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.
A sensible list for a typical SME:
- Sales: quotations, invoices, credit notes, delivery orders, official receipts, e-Invoices
- Purchases and expenses: supplier invoices and bills, receipts, expense claims, credit notes
- Banking: monthly bank statements for every account, cheque stubs, loan statements, credit card statements
- Payroll: employment contracts, payslips, salary schedules, EPF, SOCSO, EIS, PCB and HRDF submissions
- Assets: purchase invoices, a fixed asset register, disposal records
- Stock: stock-take sheets, delivery and goods-received notes
- Corporate: statutory registers, board and member resolutions, share transactions, loan agreements, director and shareholder loan documents
- Tax and statutory: SST returns, tax computations, e-Filing acknowledgements, SSM filings
- Supporting: contracts and agreements that explain unusual entries
The test is simple: could a stranger follow each ledger entry back to a document and understand it? If yes, the records are probably sufficient. LHDN's public ruling lists the kinds of records it expects, including cash books, ledgers and supporting vouchers.
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.
- 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.
- In what language must accounting records be kept in Malaysia?Books and records should be in Malay or English. If original documents are in another language, such as Chinese, keep them, and expect to provide a written translation at the company's cost if LHDN asks. Financial statements lodged with SSM need a certified translation if not in Malay or English.