Are you looking for ways to improve your finances? If so, then it makes sense to treat your personal finances like you would a company cash account. You need to make sure that you are saving in the right areas and seizing different opportunities as they present themselves. Here are some of our key suggestions.
Think About Taxes Carefully
First, it’s worth thinking about how you can get more from your taxes at certain points throughout the year. If you take the right steps, then you’ll be able to guarantee that you do save money on your taxes. The key thing to look at here is tax deductions because this can save you a fortune on your final tax dues. It’s particularly important if you are running your own company. The right deductions could end up saving you an absolute fortune over an extended period.
Explore The Best Investment Opportunities
You should also be looking at the right investment opportunities that are available on the market. If you research, you’ll find that there are a range of investment possibilities that might be worth considering. Something that you should pay particular focus to is cryptocurrency. You might think that crypto like bitcoin is beyond your price point and you are absolutely correct there. But, what you can do is look at the smaller Bitcoin that has a massive potential to go boom. Some of these are more volatile than others and tools such as Swyftx will provide you with the opportunity to explore this massive market.
Hire An Accountant Or Financial Planner
You could also think about hiring an accountant or a financial planner. To boost your personal profits, you can get great advice from an expert. An accountant could help you find money in your personal budget that you didn’t realize was there in the first place. Ultimately, this could allow you to make huge gains with your investment decisions. You’ll also have more money to spend on various aspects of your life. A financial planner can point you in the direction of the investment options that make the most sense for you and could help you earn an absolute fortune, even over a limited period.
Save Where Possible
Finally, you need to make sure that you are saving where possible. Ideally, you should aim to save money in a variety of areas of your life. There are lots of easy ways to save these days. One of the best is to make sure that you are going green. If you go green then you can cut your costs right back. For instance, even changing your water usage could cut more than 25% off your energy bill overall and put you in a far stronger position financially.
We hope this helps you understand some of the best ways that you can boost your personal profits and make more money in the long run. The benefit of doing this is that you will put yourself in a far stronger position for the future.
Let’s all welcome the month of May! I love this month, because it means that we get to honor all of the amazing moms out there. And I’m thankful that I have this blog and my vlog on Youtube, because I get to share their inspiring and heart-warming stories. So expect that this month, you’ll be getting to know mompreneurs with interesting stories, experiences and useful tips. Today, i’ll be sharing the story and my interview with Mompreneur Ann Sy-Solis of Butter & Whisk Confection by Ann.
All about Mompreneur Ann
Recently, I’ve been drawn to pictures of food on social media. Ordering food and watching shows now have the same weight in my life and probably take up 80% of my time if I’m not working. So as I was mindless scrolling on social media, I came across pretty cakes from Butter & Whisk Confection by Ann.
Ann is a graduate of HRIM Major in Culinary Art from St Benilde. She’s an impressive mompreneur baker who is mom to a 5 year old boy. She started Butter & Whisk last quarter of 2017. She customizes cakes and specializes in buttercream icing cakes. She also makes yummy baked Lasagna.
Interview with Mompreneur Ann of Butter & Whisk Confection by Ann
I asked Ann what was the intention behind creating the business. She says that she started her business to find her self-worth and of course, to have her own money. But even with a clear goal, there were a lot of challenges that mompreneur Ann encountered along the way.
One of the challenges is that as a mom and as an entrepreneur, responsibilities double up. Ann narrates that she has to do house chores, teach and take care of her son and take and fulfill orders on her own. This was especially true in 2020 since they didn’t have any house helper.
Another challenge, she recalls was having to manage time. “In 2019, I joined a Bazaar in North Vertis, and I needed to leave my son for three consecutive days. My son is used to being by my side,” Ann says. “I had to stay there from the bazaar’s opening to closing since I could not afford to hire extra man power that time. It was such a challenge since my son would cry every night.”
I can just imagine how stressful and how worried Ann might have been during that time. Speaking of stress, another challenge that Ann had was having difficult and super stingy customers.
