engage the services of an accountant in
public practice externally; and
• Convey to the broader community the role played by accountants and the Malaysian
Institute of Accountants (MIA) in strengthening and advising on business growth to
support nation building.

We believe that you will find this booklet informative and useful as a guide for selecting
the right accountant for your business needs.

Business Excellence Guide for SMEs 1

WHY DOES FINANCIAL MANAGEMENT MATTER FOR SMALL AND
MEDIUM-SIZED ENTERPRISES (SMEs)?
Basic financial management skills are the foundation for an enterprise’s success and resiliency.
To support sustainable growth of SMEs in a highly competitive landscape, MIA advocates that
SMEs:

Apply basic financial

management skills to manage Comply with the tax system,
cash flow which is the lifeblood employment and other legislations
of an enterprise

Improve access to credit

Consult competent professionals
and financing through
to bridge skill and knowledge gaps
better business profiling

Working with a qualified accountant as a business advisor will ensure that more SMEs
will survive, prosper and contribute to overall economic development.

2 Business Excellence Guide for SMEs

 Good Financial Management is Essential
for Businesses to Grow and Prosper

Financial management goes beyond simply

keeping accounting records. It is an essential
part of organisational management and
involves planning, accounting, reporting and
analysis in order to achieve organisational
objectives.

GOOD FINANCIAL MANAGEMENT WILL HELP YOU TO:

Make effective and eff icient use of resources to

gain competitive advantage

Achieve objectives such as business growth,

diversification or expansion into new markets
The goal of
financial management
is to give you
Gain the confidence of funding institutions and
the information and
thus access to credit
perspective
you need to make
business decisions.
Formulate and implement a financial strategy to
support the overall strategy of the organisation

Make your business more tax eff icient

Business Excellence Guide for SMEs 3

KEY ELEMENTS OF FINANCIAL MANAGEMENT

1. PLANNING

Planning gives an organisation a sense of direction.

Budgeting
Creating a budget is the first step in the practice of good
financial planning.

A budget is a list of your (monthly, quarterly or yearly)

expenses, organised by categories. It is a tool that helps
you to track your business expense in order to plan. Once
you have a budget, it can be used to compare your income
with the actual expenditure and enable you to adjust your
expenses to ensure business sustainability.

Don’t forget to budget for improved financial capabilities of your company, such as
recruitment of financially-trained staff, procurement of system to trace business
performance and to produce accurate management information for decision making
purposes. Financial capabilities in SMEs are not just a consequence of growth, but one of
its causes.

2. ACCOUNTING AND REPORTING

Accounting and reporting are the processes of recording

and converting financial transaction data into accrual
based financial reports that are utilised to report financial
performance to management and other stakeholders.

4 Business Excellence Guide for SMEs

Bookkeeping
Bookkeeping allows you to communicate with numbers. It will not only help you tally what
you have earned with what you have spent but also what you need to spend, your assets,
income, debts, turnover of the capital and everything else that contributes in defining your
business.

7 Basic Bookkeeping Tips

Get a tried and tested

1 accounting software.

Open a separate business bank

2 account. Do not mix business
and personal banking accounts.

Reconcile your bank account

3 at the end of each month.
Check every single deposit and
withdrawal in your register to
see that it matches up with the
monthly bank statement.

Track and deposit all sales. Deposit all sales in your business bank
4 account. Total sales should equal total deposits. Be extra careful
not to spend cash sales before it is banked-in.

Keep track of your business expenses. Issue cheques, make

5 electronic transfers from business accounts or use a business credit
card to pay for all business expenses. This is to ensure clear audit
trail of all expenses.

Always pay business expenses first, personal expenses second.

6 In sole proprietorships, the owner does not get a salary; rather he/
she takes an owner’s draw. The owner should pay himself/herself
by issuing cheques or transferring from the business account to his/
her personal account electronically.

Prepare financial statements. A bank account balance is not

7 a good indication of how much profit the business has made or
what amount is available for the owner’s draw. A statement of
comprehensive income can provide a better picture of the financial
performance of your company over a specific period of time.

