Best Accounting Firms in the Philippines

Last Updated – Nov 30, 2021 @ 1:11 pm

If you are thinking of starting your own business, one of the things that you will have to familiarize yourself with is accounting. Perhaps you have no idea what accounting is exactly and what value it can provide to you and your business, but you have heard that it can take up a lot of your time. 

Let’s look at some of the basics of accounting and see how it is essential to a business. Also, we have listed a few of the top firms in the country that offer accounting services.

What is Accounting?

Basically, accounting is recording the financial transactions of a business. These transactions are summarized, analyzed, and reported to tax collection entities, regulators, and oversight agencies.

In accounting, the financial statements include financial transactions over a specific accounting period and summarize a company’s operations, cash flows and financial position.


Types of Accounting Services

Accounting is essential to businesses, no matter the size. Accounting services help keep businesses on track when it comes to various payments, bookkeeping, business expenses, and financial development. 

Main Types of Accounting

Public Accounting

Also called assurance services, public accounting is the most varied and broadest type of accounting. Accountants who provide these services are experienced in financial analysis, account management services, and bookkeeping.

The duties of a public accountant include tax advice and preparation, accounting system design, and consultations in areas like employee compensation. Some audit the financial records of their clients as well. Public accountants also ensure the proper management of statements, primarily looking at past financial data and identifying errors.

Governmental Accounting

Accountants ensure that expenditures and revenues are within the law. The accountant is involved in budgeting as well as government asset management.

Management Accounting

Management accountants carry out tasks like budgeting, asset management, cost management, and performance evaluation. They do these tasks by recording and analyzing the financial data of your company.

In addition, they often take part in the preparation of financial data for tax authorities and your investors and the budgeting for new product release. They examine past and present data to help you plan for your business’s future.

Internal Auditing

Accountants who provide internal auditing services review a company’s financial management practices. They check for mismanagement, waste, and fraud.

They also evaluate the management systems, budgeting, and operations for how efficient they are in terms of laws and regulations. Internal auditing accountants specialize in areas like environmental auditing, compliance auditing, and information technology auditing. They can give you a wide view of areas your business can improve.

Types of Accounting Services

Bookkeeping

This involves keeping records of a business’s financial accounts. The financial systems are updated by the bookkeeper, who creates a hard copy of the company’s financial data or keeps a record of it by using financial accounting software.

The bookkeeper also monitors the accounts’ payment.

Tax accounting

The tax accountant makes sure the business doesn’t have to pay unnecessary taxes and ensures the company gets the best advice in terms of claims. In addition, the tax accountant helps fix issues regarding filing of returns.

Forensic accounting

Usually working together with law enforcement agents, forensic accountants track missing funds which may appear during the making of a financial report.

Transparency concerning tax evasion, fraud or a financial problem should be observed by business owners so their forensic assistants can deliver this accounting service more effectively.

Financial controller services

Financial controllers oversee staff, assign work to employees, and handle new clients. They head the commercial department and may carry out internal and external auditing tasks.

They also make sure accounting work is efficient and accurate.

Chartered accounting

Specializing in areas like auditing and management, chartered accountants are typically part of a professional financial body.

Accounting auditing

Auditors validate and ensure the financial reports are accurate. You can get detailed financial information about your business from auditing.

Payable accounts

This service involves managing financial transactions, excluding duplication, thinking of expenditure solutions, and managing financial documents. This modifies the business’s payment system. 

Bank reconciliation

This accounting service ensures the bookkeeping of financial records is accurate and helps in looking for any discrepancy. The accountant protects the business from fraud and helps cut down on expenses.

Account receivable

This helps in improving a company’s collection rate, reducing payment period, and ensuring fast invoice processing.

Payroll processing

This service makes sure that regulatory information and tax rates are accurate. The accountant maintains the financial records of the income, deductions, and bonuses of employees.

CFO (Chief Financial Officer) Services

Small businesses often need help when it comes to cash flow management. CFO services assist in speeding up profit for a business and also provide accurate reporting.

They track your key business indicators to manage performance and reduce overall risk.

