Major Tasks
Other Tasks
There’s no need to wait until year-end to reconcile receipts. Receipts and certificates, like Form 2307, are equivalent to money. If you have receipts for expenses and certificates such as creditable withholding tax certificates (Form 2307), which your customers have collected in advance, you can use these to reduce the potential income tax payable by April 15.
Communicate with Accountants and Bookkeepers
It’s important to stay in touch with your accountant. Ask questions like, “Do you still need anything from me?” or “Are there any receipts or documents still missing?” Ensuring completeness can save time, which is just as valuable as money. While your sales may be increasing, unaccounted expenses and the requirements for year-end tax compliance can add significant costs.
Prepare for Next Year
Planning for the upcoming year includes considering tax strategies. You have the flexibility to decide on the method of deduction or the incentives to apply.
Many businesses are not automating their tax compliance processes. Automating bookkeeping, accounting, and tax compliance makes it easier to create projections, understand financial data, and avoid repetitive tasks.
Not Planning Ahead and Consulting Professionals
Failing to plan or seek advice from a professional or the BIR can lead to issues. It’s not always necessary to hire someone year-round. A consultation, especially during busy seasons or periods of increased activity, can be sufficient.
Double-Check Documentation
Ensure all documents in hand are dated 2024. If these are not included in the filing and 2025 begins, they will be out of period and can no longer be added.
Reconcile Balances
Make sure balances match bank statements and that all cash inflows and outflows are accounted for. Q1 is audit season, so it’s essential to prepare supporting documents in case an auditor requests them.
Decide immediately if there’s a need to amend any tax return. Sometimes, numbers are forgotten or incorrectly filed or reported. If you know amendments are required, act quickly and make the necessary corrections as soon as possible.There’s also what’s called voluntary disclosure of significant errors. For instance, if there was late filing—a common issue for small businesses and freelancers—or if there are substantial mistakes or potential penalties, you can consider filing a voluntary disclosure with the BIR to address the errors proactively.
There's no need to hire a new or additional accountant, but it might be helpful to do consultations now and then. You could consider hiring an extra bookkeeper to assist with completing year-end tax compliance.Look for a BIR-accredited platform. Filing tax returns and attaching books of accounts can be automated through what we, or the BIR, refer to as electronic tax software providers (ETSPs). Juan Tax is the first-ever ETSP-accredited platform. What you need to do is enter the transaction once, add the receipt, or import a spreadsheet for accountants. Then, simply import the spreadsheet with transaction details, such as sales, purchases, and tax returns. Afterward, we will handle the books of accounts.
Mochi Solutions is a billing and collections platform designed to help Filipino businesses get paid on time, every time. By digitalizing the invoicing process and automating repetitive tasks, we empower businesses to focus on growth.