Business Excellence Guide for SMEs 5

Unboxing the Financial Statements

Depending on how you sort, organise, and analyse your financial data, you can see many
different pictures of your company’s financial strength and potential.

Statement of
Statement Changes in
of Financial Equity Statement of
Position Cash Flows

03
02 04
Statement of Notes to the
Comprehensive Financial
Income Statements

01 FINANCIAL 05
STATEMENTS

The following are 3 statements that are important for small businesses:

1 Statement of Comprehensive Income / Income Statement

2 Statement of Cash Flows

3 Statement of Financial Position / Balance Sheet

Directors’ responsibility for a company to prepare financial statements in

accordance with approved accounting standards is clearly spelt out in
the Companies Act 2016. It is therefore vital for directors to have a
qualified accountant in place to assist them in fulfilling their responsibilities.

The following sections give the basic facts about each of the above statements.

6 Business Excellence Guide for SMEs

Purpose of Financial Statements

Statement of Comprehensive Income for the year ended . . . .

n Also called an Income Statement, it shows income received and expenses paid over a
specific period.
n It reports a company’s financial performance over a specific accounting period.

Statement of Financial Position as at . . . .

n Also called a Balance Sheet, it is a financial snapshot of your business. It shows the overall
financial position of your company, including all the major assets, liabilities and equity, at
a given date.
n It helps users to assess the financial health of the company along with displaying what the
company possesses and owes.

Statement of Cash Flows for the year ended . . . .

n A Cash Flow Statement shows how cash is generated and used during a period of time. It is
one of the most useful financial management tools because it shows you:

Net cash flow from operating activities

• Collections from customers, cash paid to Net change in cash and cash
suppliers and employees, cash paid for equivalents
interests and taxes, cash proceeds from
• If the net cash flow is positive,
dividends or interest.
the business is generating cash
for ongoing operations;
Net cash flow from investing activities
• If the net cash flow is negative,
• Purchases or sales of property and equipment.
the business might still have
available cash but it needs
Net cash flow from financing activities further evaluation based on the
• Funds available from issuance of shares and company’s sustainability and
loans and payment of both principal and growth strategy.
interests.

n Demonstrates the ability of a company to generate cash and how the funds are then
used.

n Is my business more likely to have a negative or positive

cash flow during the next six months?

n What strategies will I have ready in case cash flow is

unfavourable compared to what I have planned?

Business Excellence Guide for SMEs 7

 3. ANALYSIS

Financial analysis involves using financial data to assess

a company’s performance and make recommendations
for improvement.

12 common types of financial analysis methods are:

VERTICAL: Dividing various components of income

01 statement by revenue and expressing them as
percentages.

02 HORIZONTAL: Comparing several years of finance data to determine the growth rate.

03 LEVERAGE: Comparing total debt with total equity to obtain the debt/equity ratio.

04 GROWTH: Analysing historical growth rates and projecting future growth rates.

PROFITABILITY: Common examples of profitability measures are gross profit margin and
05 net profit margin.

LIQUIDITY: Assessing the ability of a company to meet short term obligations (due in one
06 year or less).

07 EFFICIENCY: Assessing how well a company utilises its assets to generate revenue.

08 CASH FLOW: Analysing a company’s ability to generate cash e.g. free cash flow.

RATES OF RETURN: Analysing the rate of return

09 for investments.

10 VALUATION: Estimating what a business is worth.

SCENARIO & SENSITIVITY: Measuring risk due to

11 uncertainties.

12 VARIANCE: Comparing actual results to forecasts.

Source: Corporate Finance Institute, 2019

8 Business Excellence Guide for SMEs

SUCCESS STORY
How can an accountant help you to achieve good financial management?

This is a real-life account of a logistic company that benefited from hiring an accountant.

“We made profit but were

not sure where our money went,”
says the CEO of a logistic company.

This company thought that their business

was doing well, as they were receiving lots
of business orders and making operating
profit. But as they progressed, they started
to experience cash flow issues. The CEO was
not able to gauge its position in terms of cash
flow and availability of funds for growth.

