KNOW WHAT TO DO AFTER BUSINESS REGISTRATION WITH THIS PRACTICAL GUIDE (FOR START-UPS)
You’ve registered your business or your profession as a freelancer/professional/consultant with the DTI or SEC, municipal/city hall and BIR - at this point, you already have your very own DTI or SEC Certificate, local government permits, BIR Certificate of Registration (COR), an “Ask for Receipt” signage, booklets of printed receipts and stamped books of accounts. What’s next?
Here are five (5) practical guidelines you can take note of:
1. Display your DTI or SEC Certificate, local government permits, BIR COR and the Notice to Issue Receipts/Invoice (NIRI) signage in your registered business address.
What if you're home-based? Just keep them where you can easily present them should a representative of any government regulatory agencies visit you.
Tip that Matters: Be sure to keep photocopies and digital copies of all your certificates and permits. Having back-up copies can be a lifesaver, especially in cases where you lose the originals or simply for accessibility. You’ll find yourself presenting these documents to stakeholders in the future (e.g., banks, investors, auditors, etc.).
2. Fill-up your printed receipts.
What if a customer does not ask for a receipt? Just prepare a receipt nonetheless. It’s always prudent to declare all sales transactions.
Where do you keep the used receipts? Keep them in your registered business address together with your books of accounts.
Tip that Matters: Issue a receipt after each transaction so you won’t forget about it. If you’re one of those who sells via online channels, generate a daily or weekly sales report from the platform and record it as one transaction from various customers in your receipt. Attach the report to the receipt as a supporting document.
3. Update your books of accounts regularly.
Why do you need to maintain books of accounts? Maintaining a record of your business transactions is not just for compliance but also so you’re aware of what’s happening in your business. Your books of accounts help organize all your financial transactions.
Where do you keep your books of accounts? If you have a manual of books of accounts, it should be kept in your registered business address.
How do the books of accounts relate to your receipts, your other transactions and to your tax returns? The transactions in your receipts should be summarized in your books of accounts. Similarly, your expense transactions should also be summarized in your books. The amount reflected in your books should be the same as what is declared in your tax returns.
Tip that Matters: The label of the books of accounts (whether it’s a journal or a columnar book), the number of columns or the way you fill-up the columns doesn’t really matter, for as long as basic information is there and that you actually use it for recording. Fill-up your books at least monthly to ensure that no transactions are missed out.
4. File your tax returns on time.
Can you file your tax returns online? Yes. You don’t need to visit the RDO to file and pay your taxes. You can file your tax returns:
With the use of eBIR, then pay via bank or e-wallets; or
With the use of online tax filing platforms.
If you have trouble filling up the forms, you can also engage a remote back-office support services provider, just like Number that Matter to help you out.
Should you still file even if you have no transactions? Yes. As long as you are registered with the BIR, filing of all the tax types indicated in your COR should be religiously done with or without tax due.
Tip that Matters: If you’re filing your tax returns on your own, set the tax deadlines in your calendar so you won’t miss them. It is highly advisable to file and pay your taxes way before any deadline. You may encounter problems (e.g., eBIR having technical issues, internet connection issues, etc.) which will leave you with no other option but to pay manually, i.e., printing your tax return and going to the bank to pay, and/or to pay penalties.
5. Be on the look-out for new regulatory requirements.
Are there any other things that you need to know? You’ll need to understand that regulatory requirements may change or evolve over time. If you’re a registered business or freelancer, you need to be on the look-out for new rules of the regulatory agencies you’re registered with.
Tip that Matters: Make it a habit to check the website or social media pages of regulatory agencies to keep abreast with any changes in regulations or any new requirements. You can also follow service providers like Numbers that Matter on Facebook, Instagram, and LinkedIn to be equipped with simplified and practical explanations on topics relevant to micro, small and medium enterprises.
Was this blog helpful? Let us know if you need further help as you jumpstart your business or your profession.
Disclaimer: Numbers that Matter Inc. aims to curate topics that are simplified and easily digestible for micro, small and medium enterprises, by balancing our technical know-hows as accounting professionals and the practical experiences of our team working on ground with our clients. There may be technicalities intentionally omitted from our contents to preserve its simplicity. Any practical tip is purely the opinion of the team and is merely informal advice, and thus, should not be taken as a definitive rule. Should you have any specific questions, feel free to message the team at consult@numbersthatmatterph.com and we’d be happy to discuss with you further.
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