On the other hand, large corporations often use computerized ledgers because they deal with a much larger staff, along with more complicated tax requirements. They also have the luxury of having a full department that handles all tax-related paperwork, so they generally rely on pre-configured and properly BIR-registered computer programs, such as Quickbooks or SAP, for easy, accurate, and fast processing.
Now that many small businesses know that another method of accounting can be used, which is loose-leaf account books, it is actually a very similar method to manual account books.
Here's what you need to know about using the Loose Leaf account reservation method.
The loose-leaf method is basically a computerized version of the manual account book.
The only difference between a manual reservation and a single sheet reservation is the method of entering numbers. With loose sheets, rather than submitting handwritten ledgers or handwritten records and entries, the data is typed into a computer and printed, usually with the use of simple systems like Microsoft Excel.
- You must use the BIR 1900 form for the Loose Leaf Booking.
The BIR 1900 form is called "Application for Authorization to Use a Computerized Accounting System or Components thereof/BIR Loose Leaf Account Books."
This form must be completed and submitted along with the printouts of the typed records (usually in Excel format) when using the cut-sheet reservation method.
- The Loose Leaf method must be bound in a book and sent for stamping.
Sample prints are required to be bound and sent to the BIR for stamping.
In most cases, you will need to justify why you used the cut-sheet method instead of manual or computerized reservation during registration.
- Computerized account books are not the same as loose-leaf account books.
Most of the people are confused by these two methods.
In some cases, even the BIR staff you will deal with may provide you with additional requirements, such as hiring an examiner to validate your computer system, even if you are only using a simple Excel format.
As mentioned above, sworn statement BIR Loose Leaf books are manual account books where entries are typed on a computer and printed for your records. However, computerized reservation would require the system provider to be BIR-accredited in conjunction with a DBS examiner to validate the computer system.
As such, the cut-sheet method should not require additional validation to be accepted. The BIR 1900 form must accompany your prints and other documents during you can look here registration.
- You can use the Loose Leaf method along with the Manual Method.
If you use the manual method with cut-sheet booking, you do not need to manually enter the record updates in your account book.
Using an Excel template, you can send the file as a broadcast for hard copy and stamp the manual books when you check in.
Having to deal with all the requirements during tax season can be confusing and time and energy consuming.
If you don't have in-house resources or the willingness to do your own BIR Form 2316 tax paperwork, consider hiring experts to do it for you. There are accounting services that can be outsourced, which can also be contracted at reasonable prices. Doing so can allow you to put more experience into what you do best.