How to Grow Your Business in the Philippines

By December 27, 2018Blog
How to Grow Your Business in the Philippines

How can you grow your business in the Philippines?

  1. Register your business with BIR
  2. Regularly update your bookkeeping accounts
  3. Don’t be afraid of exporting
  4. 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). Your accountant can document these things, but you can also check out Taxumo Premium , a full-service and fully transparent tax concierge, to ensure your bookkeeping accounts are accurate and up-to-date!

 


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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.

 

Prioritize innovation

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.

 

Key Takeaway

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.

 

Want to spend less time on tax & more time on your business?

Get help with Taxumo Premium!

Author Evan Tan

Evan Tan is the Chief Marketing Officer of Taxumo. He is a communications professional with over a decade of local and regional professional experience. He also is a founding member of the Philippine LGBT Chamber of Commerce. Apart from his work and advocacy, he is passionate about traveling, working out, reading good books, and discovering vegan restaurants in and out of the country.

More posts by Evan Tan

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