lostDid you lose your original BIR form 2303 or the Certificate of Registration (COR)? That you already exerted effort but you can’t find it.   Or your company’s BIR 2303 was caught by fire, flood or natural disaster?  Well, don’t worry, you can always replace the BIR Form 2303 or the BIR Certificate of Registration (COR) by doing the following:

  1. Get a copy of BIR form 1905 (Application for Registration Information Update) and fill out properly.
  2. Prepare a notarized Affidavit (e.g. Affidavit of Loss, if lost).  Much better if you have a photocopy of the BIR Form 2303.  Much much way better if you have the old original certificate for replacement.
  3. Then go to your Revenue District Office (RDO) where your business is registered and submit the accomplished BIR Form 1905 together with the required attachment/s. Please take note that the BIR is already implementing the queuing system.  Thus, get a number and check window / table number for the submission of your application.
  4. The BIR RDO personnel who is assigned for the receiving will advise you to pay the necessary certification fee and documentary stamp tax. This is the time to get and accomplish copy of BIR Form 0605 (Payment Form).
  5. After which, you will be advised to pay the required amount to the any BIR accredited bank/s and the date when the new Certificate of Registration will be released.
  6. Bring the proof of payment or submit before the issuance of the new Certificate of Registration.  But for some RDO, the proof of payment is required prior to accepting the BIR 1905 and Affidavit.  Either way, you should get a receiving copy of your application and the specific date of release of your new BIR Form 2303.

There. Easy.


Why you need an Accountant?

Almost always business owners, particularly those who are managing small businesses and those under SME category, disregards to see the importance of having accountants. Oftentimes, they look for an Accountant when it’s already too late or worst the BIR had issued a letter of notice (LN) or letter of authority (LOA) for their business.

As an Accountant, we understand that small business owners find it costly to maintain a retainer to do the monthly bookkeeping and tax preparation for their business. But what they don’t realize is the monetary and non-monetary benefits of maintaining one.

The following will explain the importance of accountant in your business, no matter how big or small it is.

1. Organized Record of Financial Data. Most business owners want to focus their time and energy operating and growing their business. As such, their financial documents for personal and business often mixed up. Having an unorganized financial documents create stress and headaches to business owners because they don’t know exactly what is happening in terms of financial standing. First, accountants maintain an organized record and filing of business day to day financial records. This is often referred to as Bookkeeping. When the business has a systematized and organized record keeping of business transactions, it will save you time worrying about whether your business is on the profit side or losing end. Also, you don’t need to worry on how to organize all the receipts you need to file and record.

2. BIR Tax Compliance and Other Reportorial Requirements. All income earners are required to pay monthly taxes, even small business owners. Yep, as a general rule, everything is taxable. As such, not having an accountant means you have to understand Taxation law of the Philippines in order to be tax compliant. Thus, this is another importance why you need an accountant. Seemingly, an accountant can compute and prepare BIR Tax Returns for you. It will save you time in studying tax law and computing your own tax return. Further, accountants can also give advice on effective tax management.

3. Save Time to Focus on Growth of Business. Keeping track of your financial data, recording and filing it can be time consuming, especially if you are not used to it. If you have an accountant, you can save a lot of time to focus on growing your business instead of worrying about tax deadlines and keeping an organized accounting records.

4. Save Money. When you don’t have an Accountant, there will be high possibility of future penalties, plus interest, on government reports you missed filing or incorrectly filed. Having an accountant can save you cost on these future penalties and charges of correcting your accounting books and tax returns on time.

5. Peace of Mind. The last but not least importance of an accountant in business is for owners to have peace of mind. When you have an accountant who does the record keeping and tax compliance, you don’t need to worry that if somebody comes to your business to do Audit. You are somehow confident that you have records to show you are complying with accounting and government reportorial requirements.

Professional firm, part 2.

When I first thought of putting up a professional firm, a CPA firm, in particular, I chuckled and said now this one is a serious stuff.  Well, of course, I am always serious when it comes to my work and profession.  And as a workmanship, I must say there is no room for errors.  I regard our profession, the accountant’s work, as a high value service. It’s not that I am an accountant, but being a CPA is a high value profession, isn’t it?

Look. You tell me who does taxation? Who knows of a financial well-being? How about debit, credit and financial statements?

That is why most if not all CPAs are paid well.  Indeed, even entry level CPAs are getting a good pay in a large corporation.

Whew! now, I am hearing an opposing sound hahaha.  There…some violent reactions from the crowd. =D

Nonetheless, for sure, if you’re a CPA and want to keep an above par salary and sustain it, its simple.  First,  keep your focus on your work. Second, keep updating on technology.  Third, keep your license and certifications valid.  And lastly, keep on advancing in the ladder — if, and if there is a ladder to climb up with hehehe. Seriously, you must keep on advancing!

Anyhow, going back to my firm, putting up one is a personal thing for me.  Of course, naman, everyone who puts up their own business thinks it’s personal hahaha.  However, mine, its one of my dreams, when I got hold of my CPA license given by the Professional Regulation Commission back in ’97, yep, yep, I thought of yeah someday I will establish my own accounting and auditing firm. And I am pretty much excited about it.

For some professionals, organizing a firm appears too boring.  Some may consider it indistinct. Others, consider it as challenging, promising, and rewarding business.  I am one of the latter. Why, because starting a firm is a relatively low-risk venture with plenty of reward.

So how did I start it?

What is my business plan?

Stay tune…

A Professional Firm?

Blogging requires time and subject matter. Obviously, “BUZINESS 1”, tackles business. Haha! Anyhow, like other individuals with a sort of etrep-mind, I too have explored several business(es), well of course, that sort of biz that will not only survive in recession time…but will also thrive…and most importantly it is within my capital budget to start with. =D

Frankly, most, if not all people, specially here in the Philippines, don’t have millions of pesos to spend for a J’bee or McDo franchise, unless you’re an “MVP” or a “Wheel” so to speak. So, in short, alternative business, small to start, medium rare if in case, to a level up big kill company like in-asal(mo) would be the answer.

Yep yep…franchise, franchise, franchise. Franchise there, franchise here. From a food kiosk to food kart. Even ice scramble (is-kramble) franchise — those ice-shaved desserts, whew! Anyhow, FRANCHISE that is not my topic for now.

Okay, since my exposure and years of experiences are in the field of finance and accounting acquired from several companies; different industries, aside from my being a CPA and a CFC, why not? A firm instead? Yes, a professional firm, a consulting one, a company that I can practice my profession and be happy.

A professional firm? What are my drivers, my motivational factors? Those BIG accounting firms are firmly stable milking those top corporations. If I am one of them, no chance of letting this money making machines este companies go. Next in line firms are as hungry as wolves trying to fish what are left, and fish those that are already in the BIG firms’ aquarium. Individual CPA practitioners are pop-ing like kabute naman.

So what do I have to offer? What is my edge?

I will answer those in my next issue. Stay tune.

Cha cha.