This article is all about Loose-Leaf Books of Accounts.
You should read this if you’re looking for an alternative in writing in your manual books of account.
After reading this article, you will learn,
1. What is Loose-leaf Books of Accounts?
2. How to Apply for a Loose-Leaf Books of Accounts?
3. What will you submit to the BIR within 15 days after the end of each taxable year?
1. What is Loose-Leaf Books of Accounts?
Loose-Leaf Books of Accounts is done by recording and printing your business transaction using spreadsheet like Microsoft Excel.
Some companies uses simple Quickbooks for their bookkeeping and just export their reports in Microsoft Excel.
This will saved you time because you will not need to write business transaction in your Manual Books of Account anymore.
2. How to Apply for a Loose-Leaf Books of Accounts?
A. Letter of Intent
B. Application for Authority to Use Loose-Leaf Books of Accounts (BIR Form No. 1900) together with:
a. Photocopy of BIR Certificate of Registration (BIR Form No. 2303)
b. Photocopy of Previously Issued Permit to Use (PTU) Loose-Leaf, if applicable.
c. Photocopy of Current Registration Fee (BIR Form No. 0605)
d. Location Map of Place of Business
C.Sample Format and Print-Out to Be Used
D.Sworn Statement to Use Loose-Leaf Books of Accounts specifying the following:
a. Identifying the books to be used, invoices/receipts and other accounting records together with the serial numbers of principal and supplementary invoices/receipts to be printed.
b. Commitment to permanently bind the loose-leaf forms within fifteen (15) days after the end of each taxable year or upon the termination of its use.
E. Special Power of Attorney, in case the business owner will not apply personally.
After your application is approved, you will received Permit to Use (PTU) Loose-Leaf Books of Accounts.
3. What will you submit to the BIR within 15 days after the end of each taxable year?
All taxpayer who opted to use Loose-Leaf Books of Accounts shall submit to the concerned RDO within 15 days after the end of each taxable year the:
a. BIR Form No. 1905;
b. Permit to Use Loose Leaf Books of Accounts;
c. Permanently bound Loose Leaf Books of Accounts;
d. Affidavit attesting the completeness, accuracy and correctness of entries in Books of Accounts and the number of Loose Leaf used for period covered.
If you don’t submit your loose-leaf books of accounts on time, you will be penalized P1,000 per book.
Gentle Reminder
All your books of accounts and other accounting records as well as the loose-leaf forms authorized to be used herein should be preserved intact, unaltered and unmutilated for a period of not less than ten (10) years.
Any additional branches will require updating of this permit by surrendering the original copy to the concerned RDO.
References
1. Approval of Permit to Use Loose-Leaf Books of Accounts (RMC No. 68-2017)
What’s Next?
If you have questions and comments regarding tax, accounting, and business registrations, you can Contact us here.
