AHC Certified Public Accountants Limited Co. is an accounting and bookkeeping, PEZA compliance, and tax services provider in the Philippines. Our team of experienced Certified Public Accountants (CPAs) handle various business transactions such as sorting out accounting documents, assisting foreign business entities to begin with their operations by complying with the Philippine Economic Zone Authority (PEZA), and providing tax and financial advice to various Clients.

Besides managing journals, ledgers, and other books of account, we also conduct tax and PEZA compliance services to help Clients avail of tax incentives made available for them by the Philippine government. AHC Certified Public Accountants also offers special services as business process review, reconstruction of account records, review of internal control, and other additional services catering businesses and their respective accounting requirements that may differ from others.

 

Services

Accounting & Bookkeeping Services

AHC Certified Public Accountants provides outsourced services covering the full scope of the financial reporting and accounting process – from recording transactions and maintaining books of accounts to preparing statutory reports, financial statements, and other management reports, so our Clients can focus on the operations of their business.

Thanks to our Certified Public Accountants (CPAs) backed with their pinpoint accuracy, qualified professional experience, and tremendous commitment to the assistance they render towards Clients, AHC continues their role as an accounting & bookkeeping services provider here in the Philippines.

We also help our Clients comply with their corporate and individual tax obligations with the Bureau of Internal Revenue (BIR) by determining their tax liabilities (e.g., withholding taxes, value-added tax, and income tax), preparing related tax returns, and remitting these taxes to the BIR within the prescribed tax deadlines.

I. Collation of Documents

CPAs collect vital documents first from clients, and they ask for the Client’s preference based on their accounting periods in a weekly, bi-monthly, or monthly basis.

Listed below are accounting documents generated by the company for compilation:

  1. Bank Statements
  2. Invoices
  3. Receipts
  4. Billing Statements
  5. Payroll Registers
  6. Contracts
  7. Others

II. Recordings of Transactions

Manual books of account, various vital details, and details overlooked by clients are sorted, analyzed, and then verified for their accuracy. This phase ensures that all the transactions are accounted for.

The following books of account are prepared and submitted to the BIR for compliance purposes:

  1. Cash Receipts Book
  2. Cash Disbursement Book
  3. General Journal
  4. Purchases Journal
  5. Sales Journal
  6. General Ledger

III. Financial Reporting

For transparency purposes, financial reports are created for disclosure with the Client’s partners and the government to prove the legitimacy of all recorded transactions conducted by the company.

The following management reports are prepared and submitted to Clients for further improvements and verification:

  1. Trial Balance
  2. Balance Sheet (Statements of Financial Position)
  3. Profit or Loss Statement (Statements of Comprehensive Income)
  4. Statements of Changes in Equity
  5. Statements of Cash Flow

IV. Archiving of Documents

After a CPA accounts all transactions conducted by the business entity, the Client must retain all received documents submitted during the initial phases of accounting and bookkeeping. The Client must secure all source documents (whether in soft or hardcopies) within ten (10) years before availing AHC’s accounting and bookkeeping services.

Source documents are the original hard copies of accounting documents. These records require complete security and must be properly stored. They are considered as evidence by the client if financial transactions are marked as false. Other than that, companies and their source documents are for auditing, review, and verification of transactions conducted.

Compliance Services

AHC Certified Public Accountants Limited Co. provides Tax and PEZA Compliance Services to local and foreign enterprises in the Philippines. We assist clients in complying with tax regulations imposed by the Bureau of Internal Revenue (BIR) and maintaining their eligibility for tax incentives from the Philippine Economic Zone Authority (PEZA).

Our team of CPAs will assist you in filing and paying your monthly, quarterly and annual tax returns. We will also aid you in sustaining your eligibility for tax holidays by compiling reportorial documents and renewing your PEZA certification.

Tax Compliance

Businesses in the Philippines are mandated by the government to settle their tax obligations on or before their deadlines. Failure to comply will result in penalties, surcharges, interest and possible criminal prosecution for tax evasion.

Our Tax Compliance Services consist of the following processes:

If you want to acquire access to a comprehensive list of BIR Forms (e.g. Form 1701, Form 2550M, Form 2551Q, etc.) required for completing tax dues, their details and requirements can be found on this page.

PEZA Compliance

Companies can establish their enterprises in PEZA-certified Special Economic Zones (SEZs) to avail of fiscal and non-fiscal incentives from the government. PEZA administers incentives to help businesses reduce tax liabilities and overhead costs.

Fiscal incentives exempt businesses from paying some taxes, local charges, and fees. The following benefits are listed below:

Non-fiscal incentives are additional exemptions for local and foreign businesses. Unlike fiscal incentives, they do not provide tax exemptions.

Listed below are the following benefits offered to enterprises:

We also provide a brief summary of our PEZA Compliance Services to help clients identify options that best fit their organization’s needs. This includes the arrangement of reportorial requirements, renewal of PEZA certification for accredited enterprises, request for additional incentives, and application for approval to start commercial operations in the Philippines.

Special Accounting Services

AHC Certified Public Accountants Limited Co. offers a range of Special Accounting and Financial Monitoring services to local and foreign companies with active operations in the Philippines. Our Special Services are designed for businesses looking to outsource some of their complex functions to accounting firms with adequate resources and expert knowledge on managing accounting and financial processes.

As an Accounting and Tax Services Provider in the Philippines, we provide assistance to companies of varied sizes to help mitigate their exposure to potential risks, liabilities, and penalties on their internal accounting operations and financial transactions.

Our Special Services vary from restructuring accounting records, creating manuals for in-house accounting departments, improving internal processes to comply with local tax regulations, and producing documents for internal and external auditing purposes.

