In line with the season for filing income tax returns (ITR) for most businesses, it is important to be reminded of your tax responsibilities. It also counts to be aware of those common, unnoticeable mistakes that often lead to unwanted penalties. The Philippine’s Bureau of Internal Revenue (BIR) plays a significant role in successfully running your business in Davao. In fact, the BIR plays a major, superlative role. Abiding by its rules and regulations will not only save your business from its imposed penalties, it will also spare you from possible criminal charges that are a major hindrance to a good night’s sleep. This is basically the reason why businesses or any other legal taxpayer (group or individual) should consider hiring a reputable accounting firm in Davao which offers tax services, and more. Here is a list of the things to look forward to in this article: Functions of the BIR Common Mistakes to Observe when Filing Tax Returns 10 Tips to Avoid BIR Tax Penalties Understanding the BIR BIR is an attached agency of the Department of Finance. It collects more than half of the total revenue of the Philippines and it is the primary entity that controls the Philippine taxation. Among its powers and duties are: Assessment and collection of all internal revenue taxes, fees and charges; and Enforcement of all forfeitures, penalties, and fines connected therewith, including the execution of judgments in all cases decided in its favor by the Court of Tax Appeals and the ordinary courts; and Administers supervisory and police powers conferred to it by the National Internal Revenue Code and special laws. So why do we really need to pay taxes? The answer is a no-brainer: Taxes are the soul of our government, without which, it cannot possibly subsist. Common Mistakes to Observe Instead of wasting your profits on some ridiculous penalties, many promising undertakings could have been made. In few cases, it may take them a whole night to scrutinize those bills and taxes, but still, something just seems to really go out of the right track. Tax penalties could be imposed to entities who either failed to file their ITR on the scheduled date or they may have committed errors even...
Learn MoreBe it your choice to hire employees or not, if your small startup business is steadily growing on a rapid scale, hiring will not just become an option rather a must. There will always come a time in your business life that you’d need the help of someone else trustworthy to do some of the integral tasks you deem important for your company’s daily grind. They’re called employees. You have screened them according to your vision, their skills and qualifications and their consent towards an agreement of legality and his or her tenure of service needed for your company. Everything’s been settled down and ready for execution but another problem arises. Since your company has doubled the time for production or service, then profit must have been keeping up with this trend. You get money because of the people working for you. So give them what’s due by also keeping up on their salary. It works on a mutual professional relationship wherein one gives and takes, vice versa. If you’re now starting to discuss about putting up a payroll system in use for your small business, you can glean over 2 choices you can make. 2 types of payroll system In House – there are two more options listed down here. You can try (a) manual or (b) computerized. If you choose A, it sure will become a workload but this is ideal at first since it’s cheaper and you don’t have a lot of employees yet anyway. Electronic payroll systems are also good for small to mid-sized businesses since they offer more convenience and ease of use. Common disadvantages for manual system: more prone to errors and if the personnel in charge of payroll is not knowledgeable about laws then results can become inaccurate. Common disadvantages for computerized system: costs more to implement since investment must be done on equipments, necessary software and excessive training. Outsourced – Here’s another popular option since if the other two listed above are all done by your own employees, you get to erase that responsibility off their hands if you choose this method. This has always been proven cost-effective and time saving for clients who want more work done instead of focusing on this...
Learn MoreEvery Davao business owner is fully aware that they need to take care of their businesses at every step in order to thrive the stiff competition of the business industry – locally or globally. Thus, to strengthen the financial aspect and ensure its growth, most companies hire auditing services to check and track down errors that can hamper the growth of the business. This is one of the most valuable services an auditor can provide. Are your business records subject to audit? Do you think auditing services can be the answer to your problems? To answer these questions, let’s take a look at the points stated below. The Roles and Responsibilities of An Auditor Advantages of Hiring Auditing Services When Do You Need An Auditing Service? Davao Auditing Services The Roles and Responsibilities of An Auditor An auditor plays a very significant role in a company or organization. They are responsible for ensuring that the company runs efficiently and effectively. Some of their most vital roles include the following: In-charge of checking and analyzing the financial records and documents – This is to ensure taxes are paid on time and the company complies with all the laws and regulations of the corporate world as well as the government. Evaluate all aspects of the company including the manager and the employees – To verify the productivity and effectiveness of the company or organization, the auditor spends time interviewing the managers and all the employees. Through this, he or she will also be able to determine whether financial records and statements coincide with each other. Recommend solutions for mismanagement or negligence of the company procedures – Based on the interview and document analyzation, the auditor will make recommendations as to how the company can improve their activities and financial operations. What are the Advantages of Hiring Auditing Services? Reduced Risk – Businesses are always at risk and auditing services are a reality check for any business there is. The business financial records need to be error-free, updated, and analyzed from time to time. When you hire the service of an auditor, it will become much easier to identify errors and mistakes in the financial statements beforehand. Reduced Malpractices – Auditors examine a...
