In the afternoon of this 27th of December 2011, we successfully updated the companies’ Manual Book of Accounts for the year 2012. In fact, the due date of registration in the update of Manual of Book of Account for the month of November 2011 is on December 29, 2011 but can be moved in a specified date with the revenue memorandum circular upon the discretion of the agency, Bureau of Internal Revenue (BIR), if needed for the benefit amongst the taxpayers not yet registered their Book of Accounts that will be used for the records of transactions for the Taxable Year (TY) ending December 31, 2012.
For both Individual (Proprietors) and Non-Individual (Corporations/Partnerships & Other Organizations) Taxpayers, registration of Book of Accounts is required upon registration of business within the jurisdiction or revenue district office (RDO) of such business entity.
The application of registration for the update of Manual of Book of Accounts is required if all the pages of such Book of Accounts has been used and all recorded transactions are updated from the previous registration. This is the time that the Application of Registration of Update of Book of Accounts is necessary to avoid the consequences of paying penalties and interest in the future. It is also necessary to preserve the book of accounts for references and it is required to do so for legal purposes and books should be kept with a certain period specified by the revenue regulations related to keeping of book of accounts.
Anyway, this is to share the steps in the application for the registration of Update of Manual of Book of Accounts that I have experienced today with details as follows: (1) Checking and Updating of the new set complete Book of Accounts such as Cash Receipt Book, Cash Disbursement Book, Subsidiary Sales Journal, Purchase Journal, General Journal Book and General Ledger Book; (2) Accomplish the BIR Form No. 1905 (Application for Registration of Information Update); (3) Photocopy the first page of the previously approved books (4) In the BIR office, Stamp the first page of the complete set of books and fill up the the required information; (5) Let the Book of Accounts be encoded by the authorized person or BIR employee for the update of book of accounts and stamped with the date of registration and authorized revenue officer. The initial or signature of the encoder is also necessary as a confirmation for the encoding and updating of books in the system; and finally (6) Let the complete set of book of accounts be approved and signed by the authorized officer of the Registration Office in the BIR.
Sample of BIR Form No. 1905 – Application
Pleased be informed that the Application for Registration of Updated of Book of Accounts was done with the Revenue District Office (RDO) No. 050 in Makati City, Philippines.
In fact, I am glad with the procedures and requirements in the updating the of books this year compared last year requiring the taxpayers to bring and show them the previously approved books which is not really necessary. It is clearly stated in the BIR Form No. 1905 that the requirement for the update of book of accounts is the photocopy of the first page of the previously approved books. The unnecessary requirement is a burden to the taxpayers and will cause for the delay of such transactions.
Folks, let us be objective and apply the basic principles related to this issue for the benefit of both the taxpayers and persons involved within the agency for the growth and development of the economy of our country.