Business

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

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!

Doing your taxes is probably one of the most frustrating things every working person does. Even the more veteran people, when it comes to taxes, would find it hard to do when they don’t prepare for it well. In the Philippines, tax computations are one of the things that a lot of people fear, just because of how stressful it can get.

That being said sooner or later, everyone will have to do their taxes as part of their lives. And for those first timers that have no idea how to do them yet, don’t fret, because if you start out early, you might find it easier to do in the future! Plus keep in mind that there are a lot of helpful websites and applications that make it easier for you to do your taxes! That being said, here are some of the most important things that every first-time taxpayer should know.

BIR Forms

There are many kinds of BIR forms that are dedicated solely to paying business taxes. For example, there are specifics forms applicable for self-employed individuals, employees of companies, and business owners. And there are forms that are to be used by Partnerships and Corporations.

It’s important that you know which one you should use so that you can fill out the right form and avoid penalties. Freelancers fall under self-employed individuals. We, freelancers, are considered non-licensed professionals. They, along with business owners who are sole proprietors usually do their own taxes. While people that are employed would usually have their companies do their taxes for them.

Documents Needed

There are as many steps to the processes as there are BIR forms. Haha! I may be exaggerating, but the what’s for sure is that the steps to be taken take a whole lot of time from a business owner’s day. On the average, a business owner in the Philippines takes 2 days in a month (according to a PWC and World Bank report on taxes) spent just complying with taxes. When starting a business, I highly recommend that one should at least be familiar with the 101s of preparing and submitting your own taxes.

A good example would be to know more about income tax returns. These are forms that need to be submitted as long as you are making some kind of income or receiving compensation. Income is basically your gross revenue less expenses and when you do this, you get your taxable income. This is the basis for your taxes (income tax return). A self employed individual submits and pays for income taxes every quarter (Form 1701Q), the fourth quarter being the “famous” annual income tax (Form 1701 or 1701A).

If you are employed (have a day job) and running a business at the same time, you are considered to be a mixed income earner. How do you report taxes? You will secure BIR Form 2316 from your employer at the end of the year and use the values there and combine it with the income / expenses from your business. You do this only for form 1701 or Annual income tax form.

If you need help in preparing tax form 1701 and 1701A, feel free to check out https://www.taxumo.com and check out their blog. They have useful information for everyone!

Payments

The final step is to print out all of these documents and pay for it at the Authorized Agent Bank (basically a bank that accepts BIR payments in the city of your business).

Please prepare 3 copies for all of your accomplished BIR Forms along with the required deposit / bills payment slip and your payment.

In some cases, you won’t be needing to pay anything, and that would entail a “No Payment” Situation. These include refundable/ creditable tax returns, returns with excess tax credit carry over, and returns that are qualified for a second instalment. These “no payment” transactions just need to be filed and stored together with the BIR confirmation via the eBIR Forms system.

Key Takeaway

This article detailed the very basics of what you need to know about taxes. In the Philippines. Tax computations are frustrating, however, as long as you prepare everything and do it as early as you can, you won’t have a problem with doing your taxes any time soon.

If you need help with understanding all of these still, just ask Taxumo.

P.S. I’m a co-founder of Taxumo, whose mission is to help people start and sustain a business! 🙂 Feel free to contact us!

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After going through your WHY (why you want to create a blog or vlog) and after contemplating if you can actually be consistent enough to sustain this, then it’s time to think about creating content.

THE FIRST TEN

If you’re a first time blogger or vlogger, try to start creating your first 10 articles or your first 10 videos first. The first 10 that you’ll create will be important, because during this time…

You’ll be able to identify topics that you really want to write about.

As time goes by, there will be many distractions. Distraction comes in many forms like brands inviting you to write about their products and services. Another distraction is seeing that not a lot of people are reading your content. You’ll try to shift gears and try out a lot of tactics like holding a contest, etc. Sure, it may work once or twice, then your stats (number of page views or visitors) will go back to how it was before you ran contests. Also, you may be distracted by what other bloggers or vloggers are writing or vlogging about. You’ll think “I should write more about what these bloggers are writing about.” Creating content will surely stress you out!

I’m not saying that experimenting on different things is bad. In fact, I encourage it. But during this time that you’re thinking about the first ten things, this is time that you’ll be least distracted

You’ll start knowing yourself better and you’ll start thinking of your Personal Brand.

In the first part of this series, I mentioned that consistency is key. In the process of creating the first 10, you’ll know if this is something that you can sustain. You’ll also have a clearer idea on where you want to take your blog — what topics do you want to write about and if you’ll have enough content to last you a lifetime. The ten topics that you choose are most likely the things that you want to talk about.

Also, you’ll, be able to start thinking of the type of audience that you want to talk to or you want to attract.

I’ve written a few articles in the past about Personal Branding and Branding for Blogs. Check out these links:

In creating content, some of you may ask, where do I write my articles? Just write it in a Google Docs or in Microsoft word. For the videos, you may do simple edits even or just use a raw file for your first few content. These things need not be perfect. You just have to get it done and then review it.

HOMEWORK:

For aspiring mom/dad bloggers or for any aspiring blogger out there, you can do this first Homework.

Please create your first 10 posts or videos

If you’re done with this, I can help you by going through the content with you, and we can even talk about branding and content after. For those who also want to learn more, you can fill out this form as we’re thinking of running a blogging workshop soon with my friends Cat Arambulo, Jackie Go and Shari Poquiz.

Now, in creating content for your blog, my basic tips for you are:

  • Choose topics that are somewhat “evergreen”. Evergreen content are topics that can be read, re-read, used, linked back to for all eternity. No matter what year it is in the future, it will be RELEVANT.
  • Another thing that you want to do is at least check and edit your content. I am guilty of sometimes not checking and reading the posts that I create. I’m the type of person who thinks and writes with PASSION and gusto. Haha! Then I just hit the publish button. That may be something that you might do when you’re confident enough that you won’t be making major Boo-boo’s. But if you know that your weakness are sentence construction, spelling, etc., you might want to use https://www.grammarly.com/. Not endorsing here, but a lot of my content writer friends are using this tool.
  • Have a relevant and catchy title (at least) for your first few posts. Let’s face it, people love to click on posts that have catchy titles. Write a clear title and please have content that’s really related to the title. I’ve seen content with titles that are way unrelated to each other.
  • Length (for me) doesn’t matter. So there is no expected number of words or expected length for your video. Put yourself in your readers shoes, would they get the gist of what you’re saying in 2 paragraphs? Will they want a longer post or video so that you can give them the lo-down on the stuff that you want to teach? So it really depends on what your audience will eventually like to read or watch from you.

These are just a few tips on creating the content that you need for your blog / vlog. If you have other questions or if you’d like to share more tips, please feel free to comment below or share your tips and questions on social media and use #GINspiration and tag any of my social media accounts (FB: http://facebook.com/mommyginger / IG: http://instagram.com/gingerarboleda / Twitter: http://twitter.com/gingerarboleda )

Hope you can connect with me and I’d gladly reply and respond to your inquiries! Again please feel free to sign up above if you want to join our blogging workshops coming soon!