Bookkeeping and accounting support for sole proprietors.
NXS helps sole proprietors keep their records current and organise the figures for their profit and loss account and balance sheet. Those records support the tax return and year-end figures.
Information as at 23 October 2026. General information, not accounting advice.
Audit and e-Invoice exemptions
Audit exemption. Private companies generally need to appoint an auditor each financial year. For the exemption based on revenue, assets and employee numbers, at least two criteria must each meet the applicable limit for the current financial year and the two immediately preceding financial years. Other eligibility conditions also apply.
| Financial year starting | Revenue | Total assets | Full-time employees |
|---|---|---|---|
| In 2025 | RM1 million | RM1 million | 10 |
| In 2026 | RM2 million | RM2 million | 20 |
| From 1 January 2027 | RM3 million | RM3 million | 30 |
The limits are "up to" each figure. Subsidiaries of public companies do not qualify. Exempt from audit is not exempt from accounts: the unaudited statements are still prepared and lodged. Banks and grant providers may still ask for audited accounts.
e-Invoice exemption. Businesses with annual turnover below RM3 million are currently exempt. The exemption does not apply if a shareholder that is not an individual, a holding company, a related company or a joint venture partner has turnover of RM3 million or more.
Accounting support for sole proprietors
Bookkeeping and data entry.
NXS records and organises business transactions so the books are ready for the accounts and tax computation.
Profit and loss account.
A clear record of the income earned and expenses incurred over the period, so you can see how the business performed.
Balance sheet.
A structured view of the business assets, liabilities and owner’s equity at the reporting date.
For sole proprietors, LHDN’s record-keeping guidance calls for transactions to be recorded as soon as possible and no later than 60 days after each transaction.
Where accounting meets transfer pricing.
LHDN's RM1 million transfer pricing test adds up all your related-party dealings for the year, and minimum documentation must list every one of them. Books that show related-party loans, fees and sales separately make that list quick to draw up.
related-party dealingsWhat to remember
Information as at 23 October 2026.
- 1The audit exemption is elected by the company and tested over three years. It never removes the accounts.
- 2Record within 60 days. Keep records for at least 7 years.
- 3Circulate within six months of year end, lodge within 30 days after. The annual return is a separate filing.
Questions and answers
Who decides whether our company qualifies for the audit exemption?
The company does. There is no application to SSM, and the company is responsible for its own assessment. SSM asks directors to consider the company's risk profile, unusual transactions, governance and controls, and encourages professional advice. Eligibility is assessed company by company, not on group figures. Members holding at least 5% of voting shares can still require an audit by written notice at least one month before the year end.
Can a new Sdn Bhd skip the audit in its first years?
Not if it is trading. A newly incorporated company that is not dormant lacks the two earlier years of figures the test needs. Dormant companies remain exempt.
If we skip the audit, do we still file accounts with SSM?
Yes. You prepare financial statements to the approved accounting standards, circulate them, and lodge the unaudited statements with SSM within 30 days of circulation, with a director-signed audit exemption certificate.
What are the yearly SSM deadlines for financial statements and the annual return?
Directors prepare the financial statements within six months of each year end, or within 18 months of incorporation for the first set. They are circulated to members within six months of year end and lodged within 30 days after. The annual return is separate: within 30 days of each incorporation anniversary. An extension can be requested before the period expires.
How long must we keep accounting records in Malaysia, and how current must they be?
Entries go into the records within 60 days of each transaction. Keep records for at least 7 years.
Does my business need e-Invoicing in Malaysia?
If your annual turnover is RM3 million or more, yes, from the date LHDN sets for your phase. Below RM3 million you are currently exempt, unless a shareholder that is not an individual, a holding company, a related company or a joint venture partner has turnover of RM3 million or more. For businesses in the latest phase, LHDN's relaxed rules run until 31 December 2027, provided they follow its conditions.
MPERS or MFRS: which does a private company use?
A private company can generally report under either Malaysian standard, MPERS or MFRS. Which one fits your company is a judgement for your accountant.
Free 30-minute consultation.
Show us where your books stand, on a free 30-minute consultation.
Tell us your financial year end and how you keep your records now. The first consultation is free, and you deal with one point of contact.