If you run your own business, there are already so many things that you need to figure out. This might include things like office rental, business strategies and things like HR policies and the likes of that. The last thing on your mind would probably be having to hire an accountant to clear up the accounts for your company.
When you start your own business, there are a lot of things that you need to make sure you have covered. Sometimes, one or two important things are missed out because you’re super busy getting everything working.
The responsibilities of corporate secretaries have evolved exponentially in the past few years in Malaysia. They are no more viewed as the admin helpers that they used to be before. Corporate secretaries are now viewed as something extremely important and needed to ensure that the company runs smoothly. Corporate secretaries are now constantly relied upon by the rest of the office and the management.
In the world of digital advancement and the ease of social media allowing you to grow a business, there are so many new and thriving business out there. It has become such a simple task to set up your own store, start selling and start earning yourself a living. However, with an increase amount of supply, there will be a decrease in demand since everything you could ever want is so easily sourced nowadays with the power of the internet.
So how do you make sure that your small business not only survives, but also thrives? One of the not so popular ways to do this is by keeping a very watchful eye over your reports and processes which are also known as your Standard Operating Procedures (SOPs).
If you have a job or have been employed before, you should have come across this little piece of paper called the EA form. Every time before the tax season comes around, you will see everyone scrambling around the Human Resource teams’ office trying to get their own
For everyone who has no idea what EA forms are, let us break it down for you.
A business organisation is always in need to constantly improve and get better at all times. This is to ensure that they always stay on top and that they are always ahead of the competitors. However, some people might think that the only way to do that is to earn more money by hiring more people and going out there to sell more product or services. But, sometimes there are things that you can fix in the company as well.
Starting a business is not easy. There are so many things to worry about like hiring, business strategy and the most scary of them all – finances! The finance department is the backbone of the company and is the greatest indicator of all to show you if you are making money or not. Those numbers reported by your finance team should be the main results you look at at the end of every month to see if you’re making money or losing money.
With the advancement of technology and the betterment of procedures everyday at the workplace, it comes as no surprise that all reporting systems in the office will also become better with time.
Despite the fact that most of us might have gone paperless, reports are still a crucial part of a business. No matter how boring and dry they might get, reports will play a huge role in ensuring that everyone has eyes on what’s happening to your business on a daily, weekly or even yearly basis. Without reports, you wouldn’t know if your company is doing good or bad. You would not be able to see what efforts are working and which ones should be axed.
We’ve established the fact that business reporting is important, but let’s get more into detail as to why they are so important to you and your growing business.
- The Ability To Make Well-Informed Business Decisions
When it comes to making decisions that pertain to your business, you need to be sure that you have all the information needed to make that decision. Data and analysis of that data has become a very crucial part of moving your business forward. A lot of this software can be in-built into your entire business system and it will allow you to find out what is happening in your entire ecosystem within a few clicks.
A business report allows the conveyance of information that will assist you in business decision making. For example, a business financial report at the end of the month will tell you how much your overhead cost is, are you in the green or the red? It will also tell you things like your profit and loss margins, where you’re losing the most money and also where you’re making money. You would want to ensure you work more on the ones that make you money instead. Having these reports will allow for better decision making.
- Having Your Reports Aligning WIth KPIs
When you create business reports, you should ensure that they are objectively aligned with the overall strategy of an organisation. Your Key Performance Indicators (KPIs) should be incorporated into every business report you make. This way you can always look back and look forward to see if your company is heading the right direction. These reports while aligned to your KPIs will also help in deciding corporate strategies on the go.
- Informing Stakeholders & Business Partners
Every company will always have more than one stakeholder or partner that will sooner or later want to see the information on the business. This is especially important when you want to get funding or investments for your business. A report will help inform them on the current status of your business. It also includes your financial status, your cash flow and your profit and loss statements.
This way, stakeholders and business partners can have a simple view on whatever is happening. You can show them your growth and its a better way to communicate progress. If you are a public company, you are also expected to report your finances at the end of the year or even quarterly for some countries.
