How soon must transactions be recorded in the books?
Under section 245 of the Companies Act 2016, entries must be made in the accounting records within 60 days after the transaction is completed. Leaving the books for a full year-end rush is therefore not compliant.
Many owners assume the books only need to be ready at year end. The Act says otherwise: appropriate entries must be made within sixty days of completing the transaction they relate to.
What this means in practice:
- A sale invoiced in January should be in the ledger by March
- Bank movements, payroll and expense claims follow the same timetable
- A monthly or at least bi-monthly routine keeps you safely inside the window
The duty falls on the company, its directors and its managers, and breach is an offence with a fine of up to RM500,000, imprisonment of up to three years, or both. Treat the 60-day rule as a firm deadline rather than a guideline.
A simple routine:
- Collect documents weekly
- Reconcile bank accounts monthly
- Review receivables, payables and payroll monthly
- Close the month with a short review of the numbers
A regular routine also removes the year-end panic and the cost of cleaning up.
Legal basis
- Companies Act 2016, s.245(2)
- Companies Act 2016, s.245(9)
Sources
Applies to 2026 · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Related questions
- How long must a Malaysian company keep its accounting records?A company must keep accounting records for seven years after the transactions they record were completed. For tax, documents must be kept for seven years from the end of the relevant year of assessment. Use whichever period ends later.
- What do a company's financial statements contain?A company's financial statements normally include a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity, a statement of cash flows and notes with accounting policies. The set must give a true and fair view.
- Who prepares and approves a company's financial statements?Directors are legally responsible for the financial statements. An in-house accountant or external firm often drafts them, but the board approves them by resolution and signs a directors' statement. The statements are then presented to the members.
- What is the difference between MPERS and MFRS?MFRS is the full set of Malaysian standards, aligned with IFRS, used by listed and regulated entities. MPERS is a shorter, simplified framework based on the IFRS for SMEs standard, designed for private entities. Both give a true and fair view; MPERS has fewer disclosures and simpler rules.
- Who must use MFRS, and who can use MPERS?A private company that is not required to file financial statements under Securities Commission or Bank Negara law, and is not a subsidiary or associate of, or jointly controlled by, an entity that is, is a private entity and may use MPERS or full MFRS. Other entities must use MFRS.