Think about all the attention given to the following:

  • Decluttering your closet and keeping and displaying things that bring you joy…
  • Following the footsteps of Bill Gates, Mark Zuckerberg when they only have one style of shirt or attire…
  • The rise of planners and productivity apps that help you with time management.

All of these “hacks” introduced to us because man has finally realised that TIME is the most important asset.

And this realisation is what makes most entrepreneurs, freelancers and business owners successful. They never WASTE time. It’s more important than money. This is why service apps like GRAB, and even Upwork thrive, because successful people know that money is something that you can earn back but when you lost time, it’s lost forever.

This is the reason why Taxumo exists as well. If you value your time, and if you’d much rather spend your time earning money than computing your taxes or lining up at the RDO or the bank, this application is for you. We exist for people who see that they would much rather outsource computing, filing and paying to a system or application than spending time figuring out how to file and pay or when to file and to pay. It’s basically Taxumo giving you that gray sweater of Bill Gates and all you need to do is to wear it 🙂 haha! 

To make it even more convenient for you, freelancer or consultant, I have made this step by step guide on how to start using Taxumo and how to maximise using Taxumo.

SETTING UP A TAXUMO ACCOUNT FOR FREELANCERS OR CONSULTANTS

Sign up to Taxumo using these settings (Yup, just copy your Certificate of Registration). Here is a sample Certificate of Registration and see the parts. It contains the Tax Type that you need to file.

If you don’t have this, check out Taxumo’s Business Registration Service for Freelancers. Click here: https://www.taxumo.com/business-registration/freelancer

Have your COR by your side when you set up your Taxumo account. If you don’t have it while setting up, it’s okay. You can still change the details later on. Copy EXACTLY what is written in your COR. Example, if the Taxpayer’s Name in your COR is Arboleda, Ginger Palma, please copy it as is in Taxumo.

As you can see, you can turn the notifications (email notifications) on and off. We highly suggest that you turn these on.

For your Business Profile (see image above), just copy the line of business in your COR. For “I want to file my Taxes From”, place the date when you received your Certificate of Registration OR place the date when you want to start filing with Taxumo (if you’v been filing taxes manually before).

For Freelancers / Consultants who earn below Php 3 Million Gross Revenue or Gross Sales a year, the above settings are the suggested settings. Just copy it.

Business Type: You are providing services

Income Source: Income from Profession BUT if you are still employed AND doing consultancy / freelance work on the side, choose “Mixed from Business and Employment”.

Income Tax Rate Type: If you earn below Php 3 Million Gross Revenue or Gross Sales a year and have minimal business expenses, we suggest that you choose the 8% Flat income tax rate option.

TaxPayer’s Type: Choose Professional

Deduction Method: Just choose Optional Standard Deduction but this won’t matter when the system computes your income tax since you chose 8%.

For each year also, Taxumo allows you to save a business setting! 🙂 So cool! Since you can only change Deduction methods and income tax rate types at the beginning of the year, you can choose and save settings for each year.

And for the last part of the settings page, choose and highlight (color aqua) the taxes that you need to pay. Again, based this on your Certificate of Registration. Then upload your COR and your Digital Signature (which is both optional at this point).

ENCODING INCOME AND EXPENSES AS A FREELANCER OR CONSULTANT

The next step is to encode your income and expenses. Click on Cashflow on the left side of the screen, and this is what you’ll see (empty cashflow tab). You can look for entries that you have encoded before by clicking on show filter. To add income, click on the “Add Button”.

This is how an empty Cashflow view looks like.

Each income entered in Taxumo should match an official receipt that you prepared for your client. The OR/SI number portion is the OR number of that transaction. For freelancers/consultants, always choose Sales – Services.

Business Name here is the name of your client. For foreign clients who don’t care about ORs, you don’t need to send them a copy of the official receipt. Just keep it in your booklet.

For expenses, those expenses that you can justify to be part of the delivery of your services is what you can encode. Please make sure that the receipts are under your Tax Payer’s Name (especially for expenses that are Php 1000 and above in amount). For transportation and foreign system invoices, please save emails as PDF and save it in your computer. You can also upload it to Taxumo as backup.

PRO TIP: Encode both income and expenses on a daily basis. This will allow you to maximize Taxumo’s Real Time Tax Calculation tool. You can see how much taxes you need to pay at any given time (para hindi kayo nabibigla when tax due dates come).

FILING TAXES

To file taxes, be sure that you are done encoding your income and expenses for the applicable period. Go to the Tax Dues tab and you’ll see all the tax cards with the Tax Dues and the deadlines.

