Introduction
Still using Excel or handwritten invoices to run your business? You’re not alone.
Many small business owners in Malaysia — whether running a kedai runcit, home bakery, online shop, or even doing freelance services — still rely on manual record-keeping. It’s what you’ve always used, it doesn’t cost anything extra, and let’s be honest — it gets the job done.
But now, with LHDN introducing the e-Invoicing system, everything is starting to change. Suddenly, there’s talk about digital formats, validations, and something called “MyInvois Portal”. And like many other business owners, you might be asking:
“Do I have to change my system? Can I still use Excel or manual invoices for e-Invoicing?”
In this blog post, we’ll explore what manual e-Invoice in Malaysia really means, whether it’s accepted under the new regulations, and what it means for your day-to-day operations. If you’re feeling a bit lost or overwhelmed, don’t worry — we’ll break it down clearly so you can decide what’s best for your business.
What Is a Manual or Excel-Based System?
When we talk about “manual invoicing” or “Excel-based systems”, we’re referring to the traditional way many small businesses in Malaysia have been managing their sales and finances — without using any accounting or e-Invoicing software.
This includes practices like:
• Writing invoices by hand using pre-printed invoice books you buy from stationery shops
• Typing out invoice details in Microsoft Excel or Word, using your own template
• Recording sales, expenses, and payment details in notebooks, logbooks, or basic spreadsheets
• Using free downloadable invoice templates found online, with no system-generated invoice numbers or tracking
These methods are still widely used, especially by:
• Night market vendors
• Hawker and food stall operators
• Home-based sellers on WhatsApp or Facebook
• Freelancers providing services like design, tuition, or photography
• Small retailers in village or residential areas
• Even some small-scale online businesses that operate casually without any official software
So why do so many businesses continue to use these manual or semi-digital methods?
✔️ 1. They’re Simple and Familiar
Most business owners aren’t accountants or IT experts — they’re focused on serving customers, running operations, and making sales. Writing numbers in a notebook or editing a row in Excel doesn’t require special training. It’s something they’ve done for years, and it works.
For example, a food truck operator might just use a notebook to jot down daily sales and only total everything at the end of the week.
There’s no pressure to learn a new system — and no risk of clicking the wrong button in unfamiliar software.
✔️ 2. They’re Cost-Effective
Not every business has the luxury to spend on subscriptions or new software. Manual systems feel like the most “low-risk” option because they don’t involve extra monthly costs.
A home baker selling cakes through Instagram, for instance, might think: why pay for software when I only issue five or six invoices per month? For micro businesses, every ringgit counts — and manual methods seem like the most practical option when profit margins are tight.
✔️ 3. They Offer Full Flexibility
Manual records give business owners full control over how they want to structure things. You can leave certain columns out, add handwritten notes, or tweak the layout based on what a customer needs.
For example, a freelance designer might want to add custom payment terms or specific descriptions for each project. Doing that in Excel or on paper is fast and flexible — there are no system limitations or fixed templates to work around.
✔️ 4. They’ve Worked… Until Now
Perhaps the biggest reason manual systems are still used is simply because they’ve worked — at least in the past. For many years, as long as a customer received their invoice and the business had a copy for reference, that was enough.
There were no requirements for digital submission, structured formats, or validation from LHDN. Businesses could operate freely without worrying about whether their invoice followed a specific standard or whether it needed to be reviewed by the government.
But with the introduction of e-Invoicing by LHDN, these familiar processes are now being challenged.
The new e-Invoice requirements need you to submit the invoice to LHDN in a structured, digital format. This is where manual systems and Excel start to fall behind. They weren’t designed to meet the technical requirements set by the government, and that’s what we’ll explore in the next section.
Does LHDN Accept E-Invoicing via Manual or Excel?
The short answer is: No, not directly.
Under Malaysia’s new e-Invoicing framework, LHDN requires every invoice to be submitted in a structured digital format, specifically in JSON (JavaScript Object Notation) — a format that’s readable by machines and follows strict data rules. This allows the system to verify the content of the invoice before it's officially approved.
In other words, it’s not enough to simply create an invoice using Excel or write it by hand. The e-Invoice must be uploaded or transmitted to LHDN’s MyInvois system, where it will be validated and returned with a unique identifier (UID) once approved. Only then is the invoice considered valid for tax and business purposes.
