Ever since the introduction of GST by Malaysian government in April 2015, software companies in Malaysia are finding it difficult to adapt their software according to the new changes. Interestingly Reach Accounting Software is designed with compliance with the new GST rule prevailing in Malaysia.
Royal Malaysian Customs has given some basic guidelines for businesses to follow to comply with the new GST rule. Here is an excerpt from it for your understanding.
- Proper record keeping is necessary for accurate tax declarations. Using accounting software helps greatly in record keeping. In addition, the use of accounting software generates other operational and financial information that are useful for management of the business.
- With a proper accounting system in place to accurately capture and produce accounting information for tax reporting purposes, businesses are less likely to make errors in their tax declarations. This would reduce compliance costs for businesses, as any tax reporting errors would result in penalties being imposed.
- Jabatan Kastam Diraja Malaysia (JKDM) will conduct audit on businesses from time to time to ensure that businesses are making correct tax declarations. It is a common procedure for JKDM to request for certain accounting information as part of the audit. For businesses using manual records, the process of producing the records required by JKDM is usually time-consuming. Businesses using accounting software that is able to generate the GAF as recommended in this guide would find it easier to meet JKDM requests and this saves the businesses time and effort.
Software developers are required to ensure its accounting software:
(a) Provides the issuance of tax invoice as well as credit / debit note in compliance with GST legislation.
(b) Provides a reporting facility for the generation of information necessary to prepare tax returns.
(c) Provides comprehensive documentation to assist auditors and users to understand how the system operates.
(d) Incorporates adequate internal controls to ensure reliability of the data being processed.
(e) Creates adequate audit trails to assist auditors to understand the flow of events and reconstruct the events if necessary.
(f) Has in place archival and restoration of archived data mechanisms to ensure the integrity and readability of electronic records after an extended period.
(g) Contains key data elements necessary for business.
(h) Allows production of GST Audit File (GAF) by non-specialists (staff who do not have an IT background).
Apart from the above there are so many other things which businesses need to check whether their Accounting software contains it. Reach Accounting Software comes with all the things that are mentioned in the guidelines. To make it simpler, here is what Reach Accounting Software can do. As you record Invoices and Purchases, Reach captures the input and output taxes and calculates the dues correctly! You can produce your Form GST-03 in one click and also extract General Audit Format in XML format. To know more you can mail us at email@example.com or read more