Many professional accountants who have years of experience holding executive level positions in corporations and companies offer fractional CFO services.

Tax Planning and Preparation

Aside from completing tax returns, accounting firms prepare business documents at the end of the year.

Accounting firms can also be given authority to represent the interests of the business owner regarding audits, notices, or information requests

Business Development and Valuation

When a business applies for a loan or seeks funding from an investor, the transaction has to be valued accurately and legitimately. It is necessary for potential purchases or mergers as well.

Accounting firms examine the revenues of previous years, growth patterns, and book of business to determine the company’s reasonable value to provide to potential buyers or investors.


Best Accounting Firms in the Philippines

Accounting firms provide professional services essential to achieving business growth. There are many accounting firms in the country but here are a few that are a cut above the rest:

PwC 

With over 35 years of experience in providing accounting, payroll, and tax compliance services in the country, PwC has become an established name in the industry.

Their approach to reviewing their client’s needs and requirements is both pragmatic and practical, identifying the true risks and avoiding a review or solution that is “one size fits all”. 

Aside from government agencies, their clients include leading local and foreign corporations, across different industries like industrial and consumer products and services, financial services, and information communications, technology, and entertainment.

Services/Specialization:

  • Tax compliance services
  • Accounting services
  • Payroll services
  • Other compliance services
    • Preparation and filing of PEZA reports
    • Preparation of GIS (General Information Sheet) and GFFS (General Form Financial Statements) and Filing them with the SEC

Areas they serve: Philippines

Contact Details: 

  • Address: 29th Floor Philamlife Tower, 8767 Paseo de Roxas, Makati City, Philippines 1226
  • Contact number: +63 2 8845 2728
  • Website: https://www.pwc.com/ph/en (Isla Lipana & Co.)

D&V Philippines 

Premium professional services firm D&V Philippines caters to the accounting and finance needs of SMEs (small and medium enterprises), accounting firms, CFOs, and shared services centers.

They offer tailor-made solutions to businesses. D&V Philippines also specializes in accounting and finance outsourcing for firms in countries like the US, Canada, the UK, the Netherlands, Germany, and Australia. Clients can opt for specialised services or staff leasing depending on the current needs of their business. 

D&V Philippines has a dedicated team who are experienced in using various accounting software and has been working with automated accounting and finance processes for over five years.

Services/Specialization:

  • Accounting / Bookkeeping
  • Management Accounting
  • Audit and Assurance
  • Financial Planning and Analysis
  • Statutory Reporting and Compliance
  • Payroll services

Areas they serve: Philippines and many other countries

Contact Details: 

  • Address: 23rd Floor Tower 2, The Enterprise Center, 6766 Ayala cor. Paseo de Roxas, Makati City, Philippines1226
  • Contact number: +63 2 8846 1144
  • Website: https://www.dvphilippines.com/

JCSN 

JCSN Accounting Services LLC offers cost-effective strategies and delivers fully reliable services. It is operated by professionals who have a collective experience in the industry of more than 50 years.

JCSN serves clients in the Philippines and in California (USA) and it aims to become the most valued and reliable provider of accounting services in the US.

Dedicated to helping clients focus on growing their business, JCSN’s team is composed of highly trained employees as well as highly qualified accountants. It uses its own accounting system to create and maintain financial records. The said system enables JCSN to have an accounting process that is precise and up-to-date

Services/Specialization:

  • Accounting and Bookkeeping
  • Financial Planning and Analysis
  • Strategic Advisory / CFO Services
  • Tax Services

Areas they serve: Philippines, California (USA)

Contact Details: 

  • Address: Unit 2B JHL Plaza Building Magdalena St. corner President’s Ave BF Homes, Parañaque, Philippines 1720
  • Contact number: +63 917 677 9494
  • Website: https://jcsnaccounting.com/

DJKA 

Aiming to assist businesses navigate critical business processes, DJKA Accounting Services is composed of CPAs and other professionals who can serve as accountants, bookkeepers, tax consultants, and financial advisors.