This is expected when there is no

systematic process in place or dedicated
person in charge of the company’s financial
affairs. These deficiencies led to expensive
missteps, such as double paying of suppliers
and depletion of cash which outpaced
collection, thus leading to cash flow issues.

Fortunately, the company was able to

turn the situation around by employing an
accountant.

“My financial controller helped us to restructure the entire payment

and collection process as well as our reporting structure.
Our finance and operations management are more stable now,”
says the CEO.

In the end, the CEO learnt an expensive but valuable lesson. Cash flow management is the
backbone of the business and the best way to manage it is by hiring a qualified accountant.

Source: Firefly in-flight magazine, FireFlyz, January 2019

Business Excellence Guide for SMEs 9

WHO IS AN ACCOUNTANT?
One prominent role that accountants play is as business advisors to the SMEs /
microenterprises, which generally lack in-house financial and managerial expertise.
In providing the necessary financial management advice and assistance to SMEs/
microenterprises, accountants fill this gap and support their sustainable growth.

In Malaysia, the accountancy profession is regulated by the Accountants Act, 1967. The
Act requires persons holding themselves out as, or practicing as accountants, to be
registered as a member of the MIA.

ABOUT MIA

Statutory body established under the Accountants Act, 1967 to regulate and
develop the accountancy profession in Malaysia.

n As the national accountancy body, MIA sets high ethical standards which
must be adhered to by all accountants in Malaysia.

n All accountants are bounded by MIA’s By-Laws. Any breach of the By-Laws
may render the members liable to disciplinary proceedings.

n MIA members are regulated, and the public has a recourse by lodging a
complaint to the Institute if there is any wrongdoing by the members.

n The public would also be assured of the minimum quality of the

professional services expected as it is mandatory for all MIA members to
annually acquire a minimum number of hours of continuing professional
education to ensure that they are updated, even after being trained as an
accountant.

n MIA members are also bound by a strict code of ethics whereby failure to
comply may result in a member being suspended or even removed from
membership depending on the severity of the non-compliance.

10 Business Excellence Guide for SMEs

Accountants in Various Sectors

COMMERCE/ PUBLIC ACADEMIA PUBLIC

INDUSTRY PRACTICE SECTOR
Lecturers
Internal Auditors Statutory Auditors Deans Accountants
Company Company Heads of Treasurers
Secretaries Secretaries Departments Financial Off icers
Company Tax Consultants Auditors
Accountants Management Inland Revenue
Tax Managers Consultants Off icers
Corporate Advisors (for Bank Negara
Planners Corporate Finance) Off icers
CFOs / CEOs Receivers & Directors of
Managers, Ministries
Judicial Managers
or Approved
Liquidators
Forensic
Accountants

n ACCOUNTANTS IN COMMERCE AND INDUSTRY

Accountants in commerce and industry are employed by organisations
to provide advice on financial matters or general management and may
even serve as directors of the organisation. This group of accountants
form an integral part of the management.

n ACCOUNTANTS IN PUBLIC PRACTICE

Public Practice is the term used to describe accounting firms that
are operated by individuals in sole-proprietorship or partnership /
limited liability partnership. There are more than 2,700 accounting
firms in Malaysia providing a wide range of services to individuals and
organisations. See more details of their services on page 15 - Engaging a
Professional Accountant in Public Practice.

n ACCOUNTANTS IN INSTITUTIONS OF HIGHER LEARNING

(ACADEMIA)
This group of accountants are involved in the education sector. Their
involvement includes the training of future accountants, accountancy
research and development matters.

n ACCOUNTANTS IN PUBLIC SECTOR

Accountants can also choose to work in the public sector. These accountants are generally
responsible for the administration and use of public money. They are employed throughout
the public sector, i.e. in government and statutory bodies.

Business Excellence Guide for SMEs 11

EMPLOYING AN ACCOUNTANT FOR YOUR BUSINESS
It is crucial to have an in-house finance function in your
business. It does not matter if you are hiring an accountant
or outsourcing the finance function. It all depends on your
business requirements.

