How do I catch up on bookkeeping that has been neglected for a year or more?
Gather every document and all bank statements, set a cut-off date, then record month by month starting from the oldest period, reconciling banks as you go. Fix the biggest gaps first and get professional help for anything unclear. File overdue statements and returns as soon as the books are ready.
A practical sequence:
- Collect everything: bank and card statements for every account, sales and purchase documents, payroll records, loan statements. Ask the bank for missing statements and suppliers for statements of account
- Check what has already been filed: SSM filings and LHDN returns, so you know which are overdue
- Set up the software with an opening balance from the last reliable set of accounts, if any
- Work in date order: one month at a time, entering bank transactions first, then matching documents
- Reconcile every month before moving to the next
- Handle gaps: where a receipt is missing, keep the bank evidence and a written explanation; do not invent documents
- Review: check receivables, payables, payroll, loans, stock, assets and director accounts
- Produce financial statements for each overdue year, then file with SSM and LHDN
Risks of waiting
Late filing can attract compounds or prosecution, and records get harder to rebuild as time passes.
A professional can often work faster by batching years and prioritising the filings with penalties building up.
Legal basis
- Companies Act 2016, s.245
- Companies Act 2016, s.259
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
- What happens if my company has years of unrecorded accounts or unfiled statements?The company and its officers may face compounds or prosecution for missing records and late filings, and LHDN may raise estimated assessments. The usual way forward is to rebuild the books, file the overdue statements and returns, and settle compounds. Get professional help early.
- 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.
- 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.
- How do I choose my company's financial year end?You choose it, usually when you incorporate, and it is not fixed to 31 December. Pick a date that suits your business cycle and your accountant's workload; every later deadline for financial statements and filings is counted from it.
- Can a company change its financial year end, and how?Yes. The Companies Act 2016 does not state a maximum length for a financial year or how often it can change. But a new year end that pushes the circulation or lodgement date later needs an extension of time from SSM, applied for before the original deadline. A subsidiary's year end must also stay in line with its Malaysian holding company's.