What Financial Records Should a Small Business Keep in Malaysia?

Every Malaysian business should maintain basic financial records

As a business owner in Malaysia, keeping proper financial records is not just good practice—it is a legal requirement. Whether you run a sole proprietorship, partnership, or Sdn Bhd, the Inland Revenue Board (LHDN) requires you to maintain records for at least seven years.

Essential records to keep

• Sales records: Invoices, receipts, sales summaries, and revenue tracking
• Purchase records: Supplier invoices, purchase orders, and expense receipts
• Bank statements: All business bank account statements and reconciliations
• Payroll records: Employee salary details, EPF, SOCSO, and PCB contributions
• Asset records: Details of business equipment, vehicles, and property
• Tax records: Previous tax returns, correspondence with LHDN, and supporting documents

What this means for your business

Organised records help you understand your business performance, prepare for tax season, and make better financial decisions. If your records are currently scattered across receipts, spreadsheets, and WhatsApp messages, now is a good time to establish a proper system.

Getting started

You do not need complex software to begin. Start with a simple folder structure—physical or digital—and commit to a weekly routine of organising your documents. As your business grows, consider upgrading to accounting software for better tracking and reporting.