Setting-up an In-house Finance Function

1 Setting Up a Business Plan – A business plan is needed even before you start your
business. A business plan is key in determining what your goals are, i.e. income that
you need to sustain your business and the expenses involved. At this stage, the
drawing up of a business plan is often assisted by Small and Medium Practitioners
(SMPs). Business plan are also required by the banks when you wish to request for
financial assistance from the banks or financial institutions.

2 Determine the Business Objectives – If your objectives are to make sure that all
cash flows need to be monitored, i.e. collection of sales, issuance of cheques at
the right timing and prompt payment to suppliers while making sure your business
respects the credit terms granted by the suppliers, you can either have a dedicated
accountant or even outsource the record keeping function. At this stage, your goals
apart from the cash flow management is making sure that your business is fulfilling
its statutory obligations such as ensuring your business accounts are audited, annual
return is lodged accordingly, and your business pays its taxes.

3 Standardisation and Monitoring – As the business grows, the business may require
more timely information to feed into formal business plans and management
decisions. Trained accountants are required to monitor cash flows and report on the
progress and even improve the business process over time. At this stage, a higher level
of financial skills is needed to serve the demand of business in the form of expansion,
i.e. when the business needs more capital, the business may require more investors to
invest in the business. Investors might need more timely information to satisfy their
requirements.

Having a sound finance function depends on so many factors such as the size of the business,
the budget that the business has and the external requirements of the business.

Source: Accountants for Small Business, ACCA, March 2013

Financial capability is not the result of

business growth, but one of its causes
ACCA, 2012

12 Business Excellence Guide for SMEs

Effective Use of Accountants in SMEs

Accountants can add value to SMEs in building a finance function that contributes to the
success of your business by:

1 ENHANCING COMPLIANCE AND CONTROL

Accountants can play a crucial role in implementing financial controls and

management to address the risks affecting the business and take care of
compliance with laws and regulations relating to external reporting.

2 PROVIDING BUSINESS INSIGHTS

Accountants can provide valuable insights as partners to the business by

providing relevant and timely performance management information to support
decision-making and sustainable business growth. Greater insights could be
facilitated through the use of technology.

3 DRIVING EFFICIENCY

Accountants can improve task performance and transactional eff iciency by

simplifying and enhancing processes through the use of technology.

4 BRINGING PROFESSIONAL QUALITIES TO THE ORGANISATION

As trained professionals, accountants are expected to bring professional

qualities to their role and encourage ethical behaviour and decision-making
throughout an organisation. They are anchored by their fundamental principles
of integrity, objectivity, professional competence and due care, confidentiality
and professional behaviour.

Source: Competency Framework for Finance Function in Public Interest Entities, June 2019 (MIA)

Business Excellence Guide for SMEs 13

COMPETENCY REQUIREMENT OF ACCOUNTING PERSONNEL
After determining your need to hire in-house accounting personnel, you need to determine
what qualifications your accounting personnel should have before beginning your
recruitment process. Differences in business structure, size and complexity of business
will require different categories of accounting personnel with different qualifications
and competencies.

There are 3 key reasons why you should choose an MIA registered accountant:

MIA members have gone through a rigorous examination process to demonstrate

1 their knowledge of accountancy. To be qualified, they must also have attained at
least 3 years of practical experience.

MIA members are required to keep abreast with current issues and legislation
2 and undertake continuous professional development to keep themselves up to
date with changes in the regulatory environment.

MIA members are bound by a strict code of ethics and professional rules to
3 ensure a high standard of ethical and professional conduct. If you encounter
problems in determining whether an accountant is qualified, you should
remember that accountancy professionals registered with MIA are accorded
the designation Chartered Accountant Malaysia or “C.A. (M)” which can be
used by MIA members after their names.

However, you would still need to engage a public practice firm to perform other public
practice functions.

