Business

Talks about Mommy Ginger’s business tips and advice for momtrepreneurs. She shares valuable knowledge on topics like branding, marketing and consumer insight.

As I was sitting in a panel for 4th year college students, I was also thinking about a lot of things, on top of which was thinking of how we, as parents, can we pretty much teach starting or creating a business to the kids of today.

In this country, the employment rate in January 2019  was estimated at 94.8 percent.  In January 2018, the employment rate was 94.7 percent. This data was from https://psa.gov.ph/content/employment-rate-january-2019-estimated-948-percent

Aside from just looking at the employment rate, I also look at the underemployment which was at 15.6%. With a population of 108 Million Filipinos (as of today May 2019), this means that 16.8 Million Filipinos are underemlployed and 5.6 Million are unemployed. This is still a pretty huge number.

Ever since we had Zeeka, my husband and I have been thinking of ways to help the country in this aspect. This is why Taxumo exists — to help business owners focus on growing the business and later on generate more jobs for the people in their community (to promote inclusive growth).

As I observed the kids and parents of today, I was quite happy to see that more and more parents are open to letting their children live the life that they want. Graduates now are more open to choosing a path that they would like to have, be it starting their own business, get into the arts, get into the workforce, grow in a corporate environment, etc. We really need to show our kids that they have a choice and they can be successful at they want to do especially if they love what they are doing.

Since my husband and I are both corporate employees who shifted into becoming entrepreneurs, a lot of parents ask us how do we actually teach our kids about entrepreneurship. How do we raise kids who would want to start their own business later on?

You can teach your kids certain skills, values and train them to adapt certain habits, but you cannot force them to start a business (also) if they don’t want to. Anyway, these are skills, values and habits can be used no matter what their choices are.

For Zeeka, these are the things that we do though. Obviously, I cannot say that we’ve been successful (because she’s just 6 years old! haha!), but I’m sharing our own experiences for the purposes of discussion and to get additional tips and advice from parents who are wiser than me 🙂

Encourage kids to explore and see the world and answer their questions.

We don’t stop her from trying out a lot of different things. She has tried gymnastics, sketching, vlogging, fast food kiddie crews, hiphop, theatre classes, joining in workshops, joining an engineering club, taekwondo, creating a prototype for an app, making pastries and selling them, going out for a walk and touching everything she sees, wall climbing, traveling and seeing different places, etc. And whenever she asks about things, we try as much as possible to answer these questions thoroughly. We believe that this is how she will learn and we, parents, are their best teachers.

We teach her to be observant. We show her the actions have effects. We encourage her to find out what these “effects” are. For example, she learned how to wash the dishes. One time, her hands were slippery and she dropped and broke a plate. She now knows what happens if she’s not careful when she washes.

Guide them with what they can watch and play with online

Zeeka, like any other kid, loves to watch videos on Youtube, Netflix and she love playing games on Roblox. What we do is we limit time for gadgets and we also monitor the things that she watches.

Have you heard of Gary Vaynerchuk? He and his team created a cartoon called Lil’ Vee! Check out the first episode.

I love how they used simple concepts and examples that kids could understand. For this particular episode of Lil’ Vee, there were numerous things that were taught that both kids and adults could understand and use — from where ideas come from, to product development, to customer validation, marketing and selling.

I can’t wait for the next episode. Check out the first episode, moms and dads!

Support them in times of Failure but Expect Quality Work

This is the time in their lives when kids need to learn how to fail and pick themselves up after. They will naturally try a lot of things, and they will possibly fail during the first few attempts, but our role as parents is to help and encourage them to do better. We’re not there to remind them of their failure and their mistakes, because they probably know that they already failed. We’re there to help them pick up from where they left off and support their decisions after.

But we should also expect quality work from the things that they want to do. There are moments when we tell Zeeka that she should try harder. We then focus on what she can do to improve, like “practice more, Zeeka” or “try again”. Our kids are more capable than we think they are.

Be more specific with your words.

