The beginning of a new year is one of the most important moments for any business. It’s when financial records reset, budgets are planned, and systems are reviewed. Starting 2026 with a clean and well-organised accounting setup can help Malaysian businesses avoid errors, improve cash flow visibility, and stay compliant throughout the year.
Here’s a practical accounting checklist to help businesses start 2026 on the right footing.
📊 1. Verify Opening Balances
Before recording any new transactions in 2026, ensure that your opening balances are accurate.
- Confirm closing balances from 31 December 2025
- Check cash, bank, accounts receivable, and accounts payable balances
- Ensure retained earnings are properly carried forward
Any error at this stage will affect your financial reports for the entire year.
📁 2. Close and Lock the Previous Financial Year
Once 2025 accounts are finalised:
- Close the financial year in your accounting system
- Lock prior-year data to prevent accidental changes
- Ensure audit adjustments (if any) are completed
Using accounting software like SQL Accounting helps control access and preserve data integrity.
📦 3. Perform Stock and Inventory Reconciliation
Inventory discrepancies can significantly impact profit figures.
- Conduct a physical stock count
- Compare physical stock with system records
- Adjust for damaged, expired, or obsolete items
- Review inventory valuation methods
Accurate inventory data ensures reliable cost and profit reporting in 2026.
💰 4. Review Cash Flow and Outstanding Balances
Start the year knowing exactly where your business stands.
- Follow up on overdue customer payments
- Review supplier balances and payment terms
- Identify slow-paying customers
- Plan collections and payments for the first quarter
Clear visibility into cash flow helps prevent early-year financial stress.
🧾 5. Review Tax, SST, and Compliance Settings
Compliance issues often arise from outdated settings.
- Verify SST registration details (if applicable)
- Check tax codes and chart of accounts
- Ensure reports are ready for tax filing
- Confirm document retention and record-keeping practices
Proper setup reduces last-minute panic during tax season.
👥 6. Review User Access and Internal Controls
A new year is a good time to tighten system security.
- Remove access for former employees
- Review user roles and permissions
- Separate duties (e.g. data entry vs approval)
- Enable audit trails where possible
Strong internal controls help prevent errors and fraud.
💾 7. Check Backup and Data Security Measures
Accounting data is critical business information.
- Confirm regular data backups are working
- Test data restoration if possible
- Ensure backups are stored securely
- Review antivirus and system protection
Data loss can be costly — prevention is always better than recovery.
📈 8. Set Up Budgets and Financial Targets for 2026
Use your 2025 data to plan ahead.
- Prepare sales and expense budgets
- Set profit and cash flow targets
- Monitor performance with monthly reports
Accounting software with reporting features makes tracking progress much easier throughout the year.
🛠 9. Review Your Accounting Software Setup
Finally, assess whether your current system still meets your needs.
- Is reporting timely and accurate?
- Can staff use it efficiently?
- Does it support business growth?
- Are you still relying on manual processes?
The start of the year is often the best time to improve or upgrade accounting systems with minimal disruption.
📌 Final Thoughts: Start 2026 with Confidence
Good accounting habits don’t start during audits or tax deadlines — they start on day one of the year. By following this checklist, Malaysian businesses can reduce errors, improve financial visibility, and build a stronger foundation for growth in 2026.
A well-prepared accounting system isn’t just about compliance — it’s about making better business decisions all year long.
