Bookkeeping and Accounting Services
At FilePino, we offer a complete package of bookkeeping and accounting services based on a typical accounting cycle, which describes a systematic process of recording, organizing, and reporting financial transactions.
Collating Transaction Documents
We collate source documents, such as receipts and invoices, for various financial transactions, including sales, purchases, expenses, payments, etc. These documents are gathered and prepared for recording in the books of accounts and ledgers.
Organizing and Recording Transactions
We carefully separate and classify financial transactions based on their nature. Then, we record them accurately in the appropriate journals, such as the cash receipt journal, cash disbursement journal, sales journal, and purchases journal.
Posting to Ledger Accounts
We transfer the entries to the respective ledger accounts. This comprehensive data, including transaction dates, descriptions, and monetary values, is used to analyze trends and identify areas of concern, which are crucial for decision-making.
Creating a Trial Balance
We use a trial balance to visually analyze figures and determine whether the totals on both sides are balanced or match. If the total debits equal the total credits, the trial balance is balanced. If not, we identify and rectify any errors.
Adjusting Entries
Once errors are identified during the trial balance, we adjust entries to ensure that the financial statements accurately reflect the company’s financial health. Errors can distort the overall picture presented in the income statement, balance sheet, and cash flow statement.
Generating Financial Statements
We generate financial statements, such as the Income Statement, Balance Sheet, and Cash Flow Statement, which provide a snapshot of the company’s financial health and performance. This step marks the culmination of the accounting cycle.
Closing Entries
We close entries to reset temporary accounts and prepare for the next accounting period. This involves transferring temporary account balances to permanent accounts and resetting the temporary accounts to zero.
Preparing a Post-Closing Balance
We prepare a post-closing balance, which is a listing of all permanent account balances after the closing process. This provides a summary of the permanent accounts and serves as a final check to ensure that all temporary accounts are properly closed.
BIR Tax Filing Services
Our tax filing services involve preparation of monthly, quarterly, and annual returns, filing them online or onsite, depending on the applicability, and payment of the tax dues. These tasks are summarized below:
Preparation
We usually start with gathering documents and accounting records needed for drafting the BIR tax returns. These may include financial documents, such as receipts, invoices, bank statements, and payroll records.
Tax Computation
We then proceed to calculations of taxes due based on the documents gathered, prevailing tax rates, and latest tax laws and regulations. Calculations are streamlined using the digital tools but are manually scrutinized to ensure accuracy.
Tax Forms Completion
Our accountants determine the appropriate BIR tax forms or returns, e.g., Income Tax Return, VAT, Percentage Tax, etc., and accomplish them accurately and properly based on the information gathered from the client or their in-house accounts and results of calculations.
Tax Return Filing and Payment
For BIR’s Electronic Filing and Payment System (eFPS) filers, returns are usually filed online and payments are made via our clients’ linked online banking account. For non-eFPS filers, funds are directly requested from the clients.
Record Keeping
Stamped and duly received BIR tax returns and payment receipts are secured after filing and turned over to the clients for their safekeeping. As per BIR regulations, these must be kept for a certain number of years and prepared in cases of audits.
Outsource your Bookkeeping, Accounting, and Tax Filing needs and enjoy peace of mind knowing your finances are in expert hands!
Dedicated Accountants
and Bookkeepers
We pride our in-house accountants and bookkeepers as industry leaders and experts having extensive experience and exposure to corporate financial and tax management. At FilePino, one certified public accountant (CPA) is assigned per client or company.
Comprehensive, Efficient,
and Scalable Accounting
We offer comprehensive and efficient bookkeeping, accounting, and tax filing services for businesses of all sizes, from startups with no transactions yet to established corporations. As your business grows, our services can easily be scaled to meet your evolving needs.
Accurate and Timely
Regulatory Compliance
Benefit from the specialized knowledge and precision of our seasoned accounting professionals who stay up-to-date with the latest tax laws and regulations, tools, and trends and ensure timely compliance and avoidance of penalties.
