Welcome Guest ( Log In | Register )

Outline · [ Standard ] · Linear+

> Sole Proprietorship Question, Question

views
     
TSChickenFire
post Jul 9 2017, 04:57 PM, updated 5y ago

New Member
*
Junior Member
47 posts

Joined: Mar 2015
Hey guys, I recently started a sole prop business and was quite new to the business thing (audit, statement, money usage etc)
I'm really confused about how the money in my company account could be use for, all my friends say different thing, so wanted to ask sifu-sifu here.

- Can I use my company account money for my own expenses? example like having meal, shopping, insurance and other entertainment?
- Can my company pay for my petrol?
- Can I use the company money for paying loan? car loan, housing loan, credit card loan
- My company tax = my personal tax?
- Let say my business start on 2017 May, when should I submit my tax? Should I find an auditor to finalise my business credit debit things?
- What should I write down for my daily business basis?
- They say those receipt we acquired when paying something could be use for taxation purpose, what is that mean? and should I keep all the receipt I get other than the one I get from supplier?
- If one day my company switch from sole to sdn bhd, what should I prepare now for that transition?

Thank you sifu-sifu. tongue.gif
Sunny zombie
post Jul 9 2017, 09:43 PM

On my way
****
Senior Member
551 posts

Joined: Mar 2015
From: selangor


What your business do?
klthor
post Jul 9 2017, 10:04 PM

Look at all my stars!!
*******
Senior Member
5,454 posts

Joined: Jun 2008
QUOTE(ChickenFire @ Jul 9 2017, 04:57 PM)
Hey guys, I recently started a sole prop business and was quite new to the business thing (audit, statement, money usage etc)
I'm really confused about how the money in my company account could be use for, all my friends say different thing, so wanted to ask sifu-sifu here.

- Can I use my company account money for my own expenses? example like having meal, shopping, insurance and other entertainment?
YOU CAN EVEN DONATE IT TO ME AKA USE IT TO GAMBLE ALSO CAN. HOWEVER NOT RECOMMENDED, BETTER TO BEHAVE AND WITHDRAW A MONTHLY FIXED SALARY. 1ST  STEP TO GOOD MANAGEMENT IS  TO SEPARATE BUSINESS AND PERSONAL
- Can my company pay for my petrol?
OF COURSE... PROBLEM WITH TAX, 1/3 OF THE PETROL IS NOT CLAIMABLE.
- Can I use the company money for paying loan? car loan, housing loan, credit card loan
SAME AS ABOVE
- My company tax = my personal tax?
NOT 100% ACCURATE, BUT YOUR COMPANY TAX = PART OF YOUR PERSONAL TAX. YOU CAN DO BUSINESS AND EMPLOYED AT THE SAME TIME, HENCE BUSINESS INCOME (COMPANY) + EMPLOYMENT INCOME = YOUR TAX
- Let say my business start on 2017 May, when should I submit my tax? Should I find an auditor to finalise my business credit debit things?
AUDITOR? NOPE, GO LOOK FOR ACCOUNTANT AND TAX AGENT. DUE DATE EVERY FOLLOWING YEAR 30 JUNE, YOUR CASE IS JUNE'18 THEN 19 20 BLA BLA BLA
- What should I write down for my daily business basis?
INCOME AND EXPENSES. THAT IS WHY I SAID, DRAW FIXED SALARY SO THAT YOU WONT MIXED UP YOUR COMPANY EXPENSES WITH UR PERSONAL SPENDING
- They say those receipt we acquired when paying something could be use for taxation purpose, what is that mean? and should I keep all the receipt I get other than the one I get from supplier?
ALL THE EXPENSES YOU USE IN DOING YOUR BUSINESS. AKA RENTAL, ELECTRICITY, PHONE BILL, PETROL, STAFF SALARIES BLA BLA BLA BLA
- If one day my company switch from sole to sdn bhd, what should I prepare now for that transition?
GO LOOK FOR A COMPANY SECRETARY, YOU NEED THEM TO CREATE A SDN BHD AND FROM THERE PAY THEM... SO BETTER ASK THEM TO TEACH YOU SINCE  YOU ARE PAYING THEM

Thank you sifu-sifu. tongue.gif
*
TSChickenFire
post Jul 9 2017, 10:42 PM

New Member
*
Junior Member
47 posts

Joined: Mar 2015
QUOTE(Sunny zombie @ Jul 9 2017, 09:43 PM)
What your business do?
*
Mini Market
TSChickenFire
post Jul 9 2017, 10:46 PM

