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Record Keeping can build Business

BUSINESSES need to keep a transaction record to improve their work flow and attract investors through transparency. 

According to Pg Hj Abd Azim Pg Mohd Hassan, officer at the Ministry of Finance (MoF), the ministry is promoting an order introduced in July which requires businessmen to keep all records of transactions for at least five years. The Record Keeping Order 2015 aims to improve a business’ internal operations and make it more marketable. “The order applies to all business entities that are established for the purpose of gain. We also introduced it to help small and medium-sized businesses who, from our experience, may have previously only been keeping a simple money in and out log,” he said. Records, by definition under the order, include books of accounts recording receipts, payments, income and expenditure. To verify any entries into the book of accounts, the relevant documents will have to be attached. Records can be maintained internallyor outsourced to a bookkeeping or accounting firm. All records must be either in Malay or English.

Pg Hj Abd Azim, who delivered a briefing earlier in the week on record keeping to the Belait community, said the order will set a standard which will allow businesses to understand the outcome of their operations. “If a business is losing money, making profit or has money unaccounted for, referring back to the books of accounts, will give them a clearer path to ascertain the reasons behind whatever outcome they are looking into,” he said. Record keeping will also help a business owner secure bank loans and distribute profits among shareholders.

Businesses with transparent financial records are more likely to get foreign investors. “Maintaining a proper system for records is one of the fundamentals of good business. Showing that you can do this is a must to attract foreign investment,” he said. Record keeping will also allow the MoF to generate more detailed data, and be better aligned with international record keeping standards. “It is a win-win situation for all parties involved. (It will create) an environment where both MoF and businesses can understand more about individual businesses and the overall market situation in the country,” he said.

The MoF is holding nationwide road shows to promote the new order, as well as how to register businesses online via www.roc.gov.bn.

[Courtesy: Brunei Times, 10th october 2015]

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