Click on the file button and pay your taxes. Taxumo will then show you a summary of that tax.

If there are things that you need to change, you can go to your settings page. Some fields are also editable here.

For paying your taxes, you need not go to a bank within the city of your revenue district office. You can pay using any of these available channels.

  • Grabpay
  • Debit or Credit Card
  • PayPal
  • Mobile or Online Banking
  • Bank over the counter or Non-Bank over the counter like Bayad Center, SM Payment Counters, Robinsons, 7-11, etc.

PRO TIP: If you have chosen Dragonpay, please ALWAYS check your email for the completion of payment. They will send instructions for you to complete your payment.

Once you have successfully filed and paid for your taxes, you can visit the Past Filings tab on your Tax Dues tab.

If you see “Unpaid filings”, these are the tax cards that you have clicked but have not yet paid for. All you need to do is to click on CANCEL FILING so that the tax card returns to the CURRENT FILINGS TAB.

If you have successfully files and paid for a tax card, it will be marked COMPLETED (it will be marked temporarily IN PROGRESS for 2-3 days before it will say COMPLETED). Once marked completed, you can download and save the copy of the (1) form (click on view form and then click print form — print to PDF if you want to save it in your computer), (2) Download the BIR Confirmation and (3) Download and save the tax payment record.

It’s important to save backups of these in your computer. An OC person like me always want to have “back-ups” for everything. 🙂

After this, you can sit back and relax!!! Fun times!

If you want to maximize your Taxumo subscription, here are some things that you may not know about Tauxmo…

  1. If you receive 2307 forms, you can encode them directly to Taxumo’s Withheld Taxes tab (received tab) and the system will consider it when it computes your Income Tax return. Some people don’t know that these “attachments” should also be submitted and declared to BIR using another system called Alphalist Data Entry and Validation Module. Failure to submit these will also incur penalties.
  2. For your manual books of accounts, you will need to update them frequently. When a BIR examiner visits you, s/he will check if your books are updated. If you don’t know how to update your books, worry no more as Taxumo’s Books of Accounts view formats your entries in columns and all you need to do is copy these entries to your manual books.
  3. If you need to pay SSS voluntary contributions or loan payments, you can click on Pay bills. Compared to other systems, Taxumo already generates the PRN or the payment reference number for you which you can get also from the SSS site. You need not shift from one site to the other.
  4. Entries are exportable and downloadable via Taxumo’s Books of Accounts view. All income is under cash receipt and all expenses are under cash disbursements.
  5. You can give access or delegate access to two more people. Example, if you are using an accountant or bookkeeper, you can give one access to him or her.

Rest assured that Taxumo is constantly innovating and looking for ways that can help you become more productive as a freelancer or consultant.

For Taxumo’s pricing for their subscription plans, click on this link: https://www.taxumo.com/taxumo-pricing/

For those who copied the 8% option above, pricing is at Php 888 per month or at Php 10,000 for a year’s access.

For those with a lot of expenses and who would like to opt for the Graduated Income Tax Table — OSD or Itemized Deduction, pricing is at Php 1888 per month or at Php 20,000 for a year’s access.

If you have any more questions on how to use Taxumo, feel free to leave a comment or message me through https://www.facebook.com/mommyginger/.

My favorite past time now is looking through stuff in online stores and window shopping! I just feel so relaxed when navigating through these sites and when walking through the isles (even if I know oftentimes, I don’t get to buy anything). It’s so tempting though to buy new and innovative things and gadgets that you see.

JML Fresh Air Mist

For the longest time, I have been eyeing different humidifiers. The one that popped out was the JML Fresh Air Mist Ultrasonic Aroma Humidifier. I saw this at Ace Hardware actually. But, before we talk about this product, the reason why is that my husband, EJ, wakes up every day and coughs like hell. He has pretty bad dry cough in the morning. I did some reading and people online say that humidifiers can help with this.

Oh, and I wake up to cracked lips, sometimes, too! Both these things may be because of the dry air in our room.

So, let’s talk about humidifiers! You may not know it but I saw several types online. What we had when we were kids was what is called a steam vaporizers. Do you still remember this? I still remember that my mom would use to place efficascent oil into the machine, and had me stay in front of the humidifier when I had colds.

What caught my attention are the ultrasonic humidifiers! Sounds so futuristic, right?

