Accounting : Internal Control

Accounting : Internal Control (6 samples)
01. Control over Period and Date to avoid entered wrongly. 
Allocate which user will be responsible for which batch as in this case the "Pin."
Lock the batch for further editing at "Lock Status"      

      
02. Always trouble to check people work? Lock the batch for further entries 

      

GST Compliance Preparation

I personally recommend  'An Uncle's Guide to GST' book published by Choong Kwai Fatt, explains the concepts and mechanism of the GST and unlocks the complexity and technicalities of Malaysia GST's Model. It's a basic understanding to cover the important parts of GST.

GST is becoming more intense and pressure getting nearer for coming April 2015. Penalty awaits ahead for the late registration of GST and the late payment of GST. There are eight (8) type of GST Custom audit, would be carry on from time to time.

a) Desk audit - checking and verifying information on GST return

b) Refund audit - verifying refund claim

c) Transaction audit - verify transaction exist and correctly complied and reported

d) Advisory audit - provide advisory GST education encourage voluntary compliance

e) Compliance audit - comprehensive audit conduct on all transaction

f) Cancellation audit - comprehensive audit all transaction before any cancel GST registration

g) Special audit - determined by DG

h) Large Taxpayer Unit (LTU) Audit - ensure their full compliance to GST legislations.

There would be no modification is allowed after submit of GST for the respective period, and the GST compliance software is recording any amendment made to the accounts. Internal Control such as password, security and locking transaction is needed for proper implementation.

The impact is not merely on the 6% calculation but with the work of documentation, procedure and transparency towards custom for a monthly basis (for those who submit monthly) and for quarterly basis (for those who submit quarterly).

Performing an accounting work no longer a delay work, but to rush all the supplier invoices / credit note / debit note and as well as to invoice / credit note / debit note to customer at a timely manner. Business owners or any directors which has at least 20% of the ordinary shares is liable for the payment of tax due and payable by the company, any problem with that the income tax would put directors on hold for travel overseas. The travel status is found from the income tax website.

Though it is not stated clearly, but input tax and output tax has indicated that the Inventories system available in the GST compliance software would point out the actual stock quantity balance.

Well through the end of the financial year, the figure going towards custom has to be reflected into financial statement for the income tax.

As for the ICT part of the implementation, the deadline for the submission GST is the indicator that the ICT section has to be in a working condition for a long time, such as breaking down of PC/Server/Virus attack would probably delay the submission, before it happens, ICT section has to be well-planned such as who you are looking for.

During the implementation of GST on April 2015, there would be also a completing 2014 accounts during the same period. Therefore 2014 is a year for planning and execution if not 2015 would be a busy year.

Below is some guideline for those involve in the business and accounting work. I do offer services below, but a brief understanding between the services and the condition of the companies is needed.


You may reach me at stevenglobal@yahoo.com



Full view GST FLOW
Download GST FLOW

GST Online Information

GST website has ready with the following information

http://gst.customs.gov.my/en/Pages/default.aspx

One has already confuse with all the information spread out from the custom website, however, following are some guideline for your reference to search for information.

a. What you need to do
b. General Guide / Industries Guides

c. GST Registration Form/GST Registration Guideline (form is ready)

d. Exempted List /0% Rated List.

e. Specific Guide Item (13) - Sample Invoice

One might be concerned that all guideline from GST seems like a guideline, but it is advisable for you that some of the procedure need to get approval first, such as simplified Invoice format must get approval while full invoice format doesn't require. So with Credit Note, Debit Note, and Timing of issuing the invoice. All the GST submission must sent online, or else courier to KL centre. Claiming input tax (or we prefer to call it purchasing tax), the supplier invoice must contain sufficient  GST information to qualify claiming the input tax.

GST is to be paid once invoices is issued, although collection is done after 30 days / 60 days / 90 days /  120 days from customer. If you would like to seek for GST paid after payment is made from customer, approval need to be obtained.

Regarding foreign currency invoice, all must contain local currency in the same invoice based on BNM ALR custom given exchange rate.

Inventory : Internal Control

Inventory : Internal Control (6 samples)

01. A control system is needed especially for the followings:
  - Deleted Bills is kept or dispose
  - Negative stock quantity is allowable or not-allowable. 
  - Safety control password for
         a. Selling below cost : will result changes of product profit margin
         b. Minimum Selling price : result changes of product profit margin
         c. Selling above credit limit : giving more credit term for customer
         d. FOC item : result changes of product profit margin
         e. Edit Bills : for any editing bills, require password confirmation
         f. Delete Bills : whenever for deleting any bills, a password is required
         g. Second Print control : when printing more than once is required.
 

  
02. Menu accessed control

     

GST Malaysia Calculation

Effective 1 April 2015, Malaysians is implementing Goods and Services Tax (GST)  standard rated 6% or zero rated or exempted and exempted supplies.

"Persons" having businesses with annual sales turnover exceeding RM500,000 are liable to be registered under GST. "Persons" include an individual, sole proprietor, partnership, company, trust, estate, society, union, club, association or any other organization including a government department or a local authority which is involved in the business of making taxable supplies in Malaysia.
The annual sales turnover can be determined based on either:

• The total value of taxable supplies of the current month and the previous 11 months, or
• The total value of taxable supplies of the current month and the next 11 months.

Based on the table listed above, a business operator needs to register themselves in GST before able charging taxes to consumer. They may experience the following :-
a. Daily detail sales records is being captured.
b. Daily detail purchase records is being captured.

Therefore during year 2014, business operators are recommended to hold a proper accounting records, and to do a 100% stock check.