Every business should maintain records of their financial transactions to be able to know if they are earning or losing money. The main purpose of the books or bookkeeping is to see if the business is making or losing money wherein the owners can eventually decide if they will continue or close the business.
In the Philippines, once the business is registered under the BIR or Bureau of Internal Revenue, they will have to maintain records or books of accounts in order to conduct the business and become operational.
The following are the books of accounts required by the BIR to be maintained by the business:
- Cash Receipts Book (CRB)
- Cash Disbursement Book (CDB)
- General Journal (GJ)
- General Ledger (GL)
- Sales Journal
- Purchases Journal
The BIR may require the owners of the business to maintain the books of accounts of the company in the following forms:
- Manual books of accounts (in handwriting)
- Loose-leaf books (in computer excel form then book binded)
- Computerized Accounting System (CAS) of books
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