What Does an Accounting Company Actually Do?
- Chow Ping
- Nov 17, 2025
- 4 min read
Most people think accountants just crunch numbers and file taxes.
Wrong.
That's like saying a doctor just takes your temperature.
Yes, they do that. But that's not all they do.
Today, we're pulling back the curtain on what an accounting company actually does — and why the best ones offer more than just bookkeeping.
What Does an Accounting Company Actually Do (The Core Service)
Let's start with the foundation: accounting.
This is what accounting firms are built to do.
Bookkeeping — Recording what happens
Every ringgit that flows in and out needs to be recorded:
Sales and revenue
Purchases and expenses
Payments received and sent
Bank transactions
Bookkeepers maintain your general ledger, track who owes you money (accounts
receivable), who you owe (accounts payable), and reconcile bank statements monthly.
Financial Accounting — Interpreting what it means
Bookkeeping records what happened. Accounting tells you what it means.
Your accountant compiles raw transactions into three critical statements:
Profit & Loss Statement — Did you make or lose money?
Balance Sheet — What do you own, owe, what's left over?
Cash Flow Statement — Where did your cash actually go?
These statements tell you whether your business is progressing or dying. They guide your next move.
Management Accounting — Helping you make decisions
Beyond compliance, good accountants provide management reports:
How much cash will you have next quarter?
Which products are actually profitable?
Where are you spending too much?
What's your break-even point?
This transforms accounting from "recording history" to "guiding strategy."
Payroll Services
Managing payroll in Malaysia means handling monthly salary calculations, EPF, SOCSO, EIS, PCB contributions, payslip issuance, and annual EA forms.
Get this wrong and you'll answer to employees, LHDN, EPF, and SOCSO.
Cash Flow Forecasting
Your accountant projects future cash positions based on current patterns, upcoming expenses, and expected revenue.
This helps you avoid liquidity crises, plan major purchases, and decide if you can afford that new hire.
That's the core. That's what "accounting firm" means.
But modern Malaysian firms often go beyond just bookkeeping and financial statements.
They may also offer tax, audit, and secretarial services — depending on the firm's structure and licensing.
Beyond Accounting: Tax, Audit, and Secretarial Services
Tax Services
Tax and accounting are related, but not the same.
Accounting records your financial reality. Tax calculates what you owe the government based on that reality.
What tax specialists do:
Review financial statements and apply current tax laws
Identify deductions you qualify for
File corporate tax returns (Form C for Sdn Bhd, Form E for others)
Handle SST/GST submissions if applicable
Plan tax strategy — salary or dividends? When to make major purchases?
Respond to LHDN queries
Represent you during tax audits
Why tax is separate from accounting:
Tax law is specialized. It changes constantly. It requires deep knowledge of LHDN regulations, incentives, case law, and planning strategies.
Your accountant knows how to record transactions. Your tax specialist knows how to minimize your liability legally.
Audit Services
Audit is NOT the same as accounting.
What auditors do:
They examine your financial statements with fresh, unbiased eyes. Every transaction gets tested to verify it's real and recorded correctly. Compliance with Malaysian Financial Reporting Standards (MFRS) are checked too.
Control weaknesses or fraud risks get flagged. Then the auditor issue an independent audit opinion — the official verdict on whether your numbers are trustworthy.
Types of audits:
Statutory Audit — Mandatory for most Sdn Bhd companies
Internal Audit — Voluntary review of processes and controls
Special Purpose Audits — For bank loans, investor due diligence, government grants
Auditors are required by law to be independent from the company they audit. They can't have financial interests in the company. They must maintain professional skepticism.
That’s why at Douglas Loh & Associates, we partner with Master Firm to handle all audit work — even though we claim to be a one-stop partner of all your business needs.
There's a strict wall between us — they operate autonomously, maintain complete independence, and we keep our distance. We occasionally have lunch together and that's it.
Company Secretarial Services
Every Sdn Bhd in Malaysia must appoint a company secretary. Many accounting firms offer this service.
What company secretaries do:
File Annual Returns with SSM
Maintain statutory registers (directors, shareholders, charges)
Draft board resolutions
Ensure compliance with Companies Act 2016
Communicate with SSM
Keep company documents updated
What we just said, except in video form:
Why secretarial is often bundled with accounting:
Compliance and financial management overlap heavily. Your company secretary needs to know when AGMs are held (which requires financial statements).
Your accountant needs to know about directorship changes. Your tax specialist needs board resolutions for major decisions.
It makes sense for one firm to coordinate all of this.
At Douglas Loh & Associates, we offer the full suite — accounting, tax, audit coordination, and company secretarial services — with proper regulatory walls in place, of course.
So that's what accounting firms actually do. Not just recording numbers, but keeping your entire compliance ecosystem running smoothly. Want us to take that burden off your shoulders?
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