“I had a customer before who requested for a customized cake. She had a lot of demands to the point that we were talking almost every day. When I gave her the final quotation, she started to complain and requested to lower the price. I actually already gave her a discounted price, because I was referred to her by my close friend. Di ko kinaya! (I couldn’t take it). What I did was I politely ask her to look for another baker, as I could not meet her (almost impossible) standards.”
Another challenge that Ann mentioned was that there were time that people close to her would bring her down. “They will tell you things you don’t want to hear, like you are not good enough or something like you are wasting your time. There were many times that people told me that my business will not succeed — that the things that I make where not delicious (hindi naman masarap, nothing special naman sa gingawa mo) and that what I made was nothing special.
When the pandemic hit, Ann mentioned that luckily, her business was not affected. Last year was a really good year (best year) for her since she started her business.
Mompreneur Ann shares that the greatest learning that she picked up is to believe and listen to yourself more than to other people. “Don’t be afraid to try and fail, because it is better to fail than to think what if? This is an advice that my cousin shared with me. Walang mawawala sayo (You will lose nothing) when you try, especially when you do something you love. You will just gain experiences and new knowledge. So don’t be afraid; fear will only hold you back,” Ann shares.
Ann is happy and proud of her accomplishment. She’s proud of being strong. “I never thought kaya ko (I could do it). I never thought that I could hack the pressures of being a mom, wife, entrepreneur, a teacher to my son, etc. It’s not an easy job running a business and taking care of my family. Tumaas ang tingin ko sa lahat ng mompreneurs (I look up now to all mompreneurs).
To all aspiring mompreneurs reading this, mompreneur Ann of Butter & Whisk Confection by Ann leave these inspiring words and tips. “Don’t be afraid to fail; it will only hold you back. Don’t be afraid of hardship. Hardships will only make you stronger. Don’t be afraid to try. Because when you don’t try, you will never know kung ano ang naghihintay sayo (what’s in store and waiting for you). And most importantly, believe and listen to yourself.
To order from mompreneur Ann of Butter & Whisk Confection by Ann, please visit the following links:
Zeeka and I were playing a game last night where she was teaching me the meaning of acronyms that they often use in Roblox like NGL, DP (I thought it meant Down Payment), GN, etc. She was laughing so hard because I couldn’t figure out some acronyms. If I were to teach her all the BIR acronyms I know, she might lose her mind. Haha! My husband said that my acronyms are for old people.
Well, for old people or not, one acronym that I want to share is eAFS or the electronic Audit Financial Statement.
I see a lot of people asking if they should still have their forms stamped if they paid online or if they have their Audited Financial Statement, how do they submit it. Well, last year, via a BIR Memo (I feel calling it a memo versus Revenue Memorandum Circular makes me cooler! haha) or Revenue Memorandum Circular (RMC) 49-2020 was released saying that after filing your ITR, you have to submit attachments via eAFS.
UPDATED as of April 29, 2021: Basically, for your Annual Income Tax, you will have to prepare 4 or more files for 4 categories and this is how you name the files. Why do I say 4 or more? Because each file can only be up to 4.8 GB.
a. File 1 – Income Tax Return (ITR) – EAFSXXXXXXXXXITRTYMMYYYY
b. File 2 – Audited Financial Statements(AFS) – EAFSXXXXXXXXXAFSTYMMYYY
c. File 3 – Form 1709 (RPT) – EAFSXXXXXXXXXRPTTYMMYYY
d. File 4 – Other Attachments (OTH) – EAFSXXXXXXXXXOTHTYMMYYYY
e. File 5 – Tax Credits (TCR): EAFSXXXXXXXXXTCRTYMMYYYY-XX.pdf
Where : XXXXXXXXX is the nine-digit TIN : TY is Taxable Year : MM is the Month end of the taxable year (if you got this wrong for previous submissions, don’t worry) : YYYY is the Year Ended (if you got this wrong for previous submissions, don’t worry) : 01 is the first file of other attachments, up to 99 (applicable for TCR File.
With Taxumo, they really helped me as a tax filer because if you have a subscription, they have a tab in Taxumo that fixes all the files that you need to collate and save as PDF.