Peace of Mind and
Business Focus
Enjoy peace of mind knowing that your financial affairs and complexities are handled by professionals and experts who ensure accurate financial records and regulatory compliance, allowing you to concentrate on running and growing your business.
Bookkeeping, Accounting, and Tax Filing
Bookkeeping
Bookkeepers collate documents from the client, record and classify transactions, prepare and maintain books of accounts and ledgers, conduct financial reconciliations, and generate financial statements.
Accounting
Accountants adjust book and ledger entries, review and analyze financial statements and account balances, perform financial analysis, planning, and tax audits, and make financial forecasts.
Tax Filing
Tax filers prepare monthly, quarterly, and annual tax returns, forms, and other reports, file them with the Bureau of Internal Revenue (BIR), and pay for the tax dues.
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Ready to Outsource Accounting and Tax Filing?
Outsource your bookkeeping, accounting, and tax filing needs! We expertly manage your company’s finances, from organizing transaction documents to preparing financial statements.
BIR Tax Filing FAQs
Does our company have to comply with BIR regulations on tax filing even if we are still not operational?
Yes, all companies that have been registered with the BIR, with or without operations, are obliged to file their BIR returns. Your registered company needs to file the returns indicated in your COR (BIR Certificate of Registration) regardless if you are operational or not. BIR imposes penalties (minimum of Php 1,000.00) for every return not filed on time.
Are we subject to tax even if there is no revenue?
There is no income tax due if there is no revenue. But for the purchases, we recommend withholding taxes from your payments for Professional Fees and Rent. If there are taxes withheld, the same shall be remitted to the BIR.
Can you confirm if our company has to file 1601C and 0619E on Dec 10?
Yes. You also need to file 2550M (VAT) on Dec 20. You may file as early as the first day of the following month. For example, you may file 1601C and 0619E as early as Dec 1 – for the applicable month of November.
Do we need to file our returns personally to BIR or can they be filed online?
They can be filed online. You just need to download the latest version of eBIRForms Offline Package.
BIR LOA FAQs
For additional information, here are frequently asked questions on BIR filing guidelines and the answers:
What is BIR LoA (Letter of Authority)?
A LoA is a notice in a form of letter from the Bureau of Internal Revenue to inform the recipient taxpayer that they will undergo an audit by the Bureau. The Loa also authorizes specific BIR officers/examiners (i.e., Revenue Officers and Group Supervisor) to examine the taxpayer’s books and accounting records.
Who issues the Letter of Authority?
Letter of Authority, for audit/investigation of taxpayers under the jurisdiction of National Office, shall be issued and approved by the Commissioner of Internal Revenue, while, for taxpayers under the jurisdiction of Regional Offices, it shall be issued by the Regional Director.
How is a particular taxpayer selected for an audit?
Officers of the Bureau (Revenue District Officers, Chief, Large Taxpayer Assessment Division, Chief, Excise Taxpayer Operations Division, Chief, Policy Cases and Tax Fraud Division) responsible for the conduct of audit/investigation shall prepare a list of all taxpayers who fall within the selection criteria prescribed in a Revenue Memorandum Order issued by the CIR to establish guidelines for the audit program of a particular year.
The list of taxpayers shall then be submitted to their respective Assistant Commissioner for pre-approval and to the Commissioner of Internal Revenue for final approval. The list submitted by RDO shall be pre-approved by the Regional Director and finally approved by Assistant Commissioner, Assessment Service (Reference: RMOs 64-99, 67-99, 18-2000 and 19-2000).
How many times can a taxpayer be subjected to examination and inspection for the same taxable year?
A taxpayer’s books of accounts shall be subjected to examination and inspection only once for a taxable year, except in the following cases:
- When the Commissioner determines that fraud, irregularities, or mistakes were committed by Taxpayer;
- When the Taxpayer himself requests a re-investigation or re-examination of his books of accounts;
- When there is a need to verify the Taxpayer’s compliance with withholding and other internal revenue taxes as prescribed in a Revenue Memorandum Order issued by the Commissioner of Internal Revenue.