Startups, SMEs, and established companies will definitely find value in the service that DJKA provides as their team is highly proficient and experienced. In addition, the business solutions that DJKA offers are available on demand, giving clients more flexibility and providing more cost efficient services.

Services/Specialization:

  • Business Registration Services 
  • Tax compliance 
  • Accounting and Bookkeeping

Areas they serve: Philippines

Contact Details: 

  • Address: Unit 1205 Cityland 10 Condominium Tower1 156, H.V. Dela Costa St. Bel-air, Makati City, Philippines 1226
  • Contact number: +63 2 293 0579 | +63 917 585 4375
  • Website: https://djkabusinessservices.com/

SGV & Co. 

The firm W. SyCip & Co. was established in 1946. The following year it changed its name to SyCip Velayo Jose & Co. The firm changed names again in 1953 and is now known as SGV & Co. (SyCip Gorres Velayo & Co.).

Currently the largest multidisciplinary professional services firm in the Philippines, SGV employs over 6,000 professionals from different disciplines.

It offers integrated solutions which draw on deep and diverse competencies in consulting, assurance, tax, and strategy and transactions. Since 1996, the Assurance service line of SGV has been certified with an ISO 9001. 

On 6 June 2002, SGV became part of the global firm Ernst & Young International.

Services/Specialization:

  • Assurance Services
  • Tax Services
  • Strategy and Transaction Services
  • Consulting Services

Areas they serve: Philippines

Contact Details: 

  • Address: 6760 Ayala Avenue, Makati City, Metro Manila, Philippines 1226
  • Contact number: +63 2 8891 0307
  • Website: https://www.sgv.ph/

Deloitte Philippines

The Deloitte Network’s member practice in the Philippines is Navarro Amper & Co., one of the country’s leading professional services firms. It was established in 1997 and was named C.L.Manabat & Co.. It initially offered management consulting services but it later expanded its services to include tax, audit, business process solutions, and risk and financial advisory.

In 1999, it became part of the Deloitte global network, which led to significant growth in clientele as well as resources. The firm now has offices in two cities (Taguig and Cebu), offers various professional services, and serves clients from various industries.

Services/Specialization:

  • Audit and Assurance Services
  • Consulting Services
  • Financial Advisory Services
  • Legal Services
  • Risk Advisory Services
  • Tax Services

Areas they serve: Philippines

Contact Details: 

  • Address: Navarro Amper & Co. (Main office) 19th Floor Six/NEO Building 5th Avenue corner 26th Street Bonifacio Global City, Taguig, Philippines 1634
  • Contact number: +63 2 8581 9000
  • Website: https://www2.deloitte.com/ph/en.html (Navarro Amper & Co.)

KPMG Philippines 

KPMG R. G. Manabat & Co. has Partners and Principals with diverse backgrounds in both the public and private sector. In addition, they have had extensive training.

Aside from that, KPMG has a wide network of professionals and plenty of knowledge resources, so it can offer clients real-world solutions to business and regulatory issues.

The International Tax Review has awarded KPMG Tier 1 ranking for both Tax Practice and Transfer Pricing Practice (Philippines). KPMG has also ranked first in Financial Services Consulting.

Services/Specialization:

  • Audit and Assurance Services
  • Tax Services
  • Advisory Services
  • Japanese Practice
  • Technology Consulting
  • Cyber Security and Data Protection

Areas they serve: Philippines

Contact Details: 

  • Address: 6/F, The KPMG Center 6787 Ayala Avenue, Makati, Philippines 1227
  • Contact number: +63 2 8885 7000
  • Website: https://home.kpmg/ph/en/home.html (R.G. Manabat & Co.)

P&A Grant Thornton 

Award-winning, globally-recognized, and leading professional services firm P&A Grant Thornton helps dynamic organisations grow. It is recognized as a major global accounting organisation by international standards setting bodies, regulators, and capital markets.

In the Philippines, the member practice of Grant Thornton International Ltd (GTIL) is Punongbayan & Araullo (P&A). This means P&A belongs to a global organization of firms (located in over 143 countries).

Aside from having the scale to meet clients’ changing needs, P&A also has the insight and ability to help clients keep one step ahead. 

