Starting a business is challenging and success may be easier achieved if the management focuses on the core business and outsource bookkeeping to a firm with Certified Public Accountants (CPA) who are knowledgeable of the latest accounting practices in the Philippines.

Yes you can, however its too time consuming and effort that you put in studying the concept of bookkeping, accounting and taxation instead of focusing in the operation. You will be more efficient, in terms of time and money, to outsource bookkeeping to a firm rendering professional services.

Simple bookkeeping would take at least 3-5 hours a day if performed by a CPA. This time may be better spent managing the operations of the business.

Hiring an in-house CPA to perform accounting, tax compliance, and payroll tasks may cost more than the professional fee of a firm that can perform the same tasks. The firm would also have the contractual obligation to ensure continuity of services regardless of any changes in its manpower.

The Bureau of Internal Revenue (BIR) requires every taxpayer to keep a set of six books of account, to be kept and maintained in its principal place of business.

1. Journal – Accounting entries are recorded in the Journal before the transactions are posted in the general ledger. It contains the following information:
   
   
   
   
   • Posting date
   
   
   • Description of the transaction
   
   
   • Accounts to debit and credit and the corresponding amounts.
   
   
   • Reference number which may be check numbers, Sales Invoice No., Purchase Order No., etc.
   
   
   
   


2. General Ledger – It lists the movement (Debit and Credit) of each account in its Chart of Accounts in a given period based on the journal entries in the Journal.


3. Cash receipts book – It is a record of the details of all cash receipts, including receipts for cash sales and collections of accounts receivable and other transactions involving inflow of money. Each entry may include the following details:
   
   
   
   • Accounts to debit or credit and the corresponding amounts
   
   
   • Date of record
   
   
   • Date of receipt
   
   
   • Cheque number (for cheque collections)
   
   
   • Sales Invoice/Official Receipt number
   
   
   • Short description
   
   
   
   


4. Cash disbursements book – It is a record of the details of all cash disbursements, including disbursements for cash purchases and payments of payables. Each entry may include the following details:
   
   
   
   • Accounts to debit or credit and the corresponding amounts
   
   
   • Date of record
   
   
   • Date of payment
   
   
   • Cheque number (for cheque payments)
   
   
   • Sales Invoice/Official Receipt Number
   
   
   • Short description
   
   
   
   


5. Subsidiary Sales Journal – It contains all cash and credit sales. Each entry may include the following details:
   
   
   
   • Accounts to debit or credit and the corresponding amounts
   
   
   • Date of record
   
   
   • Sales Invoice/Official Receipt Number
   
   
   • Sales terms
   
   
   • Customer name
   
   
   • Short description
   
   
   
   


6. Subsidiary Purchases Journal – It contains all cash and credit purchases of goods and services. Each entry may include the following details:
   
   
   
   • Accounts to debit or credit and the corresponding amounts
   
   
   • Date of record
   
   
   • Sales Invoice/Official Receipt Number
   
   
   • Purchase terms
   
   
   • Vendor name
   
   
   • Short description
   
   
   
   

The taxpayer needs to start filing tax returns as soon as the BIR Certificate of Registration is issued. It may reflect in its returns that it has no transactions for the period.

The taxpayer needs to regularly file tax returns relevant to the tax types indicated in its BIR Certificate of Registration.