All taxpayers - individual or non-individual, are required to keep a record of their day to day business transactions. According to the Republic Act No. 10963, “All corporations, companies, partnerships or persons are required by law to internal income taxes must use and maintain a relevant and appropriate set of bookkeeping records duly authorized by the BIR where all transactions and results of operations are presented and for which all taxes due to the Government may be promptly and accurately ascertained and defined any time of the year.”
After you register your business in the BIR, you are required to apply and register your books of accounts within sixty (60) days after your Certificate of Registration was issued and released. There are three types of books of accounts that the BIR allows to be used by the taxpayers which are: Manual Books of Accounts, Loose-leaf Books of Accounts and Computerized Books of Accounts.
Manual books of accounts is the traditional journal, ledger and columnar books. The recording is done manually and handwritten.
Loose-leaf books of accounts is a record of transactions that is done by encoding the details on the computer using the approved template or formats by the BIR. Accounting records are submitted annually.
Computerized books of accounts is where a company or business uses an accounting system or program that was approved and registered at the BIR’s National Office.
Each type of books of accounts would depend on the needs of the business and the owners. Keeping the books of accounts is critical for your business because it is where all your business transactions are recorded. Such transactions are your basis when filing for your tax returns and other tax compliance matters. You do not have to worry about your accounting and tax filings anymore. Jumpstarters Manila are here to help you in running your business worry and hassle-free.