Learn MoreBookkeeping is often an underestimated job. Unfamiliar to most of us, bookkeeping is essential in keeping an organization functional. If it were not for bookkeeping, companies would not have any idea how much money they have, how much they owe and what money hasn’t been on hand yet. Through bookkeeping, critical information is obtained and good financial decisions are made. Unfortunately, many businesses in Davao City do not have a certified bookkeeper who can handle all financial matters. It’s the manager or the director who usually adds bookkeeping to his duties, only to end up being frustrated because of little or no bookkeeping training. When a company’s economic health is not safeguarded, that is when poor financial decisions are made and in worst cases, fraud happens. In this article, we will discuss about: What Bookkeeping Is The Roles of A Certified Bookkeeper Major Steps in Bookkeeping What Bookkeeping Is So what exactly is bookkeeping? According to Wikipedia, bookkeeping is the process of recording all financial transactions in a business. To expound, bookkeeping documents money that flows in and out throughout a business and summarizes the information so that a businesses’ financial status is known. The Roles of a Certified Bookkeeper As mentioned above, bookkeepers are one of the key employees due to the essential roles that they play in an organization. So what are their roles? They lead the organization in making well-informed decisions. Bookkeepers prepare reports showing the financial condition of a company. These reports permit companies to decide how much money to set aside in order to provide a certain service, future project funding and assess the overall financial health of the business. Without accurate financial records, it would be impossible to make informed decisions. They help in keeping the organization run efficiently. Good financial records that are kept by certified bookkeepers save the company from chaos as preparation of such information won’t have to be done urgently. Saved time and energy all add up to a company’s health. They demonstrate financial liability. As a company grows so as the need to report to outside funders, the government and other constituents. A company with a healthy financial status is assured that internal controls are in place. Major Steps in...
Learn MoreMerging the old and the new is never an easy task. New ideals are sometimes too rash that the slow-paced ones are not able to immediately cope. But becoming successful in this endeavor can entail a wonderful present; look at how Japan and China managed to bring about old traditions into the modern era – a perfect blend that truly exhibits individuality. The same thing can be said of a company’s status in comparison to its years of existence. They have terms such as start-ups (for new ones), closing shop and succession planning (for old ones); all dependent on the variable of time. These are definite and essential parts of any company’s timeline (beginning and transforming phases), as it can determine whether or not they can survive in the changing trends and fierce competition. Majority of industry sectors rely on financial partners to help them ease the burden of managing such a tumultuous task at these crucial moments. An accounting firm with certified public accountants can surely give any company – still forming or is already entering new management – a clear advantage when it comes to efficient management of financial situations, unlike any other. Below are two scenarios that are important aspects of a business timeline and how accounting firms can specifically help them: New Business Formation Succession Planning Startup Dilemmas, Solved Reality bites: starting a business in a big and vastly diverse city such as Davao can become overwhelming for any entrepreneur. If it has been a childhood dream or a hobby, all the more challenging to attain. Aside from thinking about possible places to put it up, you also have to consider the what, when and how in the equation. Fact: A Davao accounting firm can help you, first and foremost, in planning the initial steps toward any business formation – the registration. In the Philippines, that is of course done by registering your chosen business name first through appropriate local authorities, such as: DTI (Department of Trade and Industry) SEC (Securities and Exchange Commission) and CDA (Cooperative Development Authority) All these basing on the type of ownership: single, partnership and cooperative, respectively. After that, you can go down the ladder and visit your Local Government Units (City Hall,...
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