Tax type

Fri, May 20, 2011 at 11:52 PM

Hello Al. Thanks for your reply. :) I truly appreciate you taking the time to answer my question despite your busy schedule.

I hope you don't mind me asking a few more questions . . .

Thanks a lot again. Have a great weekend!


. . . Thank you for your email. It's my pleasure to be of help. Please find my answers below.

1. How does the payment of each type of tax work?

Hmm . . . I'm not sure I understand this question. But if you mean to ask about the differences among the three types of taxes (i.e., percentage, quarterly, and annual taxes), then I can only say that they differ in terms of filing schedule.

2. Does the seminar cover question 1?

Definitely. If they're not covered, then please have the liberty to ask the BIR personnel about it so that fellow taxpayers may be enlightened on the matter as well.

3. How do the three books differ from each other?

I will answer this question based on my understanding of them and how I'm using each of the accounting book now. :)

The cash receipts book contains your record of payments received. So the columns may be labeled with the following headings: [Date], Particulars (can be your client's name/type of project), Official Receipt Number (the one you issue clients for payments received, that is, from PhP25 and up), and Revenue (income or payment received). You may include other details relevant to your work and helpful for your own use.

The cash disbursements book is a detailed record of your monthly expenditures which may be classified based on the type of expenses you make. Again, the columns may begin with these headings: [Year], Particulars, Cash (debit and credit), Transportation and Travel, Office Supplies, Utility/Maintenance , Communications, and Others (feel free to add). This is the reason why we find numerous columns for some books. So the number of columns will actually depend on what you need to record. The one with 14 columns is fine with me.

The ledger is your general record of expenses; this is more like a monthly summary of your purchases. We normally find two columns for this book: one for debit and one for credit.

The journal is yet another book which I really don't find useful at the moment. But this one may serve as an initial recording for all cash coming in and going out, especially when their classification is yet to be determined.

4. Do the books differ physically too? I assume to folks at NBS know what these are right?

Some look more expensive than the others. But they have the same use. (There's no rule written on stone specifying the required number of columns. So this area is flexible.) Yes, the NBS people will be able to at least lead you to where the books are displayed. I usually buy from NBS those labelled "BEST BUY" because they're inexpensive, compared with the ones that look classy. I just cover them with plastic--a must for all my books, accounting or otherwise.

5. How many of each book would you recommend I buy?

One piece of each is okay, unless your records exceed the number of pages. (If that happens, then just buy what's needed whenever necessary. Do visit the BIR and have the new books stamped; inquire how this is possible without paying extra.) The books may be reused if they still have numerous blank (or unused) pages. Then have them re-stamped (upon renewing your registration at the BIR).

I hope these answers have likewise been helpful for you. Thank you once again for writing. A blessed weekend to you too!