How should a small business handle petty cash and cash sales records?
Keep a petty cash float with a fixed amount, one custodian, a voucher for every payment and regular reconciliation. For cash sales, record daily takings, bank the cash intact and match deposits to sales. This gives evidence for tax and protects against loss.
Petty cash
- Set a float, such as a fixed amount for small daily costs
- Appoint one person to hold the cash
- For every payment, complete a voucher: date, amount, purpose, receipt attached, approval
- Replenish the float against the vouchers, so cash plus vouchers always equals the float
- Count it regularly and record differences
- Do not use petty cash for large or personal items
Cash sales
- Issue a receipt or record each sale in a till or point-of-sale system
- Prepare a daily takings summary signed by two people if possible
- Bank the takings in full, without paying expenses from them
- Reconcile deposits to the daily sales report each week
- Keep the till rolls or system reports
E-Invoice note
Businesses in the e-Invoice scope may be able to use consolidated e-Invoices for cash retail sales; see the e-Invoice answers.
Why it matters
- Cash records are easy to challenge, so LHDN officers often test whether bank deposits match reported sales
- Missing cash causes disputes inside a business
Consistent routines matter more than elaborate systems.
Legal basis
- Companies Act 2016, s.245
- Income Tax Act 1967, s.82
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 is the difference between bookkeeping and accounting in Malaysia?Bookkeeping is the day-to-day recording of transactions: sales, purchases, payments and receipts. Accounting uses those records to prepare financial statements, interpret results and support decisions and tax filing. Good bookkeeping comes first, because accounts can only be as reliable as the entries beneath them.
- Is a Sdn Bhd legally required to keep accounting records?Yes. Section 245 of the Companies Act 2016 requires every company, including its directors and managers, to keep accounting and other records that explain its transactions and financial position. This applies even to a new, dormant or loss-making company.
- 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 documents should a Malaysian company keep for bookkeeping?Keep every document that proves a transaction: sales and purchase invoices, receipts, bank statements, contracts, payroll records, and records of assets and loans. If a transaction is not supported by a document, it is hard to defend in an audit or tax review.
- Can I keep accounting records and receipts in digital form only?Electronic records are accepted if they are complete, readable, accessible and can be converted into writing. Documents issued electronically, such as e-Invoices, can stay electronic. If you scan a paper original, the Income Tax Act says to keep the paper original as well.