AHC can perform the following services:

Our Special Accounting and Financial Monitoring Services

Tax Planning and Advice

Our Certified Public Accountants (CPAs) will review your company’s internal processes to help minimize your tax liability with the Bureau of Internal Revenue (BIR), the national taxing authority in the Philippines. We will also provide you with sound advice on how to save capital through effective tax management strategies as well as help you determine areas where you can generate tax savings.

Tax Compliance Review

We assist companies in aligning their internal tax structures with local regulations to maintain compliance with the tax requirements imposed on them by the BIR. We are knowledgeable with existing laws on taxation and constantly updated with any changes that the BIR may release in the future.

Financial Due Diligence

We offer financial due diligence to companies looking to engage in mergers, acquisitions or investment deals with other businesses. We employ detailed financial analysis of a company’s gross revenue, profit margins, and valuation to provide our clients informed investment decisions before purchasing or selling a business. We also conduct cost-benefit analyses to help them maximize benefits and prevent unnecessary costs before negotiating with potential investors.

Accounting Record Reconstruction

We will assist you in restructuring damaged accounting records due to inaccurate documentation or technical failures in your internal database. Our reconstruction services will run through potential sources of old financial records and identify missing or previously unavailable data. We are committed to helping you recompile your accounting records and comply with BIR’s 10-year retention and preservation period of accounting records for assessment purposes.

Financial Modeling

We will help you develop an effective financial model using customizable modeling tools and advanced accounting methodologies to create a solid forecast of your business performance – so you can keep track of your financial assets. Our accountants will collect your balance sheets, financial statements, and other books of account to accurately forecast the valuation or future performance of your business. Additionally, we build our financial models using well-structured and easy-to-follow Excel formulas and advanced spreadsheet tools.

Bank Reconciliation

We offer bank reconciliation services to aid you in removing inconsistencies between your bank statements and balance sheets so you can maintain accuracy in your accounting records and properly monitor your cash spendings. As an independent accounting firm, we are in a favorable position to ensure the transactions that appear in your books precisely match your bank’s records – carefully monitoring your financial transactions to prevent fraud, overdrafts, and other financial errors.

Accounting Manual Preparation

We will assist you in drafting an Accounting Manual that clearly outlines your internal accounting processes, policy guidelines, and standards to provide your in-house accounting team a detailed enumeration of the methods and instructions they have to follow to maintain accuracy and coherence in your accounting records.

Business Process and Internal Control Review

Our accountants will assess your business objectives and help you properly maintain employee competence, efficient accounting methods, and compliance with government regulations. We develop solutions to assist you in improving your internal workflows and provide a careful review of your internal policies. We also evaluate existing internal controls to identify areas that require improvement and test the ease of integration of control procedures.

Financial Statement Compilation

We also compile financial statements to create a general purpose financial statement for annual reports. The collected data neither includes additional auditing services nor guarantees accuracy since the data provided by the client remains as is. Companies can utilize this special service to comply with the Philippine Financial Reporting Standards of the Securities and Exchange Commission (SEC) as well as for filing of Income Tax Returns (ITRs) for submission to the BIR.

 

Frequently Asked Questions

Q: Why outsource the bookkeeping tasks?

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.

Q: Why can’t I do the bookkeeping myself?

It may be more efficient, in terms of time and money, to outsource bookkeeping to a firm rendering professional services.

Q: How much time and money can I save if I outsource accounting/bookkeeping?

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.

Q: What records must be maintained by businesses in the Philippines?

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

Q: What should small business owners look-out for?

The business should only commence operations after it obtains the necessary permits and licenses from the Securities and Exchange Commission (SEC) for corporations and partnerships or Department of Trade and Industry (DTI) for sole proprietorships, local government unit, and the Bureau of Internal Revenue (BIR).

As soon as the BIR issues the Certificate of Registration, the taxpayer is required to start filing tax returns even if it has no transactions to report.

Q: What are BIR/tax reports/requirements that we need to maintain/submit?

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

Q: How often do we need to submit these reports/requirements to the BIR?

In general, taxpayers are required to pay three main taxes, as follows:

  1. Withholding Taxes – filed monthly and annually
  2. Value Added Tax – filed monthly and quarterly
  3. Income Tax – filed quarterly and annually

The taxpayer may be required to file additional tax returns, as provided in its BIR Certificate of Registration.

Q: What happens if I already have a registered entity in the Philippines but I’m not yet operational, do I need to comply with BIR reports?

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.

Q: Are there any additional requirements for foreign businesses registered in the Philippines?

In general, there are no additional tax compliance requirements for foreign businesses. However, additional tax filings may be required for taxes that are unique to foreign entities such as branch profit remittance tax for profits remitted by a Philippine Branch to its Head Office.

Q: What happens if we don’t comply with the mandated accounting/bookkeeping requirements?

The SEC mandates registered business to prepare Financial Statements in accordance with the Philippine Financial Reporting Standards (PFRS). In addition, corporate entities with authorized capital stock or paid-up capital, whichever is lower, of at least P50,000 or quarterly gross sales of more than P150,000 are required to submit Financial Statements duly audited and certified by an independent public accountant (external auditor) and stamped ‘received’ by the BIR within 120 days from the end of its fiscal or calendar year. No external auditor would issue an unqualified opinion unless the entity complied with PFRS in recording its transactions. The BIR also requires annual income tax returns to be accompanied by audited financial statements.

The SEC and BIR may impose penalties for failure to submit financial statements and tax returns on time.

 

Contact Us

AHC Certified Public Accountants Limited Co.

Address: 8-A Marajo Tower, 312 26th Street West corner 4th Avenue, Bonifacio Global City, Taguig, Philippines 1634

Phone: (+632) 217-0583

E-mail: info@ahcaccounting.com

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