Services/Specialization:

  • Audit and Assurance Services
  • Tax Advisory and Compliance Services
  • Advisory Services
  • Outsourcing and Managed Services
  • Japan Desk

Areas they serve: Philippines

Contact Details: 

  • Address: 19th & 20th Floor, Tower 1 The Enterprise Center 6766 Ayala Avenue, Makati City, Philippines 1200
  • Contact number: +63 2 8988 2288
  • Website: https://www.grantthornton.com.ph/ (Punongbayan & Araullo)

BDO Global 

BDO Global is committed to delivering what clients need using world-class resources. Their highly qualified team is focused on providing exceptional client service.

They are able to do this because of their global network of offices (located in 167 countries and territories) and also their local knowledge that is backed by national and regional experience.

In addition, BDO has expertise across specializations and industries, quality hands-on partners and staff, and a relationship driven culture. Their clients include Individuals, small family-owned businesses, large complex corporations, and government departments. 

Services/Specialization:

  • Audit and Assurance Services
  • Tax Services
  • Consulting Services
  • Business Services and Outsourcing 

Areas they serve: Philippines

Contact Details: 

  • Address: Multinational Bancorporation Center, 6805 Ayala Avenue, Makati, Philippines 1226
  • Contact number: +63 2 8844 2016
  • Website: https://www.bdo.global/en-gb/home (Roxas Cruz Tagle & Co. and Alba Romeo & Co.)

R.S. Bernaldo & Associates 

Established in 1994, R.S. Bernaldo & Associates is a member practice of Asian Accounting Firms (ASNAF) and PKF International.

With over 100 certified public accountants employed, the firm has had more than 500 clients from various industries. It is accredited by the Securities and Exchange Commission (SEC), the Bangko Sentral ng Pilipinas (BSP), Insurance Commission (IC), the Cooperative Development Authority (CDA), and the Cagayan Economic Zone Authority (CEZA).

The firm serves a broad clientele, including major industry leaders in energy, manufacturing, construction, mining, exploration, real estate, and many others. Aiming to provide personalized service, R.S. Bernaldo & Associates’ team is composed of professionals who have local expertise and global experience and perspective. 

Services/Specialization:

  • Assurance Services
  • Non-assurance Services
  • Advisory Services
  • Taxation Services
  • Technical and Training Services

Areas they serve: Philippines

Contact Details: 

  • Address: 18th Floor Cityland Condominium 10 Tower 1, 6815 Ayala Avenue cor. H.V. Dela Costa St. Makati City, Philippines 1200
  • Contact number: +63 2 8892 4487 | +63 2 8812 1718 to 24
  • Website: https://www.rsbernaldo.com/

LZVCPA Inc. 

LZVCPA Inc. has a team of certified public accountants, lawyers, engineers, IT specialists, and educators committed to helping clients solve business problems.

They conduct research, investigation, inspection, and in-depth analysis to provide the best solutions to their clients.

The solutions they offer may help businesses increase revenue, cut down costs, improve systems and controls, generate investments, increase marketability, attract more clients/customers, serve better, expand locations, stay ahead, and operate smoothly.

LZVCPA Inc. aims to help businesses achieve or surpass goals and expectations the businesses set.

Services/Specialization:

  • Accounting Advisory
  • Financial Advisory
  • Audit Advisory
  • Legal Advisory
  • Technology Advisory
  • Engineering Advisory
  • Systems Advisory
  • General Business Advisory

Areas they serve: Philippines

Contact Details: 

  • Address: Level 10, One Global Place, 25th Street and 5th Ave, Bonifacio Global City, Taguig, Metro Manila, Philippines 1634
  • Contact number: +63 2 3224 2036
  • Website: https://www.lzvcpa.ph/

Villaruz, Villaruz & Co. 

One of the leading and most trusted auditing and accounting firms in the Philippines, Villaruz, Villaruz & Co., CPAs (VVC) has a track record of doing high quality work and providing globally renowned professional services for over 30 years.

