Establishing a tax and accounting department or hiring accounting firms to do the tasks of taxation can be quite a challenge for small companies and micro-businesses. Unlike large corporations, start-ups cannot always afford the costs of in-house labor or even outsourcing services, which is why most of the time, business owners accomplish these tasks by themselves. But some find it difficult and instead decide to look for accounting services in the Philippines they can afford.
If you’re an owner of a small business in the Philippines, here are a few pointers to remember to make taxation tasks easier to complete:
1. Before anything else, make sure to register your business before the operation.
Any business, regardless of its size, should never operate without a license. Aside from the purpose of fulfilling legal requirements, securing a license first will avoid penalties and forced closure of your business.
The DTI, SEC, Mayor’s Office, BIR, SSS, PhilHealth, Pag-Ibig Fund and other government agencies require that you register with them before officially opening your business. Registering with the BIR and LGUs such as the Office of the Mayor will be your basis for paying national and local taxes, respectively.
2. Register your books of accounts.
Another set of documents you must register includes all your books of accounts like the general journal, ledger, etc. Keep in mind that new set of manual books of accounts need not be registered anymore, unless the pages of your current registered books are fully exhausted.
You also don’t need to turn in your books for investigation during the registration of new manual books of accounts. If you plan to use a Computerized Accounting System, Cash Register Machine (CRM), and Point of Sales Machine (POS), you need to secure a permit or register them with the BIR to use them legally.
3. Learn from tax/accounting seminars.
Since you’ll be handling most of your taxation requirements, learning the basics of local tax compliance and bookkeeping will prove significantly advantageous during slightly complicated tax situations.
4. Register your official receipts and invoices.
Your official receipts and invoices must also be registered with the BIR, as these are only valid when printed by BIR accredited printers. To be sure, check out BIR’s list of Authorized Printers of Receipts and Invoices in the Philippines.
5. Consult with a business or tax consultant regarding all your transactions.
It would be best to have a trusted business or tax consultant in your immediate contacts during taxation processes. You can disclose private information about your company to a reliable consultant, and in return gain expert ideas and answers to your business and taxation concerns.
Do keep in mind, though, that changes occur in new and subsequent laws, BIR issuances, and tax rulings. Such changes may render some of these obsolete or inaccurate.
While we can guarantee that the aforementioned information are accurate at the time being, these tips were gathered for general information only and is not intended to provide legal, tax, or investment advice.
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