This is where my husband is good at. She makes Zeeka understand how she feels and gives her the word for it. He also encourages more specific language at home. Some examples of words that Zeeka uses are frustrated, exhausted, irritating, etc. We noticed that she doesn’t whine as often anymore because we understand her better, and she can communicate clearly.

Teach empathy.

We live in a world where we thrive with other people, and each one has his or her own story. We always remind Zeeka that before reacting to a certain thing or deciding on an action that would affect other people, she has to think whether this will affect the other person in a good way or bad way. Although, we also teach her what her rights are and what are the things and values that she should stand up for.

Value and Money

We are slowly teaching her how money works and how to grow it. Although at this stage, more advanced types of investments may be too hard for them to absorb, we taught her the concept of “interest” already.

We are also slowly teaching her also about “value”. What people may see as invaluable, may be valuable for other people.

Overall, these are some of the things that we feel will make her a successful when she decides to start her own business in the future. I know that we haven’t really cascaded a lot yet, but we’re taking our sweet time and we’re enjoying these moments of passing on learnings and experiences to her. She’s quite an inquisitive little lady! haha!

How about you, moms & dads, what other values and things do you teach your kids? Feel free to share it with us!

A lot of people have been asking me how to file 1701Q. Personally, I use Taxumo for filing my 1701Q, because it’s the easiest way to compute, file and pay taxes. Full disclosure, I am one of the founders of Taxumo. The reason why we created Taxumo is to help people pay their taxes online.

Business owners, licensed professionals (i.e. doctors, interior designers, etc.) and non-licensed professionals (i.e. consultants, freelancers, etc.) can pay their taxes while focusing more on running their businesses and careers. Accountants can service clients who are far from them and will have no limitations as to how many clients they will service. They can scale their businesses, too!

Our dream really for Taxumo is to help everyone become more productive by giving them back more time to do the things that they love, the things that they are good at and the things that they can earn from.

Okay… the frequently asked questions recently are how to file 1701Q for the first quarter? How do I opt in to the new 8% GRT option for those earning gross revenue of Php 3 Million pesos and below for the entire year?

For the sole purpose of this article, we will only tackle the 1701Q forms for Sole Proprietors, Licensed and Non-Licensed Professionals. I won’t be able to tackle 1702 since this form is used by Corporations and Partnerships.

What is 1701Q and 1701?

These are BIR forms for you to pay your Income Tax. The way income tax is computed is to get the taxable income which is Gross Sales minus Gross Purchases. Then the taxes are based on a tax table if you chose the Graduated IT Rate (and chose Itemized or Optional Standard Deduction).

With TRAIN or the new tax law, there is a new option for this who are earning Php 3 Million Gross Receipts / Revenue per year or less. This is the 8% Flat Income Tax Rate. The computation is based on your gross sales less exemptions.

How do I file my 1701Q for the First Quarter using Taxumo?

First of all, create an account in https://www.taxumo.com. The details that you need to place when you create an account should be based on your Certificate of Registration (COR) so keep a copy beside you and also have a soft copy (picture or scanned copy) available in your computer.

You will then be directed to a blank DASHBOARD.

Click on the Company Profile tab on the left side of the screen. Please make sure that all details are correct (ex. Taxpayer’s name is how it is written in your COR — an individual’s name is written as LAST NAME, FIRST NAME MIDDLE NAME). Just copy how it is written on your COR.

For filing your 1701Q, make sure that you have chosen the correct ATC or Alphanumeric Tax Code. First, you determine whether you’re Business Income, Income from Profession, or Mixed Income: to do so remember how you registered in the BIR.

  • If you are earning compensation income (from an employer who withholds compensation taxes and gives you a Form 2316) AND earning income from either business or profession, then you  fall under “Mixed Income”
  • If you presented DTI and a Business Permit when you registered and you registered as a Sole pProp in the BIR, then you fall under “Business Income”
  • If you got an Occupational Tax Receipt or Professional Tax Receipt as part of registration or you did not submit any Business Permit to the BIR when you registered, then you under “Income from Profession”

Then now comes the choice if you want to avail or “opt-in” to the 8% Income Tax Flat Rate. If you want to avail of it, then choose the appropriate ATC with the 8% indicated. We will take care of helping you opt-in with the BIR.