New Member
*
Junior Member
47 posts

Joined: Mar 2015
QUOTE(klthor @ Jul 9 2017, 10:04 PM)

*
I heard that people often use company to pay for their house loan, does that mean they draw a fixed salary too? So how can I enjoy the profits if the business is making money?From your advice it looks like its not a good idea to draw directly from the bank account rclxub.gif
SUSalexcky
post Jul 9 2017, 10:52 PM

business Sifu
*****
Senior Member
842 posts

Joined: Nov 2007


Just appoint a freelance account to help u manage ur account.. They will advise u what to do
TSChickenFire
post Jul 9 2017, 11:02 PM

New Member
*
Junior Member
47 posts

Joined: Mar 2015
QUOTE(alexcky @ Jul 9 2017, 10:52 PM)
Just appoint a freelance account to help u manage ur account.. They will advise u what to do
*
Have any idea how much does it cost?
ed0gawa
post Jul 9 2017, 11:07 PM

coconut
*******
Senior Member
4,397 posts

Joined: Jan 2003




QUOTE(ChickenFire @ Jul 9 2017, 11:02 PM)
Have any idea how much does it cost?
*
Freelance account normally just cost few hundred bucks a month depends on the job scope.

Ofcos all bills/receipt need to be kept for filling purpose, or else how you gonna do your accounts?
Ada wang masuk, ada wang keluar, mesti mahu black n white mah

Meal = entertainment
petrol = expense
Car loan, housing loan can be 'staff benefits/expense' also

You need to file it properly if you are gonna use it.

Go get a proper accountant like they say and they help you to understand better on how to file your stuff.

Auditor not really needed unless u want to audit urself
gchowyh
post Jul 10 2017, 04:34 PM

Enthusiast
*****
Senior Member
805 posts

Joined: Jan 2003
From: Petaling Jaya


QUOTE(ChickenFire @ Jul 9 2017, 04:57 PM)
Hey guys, I recently started a sole prop business and was quite new to the business thing (audit, statement, money usage etc)
I'm really confused about how the money in my company account could be use for, all my friends say different thing, so wanted to ask sifu-sifu here.

- Can I use my company account money for my own expenses? example like having meal, shopping, insurance and other entertainment?
- Can my company pay for my petrol?
- Can I use the company money for paying loan? car loan, housing loan, credit card loan
- My company tax = my personal tax?
- Let say my business start on 2017 May, when should I submit my tax? Should I find an auditor to finalise my business credit debit things?
- What should I write down for my daily business basis?
- They say those receipt we acquired when paying something could be use for taxation purpose, what is that mean? and should I keep all the receipt I get other than the one I get from supplier?
- If one day my company switch from sole to sdn bhd, what should I prepare now for that transition?

Thank you sifu-sifu. tongue.gif
*
Actually Business Enterprise (sole proprietor / partnership) is very different from Company (Sdn Bhd).

If you're sole proprietor, try downloading both borang B & borang BE & compare it. It is quite similar except for the parts there are assets / liabilities, bank balances, Profit / loss amounts. So that's the difference between business & personal tax.
Reporting is also same for business & personal tax, 1 Jan - 31 Dec every year but submission is a bit later than personal.

For starters, you need to know which expenses are fully claimable, partially claimable & non-claimable from the business. Things like traveling, petrol, car maintenance, parking are fully claimable as it is supposedly the cost to carry out the actual business.
Meals, drinking, entertainment is expenses that help you clinch a deal with the customers so it only partially claimable (can't remember if is 50% or 30% claimable)
When you spend for anything, you should keep as many receipts as possible to claim.

If there are too many income & expenditure to record or if you're not sure how to fill up the income tax form, then you may consider hiring an accountant. Maybe after the first year when you're more comfortable, then you can do it on your own for subsequent years as you can save a few thousand ringgit each year.

For Sdn Bhd, it would be really best to let a secretarial firm do it for you since there are quite many guidelines for it.
TSChickenFire
post Jul 10 2017, 10:10 PM

New Member
*
Junior Member
47 posts

Joined: Mar 2015
QUOTE(gchowyh @ Jul 10 2017, 04:34 PM)
Actually Business Enterprise (sole proprietor / partnership) is very different from Company (Sdn Bhd).

If you're sole proprietor, try downloading both borang B & borang BE & compare it. It is quite similar except for the parts there are assets / liabilities, bank balances, Profit / loss amounts. So that's the difference between business & personal tax.
Reporting is also same for business & personal tax, 1 Jan - 31 Dec every year but submission is a bit later than personal.

