Davao City has long been known for its fine quality logs and furniture made out of it. And since this industry is old and big, Davao accounting firms are surely needed for different aspects involving financial management in the many companies that engage in this type of industry.
Before you take a bite out of what roles they fulfill, have a little glimpse of the logging industry’s background and current state plus an issue that haunts it regardless of geographical location.
One of Davao City’s first principal industries included logging but it waned later on due to production of banana and abaca. Davaoeños learned logging through foreigners especially the Japanese who set up plantations in Davao Gulf during the early 1900s. Davao was even called Japan kuo or “Little Japan”
Today, the same gulf stands witness to history of mostly Gmelina trees being logged by major industry players such as CASI (Conrado Alcantara and Sons Incorporated), FineLineAsia and PhilCentury Furniture Products.
But despite the logging industry seen as healthy and wealthy, there are valid concerns from environmental protection agencies and non government organizations. Yes, there are efforts initiated by major players to sustain their plantations with renewed trees as perhaps advised by some accounting firms in Davao City but the main problem is illegal loggers who act like fly by night contractors without replacing the trees they cut down.
In turn, all these destructive activity bloated into graver disasters in the wake of Typhoon Pablo’s wrath. It’s just good to know that local government is tapping technological advancements to survey the hot spots where these illegal operators swarm. How? Through drone planes or eyes in the sky.
If you’re part of the operations of the big three mentioned above you probably have encountered a local auditing or accounting firm representative that are employed to secure different processes such as these:
Tax is big! – unfortunately yes, tax is big for legal loggers. Why? Because most of them export it and prices for high quality lumber isn’t cheap. A local accounting firm may dish you with details on how to deal with your business structure taxation while minimizing your liabilities.
Hello Foreign Laws – and since the issue of export is in check, once cargo vessels carrying those raw wood products leave port, it will soon be entering countries that are outside Philippines’ jurisdiction. With that comes the laws that govern a specific nation or groups of it. Such as for example a new disclosure agreement in place in EU (European Union) member states for every products entering their area of responsibility. If you hired a certified accountant from a respected Davao accounting firm and you have global operations, they should be up to date with these kinds of information.
Strategic Financial Planning – from budget management to financial reports and internal control systems, an experienced firm must know how to give their clients in the logging industry a boost with all-encompassing financial management packages.
Specific Inventory – since it’s the forest you’re dealing with, a different type of inventory is needed. They can scan the trees you tap, project growth in years and even calculate fluctuations in market price for your main raw product.
Sound Investments – professional accountants must also be knowledgeable in giving you advice regarding what type of investments can help you grow your business more. Is it partnerships (a thing that CASI did) or joint ventures?
When all of these information already sinks in, you’d know that the best course of action can be decided between the minutes you’re waiting and actually consulting a local accounting firm by now.