Well, these humidifiers produce a mist using ultrasonic vibration. The one that caught my attention early on was the JML Fresh Air Mist Ultrasonic Aroma Humidifier.

The JML Fresh Air Mist Utrasonic Aroma Humidifier can carry 2.5L of water. Humidifiers this size can be use for a room that is 10-25m². This was actually perfect for our room!

Have you ever tried using the JML Fresh Air Mist Ultrasonic Aroma Humidifier? Let me know!

It’s that time of the year once again when we have to deal with thick bundles of paper. Yes, I’m talking about our business documents.

I have a sole proprietorship established here in the Philippines. Most of the businesses here (99%+) are micro-small-medium enterprises or MSMEs. And to add to that, most of them are also Sole Proprietors like me.

So I would assume that most of the people reading this post are sole proprietors. I decided to focus on this segment also so as not to make the post long.

What do I need to do every January of the Calendar Year?

DTI Permit

First of, check that your DTI permit is still valid. The Department of Trade and Industry is the government agency that we deal with when we want to create a Sole Proprietorship. The DTI approves the “trade name” that we want to use. In my case, Manila Workshops’ trade name is GPA Events Management Services.

So if it’s already expired, fret not since you can actually renew your DTI certificate from the comfort of your own home. Just go to this site: https://bnrs.dti.gov.ph/renewal and renew your certificate online. I did it last 2018, and I think (I don’t remember) I used GCASH to pay for the fee.

Baranggay and Business PermitLetter of Intent to Renew your Business (3 originally signed copies)

Next, you will need to gather all these documents before going to the Municipal Hall and office of the Baranggay (usually each one is in the same building or at lease close by).

  • DTI Certificate (for sole proprietors)
  • Letter of Intent to Renew your Business (3 originally signed copies)
  • Original and photocopy of previous year’s barangay permit and official receipt
  • Previous year’s Mayor’s Permit/Business Permit and Official Receipt, original and photocopy
  • Community Tax Certificate (CTC) / Cedula from previous year
  • Contract of Lease or Certificate of Occupancy to use Premises (what I do in lieu of this is I photocopy the Real Property Tax Receipts, which are under my name. That’s the one I present)
  • Previous year’s Sanitary Permit to Operate
  • Certification list of employees as of December 2019 signed by President or HRD (if you don’t have employees, create a certification that you don’t have any employees)
  • Quarterly VAT Returns (if you are a VAT entity) or Percentage Tax Returns (if you are non-VAT) for the previous year with BIR Confirmation
  • Quarterly Income Tax Returns (1st, 2nd and 3rd Quarter); these are your 1701Q forms
  • Certificate of Gross Sales for previous year (just add up your gross sales for the entire year)
  • Previous stamped financial statements, audited or unaudited (if applicable); note that for those with Php 3 Million and below gross sales, you don’t need an audited financial statement. BTW, this is for the year before last year.
  • Comprehensive General Liability Policy Insurance (CGLP) / Local Insurance and official receipt from previous year; note that some Municipal Halls don’t require this. The CGLP fees are computed also based on the square meters of your registered address.
  • Authorization Letter (3 originally signed copies) and Special Power of Attorney (3 originally signed copies) — if you are making someone else process it for you

Once you have collated all of these, you can now go to the Municipal Hall. For the fees, it really differs from one City Hall to another.

If you need help processing your Business Permit Renewal at your Municipal Hall, you can get in touch with Taxumo. They offer this service provided you are in Metro Manila, Batangas, Laguna and Cavite. https://www.taxumo.com/blog/get-your-business-permit-renewed-this-coming-new-year-with-taxumo-until-december-30-2019-only/

They can still accommodate a few clients so please don’t mind the deadlines. Oh, Taxumo can also help you with Business Registration just in case you haven’t registered your business yet.

BIR Renewal

So we’re done with two agencies for Business Renewal for Sole Proprietorships. For BIR, it’s actually so easy. I just log in to my Taxumo account, and make sure that I have highlighted the tax types i’m supposed to pay for (check your Certificate of Registration or Form 2303 to be sure) in the settings page.

Go to the Tax Dues tab and click on file now for 0605. Please make sure that it’s for 2020! 🙂 For first time users, you can attend an online onboarding session by clicking on this link: https://calendly.com/consultnow/onboarding

If you need information to be changed in your COR, you will need to go to the RDO to do that using 1905. Else, if nothing needs to be changed, you only need to file this 0605 form via Taxumo. No need to go to the RDO of the BIR.