Committed to helping their clients succeed, VVC proactively assists their clients in improving and growing their businesses. It is also committed to developing its people, encouraging and supporting their involvement in activities that are aligned with both their professional and personal goals.

VVC is affiliated with the UK-based network of accounting and auditing firms Morison Kingston Smith International (MKSI). There are 150 member firms on the network, with 80 offices worldwide.

Services/Specialization:

  • Bookkeeping / Accounting Services
  • External Audit Services
  • Internal Audit Services
  • Financial Management Services
  • Tax Reporting and Consultancy Services
  • Feasibility Study Preparation
  • Systems and Procedures Installation and Manual Preparation
  • Payroll Services

Areas they serve: Philippines

Contact Details: 

  • Address: Unit 3 9th Floor Galleria Corporate Center EDSA cor., Ortigas ave., Quezon City, Philippines 1110
  • Contact number: +63 2 8687-3324 | +63 2 8687 7034 | +632 8687 1329
  • Website: https://villaruz.com.ph/

PnS

GPP (general professional partnership) accounting firm Perez & Sardoncillo, Certified Public Accountants (PnS) is fully registered under the SEC (Securities and Exchange Commission) and the BIR (Bureau of Internal Revenue).

It also has a BOA (Board of Accountancy) accreditation. PnS offers quality and timely services to start-ups, SMEs, domestic and foreign corporations, and individual business owners and practicing independent professionals.

PnS has Certified Public Accountants (CPAs) for partners, managers, senior employees and staff. 

Services/Specialization:

  • Accounting / Bookkeeping
  • BIR Tax Compliance
  • Payroll
  • Tax Advisory / Consulting
  • Business Registration
  • Audit
  • PEZA / BOI Compliance

Areas they serve: Philippines

Contact Details: 

  • Address: Unit 614 Cityland 10 Tower 1 156 H.V. dela Costa Street, Salcedo Village, Makati City, Philippines 1227 
  • Contact number: +63 2 8801 1677
  • Website: http://www.pns-cpas.com/

Savvi Accounting

Savvi Accounting and Shared Services is a local firm in Angeles City which offers specialized business services. It aims to help SMEs and professionals grow.

Its team is composed of highly experienced and skilled licensed professionals qualified to provide services related to business advisory, accounting, and marketing.

Savvi Accounting aims to offer effective plans and provide solutions to their clients’ business problems.

Services/Specialization:

  • Accounting and Tax
  • Business Registration
  • Marketing

Areas they serve: Philippines

Contact Details: 

  • Address: Unit 5-6 3rd Floor, R Bldg., Sto. Rosario St., Brgy. Sto. Domingo, Angeles City, Philippines 2009
  • Contact number: +63 917 174 7277
  • Website: https://savviaccountants.com/

Smart Account Solution (SAS)

Smart Account Solution Co. Ltd. aims to support clients by going beyond simply providing good accounting services and offering sound tax advice.

It has a team of experienced professionals (CPAs) that have more than 20 years of experience in the field. Smart Account Solution guides clients through implementing the right strategies for different areas of their businesses.

Its current clientele includes SMEs and the services it offers are priced very reasonably.

 Services/Specialization:

  • Accounting Services
  • Audits and Related Advisory Services
  • Accounting Information Systems Design and Implementation
  • Taxation Services
  • Payroll Services
  • Business Registration Services
  • Other Management Advisory Services
  • International Services

Areas they serve: Philippines

Contact Details: 

  • Address: 6 A&C Trans-Phil House, 1177 Chino Roces Ave. cor. Bagtikan St., Makati City, Philippines 1203
  • Contact number: +63 2 8553 8177 | +63 2 7623 0551 | +63 2 8296 2986
  • Website: http://www.sas-ph.com/

Tiu and Associates Group

Manila-based management consulting and CPA firm Tiu and Associates Group provides quality professional services to companies, aiming to help businesses succeed in their ventures.

Specializing in privately-held corporations as well family businesses, Tiu and Associates helps businesses improve their operational efficiency and expand market share through knowledgeable business advisory and accurate accounts reporting.