*Some users, aside from opting-in to 8% via the first 1701, ask their BIR RDO to have it indicated in their COR or Certificate of Registration. If you want this, you can go to your RDO and ask the officer of the day if this is possible.

Also, don’t forget to set the Deduction Method.

The rule to follow:
If your Expenses > 40% of your income, Itemized is the more tax efficient choice.
If your Expenses <= 40% of your income, OSD is the more tax efficient choice.

The income source for people who have no day jobs is “solely from business”. Those with day jobs or local employers issuing 2316 forms and with employee contracts are “mixed from business & employment”.

Then choose if you are a Single Proprietor or Professional.

A lot of people ask about “DISPLAY FORMS FROM” also. Indicate here the date when you got your Certificate of Registration from the BIR. Then for uploading of a copy of the Certificate or Registration and Digital Signature, you can go back to this on a later date. This is not required by TAXUMO.

Now, you can start encoding your income and expenses. To file 1701Q- Quarter 1, make sure that you encode January to March income and expenses.

Don’t forget to add and encode the 2307 forms that you have at hand. Click on Withheld Tax then click on Received.

Click on Add Record. BTW, please have a picture or scanned copy of your 2307s in your computer / device before adding them here.

Just copy the details then click SUBMIT.

Once you are done encoding Income, Expenses and your Withheld tax forms, you can go back to your Cashflow Dashboard. On the right side of the screen, you will see your TAX CARDS. These are the taxes that you need to pay from the date when you received your Certificate of Registration. If you have filed some of these taxes offline or not via TAXUMO, just click on “Mark as Paid / not applicable”,

Do note that you can pay your Tax Dues with already computed BIR compromise, surcharges and penalties for tax dues a year prior to today.

One of the boxes that you will see is labeled Quarterly Income (Q1 Jan – Mar). This is the TAX CARD for 1701Q – First Quarter. To file it, click on “File now”. This screen will show.

Once you have filled that screen out, TAXUMO will show your tax dues. Most of us Sole Proprietors and Professionals will probably have Zero or Negative Filing for this quarter. This is because the Php 250,000 exemption is taken into account in the computation of your income taxes. So don’t panic! haha! 🙂

To pay your 1701Q, you can choose any of the available options. For each option (except PayPal/Credit Card), an email instruction will be sent by DRAGONPAY. Please be sure that you key in your correct email address when it is asked. The instructions will be sent there. Read carefully and just follow the steps indicated.

Once you’ve paid and followed the instructions via email, you’re done! You have just filed your 1701Q – Q1. Hope this article helps you out and answers our most pressing question this month on how to file 1701Q. 🙂

BTW, you will see the form, BIR confirmation and Payment confirmation in the “Past Filings” tab. If the status is still in processing, this means that you’re all done. Next steps are with us. Taxumo will be processing the forms in batches to make sure that we don’t “clog the pipes” of BIR, so to speak. Rest assured that your filing will be completed on or (more likely) before the tax deadline.

That’s it and I hope this article helped you out! 🙂

File away! #TimeforTaxumo

It’s amazing how technology works nowadays. Do you know that you can open bank accounts using your phone? I’m quite curious as to how these virtual banks operate.

“Virtual banks are similar to traditional retail banking services in that they will be able to accept deposits and give out loans. They aren’t expected to set up physical branches. Analysts at Citigroup estimate around 10 per cent of existing banks’ revenue is at risk over the next decade.” https://www.businesstimes.com.sg/banking-finance/hong-kong-starts-granting-licenses-for-virtual-banks

There are two known (as least what I know at this point in time) virtual banks in the Philippines. These are ING and CIMB. I will be trying both in the coming months. At this point, I really don’t have any preference, since I haven’t tried any of these.

Save Money With GCASH

Today, I found out though that GCASH partnered with CIMB. I, apparently, already have this new feature in GCASH called Save Money. And guess what? The money that you save here earns 2.3% interest, which is higher than what the your standard commercial bank offers.

