What Is a Full-Set Account?

A Full Set Account includes filling and reports of the three basic parts – Trial Balance, Balance Sheet, Profit and Loss, to find the financial performance and financial position of a business.

All this accounting paperwork requires time and energy to file, prepare and report down to the last detail. Hence when given a choice, many small business owners opt to outsource their full set accounts to accounting firms that they trust.

What happens if my company doesn’t have a Full Set Account?

There are reasons why many experienced business owners always stress the importance of keeping accurate business finance records. 

Apart from the reminders which typically come from listing down all the benefits of having the bookkeeping habits and practices, these are the downsides that will happen if your accounting is not well taken care of.

1. It will be a nightmare to file for tax 

Without proper tracking and keeping a year worth of records, it is a nightmare to do tax filing, preparing and submission. 

2. You will lose money

One of the biggest risks of not doing your business accounting is that it will lead to slow leaks and loss of money. 

3. Business growth will be tough

Business owners who aim to expand, open a new location, or build a larger team will have challenges in doing so, especially with a lack of financial records.

For example, a bank has a lack of confidence to loan money to someone with no evidence of responsible financial practices or lax about reimbursing expenses. Property owners will hesitate to rent a space to tenants that can’t provide profit and loss statements. Hence, without a financial history, growing your small business will be challenging.

4. You’ll have no proof for defence when you need it most

When it comes to doing a full-on audit, they would generally ask for evidence in response (ie. tax returns for the past few years). Without accurate records, you’ll lose your best defense when inquiring parties come calling.

5. You won’t know how much to pay yourself

Small business owners do business to earn profit and make a living. If you don’t have an accounting system in place, you simply cannot accurately know what to pay yourself. 

With all that said, it is no surprise why accounting is the engine that powers strategic decision-making and ultimately, your business growth.

Local Dedicated Accounting Firm Helping You with your Full Set account

Servnetic Accounting & Tax Consultancy is your trusted independent accounting outsourcing firm in Malaysia. Besides, full-set account, our expertise covers payroll outsourcing services, tax submission and audit as well as financial statement analysis.

1. Sales & Purchase Invoice processing

Manage and verify vendor or supplier invoices to do data entry for sales and purchase invoices into an accounting system.

2. Debtor and Creditor Aging

Reports that can use to monitor the amount owing status of customer and supplier.

3. Bank Reconciliation

Process of matching the balances in business accounting records for a cash account with a bank statement.

4. Bookkeeping

Recording of financial transactions and process of accounting in business.

5. Finance Report

Financial reports that include Trial Balance, Balance Sheet, Profit and Loss.

We look forward to serving you and helping you with your business accounts.

Talk to our payroll experts to learn more about payroll outsourcing today!