Step 1: Check and see if your Annual ITR filing and payment is completed. Please allot 2 days because your payments will have to go through Taxumo’s partner Authorized Agent Banks (AABs). So after seeing if your Annual ITR is completed in your PAST FILINGS tab, you can go ahead and click on Attachments – EAFS on the left side of your screen.
Step 2: Watch the three videos that Taxumo has prepared for you. Learn how to download attachments and all the files that you need, combine your attachments into a single PDF and how to upload the files into BIR eAFS.
Step 3: Download your files via Taxumo. Taxumo will update this also in the next coming days, but what’s good is that you can get your files from here. Note that Taxumo will only have the files that you encoded or filed/paid for via Taxumo.
Once you have merged your files into consolidated PDFs, please save a copy if it in your computer.
To look for BIR eAFS and upload your files, go to the BIR website.
So after submitting your attachments via BIR eAFS, you are done! Yes, you are truly done doing filing your Annual Income Tax.
For those who missed the BIR x Taxumo webinar in Facebook, you can still watch it here:
By the way, the deadline for BIR eAFS submission is on April 30, 2021. This is prolly to give some people have their Audited Financial statements prepared. For those who need an Audited Financial Statement, Taxumo also has CPA partners that you can commission.
If you have any other questions, looking for CPAs for AFS preparation, etc., just email email@example.com or chat with Taxumo’s customer advocate via the chat button in their site: https://www.taxumo.com.
Good luck! Hope you learned a new acronym today. 😉
BTW, for those who don’t know, you will also need to submit your SAWT attachments for your Quarterly Income Tax Return forms. If you use Taxumo and have 2307 forms, get your SAWT BIR confirmation from the past filings tab, too. This is how your first quarter EAFS submission screen will look like.
This is where you can get your SAWT confirmation in your Taxumo account:
PAST FILING TAB
If you have questions, feel free to contact firstname.lastname@example.org.
I have some friends who are VAT registered and they ask me how they can file and pay for all of their tax forms. So today (as a fellow VAT registered business), I will be sharing with you what I do. For full disclosure to all the other VAT registered businesses in the Philippines, I am not a CPA. I am one of the Co-Founders of Taxumo, an accredited TSP or Tax Software Provider in the Philippines. If you want to consult more with a CPA, feel free to book an appointment here: Taxumo Consult
Personally, I do all of my taxes by myself. I don’t have an accounting background nor am I good in Math. LOL! I just want to show you that you can comply still and have an easy time preparing, filing and paying your taxes even with just basic knowledge and by just being diligent in tracking revenue and expenses.
So let’s start…
How do I know if I am a VAT Registered Business?
VAT registered businesses in the Philippines are those that earn more than Php 3 Million Gross Sales or Revenue in one year. And how do you know if you are a Non-VAT versus VAT registered business in the Philippines? Well, our businesses and professions have one-page (or sometimes even more pages) profiles with the BIR called Certificate of Registration or COR (sample shown in the picture below). It contains all our business/professional information and the type of taxes we need to pay. VAT Entities will see “VALUE – ADDED TAX” in their Certificate of Registration or COR (Form 2303) when they register their business or profession at the BIR Revenue District office (branch of the BIR).
For the sake of this blog post, I will teach you how to use Taxumo if you have a VAT entity/business. We’ll go through 1) account set up, 2) encoding revenue that you receive and expenses that you incur, 3) discuss a little bit about withholding tax certificates and creating these and 4) filing and payment of your taxes.
VAT Forms and other Forms for VAT Registered Businesses in the Philippines
VAT Forms in the Philippines are 2550M and 2550Q. Each 2550Q or Quarterly VAT Form submission also should come with an SLSP or Summary of List of Sales and Purchases attachments that need to be submitted to the BIR. The proof that you have submitted your VAT forms is when you receive a BIR confirmation for both the filing and another email confirmation from the BIR for the SLSP attachment. Check out this image for the frequency of the forms and what forms to file. I included some basic computation, too.
Again, if you are using Taxumo, you don’t have to memorize how these are computed. Placing this here so that you just have a basic idea.
