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Accounting Fees for Small Businesses in Malaysia

  • Writer: Jerry
    Jerry
  • Jun 16
  • 3 min read

Updated: Jul 8

Quick Take


Planning for your budget for accounting includes accounting software subscription, hiring of accountant and meeting regulatory compliance. This guide explains what are the potential "hidden fees" you might missed out especially when you are first starting out your business. This article elaborate more on the realistic costs involved, compares the ideal accounting software for freelancers and business owners and supports LHDN e-invoice requirements. Find out the key differentiators among each options to select the right fit for your business needs.


1. Estimated Range of Accounting Fees in Malaysia


Based on our market survey on accounting fee in Malaysia, business owners typically pays around RM700 to RM3000 monthly for outsourced accounting service. Typically the accounting fee is determined based on the number of transactions as per business entity.

The most common rates we discover are shown as below:

  • RM 700 to RM 1000 per month for <50 transactions

  • RM 1200 to RM 1800 per month for <200 transactions

  • RM 2000 to RM3000 per month for larger volume transaction


Pigeonbook provides superior pricing compared to our competitors as we provide a fixed rate pricing based the type of business entity registered with SSM (Sole Proprietor / Partnership / LLP / Sdn Bhd).


2. Accounting Software vs Hiring an Accountant: Pros & Cons


Using an accounting software like Pigeonbook or Xero offers a lot of flexibility and of course, definitely cost saving especially for freelancers and business owners who are just starting out. Unlike hiring an accountant for outsourced accounting service, using a proper accounting software can automate your day-to-day business activities like sending invoices automatically, uploading receipts and collect payment on time.

accounting software Malaysia
Snapshot of Pigeonbook's accounting software

Accounting Software Pros: Better flexibility, Low cost (sometimes free!)

Cons: You need basic accounting knowledge


Hiring an Accountant

Pros: Personalized service

Cons: High cost, Requires manual work like issuing invoices


3. Comparison of Top Accounting Softwares in Malaysia


We compare some of the most popular accounting platforms in Malaysia, targeted for freelancers and business owners:

Software

Monthly Fee

LHDN e-Invoice

SST Support

Accountant Support

Pigeonbook

Free–RM49

Yes

Yes

Yes

Xero

RM 120–290

Yes

Yes

No

QuickBooks

RM 68–246

Yes

Yes

No

Zohobooks

Free–RM135

Not supported

No

No


  1. Must-Know Local Regulatory for 2025


LHDN e-Invoice mandates all businesses with turnover of RM 500,000 and above to issue e-invoice. Recent changes to implementation timeline has been made by the local tax authority.

New SST Changes effective on 1st of July 2025, MOF (Ministry of Finance) has an official release, detailing the list of goods subject to revised Sales Tax rates and the expanded list of taxable services under the Service Tax.



5. Selecting the Right Accounting Software


  1. Budget - Look for accounting software that suits your budget.

  2. Support - Make sure that there is a proper support channel.

  3. Regulatory Compliant - Ensure that the accounting tool supports local regulation like e-Invoice and SST.

  4. Transparent pricing – Make sure there is no hidden fee or unexpected cost

  5. Local presence – This will be an added advantage because of it has experience in serving the local market.


Key Takeaways


  • Accounting fee is highly depending on transaction volume

  • Freelance accountant can be a cost-effective option if they are professionally certified and reliable

  • Accounting software with e‑invoice and SST support are crucial

  • Accountant support is important as many business owners struggled to use a proper accounting software

 
 
 
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