With refer to the recent hot topic in the industry, current GST mechanism is likely to be abolished in near future (yes, while everyone is still waiting for announcement made by the relevant ministry anxiously).
Some people may ask: “Since there is no more GST, is it still a need to use Accounting system in my business?”
First of all, in before replying to this question, there are some facts is recognized:
- Due to GST, we believe most Accounting team has established a good practice in submitting their business Accounting timely & as accurate as possible. This working practice is much appreciated especially in promoting an efficient working habit.
- Though not everyone like it, but we have to agree that GST did improved the transparency & reduce chances of error in Accounting practice. Which this boost confidence in the business world.
- Apart from GST, there are still other taxes applied on business – corporate tax & personal income tax, which has the direct impact on everyone of us. With a proper application of Accounting practice, it helps to improve & reduce the error in submitting such taxes.
- Upon implementation of GST, most business adopted working practice by utilizing Accounting system, and it clearly shown that working efficiency is improved as compared to the old time (doing Accounting work manually).
Now, let’s back to the question: “Is Accounting System needed when there is no more GST?”
No doubts, based on our past experience in dealing with SST (Sales & Service Tax), it doesn’t really required an overhaul of system like how GST was implemented; however, base on the facts that we have been through after GST era, we can’t denied the fact that Accounting System could improve:
- Working Efficiency
- Transparency of Work
- Accuracy of Figures
- Time saving in decision making
- Avoid human error
We believe many people might struggling in between the cost of investing into Accounting System vs the reality need of using it. Perhaps, put aside GST factor alone, let’s view it from a different perspective.
Let’s make an assumption:
Annual business turnover: RM300,000 (about RM25k/ mth)
Cost of Accounting System: RM3k (average SME solutions)
Cost of Invest: 1%
Now, let’s ask ourselves a question:
“By investing 1% (or lesser) of annual revenue for once, it could help to improve your working efficiency & reduce error, and potentially could save you from paying substantial sum of penalty that caused by human error, would you consider to invest in such tool? “
I guess, for the smart people like you, the answer to this question is quite certain. We all know that what is the best to choose in order to optimize our business profit, and certainly, investing in the right tool is one of the choice to make.
And not to forget, reinstatement of SST by new government is yet to announced, there are questions remains to answer such as:
- how would be the implementation of SST?
- which industry are entitle to SST? Selective industry as previous or include all?
- how would the documentation present?
- how much would be the rate?
- how would the transition from GST to SST take place?
Despite of all questions, the best answer is to remain ourselves as competitive as possible by not forgoing the working efficiency that we have fought through in the GST era.
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