For starters, you need to know which expenses are fully claimable, partially claimable & non-claimable from the business. Things like traveling, petrol, car maintenance, parking are fully claimable as it is supposedly the cost to carry out the actual business.
Meals, drinking, entertainment is expenses that help you clinch a deal with the customers so it only partially claimable (can't remember if is 50% or 30% claimable)
When you spend for anything, you should keep as many receipts as possible to claim.

If there are too many income & expenditure to record or if you're not sure how to fill up the income tax form, then you may consider hiring an accountant. Maybe after the first year when you're more comfortable, then you can do it on your own for subsequent years as you can save a few thousand ringgit each year.

For Sdn Bhd, it would be really best to let a secretarial firm do it for you since there are quite many guidelines for it.
*
Right now what I'm doing is I spent my own personal savings on petrol, entertainment etc, and keep the receipt for future use(although I dunno what it could use for), and never touch the company money. But I always heard that people using company money to pay for their house / car loan / personal expenses, is that appropriate to do so? I was thinking about hire a freelance accountant as mentioned by the sifu above, but not sure how it really work.
gchowyh
post Jul 11 2017, 04:20 PM

Enthusiast
*****
Senior Member
805 posts

Joined: Jan 2003
From: Petaling Jaya


QUOTE(ChickenFire @ Jul 10 2017, 10:10 PM)
Right now what I'm doing is I spent my own personal savings on petrol, entertainment etc, and keep the receipt for future use(although I dunno what it could use for), and never touch the company money. But I always heard that people using company money to pay for their house / car loan / personal expenses, is that appropriate to do so? I was thinking about hire a freelance accountant as mentioned by the sifu above, but not sure how it really work.
*
Yes, for enterprise there is a very fine line between personal and business so you can out all your personal expenses or alternatively pay a salary to yourself from the business account
Sunny zombie
post Jul 15 2017, 04:11 PM

On my way
****
Senior Member
551 posts

Joined: Mar 2015
From: selangor


QUOTE(ChickenFire @ Jul 9 2017, 04:57 PM)
Hey guys, I recently started a sole prop business and was quite new to the business thing (audit, statement, money usage etc)
I'm really confused about how the money in my company account could be use for, all my friends say different thing, so wanted to ask sifu-sifu here.

- Can I use my company account money for my own expenses? example like having meal, shopping, insurance and other entertainment?
- Can my company pay for my petrol?
- Can I use the company money for paying loan? car loan, housing loan, credit card loan
- My company tax = my personal tax?
- Let say my business start on 2017 May, when should I submit my tax? Should I find an auditor to finalise my business credit debit things?
- What should I write down for my daily business basis?
- They say those receipt we acquired when paying something could be use for taxation purpose, what is that mean? and should I keep all the receipt I get other than the one I get from supplier?
- If one day my company switch from sole to sdn bhd, what should I prepare now for that transition?

Thank you sifu-sifu. tongue.gif
*
1. Can I use my company account money for my own expenses? example like having meal, shopping, insurance and other entertainment?
Is your company, why not?
But when doing your account, these expenses will be private expenses, will be consider as drawing from owner, can not set off against your sales to reduce profit.
Income tax - non-allowable expenses

2. Can my company pay for my petrol?
Can, same like 1, your company, your cash.
But when do up your account, if this petrol is considered as business expenses, then will be added back the protion for private use. And from income tax point of view, you are running a mini market business, why incurred petrol expenses?

3.Can I use the company money for paying loan? car loan, housing loan, credit card loan
same like 1

4.My company tax = my personal tax?
Yes, if your are sole prop.
No if your company is sdn bhd

5.Let say my business start on 2017 May, when should I submit my tax? Should I find an auditor to finalise my business credit debit things?
if you are sole prop, then submit tax before 30 June 2018, Form B.
No need auditor.
Need accountant

6.What should I write down for my daily business basis?
your sales and expenses lo, every single cent and have supporting document, not figure pluck from the sky.

7. They say those receipt we acquired when paying something could be use for taxation purpose, what is that mean? and should I keep all the receipt I get other than the one I get from supplier?
all business related resit. when come to IRB audit, you have supporting document, to prove you are not plucking figure from sky.

8. If one day my company switch from sole to sdn bhd, what should I prepare now for that transition?
make sure your account is clean and tidy and prepare for extra expenses - secretarial fee, audit fee, etc


 

Change to:
| Lo-Fi Version
0.0240sec    1.04    5 queries    GZIP Disabled
Time is now: 16th September 2021 - 06:14 PM