- When the Taxpayer’s capital gains tax liabilities must be verified; and
- When the Commissioner chooses to exercise his power to obtain information relative to the examination of other Taxpayers (Secs. 5 and 235, NIRC).
What are some of the powers of the Commissioner relative to the audit process?
In addition to the authority of the Commissioner to examine and inspect the books of accounts of a Taxpayer who is being audited, the Commissioner may also:
- Obtain data and information from private parties other than the Taxpayer himself (Sec.5, NIRC); and
- Conduct inventory and surveillance, and prescribe presumptive gross sales and receipts (Sec. 6, NIRC).
What is a Notice for Informal Conference?
A Notice for Informal Conference is a written notice informing a Taxpayer that the findings of the audit conducted on his books of accounts and accounting records indicate that additional taxes or deficiency assessments have to be paid.
If, after the culmination of an audit, a Revenue Officer recommends the imposition of deficiency assessments, this recommendation is communicated by the Bureau to the Taxpayer concerned during an informal conference called for this purpose. The Taxpayer shall then have fifteen (15) days from the date of his receipt of the Notice for Informal Conference to explain his side.
Within what time period must an assessment be made?
An assessment must be made within three (3) years from the last day prescribed by law for the filing of the tax return for the tax that is being subjected to assessment or from the day the return was filed if filed late. However, in cases involving tax fraud, the Bureau has ten (10) years from the date of discovery of such fraud within which to make the assessment.
Any assessments issued after the applicable period are deemed to have been prescribed, and can no longer be collected from the Taxpayer, unless the Taxpayer has previously executed a Waiver of Statute of Limitations.
What is “Jeopardy Assessment”?
A Jeopardy Assessment is a tax assessment made by an authorized Revenue Officer without the benefit of complete or partial audit, in light of the RO’s belief that the assessment and collection of a deficiency tax will be jeopardized by delay caused by the Taxpayer’s failure to:
- Comply with audit and investigation requirements to present his books of accounts and/or pertinent records, or
- Substantiate all or any of the deductions, exemptions or credits claimed in his return.
What is a Pre-Assessment Notice (PAN)?
A Pre-Assessment Notice is a communication issued by the Regional Assessment Division, or any other concerned BIR Office, informing a Taxpayer who has been audited of the findings of the Revenue Officer, following the review of these findings. If the Taxpayer disagrees with the findings stated in the PAN, he shall then have fifteen (15) days from his receipt of the PAN to file a written reply contesting the proposed assessment.
Under what instances is PAN no longer required?
A Preliminary Assessment Notice shall not be required in any of the following cases, in which case, issuance of the formal assessment notice for the payment of the taxpayer’s deficiency tax liability shall be sufficient:
- When the finding for any deficiency tax is the result of mathematical error in the computation of the tax appearing on the face of the tax return filed by the taxpayer; or
- When a discrepancy has been determined between the tax withheld and the amount actually remitted by the withholding agent; or
- When a taxpayer who opted to claim a refund or tax credit of excess creditable withholding tax for a taxable period was determined to have carried over and automatically applied the same amount claimed against the estimated tax liabilities for the taxable quarter or quarters of the succeeding taxable year; or
- When the excise tax due on excisable articles has not been paid; or
- When an article locally purchased or imported by an exempt person, such as, but not limited to, vehicles, capital equipment, machineries and spare parts, has been sold, traded or transferred to non-exempt persons.
What is a Notice of Assessment/Formal Letter of Demand?
A Notice of Assessment is a declaration of deficiency taxes issued to a Taxpayer who fails to respond to a Pre-Assessment Notice within the prescribed period of time, or whose reply to the PAN was found to be without merit. The Notice of Assessment shall inform the Taxpayer of this fact, and that the report of investigation submitted by the Revenue Officer conducting the audit shall be given due course. The formal letter of demand calling for payment of the taxpayer’s deficiency tax or taxes shall state the facts, the law, rules and regulations, or jurisprudence on which the assessment is based, otherwise, the formal letter of demand and the notice of assessment shall be void.
