It’s due for payment or filing on or before the 60th day after the close of the quarter. BIR Form 1701Q – This is the income tax for the quarter.It’s due for payment or filing on or before 25th of the preceding month after the close of the quarter. It is similar to BIR Form 2550M, but instead of one month, it reports the three months in a particular quarter. This is due for payment or filing on or before 20th of the preceding month.
It is computed sales tax equivalent to 12% of monthly vatable sales less 12% of vatable purchases/expenses. It is the computed sales tax equivalent to 3% of monthly gross sales. BIR Form 2551M – For Non-VAT individual.This is due for payment or filing on or before 10th of the preceding month. BIR Form 1601E – if you are renting, paying professionals or commissions.Once you’re registered with the BIR, keep in mind that you are required to pay or file monthly and quarterly tax returns, as follow: As such, ensure that you keep your expense receipts so you can determine the true financial performance (or profit). Expense is deducted from gross sales in order to come up with the net income. It’s typical for business, even freelancers, to incur expenses in order to operate. Register your computerized system with the BIR.įor more details on invoices and/or receipts, please read our article Difference Between Sales Invoice and Official Receipt Keep the receipts of your expenses.For computerized invoices and/or receipts, Point-of-Sale(POS), Cash Register Machine (CRM), etc.Look for an accredited printer who will do the printing of your invoices and/or receipts.Important Note: Make sure that your accounting books are registered with the BIR.įor more details on accounting books please read our article What are the Books of Account? Issue BIR Registered Invoices and/or ReceiptsĪfter registering, and before you start operating or offering your services, register your invoices and receipts with the BIR. These are the following accounting books applicable to freelancers:
Freelance bookkeeping how to#
To secure a new Tax Identification Number (TIN) or update your registration.įor more details on registration, please see our article How to Register a Sole Proprietor Business in the Philippines? Maintain accounting booksĪfter you register, the next step is to keep an accounting record.
Freelance bookkeeping professional#
If you are a Professional registered in Philippine Regulatory Commission (PRC), you may skip this.
You can also use this tool for your taxes to save time and so you can focus on more important things.
Freelance bookkeeping software#
Though the title implied that this is for freelancers, it is also applicable for small business owners, home-based businesses and all businesses registered as sole proprietor.Ĭompleting a BIR form is a daunting task that is why we built a software to automate this and weve been using it since 2012. This article will guide you on the basic bookkeeping and tax requirements that freelancer, self-employed, or sole-proprietor must monitor and comply with to avoid future problems. Although many succeed as freelancer, they oftentimes end up losing their earnings because of their inability to account and manage their finances. Additionally, they end up paying large amount of tax and penalties because they fail to comply with tax and other government requirements, after they register as self-employed or sole-proprietor. These are individuals who prefer to be either a self-employed (offering their knowledge, talents or skills) or sole-proprietor of a business (selling goods or services). In the past years, there has been an increased in individuals who do freelancing, as a means to generate income rather than being employed.
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