Quick answer: For many Malaysian SMEs with modest transaction volume, outsourced accounting gives qualified oversight and continuity without a full-time salary, while an in-house accountant suits companies with daily transactions that need someone on site. An employee costs more than salary: employer EPF is 13% of wages for monthly wages of RM5,000 or less and 12% above that, plus PERKESO, EIS, leave cover and equipment. Directors stay responsible for accounting records either way.
Key takeaways
- An employee costs more than salary: add employer EPF (13% up to RM5,000 wages, 12% above), PERKESO, EIS and leave cover.
- The minimum wage is RM1,700 a month for all employers from 1 August 2025.
- One in-house accountant is a key-person risk. A firm can cover absences.
- Many SMEs combine a finance executive with outsourced tax and statutory work.
- Directors remain responsible for accounting records under section 245.
Side by Side
Seven factors to compare.
| Factor | In-house accountant | Outsourced accounting |
|---|---|---|
| Cost structure | Salary plus employer contributions, leave and benefits, whether or not there is enough work. | A fee based on an agreed scope, which can rise or fall with volume. |
| Coverage | One person. Leave or resignation can stall the work. | A team can cover absences. |
| Qualification | Depends on who you hire. | Ask who reviews the work and their professional qualifications. |
| Speed on site | Immediate answers and daily support. | Depends on the agreed turnaround. |
| Control and oversight | Directors see daily work. | Directors set the scope and review monthly reports. |
| Setup | Recruit, train and equip. | Share records and access. |
| Confidentiality | Staff are bound by their contract. | Check the firm's confidentiality and data terms. |
Not sure which suits you? We will compare both options for your company.
What Does One Hire Really Cost?
Illustration only. Assume an accountant paid RM4,500 a month. Employer EPF at 13% is RM585, so the monthly cost is RM5,085 before PERKESO, EIS, bonuses, equipment, software and training. Over 12 months, that is RM61,020 before those items. Your actual figures will differ, so use your own salary and add the missing items.
The legal floor. At the RM1,700 minimum wage, employer EPF at 13% is RM221, so even the lowest legal monthly cost of an employee is RM1,921 before PERKESO and EIS.
Which Fits Your Company?
Hiring in-house may suit you if
Signs
- You have daily transactions or inventory to record.
- You need someone on site for approvals and queries.
- There is enough work to keep one person busy.
Keep in mind
- Plan for leave cover and resignation.
- Add tax and statutory support, which may still need an outside firm.
Outsourcing may suit you if
Signs
- Your volume is modest or seasonal.
- You want qualified oversight without a full-time salary.
- You want continuity when staff change.
Keep in mind
- Agree the scope, deadlines and reports in writing.
- Keep your software and director access in your company's name.
Where Do SMEs Go Wrong?
Counting salary only
Add employer EPF, PERKESO and EIS, leave cover, recruitment, training and equipment.
Relying on one person for everything
Plan for leave and resignation, because books and payroll deadlines do not wait.
Handing over without oversight
Directors remain responsible, so keep access and review the monthly reports.
Never reviewing the choice
Revisit it when volume, headcount or funding changes.
Frequently Asked Questions
Quick answers on in-house and outsourced accounting.
Should an SME hire an accountant or outsource?
It depends on volume, complexity and how much oversight you need. A small company with modest transactions often finds one full-time hire hard to keep busy and hard to cover for leave. A larger one with daily accounting needs may prefer an in-house team, sometimes with outsourced specialists.
What is the legal minimum wage in Malaysia?
RM1,700 a month under the Minimum Wages Order 2024. It applies to all employers from 1 August 2025, and from 1 February 2025 to employers in professional activities regardless of size. Accounting salaries are normally well above that.
What does an in-house employee cost beyond salary?
Employer EPF is 13% of wages for monthly wages of RM5,000 or less and 12% above that for employees under 60. There are also PERKESO and EIS contributions, leave cover, recruitment, training, equipment and software.
How do I calculate the cost of one hire?
Add salary, employer EPF, PERKESO and EIS, bonuses, software and equipment, training, recruitment and the cost of covering leave and resignation. Then compare it with the written scope of an outsourced quote.
What is the key-person risk?
If your only accountant resigns or goes on leave, your books, payroll and filings can stall. A firm has several people who can cover the work.
Can I use both?
Yes. Many SMEs keep a finance executive for daily tasks and outsource tax, statutory accounts or payroll. Agree who is responsible for each deadline.
Who is responsible for the accounts if I outsource?
The directors. Section 245 of the Companies Act 2016 makes directors responsible for accounting records, so keep access to your books at all times.
Is outsourcing safe for confidential data?
Ask where the data is stored, who has access, whether the firm signs a confidentiality agreement and how access is removed when you leave.
Who controls the books if I outsource?
You do. Keep the accounting software in your company's name and keep director access, so you can inspect the records at any time.
When does an in-house accountant make more sense?
When you have daily transactions, multiple entities, inventory or complex approvals that need someone on site, and enough work to keep a full-time person busy.
When does outsourcing make more sense?
When your volume is modest, you need qualified oversight without a full-time salary, or you want continuity when staff change.
Can outsourced accounting handle payroll?
Many firms do. Ask whether EPF, PERKESO and monthly tax deduction submissions by the 15th of the following month are included.
Sources
Official sources
Background
This page is general information, not legal advice. Agencies change their requirements, so confirm the current rules with KWSP and PERKESO, or with us, before you act. Checked November 2026.
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