Tax Audit

1. What is tax audit?
Tax audits involve a visit by the Inland Revenue Board (IRB) officer to business owners ("tax payer") corporate premises to review tax payer's operation, financial records and other supporting documents which substantiate the position taken in the tax return.

2. What is the aim of tax audit?
Tax audit is required to ensure that tax payers report the correct amount of income and pay the right amount of tax which is computed in accordance with the tax laws and regulations. For the government, it works as an enforcement tool ensuring that the Self Assessment System is strictly complied with to prevent any loss of revenue of the government.

Role of Tax Accountant

Financial tax accounting is a branch of accounting that helps to keep financial records of the company’s transactions. This is usually done by an accountant who follows standard guidelines to record transactions and summarizes data for financial statements. Financial Tax Accounting is the recording, interpretation and reporting of financial transactions. Every business has to keep a proper record of financial tax accounting, which is a branch of accounting.

It is one of the most important areas in the economy. To maintain the smooth functioning of your business operations, adequate knowledge of the different tax accounting methods is important so that they apply the appropriate procedures for the type and size of their business.

Why Is Accounting So Important?

Starting a business often requires entrepreneurs to understand and complete a variety of business functions. An important business function when starting a small business is accounting. Although many entrepreneurs may be fearful of dredging through endless stacks of financial documents, accounting often provides entrepreneurs with the clearest picture of their business' success. Entrepreneurs must also keep copious amounts of records regarding the small business startup for tax and legal purposes.

Asking that question of an accountant is like asking a farmer why we need rain.  We need accounting because it’s the only way for business to grow and flourish.  Accounting is the backbone of the business financial world.   After all, accounting was created in response to the development of trade and commerce during the medieval times.
 

Italy is our first recorded source for accounting entries, and the first published accounting work in 1494 was by a Venetian monk.  So you see accounting as an organized method for record-keeping has been around almost as long as the trade and business industries.  Another interesting fact is the knowledge and principles upon which the first accounting practices were established, have changed very little in the many hundreds of years that accounting has been in use.  The concepts of assets, liabilities, and income and the need to reconcile these areas is still the basis for all accounting functions today.

Benefits & Problems With Franchising

The decision to sell franchises of a business is one that should not be taken lightly. Although there are many benefits to franchising, there are also many problems that can develop. Before deciding to take on franchisees, it is vital to understand the benefits and potential problems associated with franchising a business.

Benefit: Expansion and Growth

• Perhaps the main benefit of franchising a business is the growth potential. The business can grow quickly with lower capital requirements. The franchisees are typically responsible for rent, construction costs and other expenses necessary to open a business. The company benefits from new stores without the associated costs.

Licensing Vs. Franchising

There are two type of business you can choose either franchising or licensing but both of it mostly are similar in term of royalty and fees.  Choosing between franchising and licensing depends on the type of business, available start-up capital and the amount of creative control desired by a business owner. Also, how close a relationship an owner wants with a parent company should be considered.

Franchise Systems Definition

Franchise, some people know but not well-know and some have heard about it but not much know about it. So, we will talk about this business system. Franchise systems are the protocols and processes that a franchiser makes available to franchisees as part of their franchising agreement. According to Scott Shane of the Sloan School of Management in Massachussetts, franchise systems are most successful when they make economical use of an organization's resources. In other words, franchising systems should enable a franchisee to operate his company cost effectively.

Company Secretary in Malaysia

Secretary, what you know about secretary??? It is a women with skirt and sexy???What i want to tell you now is a company secretary. Every company is required by statute to have at least one company secretary or more in Malaysia. Who can be company secretary??? The person which are a members of professional bodies such as:
1. The Malaysian Association of the Institute of Chartered Secretaries and Administrators (MAICSA)
2. The Malaysian Institute of Accountants (MIA)
3. The Malaysian Institute of Certified Public Accountants (MICPA)
4. The Malaysian Bar
5. The Sabah Law Association
6. The Advocates' Association of Sarawak
7. The Malaysian Association of Company Secretaries (MACS)
and also the person licensed by Commissioner of Company Malaysia (CCM) under Section 139 Companies Act 1965.

The secretary is to be appointed by the board of directors and either himself or his agent or clerk is required to be present at the registered office of the company on the days and at the hours which the registered office is to be accessible to the public.In most cases it is not practical for most small medium enterprises to engage full time secretaries. Instead, the service of an external secretary of a professional secretarial firm is engaged.

What are the general duties and responsibilities of company secretaries?
The duties and responsibilities of company secretaries depend mainly on the expectations of the board of directors. In most cases, the company secretary is responsible to ensure compliance with the disclosure and information requirements of the Companies Act.

These are some of the main duties of a company secretary:

1. Organise meetings

2. Send out notices for meetings

3. Take down minutes of board and general meetings

4. File statutory returns (in the prescribed forms) required by the Companies Act 1965 with the Companies Commision of Malaysia

5. Keep and maintain the various registers at the registered office of the company.