- Adopting the Right Marketing Strategy
As mentioned above, a good business report can and will help you make the right business decisions. These decisions also include things like marketing campaigns and strategies. This helps because when you are trying to create campaigns, you need to know that you’re targeting the right people and that you are getting sufficient ROI (Return of Investments) for your campaigns. The only way you can see this is by linking your business reports to your marketing reports.
- Highlights the Current Business State
Business reports that are made, no matter when they are made will be able to show you and everyone in the company what is going on overall. They are good to highlight problems faced in the company. Making sure it is transparent is essential so that everyone can work towards improving the business. Numbers do not lie and a report like that cannot and should not be contested.
These are just a few of the main reasons why business reporting is crucial to the advancement and improvement of your company. Learn more about year end financial reporting with us here at Formis Training.
It is 2018 and the digital age is upon us. Everywhere we go, we see everyone trying to automate and digitise everything that they can so that work and life gets easier and better.
Suruhanjaya Syarikat Malaysia (SSM) is also climbing on the digital bandwagon to introduce their new system called Malaysian Business Reporting System (MBRS). This is a project that is striving to digitalise companies’ financial reports as well as their annual returns. All this will be based on the eXtensible Business Reporting Language (XBRL) format. This format allows for compliance that is required by the Companies Act 2016.
Our company, OMESTI was contracted by the Malaysian government to work on this project and the finalised product is now what we all call MBRS. The team at OMESTI has also launched the “MBRS preparation tool for the users to familiarise themselves with the workings of MBRS before the full reporting platform is launched”, said Datuk Zahrah Abd Wahab Fenner, the CEO of SSM. The project being carried out by us included the development, designs, deployment as well as the operation of the XBRL taxonomy. We also ensured that we sourced and managed suitable infrastructure to allow for high availability and instant disaster recovery. This way, companies need not worry about losing their data once it’s been uploaded.
So what is MBRS all about?
Well, in short, MBRS is just an online tool that allows for all companies in Malaysia to be able to submit their financial returns and annual reports easily and stress-free.
We all know and understand the stress of having to do everything on the computer on an Excel sheet, having to print page after page of reports and then having to travel to places just to submit something that can now be submitted online.
How Do I Ensure That My Company Understands MBRS?
We all understand the pains of having to learn how to use a brand new software, especially one required to ensure proper reporting for your company. This is why, in accordance with SSM and the Malaysian government, the team here at OMESTI will be setting up workshop classes to help you and your team get on the platform and pick it up instantly so that you become masters of the MBRS tool!
What Are The Benefits of This Tool?
Having a system that is made specifically for reporting will come with its own benefits and we wanted to highlight some of them here.
- It reduces the time and cost of gathering financial and nonfinancial information. This saves time on data entry efforts or conversion of data formatting because now you have a machine to do it for you!
- The information is also capable of being translated to multiple languages.
- It also enhances data integrity and reliability. The tool will include validity check and automated calculations to sooner or later eliminate errors.
- It also facilitates the analysis of financial reporting for better decision making by stakeholders or allows for aid in compliance matters or investigative processes.
- It also enhances corporate compliance processes because now all accounts would have to be presented according to accounting standards.
- Lastly, it would allow for an improved data analysis and quality.
Again, we would like to reiterate that MBRS is a step in the right direction if we want to be a more digitally savvy community and save time on reporting and filling in forms that can all be digitalised and done online!
How Do I Sign Up for Workshops?
Since SSM has made in compulsory to attend workshops to ensure that everyone gets used to the new MBRS tool, the OMESTI team have set up our own workshops. Since we were the ones who built us, joining our workshops would be better as we thoroughly understand the ins and outs of the system.
Every workshop will be conducted by speakers who have been vetted and approved by SSM. All the training materials are also approved by SSM. Rest assured that every OMESTI workshop for MBRS will bring about a comprehensive and understandable guide for all businesses.