❌ Unfortunately, manual invoices and Excel files do not have the capability to generate JSON files or connect to the MyInvois system on their own. They’re not built to follow the required data structure, nor can they automate the validation process.
To help visualise this, here’s a simplified breakdown:
| Method | Can Submit Directly to LHDN? | Meets JSON Format? | Auto Validation by LHDN? |
|---|---|---|---|
|
Handwritten Invoice |
❌ No |
❌ No |
❌ No |
|
Excel Invoice |
❌ No |
❌ No |
❌ No |
|
e-Invoice-Ready System |
✅ Yes |
✅ Yes |
✅ Yes |
This doesn’t mean you have to abandon your records entirely — you can still use Excel to help track internal data — but when it comes to official invoicing under LHDN’s guidelines, a proper digital solution is now necessary.
The Challenges of Using Manual or Excel Systems for E-Invoicing
At first glance, it might seem possible to continue using manual or Excel-based systems and just “find a way” to convert them later.
But once you look deeper, several practical and compliance-related challenges become clear.
While these traditional methods may still help with internal tracking, they fall short when it comes to meeting the technical and regulatory requirements of Malaysia’s new e-Invoicing system.
Here are some of the main challenges:
❌ 1. Higher Risk of Errors and Incomplete Data
Manual entry means everything depends on human accuracy. A single typo, missing customer detail, or wrong tax rate can cause your e-Invoice submission to be rejected by LHDN. Unlike a system that validates entries in real-time, Excel and paper-based records offer no safeguards.
Example:
You accidentally leave out the customer’s TIN or mistype the invoice amount. In a manual system, this goes unnoticed. But in LHDN’s MyInvois portal, that invoice will be invalid.
❌ 2. No Automatic Validation or Submission to LHDN
Manual systems cannot “talk” to LHDN’s system. You’ll have to manually copy and paste or re-enter every detail into the MyInvois Portal — a process that can be tedious and prone to mistakes. Worse, if you’re using Excel, you’ll still need to find a way to convert it into the required JSON format, which is not beginner-friendly.
❌ 3. No Audit Trail or Secure Backup
If your invoice books are lost, or if your laptop with Excel files crashes, your data could be gone for good. Manual records are hard to back up, and they don’t create a digital audit trail that shows when changes were made or by whom — something that’s increasingly important for tax compliance.
❌ 4. Time-Consuming for High Volume Transactions
If your business processes dozens or hundreds of transactions a month, entering each invoice manually into MyInvois is simply not scalable. What might seem manageable now can quickly become overwhelming as your sales grow or during peak seasons.
❌ 5. Higher Risk of Non-Compliance or Penalties
If your e-Invoice is rejected due to missing or incorrect data — or worse, if you forget to submit it at all — you could face warnings, audits, or penalties from LHDN. The longer you delay adopting a compliant system, the more you risk falling behind.
In short, while manual or Excel systems may feel convenient today, they bring significant risks under the new e-Invoicing framework. The burden of accuracy, compliance, and submission all falls on your shoulders — unless you move to a system that automates and simplifies the process.
What Are Your Options If You're Still Using Manual Systems?
If you’re currently relying on Excel, invoice books, or notebooks to manage your sales, you might be wondering what your next step should be. The good news is, you do have options — but not all of them are practical or sustainable in the long run.
Let’s break down what you can do if you still want to comply with LHDN’s e-Invoicing requirements:
Option 1: Manually Convert Excel Data Into a Compliant JSON File
Technically, you can take your Excel data and convert it into a JSON file — the format required by LHDN’s MyInvois system. But this is not a straightforward task. You’d need to:
• Learn how JSON files work
• Ensure every data field matches LHDN’s required structure
• Validate the file before submission to avoid rejection
• Repeat this process for every invoice
Unless you have technical expertise or are willing to go through a steep learning curve, this method can quickly become frustrating — especially if you have many invoices to submit each month.
Option 2: Hire Someone to Handle e-Invoicing for You
Some business owners choose to outsource e-Invoicing tasks. You could hire an accountant, freelancer, or agency to take your manual records and submit e-Invoices on your behalf.
