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  • Ashton Corporate Services

Accounting records keeping - tips and guides for new business owners

Every Sdn. Bhd. company must ensure to keep adequate records of the following financial documents for accounting purposes:

  • books of accounts

  • invoices, bank statements, cheque butts, receipts for payments, payroll records, copies of receipts issued, vouchers

  • other documents required to validate entries in any books of accounts

  • sales and purchases ledger, general ledger

  • at the end of the accounting period, the stock in trade should be valued and the appropriate records maintained

Important Characteristics of the "records", and other requirements to take note of:

  • Receipts issued should be serially numbered

  • Accounting entries for each transaction must be recorded within 60 days of the transaction.

  • Records and books of accounts should be written in the national language or in English language

  • Source documents and accounting documents, whether manual or electronic, should suffice to explain each business transaction.

  • If the original documents are in electronic form, they can be retained in such form

  • Taxpayers and company directors must keep adequate records for a period of 7 years.

  • All records pertaining to Malaysian business must be kept and retained in Malaysia.

The Consequences of failing to keep sufficient records

  • The chargeable income of the taxpayer may be determined according to the best judgement of the Director General of LHDN (DG) and an assessment made accordingly.

  • The taxpayer and Company Directors may be prosecuted and, if convicted, face fines, imprisonment, or both.

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