14 Business Excellence Guide for SMEs

ENGAGING A PROFESSIONAL ACCOUNTANT IN PUBLIC PRACTICE
Many small businesses do not have the volume of financial transactions that necessitate
hiring a full-time in-house accountant. Engaging an accounting firm on a consultative basis
might be a good first step for a new start-up:
• Professional services rendered by the accounting firm can often cost less than the salary
and benefits of a full-time employee; and
• At the same time, you may be getting a higher level of advice from a Chartered
Accountant.

n ACCOUNTING FUNCTIONS
INDEPENDENCE REQUIREMENT
An accounting firm usually manages OF AUDITORS
the following accounting functions on
behalf of small businesses: The provision of accounting and book
• Bookkeeping; keeping services on behalf of an audit
• Tax return preparation; client that is a public interest entity is
• Preparing financial statements; and prohibited in MIA By-laws.
• Analysis or problem-solving advice.
An accounting firm cannot be deemed
n AUDITING FUNCTIONS independent with regard to auditing
financial statements of a client if it has
Companies enjoying the privilege of participated closely in the preparation
of the financial statements.
limited liability must subject their
businesses to statutory audits to
safeguard the interest of third-party
users and other stakeholders. An audit
can be considered to be a service to the To regard an audit as merely a
public at large and it is a small price to pay compliance exercise would be
for the limited liability protection that to lose sight of the potential value
a company enjoys. The Companies Act that a business can gain
2016 (CA 2016) empowers the Registrar from a well-performed audit.
of Companies to exempt companies
from performing a statutory audit. Please refer to the MIA booklet
The Registrar issued Practice Directive “Why Audit Matters for SMEs”
3/2017 in August 2017 specify three types https://www.mia.org.my/v2/downloads/
resources/publications/smp/2016/12/14/
of companies which qualify for audit
MIA_why_Audit_Matters_to_SMEs.pdf
exemption, i.e. dormant, zero-revenue
and threshold-qualified companies.

Audit licensing requirements

In Malaysia, only an approved company auditor can be appointed as a company auditor.
An approved company auditor is an MIA member with a practising certificate who has
passed an audit interview conducted by the Accountant General’s Office and obtained
approval from the Ministry of Finance (MOF) pursuant to CA 2016.

Business Excellence Guide for SMEs 15

n OTHER MAJOR PUBLIC PRACTICE FUNCTIONS

Tax Compliance & Consultancy

Tax accountants usually assist clients in

preparing tax returns and tax computation
to facilitate their clients in complying
with all the tax requirements imposed by
the IRB and thus avoid being penalised for
submission of improper returns or delayed
submission of tax returns.

The tax accountant is also the right person to provide adhoc advice on specific tax issues
as and when they arise.

The issuance of a tax agent license is governed by Section 153 of Income Tax Act 1967
and it is issued by the MOF. Approval is only granted after the applicant has passed an
interview conducted by the IRB.

Company Secretarial Services

The CA 2016 sets out an array of duties, responsibilities and guidelines that must be
adhered to in administrating a company. Failure to comply with the requirements of
the CA 2016 can result in severe penalties, including the imposition of hefty fines and
in extreme cases, even imprisonment.

To be a company secretary in Malaysia, an individual has to register and hold a valid

practising certificate from the Registrar of Companies irrespective of his or her professional
background under Section 241 of the CA 2016.

An accountant can help with business operations within the boundaries of the Act and
guide the company to take full advantage of the benefits and protection provided by
the Act. An accountant can also assist with matters such as the formation of a company,
lodgement of required documents, registration of business names and keeping the
required books and registers up-to-date.

Internal Auditing

In addition to external auditors, many businesses now have outsourced their internal
audit to examine and improve their business and accounting systems. As internal auditors,
accountants would review the organisation’s accounting system and appraise the
strengths and weaknesses of internal financial controls.

16 Business Excellence Guide for SMEs

Corporate Recovery / Insolvency

Corporate recovery involves investigating businesses that have gone into financial
difficulties. Accountants dispense advice on financial viability, recommend rescue
packages or administer insolvency procedures in the event of receivership and liquidation.

To be an approved liquidator, an individual has to obtain approval from the MOF

under Section 433 of the CA 2016.

Management Consultancy and Management Accountants

Accountants are bona fide management consultants, having served as advisors to a

diverse range of businesses and industries. They offer specialised services such as
feasibility studies for new products and business projects, funding advice on capital
restructuring and gearing, mergers and acquisition assistance in sourcing loans or equity
capital, evaluation, design and implementation of new systems.