I love that everything is easy! 🙂 If you have other questions on renewing your business permit and registrations and certificates, leave your questions in the comment section below!

Start the year right! I hope this somehow give you an idea of how to go through Business Renewal for Sole Proprietorships. Fix all of these and don’t wait for the last moment to avoid penalties!

My One Word for 2020 – Commit!

In life, there is comfort in knowing that we can easily change our minds later on. If we feel that we can’t decide, oftentimes, we don’t. We don’t take action and we just wait for things to “fall in place” — in a place where we are more comfortable to make decisions.

And sometimes, even if we have already decided, we oftentimes change our minds.

Not too sure if we want to eat burger or pizza? No worries, I can easily change my mind later on. Thinking about completing a task today? Oh, I’ll just to that tomorrow, so I can finish watching my favorite series today on Netflix.

This flexibility is great, but it can also be the root cause of inaction and lack of decisiveness. It can also lead to lack of accountability. We comfortably blame forces beyond our control for our lack of commitment.

“Wala pa akong pera…”

“Wala pa akong time…”

“Tsaka nalang pag di na ako busy…”

“Tsaka nalang pag di na ako stressed…”

“I’ll work on it if I’m in the mood…”

Have you ever said these words?

For the longest time, I, too, have been failing to commit to a few things in life. I always give being ‘busy’ as a reason to not to commit. So this year, I’ve chosen COMMIT as my one word.

As I analyzed the past year (2019), I successfully started going to the gym. The reason why I regularly go is that I book sessions with a personal trainer the week before. I know how valuable time is that I also value the time of others. So, when I tell Coach Daevid that I’ll be there on Monday and Thursday, I make sure that I don’t book any meetings or work during the times that I commit to going to the gym to have the session.

This made me think that if I actually commit to doing more things, I would probably have a better year ahead.

So this year, I won’t make excuses anymore for things that I need to do. I won’t make excuses for not meeting friends and for not going to social functions. I won’t make excuses for fixing stuff that I need to accomplish.

I will make this year awesome by COMMITTING and sticking to my commitments.

How about you? What is your one word for this 2020? Share it with me by commenting or posting on social media with #GINspiration 🙂

While sifting though pictures on Instagram (which I often do), I couldn’t help but feel admiration and sort of envious of what other people have. How do these people have perfect bodies? How do they get to travel often? How do they have so many things — things I couldn’t have? These have become thoughts that I would often think of every time I would open social media platforms. So yesterday, just like any other time and after my numerous observations (haha!), I set my phone aside and went on doing chores and living my own life.

Then that evening, my family talked about the seven deadly sins. I still haven’t memorised these sins, but I still do remember some episodes of the movie SEVEN which was shown last 1995. One of the sins, if you haven’t memorised it, too, is envy. I quickly shifted to a state of panicking a little, as I thought of the those times on Instagram, when I would “envy” other people on social media. Was I “sinning” during all those times? 🙁

But before delving into my feelings and what-not, let’s go back to the definition of envy.

From Merriam Webster, the definition of ENVY is a painful or resentful awareness of an advantage enjoyed by another joined with a desire to possess the same advantage.

This morning (since I was really bothered), I was reading articles on the different things associated with envy, jealousy, benchmarking, comparing, the ethics behind these concepts, etc. I wondered if the changes that’s happening with tech, social media platforms, etc. have made us more envious of other people’s things and lives. I wondered if feeling like this was really bad.

After reading a lot of articles I have drawn my own personal conclusions (and please indulge me a bit on this).

Looking through social media and feeling a little bit envious of how other people’s live look can either lead to…

1) encouraging you to be a better version of yourself so therefore this little dose of “envy” becomes a source of inspiration.

2) negative feelings of hatred and resentment which lead you to action like backstabbing, spreading gossip, etc.

3) being apathetic about it — which can either be good or bad. “Let him/her live our own lives. I have to fight my own battles, so kuddos to him / her!” (good) or “I don’t care… (dismissing the fact that you still feel some jealousy and harbor some sort of ill feelings still… which I think is bad if you don’t confront the feeling/s).

So I think that thinking of wanting to be better because this concept is presented by another human being on Instagram or Facebook isn’t bad. If it encourages you to channel your feelings to doing good, to becoming a happier, more productive person, I don’t really think that this makes it a sin.

At the end of the day, if you don’t hurt anyone emotionally or physically, and this statement includes yourself (please don’t torture yourself, too), it’s not something bad.

What do you think about this? What are your thought on envy and jealousy. Do you have tips on how to be less envious of others?