This may sound convenient at first, but it comes with a few challenges:
• Costly if you have many transactions each month
• Time delays when passing data back and forth
• You still need to keep your own records properly formatted
• You may end up relying too heavily on others for something you could automate
For small or growing businesses, this option can quickly become inefficient — and it still doesn’t solve the root issue of not having a proper invoicing system in place.
Option 3: Switch to a Cloud-Based E-Invoicing System
The most efficient and sustainable option is to move to a cloud-based e-Invoicing system that’s already built to comply with LHDN requirements.
With a proper system, you can:
• Generate e-Invoices directly from your sales records
• Automatically format them in JSON
• Submit to LHDN with just a few clicks
• Receive validation and keep an audit trail — all in one place
There’s no need for technical knowledge, and you don’t have to worry about formatting, errors, or compliance. Everything is handled behind the scenes by the system — giving you more time to focus on running your business.
If you’re already feeling overwhelmed by e-Invoicing or unsure where to begin, don’t worry — in the next section, we’ll share how you can make the switch without overhauling your whole business from scratch.
Benefits of Using an E-Invoicing-Ready System
Switching to a digital e-Invoicing system might feel like a big step at first — especially if you’ve been using manual methods for years.
But once you make the switch, the benefits become clear very quickly.
A system that’s built for e-Invoicing doesn’t just help you comply with LHDN’s requirements — it also makes your daily operations faster, smoother, and far more reliable.
Here’s what you can expect when using an e-Invoicing-ready platform:
The system guides you step-by-step, fills in known info automatically, flags errors before submission, and keeps everything organised — so you can stay compliant without the anxiety.
✅ Auto-Generate e-Invoices from Sales Records
No more retyping customer details, invoice numbers, or item descriptions over and over.
With an integrated system, your invoice is generated automatically based on your sales data — saving time and reducing repetitive tasks.
For example, if a customer places an order, the system can pull the info straight from your sales record and turn it into a ready-to-submit invoice — no extra effort needed.
✅ One-Click Submission to LHDN via Intermediary
Good e-Invoicing systems connect directly to LHDN, either through API or an approved intermediary.
That means you can submit your invoice in just one click — no need to log into MyInvois manually or convert any files.
Once submitted, the system waits for validation from LHDN and automatically updates the invoice with a unique identifier (UID) once it’s approved.
✅ Reduce Human Error, Speed Up the Process
Manual entry is where most mistakes happen — wrong TIN numbers, missed fields, or formatting issues.
E-Invoicing systems guide you step-by-step, making sure nothing is missed before submission.
This reduces rejection rates and speeds up the entire process.
✅ Stay Compliant Without the Stress
The biggest advantage? You don’t have to worry about whether your invoices meet the latest LHDN format or rules.
The system is built with compliance in mind — so you can focus on your business while staying on the right side of the law.
Adopting a digital system is no longer just a convenience — it’s becoming a necessity.
And the sooner you make the switch, the smoother your transition will be as Malaysia moves toward full e-Invoicing adoption.
Up next, we’ll show you how to make this transition easily with a system that’s built for businesses like yours.
Conclusion: Manual Records Aren’t Enough Anymore
Excel sheets and handwritten invoices may have worked well in the past — but with LHDN’s e-Invoicing system now in motion, those methods are no longer enough.
The new framework requires more than just keeping records. It requires structure, accuracy, validation, and digital submission — things that manual and semi-digital systems simply can’t handle on their own.
If your business wants to stay compliant, avoid unnecessary penalties, and keep up with how things are moving in Malaysia, now is the time to make the shift.
And the good news is — you don’t have to do it alone.
Let Niagawan Make It Easy
At Niagawan, we’ve helped thousands of Malaysian business owners — just like you — move from notebooks, Excel files, and printed invoice books to a fully digital, compliant system without the usual tech headaches.
Whether you’re a home-based seller, a kedai runcit owner, or a freelancer offering services, our system is:
• e-Invoice ready
• User-friendly, even if you’re not tech-savvy
• Tailored for Malaysian SMEs, complete with local tax features and LHDN integration
From creating your invoice to submitting it to LHDN through our approved intermediary connection, everything can be done in just a few clicks.
No technical setup, no complicated learning curve — just a smoother way to run your business in the digital age.
👉 Explore Niagawan today and simplify your e-Invoicing journey — before it becomes a hassle you can’t ignore.
