Technology Consulting & Digital Transformation

Changes to accounting systems and financial data processes can affect the reliability of reports long before a new system goes live. The key questions are often practical: what information the business needs, how transactions will be recorded, which controls and reconciliations must continue to work, and who is responsible for each part of the change.

When technology and finance-process support may be relevant

Support may be relevant when a business is reviewing an accounting system, changing its chart of accounts, improving management reporting, preparing data for a system change, or trying to understand the reporting implications of a new finance process.

The technology choice is only one part of the decision. The reporting framework, available data, internal processes, user responsibilities, security arrangements and the intended use of financial information should also be considered.

e-Invoice is a data and process question before it is a software question

Malaysia's e-Invoice regime is being implemented in phases by annual turnover, with interim relaxation arrangements and exemption criteria that have been revised more than once during implementation. The phase applicable to a business, the date from which validated e-Invoices must be issued, the treatment during any relaxation period and the rules on consolidated versus individual e-Invoices all depend on the current official position for that taxpayer.

Because these dates and thresholds have changed during rollout — and secondary summaries have not always kept pace — the applicable position should be taken from HASiL's official e-Invoice material and its current guidelines and FAQs, for the relevant taxpayer and period. A vendor's readiness statement is not a substitute for that check.

What is durable is the underlying work. Whichever phase applies, the business needs to know which transactions are in scope, where the required data fields will come from, how customer and supplier master data will be validated, how credit notes, corrections, rejections and exceptions will be handled, who reviews submissions, and how the resulting records reconcile to the accounting ledger and to tax reporting.

Begin with financial-information requirements

Before a system or process decision is finalised, it is useful to define the reports, data fields, accounting policies, approval paths and reconciliation requirements that the business needs to maintain. This helps distinguish a finance-process requirement from a software feature request.

For a group, project-based business or entity with multiple reporting needs, the structure of the chart of accounts and reporting dimensions may be particularly important. The appropriate design depends on the organisation and how its information will be used.

How a scoped engagement may help

Depending on the circumstances and agreed terms, technology and digital-transformation support may include:

• clarifying finance-process, reporting and data requirements before a system decision is made;
• considering the reporting implications of proposed accounting-process or chart-of-accounts changes;
• reviewing the financial-information needs that should be communicated to a technology vendor or implementation team;
• helping management identify records, reconciliations and controls that need attention during a transition; and
• identifying where dedicated technology, data-security, privacy or integration expertise is required.

The scope should be agreed around the business need and the roles of management, system providers and other advisers. It does not amount to a promise that a particular system, implementation or data migration will meet every requirement or produce a particular outcome.

Governance remains important during change

Management remains responsible for the quality of source data, approval of accounting policies, internal controls, user access and decisions made from financial information. A system change should not be treated as a substitute for those responsibilities.

Where personal data is processed, obligations under the Personal Data Protection Act 2010 apply to the organisation and should be considered as part of any system or process change. Where cybersecurity, contractual integration or specialist technology architecture is involved, the appropriate technical and legal advice should be considered separately.

Discussing a finance-technology requirement

Saifudin & Co can discuss the reporting objective, current process, information needed, proposed change and the responsibilities that need to be defined. Any engagement, scope and dependencies must be considered from those facts and agreed separately.

This page provides general information only. It does not provide technology, cybersecurity, privacy or legal advice, does not determine a taxpayer's e-Invoice obligations, and does not guarantee the performance, security or suitability of a particular system or implementation.