Every JMB and MC has the same legal duty: keep proper accounts, maintain a separate maintenance account and sinking fund, collect charges, pay vendors, and present audited financials at the AGM. Most committees are volunteers doing this in their spare time. Outsourcing exists for one reason — to get it done correctly, on time, with proper controls. Here's how to decide if it's right for your community.
The three financial pains committees actually feel
Slow, inconsistent collections. Manual chasing means arrears pile up — and, as the Tribunal caseload shows, this is the single biggest dispute in Malaysian strata.
No real-time visibility. Committees often see the numbers monthly, if that — anomalies surface far too late.
Manipulation risk. Cash and manual bank-ins create room for fraud. Bank-in slips can be doctored; funds that never arrived can look like they did.
What the SMA 2013 requires either way
Whether you do it in-house or outsource, the law sets the standard:
A maintenance account used only for day-to-day running costs — cleaning, security, insurance, minor repairs, administration.
A separate sinking fund — normally at least 10% of the maintenance charges — used only for capital works like repainting or replacing fixtures.
Proper books of account, and audited financial statements presented to owners at the AGM.
In-house vs outsourced
The differentiator: daily bank reconciliation
Most outsourced accountants reconcile monthly. By then, a manipulated bank-in is old news. A daily reconciliation model logs into the account every day, tracks every inflow and outflow, and reports the same day — catching anomalies before they become disasters. This is exactly how JaGaCount runs, alongside a maker/checker model where the committee stays the approver, so you keep control while we do the work.
Frequently asked questions
Do we lose control if we outsource?
No. A maker/checker model keeps a designated committee member as the approver of every payment — the accountant prepares, you approve.
How is this different from our annual auditor?
An auditor checks the books once a year, after the fact. An outsourced accounting service runs the day-to-day collections, payments, and reporting throughout the year.
What do you need to get started?
Your last audited financial year accounts to set a baseline, plus authorised access to the property's bank account.
What reports do we get?
Typically a daily collection report, a weekly debtor-aging report, and full monthly financial statements — P&L, balance sheet, and cash flow.
This article is general information for Malaysian communities and is not legal advice. Verify specifics against your own by-laws and seek professional advice where needed.
Outsource your property accounting to us — let's align on your last audited FY:
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