Now, some businesses are also assigned this tax type, “Withholding Tax – Expanded / OTH”. When you see this in your Certificate of Registration or COR, you are a Withholding Tax Agent. This means that for all of your payments and expenses, you will need to withhold and issue a 2307 or Certificate of Creditable Tax Withheld to the person that you paid and withheld from. I will also show you how to easily generate a form in Taxumo. And also, in another post, I’ll probably discuss this more.
Setting up my Account in Taxumo as a VAT registered business in the Philippines?
First off, you just need to go to https://www.taxumo.com and sign up for FREE. You don’t need to pay yet… you only pay when you are ready to file your tax forms.
Once in the site, go to your SETTINGS tab and check if you have filled it up correctly. Most of the Taxpayer Details can be seen in your Certificate of Registration (so don’t panic). Please copy what’s shown in your COR and please don’t forget to check out the TOOL TIP or that aqua check mark to give you further instructions.
Then for your BUSINESS PROFILE, know that you can make a new profile for each year. Let me go through each field…
Line of Business: Copy the Industry code stated in your COR
I want to file my taxes from: If you just recently got your COR, indicate the date when they released your COR. It’s usually stamped, written or typed at the bottom of your COR. If you are switching from manually filing, just indicate the date today.
Business Type: Please indicate if you are selling goods or product, providing services or both.
Income Source: If you are a corporation, partnership or sole proprietor and you are not employed by a local employer, choose solely from business. If you have a profession and business AND employed (employee with a local employer), choose mixed from business and employment. If you are a licensed professional (ex. Doctor, lawyer, etc.; people with PRC licenses), Financial Advisor with IC license, or a Non-Licensed Professional (ex. Sales agents, Freelance Consultant, Writer, Digital worker, etc.), choose income from profession.
Income Tax Rate Type: For VAT registered businesses in the Philippines, your only option is Graduated Income Tax. You cannot opt for the 8% Gross Receipt Tax.
Taxpayers Type: Choose which applies to you from the choices.
Deduction Method: You can choose between Optional Standard deduction (declare that 40% of your Gross Revenue are your expenses) or Itemized Deduction (include all expenses in the computation of taxes and consider all the line items).
My Business is under BMBE Law: If you have a Barangay Micro business Enterprise (BMBE) certificate then click on Yes. Otherwise, click on No.
Now make sure that the Tax forms that you highlight in Aqua are those that are in your Certificate of Registration or COR.
Don’t forget to click on SAVE. So that’s it for setting up your account in Taxumo. Now let’s go to filing and paying your taxes.
So in the TAX DUES tab, you will see the taxes that you need to pay and those that you might have missed (this is based on the date that you have inputed in the “file my taxes from” date in the settings page and NOT from BIR, so don’t panic). If you have already paid these manually, you can just click on “hide card”.
Each card or box is a tax form that you need to file. These taxes are grouped as to the kind of tax it is. The black box is the tax type (ex. Income tax, Value Added Tax, etc.).
Now, for the system to prepare and compute your taxes, you need to feed it information. It needs to know the revenue that you received, the expenses that you incurred, the withholding tax forms that you either received or passed on to your supplier.
In the CASHFLOW tab, this is where you add your Income and Expense entries.
For the Revenue that you received, click on ADD in the box for “Your income”. This box will pop up and you can just fill in these fields.
For adding expenses, just click on the ADD button in the “Your expenses” box and fill in the details in this pop up. If you are required to withhold, meaning you have “Withholding Tax – Expanded / OTH” in your COR, please don’t forget to check the tick box in the lower part of the screen if you withheld for this particular transaction.
By the way, for VAT entries (both income and expenses), be sure that you have the TIN and the address of your suppliers and even clients.
To continue, after clicking on the submit button, it will lead you to this pop up that will ask for information about the withheld amount, the Tax Code, etc.
For the Tax Code, it’s a drop down of all the tax codes that you can use. If your supplier is a corporation, the Code will probably start with a WC. If your supplier is an individual, the code will start with a WI and if your supplier is a bank, the code will probably start with a WB.