The Group does not only give practical business advice but also consistent quality service that conforms to government regulations and follows industry practices.

Services/Specialization:

  • Assurance and Advisory
  • Corporate Tax
  • Company Incorporation
  • Accounting Services
  • Sole Proprietorship
  • Others (e.g. services related to trademarks, registration, etc.)

Areas they serve: Philippines

Contact Details: 

  • Address: Cycle City Compound Unit L #333 MH Del Pilar St. cor. 10th Ave. East Grace Park, Caloocan City, Philippines 1403 
  • Contact number: +63 2 8364 9325 | +63 2 5310 1295
  • Website: http://www.tiuassociates.com/

UNA Accounting

Uy, Nicolasora and Associates offers tax advisory and compliance services, accounting services, and audit and assurance services.

In 2011, UNA Accounting was established by a pair of dedicated CPAs with a wealth of experience in both private and public accounting.

Proving its worth through providing quality service, the firm has now grown significantly and serves businesses of different sizes and types.

Services/Specialization:

  • General Accounting Services
  • Internal Audit
  • Taxation Services
  • Company Registration, Incorporation and SEC Amendments
  • BOI Registration
  • Project Feasibility Studies
  • Loan Processing and Packaging
  • Management Consultancy Services

Areas they serve: Philippines

Contact Details: 

  • Address: 5/F-B RCC Center, 104 Shaw Boulevard Kapitolyo, Pasig City, Metro Manila, Philippines 1603
  • Contact number: +63 2 7975 0862 | +63 917 596 6748 
  • Website: https://www.una-acctg.com/

SCP & Co.

Sison Corillo Parone & Co. (SCP & CO.) was set up in January 2001 by founders who have more than 40 years of cumulative experience in the field.

Initially, it was a general professional partnership that provided accounting, taxation, auditing, and other related services, but it has expanded to include services like legal, recruitment, outsourcing, training and network membership, human resources, software development, sales and marketing, and IT services. 

Services/Specialization:

  • Audit, Assurance & Risk Management
  • Finance and Accounting
  • Tax and Regulatory Compliance
  • Advisory and Consulting
  • Organizational Development
  • Information System Audit and IT Services
  • Recruitment & Staff Secondment
  • Paralegal and Secretarial
  • Property and Business Valuation
  • Business Registration and Incorporation
  • Mergers & Acquisition
  • Trainings and Certification
  • Business Valuation & Appraisal
  • US Taxation

Areas they serve: Philippines

Contact Details: 

  • Address: 2005B 20th Floor West Tower, Philippine Stock Exchange Centre Exchange Road, Ortigas Center, Pasig City, Metro Manila Philippines 1605 
  • Contact number: +63 2 8687 6649 loc. 117, 110
  • Website: https://www.scp-ph.com/

Balagot & Co. 

Audit and accountancy firm Balagot & Co. has a team of trusted professionals who offer excellent services and relevant solutions to clients needing financial guidance.

The firm has been in the industry for over a decade and has been providing outstanding professional customer service. Balagot & Co. aims to exceed clients’ expectations by giving sound professional advice, delivering accurate and unbiased reports, and offering excellent client service. 

Services/Specialization:

  • Financial Statement Audit
  • Accounting
  • Tax Services
  • Business Registration
  • Accounting Systems

Areas they serve: Philippines

Contact Details: 

  • Address: WorkFolk, 9th Floor M1 Tower, H.V. Dela Costa, Makati, Metro Manila, Philippines 1227
  • Contact number: +63 917 719 6563
  • Website: https://www.manilaaccountant.com/

Inventor, Miranda & Associates

Philippine-based accounting firm Inventor, Miranda & Associates is composed of Filipino professionals who provide accounting, audit, taxation and consulting services.

Founded in 1958 as a sole proprietor, the firm was registered with the SEC (Securities and Exchange Commission) as a GPP (General Professional Partnership) in 1981.

The firm currently serves clients from various industries like manufacturing, merchandising, construction, agriculture, automotive, service, cooperatives, lending, and non-stock non-profit, among many others.