The maximum daily withdrawal though is at Php 50,000 (still higher than the Php 20,000 withdrawal caps from ATMs and debit card transactions of some banks). The downside though is that the Maximum Deposit Limit is only at Php 100,000 over 12 months. I hope that they increase this limit to at least Pp 500,000.

Your money is also insured by the PDIC or Philippine Deposit Insurance Corporation. Another advantage is that there is no need to maintain a minimum balance in your account.

So, how do you compute for the interest? Check this out. I got this from GCASH.

I just started depositing money mid this month, so let’s see how this goes. I love though how banks are not making it convenient, too, for people to save and invest money (not just to spend it).

With these tools, you can automate the way you save and forget that you even have those funds. Save it for a rainy day!

I remember one of my favorite books: The Automatic Millionaire. You can check out the gist of the book here:

Goodluck on saving! 🙂

Let’s talk about Confidence and Influence: Photo by Elijah Macleod on Unsplash

Zeeka, my daughter, was dancing like crazy again last night. She has this habit of singing original songs with lyrics she invents. She then performs in front of her able and willing “audience”, which is no other than me and my husband, at least 2 times a week. Not an ounce of shyness or hesitation can be traced in her voice and actions.

She gave us singing lessons last night. And again, we had to comply when she said that we had to individually sing our own original songs. Of course, for the most part, me and my husband both giggled our way to the end of our song (and thought it silly to be doing this). Our 6 year old teacher was obviously disappointed and angry that we weren’t taking things seriously.

Confidence and Influence

I am amazed at the confidence of little children. This is something that led me to write about how can we, as bloggers, build confidence. First off, confidence is important in our line of work or in anything in life for that matter, since it leads to success. Having lack of confidence lead to doing nothing or inaction. Make sense, right?

When you are confident, you say yes to opportunities. You don’t let fear stop you from doing the things that you love doing and the things that you’re curious in trying. When you blog, your life is an open book for everyone to see. If you’re not confident enough, other people’s comments will affect you and may even affect your decisions.

I think it was apt to talk about confidence and influence in the same article, because if you want to influence someone, you yourself should be convinced by YOU. Dale Carnegie was right to link Confidence and Influence, but he talks about if from the point of view of public speaking. Let me write about though from the perspective of being a blogger.

Salespeople won’t be able to influence and close a deal if they themselves are not confident when it comes to explaining the product or service that they’re selling. In blogging, it’s the same thing. If you’re not convinced that people will read your blog post, then people will definitely not read it.

And persuading people or influencing people all boils down Aristotle’s Ethos, Pathos and Logos.

Ethos refers to the blogger’s character. And when reader’s read your blog for the first time, they “judge” you base on the filters that you use on pictures that you post, how many sentences are grammatically erroneous, your blog topics or what you love to write about, etc. All of these things. People are oftentimes looking for “someone” online — either to befriend, emulate, rekindle a relationship with, criticise, etc. So who are you to these people?

Pathos comes into the picture when the blogger uses emotions to influence an audience. The emotions that can use may be humor, pity, sadness, longing, happiness, envy (even), etc. People who have gone through a similar emotion or have experienced this emotion would likely read and follow your blogs. We know that we are rational creatures, but there are times that we make irrational decisions (I admittedly make lots of these! haha).

The last one is Logos or the use of reason. Sad to say, in influencing people, this is the least important. This is the reason why marketers, researchers, psychologists have tons of research about how people behave and act, because we often don’t act based on “logic and reason”. As my husband always says, we humans justify our decisions. Even if we make a wrong decision that puts us at harm, we still justify and give a whole list of reasons why we chose that.

So there you have it, aspiring and current bloggers. These are my own thoughts on confidence and influence. I hope that this post made you think about your own view on Influence. If you want to join the conversation, feel free to comment below.

By the way, we’re thinking of coming up with a blogging workshop. If you want to be invited to reserve a seat, feel free to fill this out: https://goo.gl/forms/JMUQ7PeAX4XHNBFn1

Thank you for the people who have already filled out the form! 🙂 You’ll hear from me soon!