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 […]

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 […]

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 […]

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 […]

Reminder on Tax and Payroll Deadlines for February 2016

The first month of the year 2016 just ended and we are now in what they call the “love month” of February. Before you think about the Valentines Day, we are writing this article to remind and guide you of the basic tax and payroll deadlines for the month of February 2016. Important Note: For […]

Reminder on Year-End Compliance

The new year always bring positive perspective. May it be because the close of the year is coming or the idea of a fresh start keeps us motivated. At this time, we are either writing the memories of the past year or creating resolutions and plans for the new coming year. For accountants, taxpayers and businesses, […]

Bookkeeping and Tax Requirement for Freelancer/Self-Employed/Home-based Businesses

In the past years, there has been an increased in individuals who do freelancing, as a means to generate income rather than being employed. These are individuals who prefer to be either a self-employed (offering their knowledge, talents or skills) or sole-proprietor of a business (selling goods or services). Although many succeed as freelancer, they […]