Financial Ratios that Every Business Owner Should Know

Business owners uses financial statements to assess the condition and performance of their business. They do so in order to improve their sales, processes, budgets and/or forecasts.  Oftentimes, they use financial statements as basis of their business decisions. A financial statement provides detailed report, shown in numbers. Typically, a company has the following financial statements […]

15 Things to Consider Before Starting a Business

Starting a business can be a motivating idea especially for first time entrepreneurs or employed individuals who are tired of the 8am-5pm job. It’s encouraging to start a business when you think about the freedom of not working 8-9 hours a day in a confined office, not having to report to a boss, and the […]

Cash Management Basics

There’s a saying that goes “Cash is King”. Many successful business owners or financially secured entities knows that cash dictates the past, present and future of a business. In my experience, it will be hard to manage and succeed in business if you cannot manage your cash. Cash is king because it dictates the financial […]

Income Tax Return Filing Guidelines for Taxable Calendar Year 2016

For most business owners in the Philippines, it has been a yearly tradition to think about our Annual Income Tax Return which is normally due every April 15. Many business owners may already be done filing/paying their Annual Income Tax Return, while some are still in progress of completing it. To avoid confusion on the […]

Purchase Journal: What is it and How to Write Manually?

All business establishments registered with the Bureau of Internal Revenue (BIR) are required to maintain and keep a record of their day to day transactions. Such record is referred to as “books of accounts” or “accounting books”. In general, the accounting books being registered to the BIR depends on the nature and size of the […]

BIR Importer’s Clearance Certificate (BIR ICC) Application Guidelines

Last September 2, 2016, the BIR has issued a memorandum order, RMO No. 56-2016, which serve as a new guideline in applying and getting importers clearance certificate from the bureau. The documentary requirements and processing time in the issuance of the certificate has been reduced. This was done by the bureau because they aim to expedite the application process. The faster processing […]

Value Added Tax (VAT) in the Philippines – An Introduction

We may not be aware of it, VAT (Value Added Tax) is part of our life, we are paying it regularly. VAT is everywhere, it’s in the most of the goods or services we purchase. Take for an instance, whenever we go to the salon to get our hair done, when we dine in a […]

How to Write a Non-VAT Official Receipt?

All registered taxpayers engaged in business are provided by the Bureau of Internal Revenue (BIR) an “ASK FOR RECEIPT” signage to be displayed visibly in the business establishment. The ASK FOR RECEIPT signage is a reminder, both to the seller and the buyer, the importance of issuing an official receipt or invoice for every sale […]

What You Need to Know About Official Receipts?

All income earners, except for purely compensation income earners, are mandated to issue a receipt or invoice for every sale of services or products. The BIR even require all businesses to post visibly in their establishments the “ASK FOR RECEIPT” signage. The purpose of the signage is to ensure all buyers are aware of their […]

Guideline in Preparing BIR Form 1604E and Alphalist of Payees

Tax Form BIR Form 1604E: Annual Information Return of Creditable Income Taxes Withheld (Expanded)/ Income Payments Exempt from Withholding Taxes Description This return is filed by every withholding agent/payor who is either an individual, estate, trust, partnership, corporation, government agency and instrumentality, government-owned and controlled corporation, local government unit and other juridical entity required to […]