Tax Changes 2018: A comprehensive list

Tax Changes 2018: A comprehensive list

Business Tips, For Accountants
Editor's note: This article was first published on Jan. 21, 2018. It has been revamped to make sure the contents are up to date. Also, if you are viewing this from a mobile device, please make sure your handset is in landscape orientation. We know you have a lot of questions regarding the tax changes for 2018 and the period hereafter. There are a lot of articles published discussing these changes; however, they are usually on different posts. You can always open several tabs at a time, but who has time for that? So we scoured the web for as much information about changes in tax policies as we can and combined all of what we gathered in one comprehensive list. And here it is. Before After Reduced taxes Personal Income…
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5 New Year’s Resolutions Accountants Should Embrace

5 New Year’s Resolutions Accountants Should Embrace

For Accountants
It is a bit quite late writing this, but it’s still January so it’s still the start the year technically. Plus, we all believe in the saying “Better late than never.” So here we are sharing what you should be part of your new year’s resolutions that can help boost your presence in the community. Whether you have been in the business for long or are just starting to build your empire as an accountant, you should get a thing or two from these tips. Without further ado, here are the things you should embrace so you’re off to a good start this year. New Year's Resolutions Accountants Should Have Create a LinkedIn profile. It’s 2018 you guys, and we all know a Facebook profile is not enough. Taking advantage…
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4 Practical Reasons Online Accounting Software is the Best

4 Practical Reasons Online Accounting Software is the Best

For Accountants
Editor's note: This article was first published in June 2017 but has been revamped to stay up-to-date. You look with dread at your accounting books and forms that you have to fill. Various clients with different information that needs to be entered and computed. Can this day get any worse? You’re in luck! Fortunately, in this day and age of computers and high-speed internet, there is computer software that can efficiently perform accounting functions at a push of a button. There are a number of online accounting software out there that you can check out and see which fits your needs. They make processes more efficient. May it be calculating revenue, computing the payroll, or improving cash flow, software is indeed a great investment for any company that wants to get ahead…
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3 Benefits of Subscription-based Software

3 Benefits of Subscription-based Software

For SMEs
Consumer habits have changed recently from the one time trip to the grocery getting everything that’s needed for the entire month to the buying of goods on a weekly or daily basis. This comes as no surprise as the latter seems to be simpler and more hassle-free. It means you don’t have to take home a truckload of groceries you may not even be consuming for the rest of your life.Software-as-a-Service (SaaS) companies have seen this trend and started to cash in on it (for a good reason). In fact, reports say that these companies such as Dropbox and Salesforce have valuations on the rise because of this business model.But as a consumer, what benefits can you get from a subscription-based software?Benefits of Subscription-based softwareFaster ROIOPEX and CAPEX are two…
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New Withholding Tax Rates 2018

New Withholding Tax Rates 2018

For Accountants, For SMEs
Upon the approval of the tax reform bill, the BIR released the new withholding tax rates as seen on its website and the image below. As previously mentioned, those with compensation not exceeding 250,000 annually will be exempt from withholding tax while others will have to pay a staggered rate starting January 1. In other words, for the first salary of the year, usually January 15, Filipinos should expect bigger take-home pays compared to the previous month’s. However, you’re reminded that old tax rates still apply to your 2017 ITR, particularly the income you earned in that year. “The salary and earnings of us taxpayers in the previous year will still be taxed according to the old rates when we file our income tax returns (ITR) before the April 16…
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How To Attract Millennial Accounting Clients

How To Attract Millennial Accounting Clients

For Accountants
The number of millennials having their own business venture is steadily on the rise. Hence, it is only proper for you, as an accountant, to have them as one your clients. Otherwise, you will be creating a big dent in your business.As previously discussed, these millennial entrepreneurs have a set of criteria should they wish to work with accountants and accounting firms alike. If you want to lure this big fish, you should have the following methods in your accounting practice.DigitalIt is not an overstatement when we say that millennials and technology go hand-in-hand. Thus, if you are to partner with them, you should know the digital world by heart. Having a reliable accounting software is a must. But switching to digital does not only refer to going paperless. You should…
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What Millennial Entrepreneurs Look for in Accountants

What Millennial Entrepreneurs Look for in Accountants

For Accountants
A significant number of millennials make up the workforce and the millennials who start up their own business have been continually on the rise. In fact, Business View published an article calling this generation a “generation of entrepreneurs.”And according to Accountancy Age, a third of these entrepreneur millennials make at least $1.1m in annual revenue. In other words, this generation makes up one of the best accounting clients profit-wise. However, this generation also has high standards when it comes to hiring employees and choosing potential partners. In terms of accounting and bookkeeping colleagues, here are the characteristics they require.Strategic insightReporting, forecasting, and cash flow are the top three frustrations of millennial businesspeople. Hence, they prefer an accountant that can provide strategic insight into the finances of the company. Note though…
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Accountant vs. Bookkeeper: Which One Should You Hire?

Accountant vs. Bookkeeper: Which One Should You Hire?

For SMEs
All businesses have financial records and transactions to keep track of, whether you’re flying solo or have a few individuals working for you. While you, as the owner, may do all the record keeping, we all know that it takes a lot of time and effort to do so.What you can do then is to hire someone—either an accountant or a bookkeeper—to help you with these endeavors. But which of them will fit the bill better?These descriptions of their responsibilities may help you select the better person. BookkeeperContrary to the beliefs of some, the tasks of an accountant and a bookkeeper are actually different. And hiring either one of them depends on your needs.A bookkeeper is a person who records your financial transactions daily. He or she ensures all transactions…
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Duterte Signs 2018 Tax Reform Bill, Now What?

Duterte Signs 2018 Tax Reform Bill, Now What?

For Accountants, For SMEs
On December 19, 2017, President Rodrigo Duterte signed the much-awaited tax reform program that plans to shift the tax burden from the low-income earners to the higher-earning ones. This new law exempts individuals whose annual income does not exceed PhP250,000 from paying personal income taxes. Workers who are earning 400,000 to 800,000 will “be paying income tax at ₱30,000 plus 25% of the excess over ₱400,000.” Before those who are earning more than 500,000 annually pay “₱125,000 plus 32% of the excess over ₱500,000.” Also, the tax exemption for bonuses such as 13th-month pay is raised from 82,000 to 90,000. Another change introduced by the Tax Reform for Acceleration and Inclusion (TRAIN) is the optional flat tax for the SEPs of the self-employed and professionals. If they would not opt…
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3 Reasons the Accounting Job is the Top Choice in the Philippines

3 Reasons the Accounting Job is the Top Choice in the Philippines

For Accountants
There is certainly a job growth occurring in the Philippines. Information Technology (IT) jobs are coming here in waves through companies seeking the expertise of Filipinos. Business Process Outsourcing (BPO) is also continuing its upward trend of providing more and more call-center jobs to young and alike.Nursing, engineering, banking, financial and all other areas are seeing gains and offering opportunities to more of our countrymen. However, there are those who like mathematics and playing with numbers.They have entertained the thought of a career in accounting but unsure of its prospects. With so many job careers to choose from, how lucrative is the accounting job in the Philippines?What we can say is that accounting jobs have never looked so promising in the Philippines. In the last few years, accounting has been…
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