Bank and Cash Reconciliation
Every bank account, every CIMB, Maybank, or other operating account your company holds, should be fully reconciled up to the last day of the financial year. Outstanding items — cheques that have not cleared, deposits that have not settled — should be documented with explanations.
Any unreconciled items that are more than 60 days old should be investigated and resolved, not carried forward. Old outstanding items are usually errors or missing entries, not real timing differences.
- Reconcile every bank account to the year-end bank statement
- Investigate any outstanding items older than 60 days
- Confirm your petty cash balance matches physical cash on hand
- Confirm any fixed deposit accounts are properly recorded with accrued interest
Accounts Receivable
Run your AR aging report as at year end. Review all invoices in the 60+ day column and assess collectability. If a debt is genuinely irrecoverable, it should be written off before year end rather than left as a phantom asset on your balance sheet.
Confirm that all sales invoices issued during the year have been recorded. It is common to find invoices that were sent to customers but not entered into the books.
- Run AR aging report as at year-end date
- Review all debts over 60 days for collectability
- Write off genuinely irrecoverable debts
- Confirm all year-end invoices are recorded
- Chase any large outstanding invoices before the year closes
Accounts Payable
Confirm that all supplier invoices received during the year have been recorded. Outstanding supplier invoices that relate to the financial year should be accrued even if you have not yet been billed. Expenses belong in the period they were incurred, not the period the invoice arrived.
This is especially relevant for recurring expenses like rent, utilities, or professional fees where bills sometimes arrive late.
- Confirm all supplier invoices for the year are recorded
- Accrue for known expenses not yet invoiced
- Reconcile each major supplier's statement against your records
- Review any advance payments to confirm they are correctly treated
Fixed Assets
Your fixed asset register should list every asset the company owns — computers, furniture, vehicles, equipment — with its purchase date, cost, and accumulated depreciation. At year end, ensure the register is up to date.
Any assets purchased during the year should be added. Any assets disposed of (sold, scrapped, or written off) should be removed, with the gain or loss on disposal recorded.
- Add all assets purchased during the year to the register
- Remove any disposed or scrapped assets
- Calculate depreciation for the full year
- Physically verify major assets still exist and are in use
Payroll and Statutory Contributions
Confirm that all 12 months of EPF, SOCSO, EIS, and PCB contributions have been submitted and paid. Cross-reference your payroll records against your EPF i-Akaun employer portal to confirm there are no outstanding submissions.
If any staff changes occurred during the year (new hires, resignations, salary changes), confirm the payroll records accurately reflect those changes.
- Confirm all 12 months of EPF, SOCSO, EIS, PCB submitted and paid
- Reconcile total payroll cost in the books against payroll summaries
- Confirm EA forms (Form E) can be prepared for all employees
- Review for any final salary settlements or back-pay owed
Director and Related-Party Transactions
Director loan accounts are one of the most common audit queries for Malaysian Sdn Bhds. If a director borrowed money from the company or advanced money to it, those transactions need to be clearly documented and properly classified.
Review all transactions between the company and any related parties (directors, shareholders, related companies) and confirm they are disclosed correctly.
Preparing for Your Auditor and Tax Agent
Once the above is complete, compile the document package your auditor and tax agent will need: trial balance, management accounts, bank reconciliations, fixed asset register, payroll summary, and any supporting documents for significant transactions.
Providing this package proactively — rather than responding piecemeal to auditor queries — typically shortens the audit timeline and reduces your professional fees.