Allnison Auditing and Consulting co-founder and managing director Larry Shuen Fai Ng said businesses should practise proper accounting to minimise complications when their accounts are being audited by the General Department of Taxation (GDT).
“Businesses and companies should fulfil their due diligence and implement proper bookkeeping practices to mitigate issues during the audit process. Most of the time, problems arise because of poor accounting practices,” he said.
Some businesses, Ng said, argue and are discouraged because of the “high” accounting fees, but overlook the time and skill that professional accountants and tax consultants have to put in to fulfil their mandate in Cambodia.
He said accountancy and tax professionals in Cambodia have lots of paperwork. Interpreting the laws take up a lot of time. And similar to the legal profession, accountancy and tax consultancy services are charged by the hour.
As a developing nation, Cambodia lacks accounting professionals. Hence, Ng emphasises the importance of junior members of his profession to be compensated based on their professional output.
“If young graduates who just joined the profession do not see a future that they deserve or expect, they might leave the profession after a short period. This will negatively affect the Kingdom.
“Cambodia needs young professionals who are highly skilled to improve the overall productivity from a human capital point of view,” he said.
Ng said the Kingdom needed to prepare itself for the future growth of the economy. International exposure is needed for young professionals to grow and Cambodia.
This, he said, is because as Cambodia is a preferred investment destination, it will only make the people more skilful as they gain experience.
He also reminded businesses that proper bookkeeping and compliance with tax regulations are among the key requirements if they wished to expand their capacity to scale up and generate higher revenues.
“They should abide by all tax regulations and keep proper accounting records, as well as audit evidence.
“There is a misconception that all these will incur a huge cost, but what they overlook is the long term benefits in which companies will eventually reduce the amount paid in penalties and interest due to non-compliance to accounting and tax laws.
“This apart, companies can use the right financial data to expand and grow with their corporate integrity intact and ready to attract and secure business dealings with larger international companies,” he said.
Speaking of the changes in tax regulations, Ng said that the Council for the Development of Cambodia (CDC) is planning to introduce a new investment law which he hopes will be implemented by the end of this year.
“When the new law is implemented, there will be more preferential tax treatment for investors. “This will create a more business-friendly environment and attract more foreign investments into Cambodia,” he said.
Other than his role in Allnison, Ng has also partnered with Reanda LLKG (Cambodia) Co Ltd – a top international accounting firm – to cope with the needs and demands from the overseas investors, particularly listed companies.
Both companies are full-service accounting firms offering services related to bookkeeping, accounting and tax consultation, audit and due diligence matters for clients.