The problem: e-Invoice status is not the same as review-ready records
Malaysia's e-Invoice rollout has made firms look closely at which clients must issue and receive e-Invoices. That question matters, but it answers only part of the preparation problem. A firm still has to make sense of the client's bank statement: every inflow and outflow needs a business meaning, supporting evidence where it exists, and a reviewed treatment before posting.
What the current published position says
The two statements below are the ones KlerkIt currently uses on its site. Always check the source for the latest position.
- LHDN: As at 30 Aug 2026, LHDN's e-Invoice timeline exempts taxpayers with annual turnover or revenue below RM3 million, subject to LHDN's applicable conditions. Source: LHDN e-Invoice implementation timeline ↗
- SSM: SSM Practice Directive 10/2024 introduces phased audit-exemption criteria for eligible private companies. Audit exemption removes the statutory audit requirement for qualifying companies — not the obligation to prepare and lodge compliant financial statements. Source: SSM Practice Directive 10/2024 ↗
General information only. Not tax, accounting or legal advice. Your firm is responsible for applying the current rules to each client.
Who this is for
Malaysian accounting firms whose SME clients include both e-Invoice issuers and exempt businesses, and who want one consistent preparation process for both.
What firms still prepare before posting
Whatever a client's e-Invoice position, the practical preparation work around the bank statement looks the same:
- Understand every bank movement.The statement also contains movements that need explaining and matching, such as transfers between the client's own accounts, loan repayments, owner contributions or withdrawals, refunds and bank charges. Whether any particular movement involves an e-Invoice is for the firm to determine under the current rules.
- Match documents to payments.One payment can settle several invoices, one invoice can be paid in parts, and some payments arrive before the document. The link between document and bank line still has to be made.
- List what is missing.Payments with no supporting document, and documents with no matching payment, become a follow-up list for the client.
- Resolve business meaning.Repeated payees and patterns need a confirmed meaning before treatment can be decided.
- Review and decide treatment.The accountant reviews the prepared work and decides what is ready for posting and what goes to the client.
What KlerkIt does, and does not do
What KlerkIt does
- Starts from the bank and organises activity into groups for review.
- Links supporting evidence to bank activity and surfaces gaps.
- Prepares unresolved items for client follow-up.
- Works the same way for e-Invoice issuers and exempt clients.
What KlerkIt does not do
- It is not a tax or e-Invoice filing authority and does not file tax returns.
- It does not decide whether a client must issue e-Invoices.
- It does not give tax, accounting or legal advice.
- It does not replace the accountant's review and final judgement.
Example: two clients, one preparation process
Illustrative scenario
A firm has two SME clients. One issues e-Invoices for its sales; the other falls below the exemption threshold, subject to LHDN's conditions. Both send a bank statement with a few hundred lines, a folder of receipts and a list of questions answered over WhatsApp.
For both, the firm's preparation is the same: group the repeated bank activity, give each group a business meaning, link the documents that exist, send one follow-up list for what is missing, and review the exceptions before posting. The e-Invoice position affects which documents exist, not whether the bank activity needs to be understood.