What I have I personally encountered as a supplier (since I am not a withholding agent or not required to withhold), my clients normally ask me what code do I use. I would check on the other 2307 forms that I receive and give them that code. If you are required to withhold, get a copy of the 2303 and if your supplier is non-VAT, get a copy of the Notarized Sworn Statement, too. This will help you identify what code to use.
Once you have completed that in Taxumo, Taxumo will automatically generate a 2307 form like this for you.
Again, this Withholding Tax Generator feature is only applicable and used by those with “Withholding Tax – Expanded / OTH” in their COR. If you don’t have this, you can just untick the box or make sure that the box is unticked when you add an expense in Taxumo.
Once you have encoded all the details, you can now go back to the TAX DUES tab and click on FILE NOW. This is when you will need a subscription to continue.
The beauty of Taxumo is that you know exactly how much you need to pay on the due date of a tax form. When you encode the data that they system needs, taxes are AUTOMATICALLY CALCULATED and dues or the amount that you have to pay are shown.
If you have tax dues to pay, you can pay via GRABPAY, PAYMAYA for Debit and Credit Card, GCASH, Online / Mobile Banking, Over the counter – Banks and Over the counter – Non banks (like Robinsons, Cebuana Lhuillier, etc.)
Just wait for a few days then visit your PAST FILINGS Tab under TAX DUES (left menu bar). For 2550Q, you will see all these attached: BIR Confirmation, Summary list of Sales, Summary List of Purchases and Tax Payment Record. For 2550M, you will see the BIR Confirmations and the Tax Payment Record.
So that’s it! That’s how I prepare, file and pay for my VAT Filings. I hope that other VAT registered businesses in the Philippines found this blog article useful. This is how I do my taxes by myself!
If you are thinking of subscribing, the Taxumo subscription plan that you will need for this is the Small & Medium Business Plan.
If you have any questions, feel free to message email@example.com or chat with them using the chat box in the Taxumo Website.
People have been talking about it and now, new businesses want to register because of the lowered tax rate. Want to know the CREATE Law Percentage Tax Changes? If you are filing your Percentage Taxes using Taxumo, you’ll have a convenient time filing with the changes that were brought up with CREATE Act or RA No. 11534 (Corporate Recovery and Tax Incentives for Enterprises Act). For those who want to read the law, here is the link to the CREATE law.
The Comprehensive Recovery and Tax Incentives for Enterprises (CREATE) Act (Republic Act 11354) is a bill that seeks to assist businesses as a response to the pandemic situation, with retroactive provisions and lower tax rates. This was enacted to law last April 11, 2021.
CREATE Law Percentage Tax Changes
Hooray for those who are paying Percentage Taxes, the Bureau of Internal Revenue will now accept just 1% of your gross earnings for Percentage Tax (submitted via the 2551Q). From the usual 3% tax rate, taxpayers can now use the new 1% rate for their taxes. What’s tricky is that this new 1% rate is a retroactive tax rate that can be applied for all due taxes starting from July (Q3) 2020 (last year).
Taxumo is CREATE-ready for Percentage Tax Changes
The great thing about this is that for Taxumo users, this 1% tax code change has been applied to our 2551Q forms and your due taxes will be computed using this new tax code. The system also fixed this to be the default now so even new Taxumo subscribers can utilize the 1% rate with our 2551Q forms. There’s no need to worry about re-calculating stuff to take advantage of this.
This is the advantage really of being a Taxumo user. For changes like this in any computation, Taxumo makes necessary adjustments and helps you through the transition.
For example, if you filed your Quarterly Percentage Tax forms for 2020 Q3 and Q4 in Taxumo, Taxumo will compute the excess you paid and then use those as credits starting 2021 Q1. To do that, simply file your Quarterly Percentage Tax form (2551Q) for 2021 Q1, due this coming April 23 (Taxumo’s Deadline is earlier), and Taxumo will automatically compute it for you.
If you’ve already filed your 2551Q form for 2021 Q1 thru Taxumo, simply file an amendment filing by clicking either of the links below: