What is IFRS?

IFRS was developed by the International Accounting Standards Board (IASB) in the 1990s as a way to standardise accounting across different countries. Today, IFRS is used by over 200 countries around the world, including Malaysia.

It was created to create a common accounting language so that businesses and their financial statements are consistent and reliable across companies and across countries.

The Importance Of IFRS For Your Business

International Financial Reporting Standards (IFRS) are important for both small and medium-sized business (SMB)’s accounting and financial reporting process. They help to ensure that your company is accurately recording its financial results.

If your company is looking to expand internationally, then it is essential for you to know what IFRS is. So that you will understand the benefits that IFRS can bring about for your business as a whole.

The Top Benefits of Using IFRS

There are a number of benefits of using IFRS that make it an essential component to every company’s accounting system, as outlined below it helps with things like:

• Simplified Accounting:IFRS is designed to be as simple as possible, making it easier for companies to report their financial information. This also makes it simpler for companies to comply with regulations, such as regulations that require companies to disclose their financial information in a timely manner.
• Better Disclosure:IFRS provides a set of standards that companies can use to report their financial information in a way that is more transparent and understandable. This makes it easier for investors and other stakeholders to understand how companies are doing financially.
• Better Reporting:IFRS provides a set of standards that companies can use to report their financial information in a way that is more transparent and understandable. This makes it easier for investors and other stakeholders to understand how companies are doing financially.
• Better Control:IFRS provides a set of standards that companies can use to report their financial information in a way that is more transparent and understandable. This makes it easier for investors and other stakeholders to understand the company’s financial performance.

Additional Benefits of Adopting the IFRS

The adoption of IFRS affects not only the enterprise itself but also users of financial statements and other stakeholders. The application of IFRS will have a great impact on users of financial statements such as investors, shareholders, and financial institutions.

Lastly, IFRS has the characteristics of comparability and high transparency, which makes it easier to present data and financial reports to potential investors and stakeholders alike. Financial institutions will also benefit from using IFRS.
In a nutshell, IFRS is a framework for accounting and reporting financial information that comes from a set of internationally-recognized standards. If you would like to understand and learn more about what is IFRS, and the benefits of IFRS, then kindly click here to learn more.

Financial accounting consists of many processes such as recording, summarising and reporting all the company’s transactions, in order to ensure that the company’s operations and performance are in order.

As such, understanding the importance of financial accounting processes is crucial to the growth of a business, and also knowing what benefits financial accounting can bring about for your business in Malaysia.

Discover The Importance & Benefits Behind Good Financial Accounting

 

Here are some of the top reasons as to why financial accounting has great importance for every business.

• • Track Your Daily Transactions
    It is difficult to determine the amount of profits or losses that you have made as a business, regardless of the size of your company. Having proper financial accounting best practices in place, can easily help you to monitor and keep track of your business’ daily transactions, so that you can predict future business costs and avoid financial pitfalls.
    
    This is beneficial to companies because it provides greater transparency and accountability, to keep your business partners accountable to allow for better planning especially tax planning in Malaysia and business success in the long-term.

• • Tax & Legal Compliance
    Having stellar corporate tax compliance services enables you to make sure your corporate taxes are all in compliance with Malaysia’s laws and regulations. The laws, statutes and regulations can be difficult to interpret, especially from a lay person’s perspective because they are filled with legal jargons and terminologies.
    
    As such, in these situations, it would be advisable to reach out to an accounting firm to advise your business because one of the huge benefits of financial accounting is to help avoid any penalties for late tax filings, late payments and more.

• • Make More Informed Decisions
    Data is an essential for businesses. It is a compass that guides your business to make the next logical step to grow and advance your company. So, that is not an understatement at all.
    
    This is because without properly collected data, your business could potentially make inaccurate business decisions based on poorly collected financial data and insights. Therefore, the best practices of financial reporting should be carried out in order to avoid that.
    
    By putting this into practice, your business will reap a huge benefit of financial accounting. That benefit is a more organised, informed, orderly and properly collected record of your financial data.

• • Valuation and Reporting
    Financial accounting plays a fundamental role in the valuation of a company. Accurate financial statements provide the basis for assessing the value of a business, whether for internal purposes, such as determining stock prices or evaluating performance metrics, or for external purposes, such as mergers and acquisitions between companies in Malaysia, initial public offerings (IPOs), or attracting investors.

Based on the aforementioned points, the importance of financial accounting is undeniable and the benefits gained by your business from proper financial accounting is something worth investing your resources into. If you are interested to learn more about financial accounting benefits, then kindly click here to visit our website for more information about our services.

 

Starting a business is challenging, exhausting, and time-consuming. A business consultant can help you stay on track, manage the high volume of tasks, and provide insight into company growth and development. So, what is the role of a business consultant? Read on to find out more.

What is a Business Consultant?

A business consultant has extensive knowledge and experience in a specific field, such as security (electronic or physical), accounting, legal, human resources, marketing, management, finance, engineering, science, information technology, or any other areas of expertise. A business consultant provides professional advice to business owners that relates to their specific field.

Reasons Why You Need a Business Consultant

1. Execute Your Vision
   A business consultant can help you to refine your mission statement and implement effective strategies to execute the vision that you have for your business.
2. Organise Your Database
   Working in partnership with a business consultant will enable you to build and organise an effective and fully-functioning database. This will help you to find and keep the best employees, manage your projects and monitor the long-term growth of your business.
3. Avoid Common Pitfalls
   What is a business consultant going to do to help you avoid making common mistakes? Perhaps you overestimate costs or choose a poor-quality supplier. A business consultant can point out your blind spots and offer expertise in your specific field. You will be sure to become more strategic and efficient through working with a business consultant.
4. Build Your Own Brand
   A brand is more than just a logo or a catchphrase. You need to be able to pinpoint your target audience, understand your customers’ needs and communicate with your clients effectively, which is why you need a business consultant.
5. Grow Your Business
   What is a business consultant going to do to help you build your client base and business network? A business consultant can help you to liaise with other professionals in your field, and build connections with consulting firms. You will gain fresh insight and expert advice as you establish new working relationships, which will enable your business to develop effectively.

   So, why do you need a business consultant? To give you the keys to kick-starting your business and enjoying many future successes! If you are a business owner in Malaysia and seeking an experienced business consultant, please do not hesitate to get in touch with us. We are happy to provide answers to any of your questions.

ECOVIS welcomes our new partners from ECOVIS Mauritius headquartered in Ebène. Ebène Cybercity lies 15 kilometres south of the capital Port Louis and is a hi-tech office area.

ECOVIS Mauritius is an accounting, auditing, tax and consulting firm. Originally it was set up and registered as Duncan Morris in 2011. In 2021, the current partners Vivek Gujadhur and Mishta Kona Herkanaidu purchased the shares in the firm. Both partners took the decision to become entrepreneurs and to start an own consulting firm after having gained experience and expertise with the Big 4. As of today, their team consists of 25 professionals serving approximately 100 clients.

Vivek and Mishta state: “We are very proud to be part of the Ecovis family. With Ecovis’ global presence, we will continue to build on our fellow member firms’ successes which will take us to new heights. We believe in delivering a personalised service to each of our clients by understanding their needs and working together with them to resolve issues. Our go-getter mentality connects us with entrepreneurs and intrapreneurs and our amazing team is always ready to share experience and knowledge of the firm to our clients. We also believe that the evolution of Mauritius’ financial sector into a globally renowned jurisdiction will create new business opportunities which will strengthen our market positioning.”

We warmly welcome our new colleagues from Mauritius to the ECOVIS family!