How can you grow your business in the Philippines?
- Register your business with BIR
- Regularly update your bookkeeping accounts
- Don’t be afraid of exporting
- Prioritize innovation
You have been running your own enterprise alone or with a partner for some time. Your company has been able to survive so far. There is little debt and the revenue is enough to fund the necessary operations. You must be thinking “it is time to grow this company.”
But wait, there are several things that go with expanding such as organizing your bookkeeping and doing your tax computations in the Philippines. If you want to grow your business in the country, these are things you should do first:
Register your business with BIR
If you haven’t done so, this should be the first item on your to-do list.
To register with the BIR, you need to download, fill out, and file the BIR form for “Application of Registration”. If you have a sole proprietorship, then apply using BIR Form 1901. If you have a partnership, then apply with BIR Form 1903.
After your TIN is accomplished, you can submit these other documents:
- Certification from the Department of Trade and Industry
- Contract of Lease (if you rent your space)
- Land Title (if you own the office)
- BIR Form 2000 (Documentary Stamp Tax on Lease)
- Barangay Clearance
- Mayor’s Permit
Submit these to the nearest Revenue District Office (RDO). Once you get your certificate of registration, you will be able to give out official receipts, pay taxes, and register your book of accounts. Of course, if you find all of these steps confusing or time-consuming, you can always get the help of a Business Registration Service to make things faster and easier!
Regularly update your bookkeeping accounts
Having a book of accounts is not only for the BIR to check, but also for you to have proof of your company’s finances. Here are the accounting records you need to update:
- General Ledger – tracks money going in (debit) and money going out (credit).
- Cash receipts – should track cash sales and credit sales (accounts receivable). Your company’s revenue should be included in this documentation.
- Cash disbursement – records financial expenditures made by the company (ex. your tax computations in the Philippines)
Be organized with these documents by updating them weekly and monthly. You must update them weekly by having your accountant record the company’s cash revenue, credit revenue, old expenses, and new expenses. This is important because it will inform you of the cash flow of your operations.
Monthly updates are also important because it will give you a bigger picture of your company’s financial situation. From the first to the last day of a specific month, you will get to know how much money you are spending (this includes mandated taxes like the withholding tax).
Don’t be afraid of exporting
Most business owners are scared to offer their products in other countries because they are wary of the additional costs. If they decide to undergo this venture, they not only need to worry about paying local expenses such as the withholding tax but possibly international fees as well.
Thanks to online shipping, it has become easier than ever for small enterprises to start their foreign operations. Exporting abroad will grow your business in many ways:
- Greater sales (depending on the status of foreign currency).
- Selling extra inventory that is not doing well in the local market.
- You reach more customers than your competitors.
The needs of your customer market are always changing. Thus, you must adjust your products and services according to the trends. You can do this by researching the market and surveying people.
Innovation makes you stand out from your competitors. It gives you an edge against other similar goods and services.
To grow your business in the Philippines, you need to take care of a lot of things. For one, you need to pass the necessary documents to run your company. You must also keep track of your finances daily. Lastly, you shouldn’t be afraid of new opportunities that will allow you to reach more people and stand against your competition.
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