Services/Specialization:

Areas they serve: Philippines

Contact Details: 

  • Address: 2nd Floor , Terra Dolce Bldg., Hilado Ext., 13th St. Bacolod City, Negros Occidental, Philippines 6100
  • Contact number: +63 34 213 0680
  • Website: http://inventormiranda.com/

JC Sabal and Associates, CPAs

Accounting and consulting firm JC Sabal and Associates offers professional services like accounting, assurance, company set-up and dissolution, and HR Support, among others.

In April 2017, the firm was founded by John Christian B. Sabal, a Certified Public Accountant who has extensive experience working for both local and international firms and specializes in management advisory, audit, and tax support.  

Services/Specialization:

  • Accounting, Outsourcing and Payroll Services
  • Audit and Assurance
  • Company Set-up, Registration and Dissolution
  • M&A and Corporate Finance
  • Tax Compliance & Corporate Legal Services
  • HR Services and Philippines Visa

Areas they serve: Philippines

Contact Details: 

  • Address: Unit 206 West City Plaza, 66 West Avenue West Triangle, Quezon City, Philippines 1104
  • Contact number: +63 2 8351 3041 | +63 922 934 7954
  • Website: https://www.jcsabal.com/

Why Accounting Matters for Businesses

Accounting contributes to the growth of a business.

In planning the growth of your company, you have to set goals, such as what your profits should look like in a year and in five years.

When you keep up with your accounting, you can stay on top of the finances of your business and you can see how your business is developing. If there is no accurate reporting, you won’t be able to have the full picture.

Accounting can help in attracting investors or selling your business.

Courting investors or selling your business may not be part of the plan now, but it is a possibility. The best way you can do this is by having a proper accounting system now.

Potential investors or buyers expect accounting records that are vetted by a Certified Public Accountant (CPA). The records will prove that your business is not only profitable but also on track for growth.

Accounting is needed to get a loan.

Where your business stands is reflected in up-to-date financial statements.  If you want to take out a loan to fund your business, up-to-date financial statements are essential.

Accounting helps you manage your debts.

A variety of sources can lend money to a business. Sources could be loans, credit cards, and accounts payable. If your business owes these sources, you will have to check multiple accounts.

However, if you have a balance sheet, it can show everything that you owe and your bank account balances at the same time.

You can review the report to plan future payments and make sure that you have cash available to repay your debts.

Accounting helps you collect payment.

When a customer has not paid you yet, it shows up on your balance sheet as Accounts Receivable (AR). The balance sheet can be generated manually by your accountant or yourself or automatically by an accounting software.

You can monitor how effective you are collecting payment by looking at your balance sheet. If you see that the processes you have in place are not very effective, you can modify them, like better follow-up with clients or harder payment deadlines.

Accounting helps you stay on top of your taxes.

It can be a challenge to keep track of the taxes you need to pay, especially if your business is growing. Solid accounting provides you with complete, accurate financial records.

This helps you avoid breaking tax laws. Also, an accountant can do the filing of your taxes for you, and they can make sure it is accurate and done on time.

Related: Top Business Services in the Philippines


Accounting Services in the Philippines FAQs

What is the accounting cycle 

The accounting cycle is a process for taking in transaction data and producing consistent and accurate financial reports. It has six main steps:

1. Record transactions. 

Collect invoices, credit or bank statements, and receipts from all business transactions.

2. Make journal entries for the transactions.

A journal entry of a transaction has three components: when it happened, its purpose, and the amount involved in it. There are businesses that use single-entry accounting (only the revenue or expense is entered.

However, double-entry accounting is more common. With this type, each transaction is recorded in two accounts: the source of the money and where it’s going.

3. Make an unadjusted trial balance. 

List all of the accounts of your business and their balances when a reporting period ends. 

4. Prepare adjusting entries.

You do this when you have to update entries that you’ve already made. For example, if you offer a client a 10% discount, the discount will be entered as an adjusting entry instead of changing the entry that you’ve already made.

5. Make an adjusted trial balance. 

After you enter adjusting entries, you will have an adjusted trial balance. 