Financial Planning

Accountants have the requisite financial expertise to advise and assist with financial
planning, investment planning and estate planning. An accountant can help clients
decide on pension plans, insurance and the purchase of assets such as property, bonds
and equities. An accountant is also qualified to act as executor or trustee for an estate.

In addition, professional accountants in public practice can also provide services such as
forensic accounting, executive recruitment, information, communications technology,
etc, depending on their scope and depth of expertise.

Growing SMEs make the most use

of external advice
IFAC, 2016

Business Excellence Guide for SMEs 17

KEY CRITERIA IN CHOOSING A PROFESSIONAL ACCOUNTANT IN
PUBLIC PRACTICE

GENUINE RECOMMENDATION
Wherever possible choose a firm that is highly
recommended by someone you know or whose opinion you
trust as a balanced independent view.

GO WITH A CHARTERED ACCOUNTANT OR A FIRM

REGISTERED WITH MIA
Chartered Accountants are members of a professional body.
They are regulated and there is an independent governing
body to address your complaints (if any).
There are two types of public practice firms in Malaysia, i.e.
audit firm (AF) and non-audit firm (NF). Both types of firm are
registered with MIA and are known as MIA member firms.

ACCOUNT MANAGEMENT
It is important to know the assigned key contact for your
company to forward inquiries pertaining to the engagement.

SERVICE OFFERED & EXPERIENCE

Check that the accountant offers all the relevant services
that you require. Consideration should be given to the
accountant who is familiar with your business or
industries that may have an impact on your business.

SIZE / RESOURCES OF THE FIRM

Ensure that the accounting firm has enough staff force in
terms of size and expertise to fulfil your business needs.

FEES
Professional services are not cheap! It is important that
you should weigh the costs, efforts and benefits of the
service. Ensure that you are aware of the basis on which
fees will be charged.

18 Business Excellence Guide for SMEs

QUESTIONS TO ASK YOUR PROSPECTIVE PROFESSIONAL
ACCOUNTANT IN PUBLIC PRACTICE
Different accountants have different specialisations. The key is finding an accountant that is
the right fit for you and your business. These are some important questions you should ask
before signing an engagement letter.

WHAT ARE YOUR QUALIFICATIONS Make sure they have an accounting qualification
AND WHAT LICENCES DO YOU and they are members of MIA.
POSSESS?
In addition, your accountant can only provide you
the following regulated services if he/she is a
licence / practising certificate holder:

• Statutory / external audit can only be

provided by an approved company auditor
under the CA 2016

• Tax compliance and consultancy services

can only be provided by a licensed tax agent
under the Income Tax Act 1967

• Liquidation and corporate rescue services

can only be provided by an approved
liquidator under the CA 2016

• Company secretarial services can only be

provided by a registered company secretary
holding a valid practising certificate under the
CA 2016

• Accounting services can only be provided by

an MIA member holding a valid practicing
certificate under the Accountants Act, 1967

WHO WILL BE ASSIGNED TO LOOK Partners of the firm might routinely pitch for your
AFTER MY BUSINESS MOST OF THE business, but who will be your regular contacts?
TIME? Ask to meet them, so that your decision is
made with greater confidence and realistic
expectations.

CAN YOU PROVIDE BUSINESS Consider practices that will provide regular
ADVICE AND ASSIST IN THE financial reports on your business with additional
FINANCIAL MANAGEMENT OF MY commentary.
BUSINESS?

Business Excellence Guide for SMEs 19

 ARE YOU FAMILIAR WITH THE If the firm uses a different type of software and
ACCOUNTING / SOFTWARE PACKAGE is unfamiliar with the software package used in
USED IN MY BUSINESS? your business, there will be potential issues in
data sharing. Exporting and importing data in a
suitable format between two different software
platforms can be time consuming and easily lead
to errors.

HOW WILL YOUR PRACTICE HELP ME Think about where you want your business to be
DEVELOP MY BUSINESS? in 5 years and ask if the firm can deal with your
needs. Consider choosing a practice that will
assist you in the development of your business.

WHAT IS THE BASIS ON WHICH FEES Will you be charged on an hourly rate or fixed
ARE CHARGED? rate? Will you be charged for every phone call and
also for travelling time?

