So, you have taken a big move in making your business official with business registration services and getting your COR or Certificate of Registration from the BIR. Now that you have the necessary permits and certificates to legally begin operating your business, the question is, what happens next?
With the assistance of this article, you’ll know what to do and ensure your business can take another move forward. When you know what must be done after registering your business, you can protect your investments and work towards the stability and progress of your startup. Check out these five practical guidelines to help ensure the success of your venture.
1. Showcase Your Permits and Make Copies
Make sure your permits like COR, DTI or SEC, LGU Permits, and “Ask for a Receipt Signage” are easy to find by displaying them in visible areas of your stores. Having these certificates could help assure customers that the business is legitimate and therefore is safe to purchase from. They prove that your business is accredited by the proper government offices and therefore showcases credibility.
Moreover, it will also be convenient to show a representative of the government when they conduct spot visits to your establishment. They frequently conduct regulatory checks to assess compliance. Keep copies of your permits as well in case a situation happens where you will lose the originals on display. It will be easier for you to have a backup than pay for business registration services and go through another process of acquiring new ones
2. Submit Tax Returns on Time
Even when your income is below the taxable slab, filing tax returns is still mandatory for businesses. You may not have to pay tax dues when your business doesn’t earn a lot, but you must still do diligent bookkeeping and accounting to submit supporting documents during tax season.
Most of all, filing taxes is very important when your income exceeds the tax threshold. Careful monitoring of your accounting books will help you see how losses sustained during periods of low income can be used to offset higher income later. To avoid issues associated with late filing, you must submit your IT returns by the deadline for a particular fiscal year. Bear in mind that once submitted, you are no longer able to correct any errors made on your returns that’s why diligence is necessary. Moreover, if you have missed the deadline for the tax return, you will incur interest charges as penalties.
3. Prepare Printed Receipts
For every sale and transfer of goods and services, taxpayers engaged in trade or business are required to issue official receipts and/or sales invoices under Section 237 of the Tax Code, as amended. In the Philippines, the chassis for tax compliance includes Official Receipts. Declaring all sales transactions, whether the customer asked for a receipt or not, is required under the law. You will usually have these official receipts when you’re registered your business with the BIR.
If an Official Receipt is not provided, expenses related to the purchase of service will not be considered for a taxable income deduction. Moreover, you can be sanctioned for not providing a receipt. In a nutshell, the Bureau of Internal Revenue stipulates that an Official Receipt must be provided for each one of these costs. After the registration of your business, it is inherent to prepare printed receipts. Monetary penalties will be made for failing to issue receipts.
4. Update Books of Accounts Routinely
Maintaining your books of accounts tells you a lot about your assets versus your liabilities and your income versus your expenses. When you own a business, it is important to keep track of its operations with diligent bookkeeping and accounting practices.
The most effective way of keeping track is managing and routinely updating your books of accounts for every transaction. It is not just a matter of compliance with the Bureau of Internal Revenue, but also a practical take as a business owner. It organizes your financial transactions, so you’ll be abreast of your company’s fiscal health and make corresponding decisions. Furthermore, your books of accounts help in declaring your tax returns and must be available in case of an audit.
5. Stay Informed and Updated on Regulations
Regulations are constantly changed and updated with Revenue Regulations and Memos. Not everything is within your control, and so a lot of people and organizations need to adapt to certain changes. Regulatory boards are not exempt from that, so it is inherent for the business to stay informed about amended rules and regulations. Keep in mind that ignorance of the law is not an excuse.
If you need assistance with any of these concerns, feel free to give our team a call. We are professional CPAs that keep end-to-end accounting solutions to keep your books complete and compliant. Allows us to assist you in helping your startup grow.
