Understanding Financial Accounting Advisory Services in Malaysia

Financial Accounting is a type of accounting that involves recording, summarizing, and reporting innumerable transactions from business operations. These transactions are then summarized in the form of financial statements, including the balance sheet, income statement and cash flow statement, that record the company’s operating performance over a specified period.

What are the two types of financial accounting?

Financial Accounting is performed using either the accrual basis or cash basis of accounting.

Accrual accounting

Record transactions when the transactions have occurred and the revenue is recognizable

Cash accounting

Record transactions only upon the exchange of cash, whereby revenue is recorded upon the receipt of payment, and expenses recorded upon the payment of the obligation.

While financial accounting may sound boring, it plays a key role that allows businesses to keep track of all their financial transactions that go in and out of their business operations, allowing business owners and other stakeholders to understand the company’s well-being and make informed and strategic decisions about how to allocate scarce resources.

Local One Stop Financial Accounting Advisory Services in Malaysia

With the evolving business landscape, financial accounting and reporting have become increasingly challenging. Hence business owners are opting to outsource it to professional and experienced accounting firms that provide financial accounting advisory services.

Servnetic offers comprehensive accounting outsourcing services in Malaysia, supporting small businesses with outsourced accounting services and payroll outsourcing services. Our skilled team ensures accurate financial statement analysis in Malaysia, enhancing compliance. Explore our expertise in tax submission and audit too, providing a reliable solution for businesses.

FAQ

Is advisory better than audit?

It depends on your objective. The primary emphasis of internal audit is on assurance work, as expected by many boards and audit committees. However, advisory work has the potential to deliver more immediate and tangible value, enhance relationships, and elevate the profile of internal audit within the organisation.

What is the role of advisory services?

The advisory service offers valuable business insights, enabling the company to explore new markets and generate additional sales to stay competitive. Advisors assist the company in expanding its market presence through their expertise in marketing and industry knowledge.

Why choose accounting advisory?

Clients turn to advisory services because these are tasks they often cannot execute independently. These services encompass value-added tasks that clients may lack the time, inclination, or capability to undertake on their own. A financial adviser takes into account your overall financial situation, examining more than just a single investment or account. They assist you in comprehending how to maximise the benefits of your assets. Familiarising yourself with the fundamentals marks the initial stride in your financial journey.

What is the difference between accounting advisory and consulting?

The key distinction between a consultant and an advisor lies in the types of services they offer. In brief, consultants concentrate on immediate action, problem-solving, and delivering outcomes, while advisors assist clients in preparing for future uncertainties or achieving growth objectives.

What is difference between accountant and financial advisor?

Financial advisors primarily assist individual clients seeking guidance on achieving financial objectives. They adopt a long-term perspective, assisting clients in planning for the future. In contrast, accountants typically concentrate on transactions within a specific timeframe, aiding individuals with annual tax filings.

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