WHAT ADDITIONAL SERVICES CAN Consider practices that can provide you with
YOU OFFER? extras or help you seek assistance on issues
important to your business such as bookkeeping,
IT support, etc.

Another thing to consider: do a ‘google’ search of the firm for any positive / negative comments
or articles about the firm.

20 Business Excellence Guide for SMEs

HOW TO BUILD A GOOD ACCOUNTANT-CLIENT RELATIONSHIP
To make sure you and your chosen accountant are always in sync, you must honour the terms
and conditions you sign when you engage your accountant. You should always:

• Keep to proper records and/or deadlines;

• Discuss major issues with your accountant
at all times;
• Pay your accountant on time and in
accordance with the letter of engagement.

The cost will usually reflect your level of

involvement – if you turn up at your accountant’s
office with a black bag of receipts, do expect
your cost to go up. If you build a good two-way
working relationship that can be profitable
for both parties, you will of course be rewarded
with better service.

Avoid fixing your financial year end during peak periods especially in December, if
you prefer more attention from your accountant. Clients who use a reliable and updated
accounting software, have well-prepared documentation, hire knowledgeable staff and have
quick responses to auditors’ requests, generally can negotiate for a better audit fee.

After you have been with an accountant for a while, it is usually prudent to review your
relationship.

Ask yourself the questions such as the following:

o Is my business still getting value for money?

o Is my accountant knowledgeable and can communicate at my level?
o Does my accountant still suit the needs of my business?
o Is my accountant technology savvy and easy to be contacted?

You may find that as your business changes, your requirements for an accountant
would also change.

Business Excellence Guide for SMEs 21

WHERE TO FIND A PUBLIC PRACTICE FIRM AND A CHARTERED
ACCOUNTANT
The MIA Membership’s Online Directory offers a range of information regarding Audit and Non-
Audit firms such as Firm Name, Firm Registration Number, Head Office and Branch Addresses,
Telephone and Fax numbers, Email and Website addresses.

The MIA online searchable member firms’ directory can be accessed via
https://www.mia.org.my/v2/membership/services/member_firms_directory.aspx

The MIA online searchable members’ database can be accessed via

https://www.mia.org.my/v2/membership/services/member_search.aspx

Choosing an accountant and developing an ongoing professional relationship should be

a key decision and certainly, it is worth spending some time prior to making a decision.

Finding the right one for your business needs should result in you having an invaluable aid
for your business as it progresses through the various stages of its business life-cycle.

22 Business Excellence Guide for SMEs

For enquiries, please contact:

Head Office

Malaysian Institute of Accountants (MIA)

Dewan Akauntan
Unit 33-01, Level 33, Tower A, The Vertical,
Avenue 3, Bangsar South City,
No. 8, Jalan Kerinchi,
59200 Kuala Lumpur, Malaysia
Tel : +603 2722 9000
Fax : +603 2722 9100
Email : [email protected]

MIA Johor Regional Office MIA Sabah Regional Office

Malaysian Institute of Accountants (MIA) Malaysian Institute of Accountants (MIA)

5.03A, 5th Floor Menara TJB Lot 6, Second Floor, Block A
9, Jalan Syed Mohd Mufti Damai Point Commercial Centre
80000 Johor Bahru Off Jalan Damai, Luyang
Johor 88300 Kota Kinabalu
Tel : +607 227 0369 Sabah
Fax : +607 222 0391 Tel : +6088 261291
Email : [email protected] Fax : +6088 261290
Email : [email protected]

MIA Northern Regional Office MIA Sarawak Regional Office

Malaysian Institute of Accountants (MIA) Malaysian Institute of Accountants (MIA)

Suite 3.4, Level 3 1st Floor, Ultimate Professional Centre
Wisma Great Eastern 16 Jalan Bukit Mata Kuching
25 Lebuh Light 93100 Kuching
10200 Penang Sarawak
Tel : +604 261 3320 Tel : +6082 418 427
Fax : +604 261 3321 Fax : +6082 417 427
Email : [email protected] Email : [email protected]