What is the process of BIR Audit?
The following events detail how a BIR Tax Audit operates in the Philippines:
[1] The BIR sends a Letter of Authority (LOA). The BIR sends out a LOA to the taxpayer. A LOA also states what kind of tax is to be examined, this includes income tax, value-added tax, withholding tax, etc. It usually covers one taxable year and specifies the year covered.
[2] The BIR will request documentation. The LOA will request several documents in an attachment when received. These include tax reports, tax returns, and accounting records. The RO will use these documents as the basis for their examination. If you fail to submit these documents, you will be given a second request. If you are still not able to submit it, a final notice will be given. If again you don’t present the required documents the BIR may issue a “Subpoena Duces Tecum”, which legally mandates you to submit these documents at a specified time.
[3] Issuance of a Notice of Discrepancy (NOD). When the RO has completed checking the required documents, they will then submit their findings to the Revenue District Officer (RDO) for approval. Taxpayers that are liable for tax deficiencies will be issued with a Notice of Discrepancy (NOD) by the RO. The report shows the taxpayer’s records and explains the discrepancies found during the initial report.
A Discussion of Discrepancy (DOD) will be held between taxpayers and the RO to have a chance to explain the former’s side of the case and present legitimate documentation. However, DODs shall only be held within thirty (30) days from receiving the NOD, during this time, they must have been able to gather the proper documents to support their claim and arguments.
If the taxpayer is still deemed liable for tax deficiencies and is not able to address the discrepancy through payment of the deficiency taxes or the taxpayer does not agree with the findings, the investigating office will then endorse the case to the reviewing office and approve official in the National Office or the Revenue Regional Office, for issuance of a Deficiency Tax Assessment in the form of a Preliminary Assessment Notice within ten (10) days from the conclusion of the DOD.
[4] Issuance of Preliminary Assessment Notice (PAN). If after review and evaluation by the Commissioner or his duly authorized representative, as the case may be, it is determined that there exists sufficient basis to assess the taxpayer for any deficiency tax or taxes, the said Office shall issue to the taxpayer a PAN for the proposed assessment. Taxpayers will have to respond to the PAN within fifteen (15) days upon receipt thereof.
[5] Issuance of Formal Letter of Demand (FLD) and Final Assessment Notice (FAN). The Formal Letter of Demand and Final Assessment Notice (FLD/FAN) shall be issued by the Commissioner or his duly authorized representative. The FLD/FAN calling for payment of the taxpayer’s deficiency tax or taxes shall state the facts, the law, rules and regulations, or jurisprudence on which the assessment is based; otherwise, the assessment shall be void.
The taxpayer or its authorized representative or tax agent may protest administratively against the aforesaid FLD/FAN within thirty (30) days from the date of receipt thereof. The taxpayer protesting an assessment may file a written request for reconsideration or reinvestigation. For requests for reinvestigation, the taxpayer shall submit all relevant supporting documents in support of his protest within sixty (60) days from the date of filing his letter of protest, otherwise, the assessment shall become final.
If the protest or administrative appeal, as the case may be, is denied, in whole or in part, by the Commissioner, the taxpayer may appeal to the Court of Tax Appeals (CTA) within thirty (30) days from the date of receipt of the said decision.
If the protest or administrative appeal is not acted upon by the Commissioner within one hundred eighty (180) days counted from the date of filing of the protest, the taxpayer may either: (i) appeal to the CTA within thirty (30) days from after the expiration of the one hundred eighty (180)-day period; or (ii) await the final decision of the Commissioner on the disputed assessment and appeal such final decision to the CTA within thirty (30) days after the receipt of a copy of the such decision.
[6] Issuance of Final Decision on a Disputed Assessment (FDDA). The decision of the Commissioner or his duly authorized representative shall state the (i) facts, the applicable law, rules and regulations, or jurisprudence on which such decision is based, otherwise, the decision shall be void.