6. Make financial statements.

The information you have gathered is converted into financial statements or reports, which are concise summaries of all the financial activity of your business.

Most of these processes and rules can be automated using an accounting software.

  • When to hire an accountant for your business? 
  • Here are the five reasons you should consider hiring the services of an accountant or CPA:

    1. You’re just starting to set up your business. 

    A CPA can check your business plan and make sure it’s financially sound. They can also help you come up with a budget and execute it. If you’re thinking of managing your daily bookkeeping initially, a CPA can suggest the best software options.

    Also, they can assist you with things like registering and launching your business and determining your tax filing and accounting requirements.

    2. Recurring financial tasks are taking up a lot of your time. 

    Time is definitely a valuable resource and an accountant can help you modify the processes in your business or optimize your current accounting and recordkeeping systems to make sure that they’re efficient and fast.

    3. Financial planning and analysis are what you need.

    If you only use accounting software, you will be responsible for analyzing the profit and loss statements, balance sheets, cash flow statements, and other financial reports.

    You have to do all of these in addition to running your business. If you hire an accountant, you can have access to the wealth of financial insights that they possess. They can draw out opportunities from their analysis of your business and help you in financial planning.

    4. You’re taking out a loan, applying for a grant, or seeking other funding.

    A CPA can help you evaluate the different ways of building business credit. They can also direct you to the low-risk avenues and help you narrow down the loan options so you know which ones best suit your budget.

    For example, they might find out that a traditional term loan is less beneficial for your business compared to a credit line or microloan.

    5. You’re being audited or preparing taxes. 

    Tax time can be a massive headache for businesses. There is also potential for costly mistakes. Getting someone else to check the tax returns of your business long before you file them is ideal.

    CPAs can manage both personal and business taxes. They are adept at navigating tax season and reducing your liabilities. They can also represent your business if there is a tax audit or error.

  • How to choose an accountant for your business? Bookkeeper vs. Accountant vs. CPA 
  • There are various finance and accounting (F&A) professionals. Whose services you should get for your business depends on what you need. 

    Bookkeeper

    They record financial transactions and maintain company records which shows the flow of money in the business. A bookkeeper can also: 

    – enter transactions into the company ledger (or accounting software)
    – pay suppliers
    – provide billing for rendered services
    – handle payroll-related tasks
    – create financial reports.

    Accountant  

    The minimum requirement to be an accountant is a degree. The tasks of an accountant and a bookkeeper are similar in a way, but hiring an accountant is ideal for higher level tasks like reviewing business finances.

    You can also get financial advice from an accountant so you know the areas of your business that generate profit and the areas that need improvement. An accountant can also:

    – prepare financial statements
    – offer tax advice,
    – file income tax returns,
    – find accounting discrepancies
    – do budget forecasting.

    CPA (Certified Public Accountants) 

    Academically and professionally tested, CPAs are professionals that perform finance and accounting tasks. Aside from undergoing strict training in school, they have passed an exam that a professional regulating body sets. 

    How much does it cost to hire an accountant in the Philippines?

    If you hire an in-house accountant, they can help you ensure your financial processes are compliant with Philippine tax laws and steadily manage your finances.

    On the other hand, engaging the services of an outsourced accounting provider will help you cut overhead expenses and labor costs.

    In-house accountant

    According to a report from PayScale, full-time accountants earn Php 29,000 a month on average while bookkeepers get Php 20,000.

    In the Philippines, there is a pay gap between certified accountants (CPAs) and those who are not. The professional regulatory board that certifies accountants in the country is the PICPA (Philippine Institute of Certified Public Accountants). Since CPAs undergo more training and pass more accreditations, they earn 10-15% more than non-CPAs.

    Freelance CPA
     
    Outsourced accountants often have lower fees. Also, they are only paid for the services they render in projects. The monthly rate of freelance CPAs ranges from Php8,000 to Php20,000.

    About Phoebe Jade Tabar

    Phoebe is a business & finance writer at Grit PH. She also teaches English and review classes online. She has been to several countries in Southeast Asia and hopes to visit more in other parts of the world.

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