Five Globe Business solutions that make a difference in SMBs’ growth

Small and medium businesses face many challenges on the road to growth and success. Competition and limited resources are two constant obstacles that any SMB must hurdle if it is to sustain its existence and eventually thrive. Just how difficult is the journey for SMBs? According to Manny Escosa, Globe Business SMB Marketing Head,  many SMBs close shop after only three years of operations.

Despite this, the success of SMBs is vital to the Philippine economy: collectively, they are the nation’s largest source of employment. This isn’t surprising since more than 90 percent of businesses in the Philippines today are SMBs. From this perspective, it becomes very important for SMBs to receive all the help they can get.

Globe Business has a sense of mission when it comes to creating packages for small and medium businesses. That’s because when we help SMBs succeed we are also helping the economy. As more and more SMBs succeed, more people will have jobs. In turn, there will be more economic activities as these people spend their income. The more people spend, the more businesses earn, giving them more capital to expand and hire more employees. Everybody wins as this cycle continues,” said Escosa.

He revealed that Globe Business has five solutions that are sure to make a difference for SMBs when it comes to their growth and success. These solutions address many of SMBs’ needs and help them make their operations simpler and more efficient at less cost.

Globe Business PayrollCloud

For SMBs, the payroll process can be a tedious, error-prone, and stressful undertaking. There’s so much paperwork and documentation involved in processing the payroll data—a painstaking and time-consuming activity that would have to be done over again if there’s a mistake. Correcting mistakes adds to the difficulty because of all the hard copies that HR and accounting personnel would have to backtrack and inspect.

“The perfect solution for all that is the Globe Business PayrollCloud that provides high-tech payroll and HR services at just P136 per day. For this very affordable amount, small and medium businesses can have a high-tech, computerized HR and payroll system. They can say goodbye to all the problems and stress caused by the old, error-prone, and tedious manual system,” said Escosa.

Globe Business PayrollCloud can be used not only to make payroll but also to implement other HR processes like recording employees’ office attendance and time sheets; an electronic Bundy system; managing employees’ leaves of absence, and also keeping track of official company expenses incurred by employees on the job.

With Globe Business PayrollCloud companies can more easily comply with tax filing requirements set by the BIR. It allows them to file remittances to agencies like PAG-IBIG, SSS, GSIS, or PhilHealth more efficiently, accurately, and on schedule.

Globe Business PayrollCloud can be scaled and customized to fit the requirements of any company. It is already compliant with Philippine regulations and can be modified to accommodate the special needs of a particular business.

The Globe Business PayrollCloud system is operated through the highly-advanced and reliable servers of the Globe network; this ensures that subscribers’ company data are secured against data theft, hacking, and other threats.

Since the Globe Business PayrollCloud system is Cloud-based, it is accessible from any place where there’s an Internet connection. This gives concerned personnel the freedom and convenience to use the system even when outside the office.

Business Capped Plans

Doing business nowadays is impossible without proper facilities for communication. Decades ago, a telephone was the most important business communications tool. Nowadays, a business would be left behind if it doesn’t use mobile phone and Internet communications. The only problem is, the use of these tools can come at too high a cost. How does an SMB manage its communications costs?

For that, Globe Business has packaged several types of Business Capped plans. These plans set a cost ceiling for the use of the company’s mobile phone accounts every month.

A Business Capped Plan provides a monthly load allowance that serves as a cap or limit on company mobile phone credits. For example, if a Business Capped Plan has a monthly allowance of P600 per month, the company only pays for that amount.

Furthermore, Business Capped Plans have an Unli Business Loop feature that allows unlimited calls within the company.  Those who subscribe to Business Capped Plans would also receive mobile phones as part of the package.

Business Capped Plans let entrepreneurs have more control over mobile phone expenses while empowering employees at the same time,” said Escosa.

There are two Business Capped Plans available from Globe Business: Plan 300 with P300 worth of load allowance plus 35 bonus SMS per month; Plan 600 with P500 worth of load allowance plus 85 bonus SMS per month and the Unli Business Loop service that enables unlimited calling amongst employees of client companies.

Even if the Business Capped plan load allowance is used up before the month ends, all that an employee has to do in that case is to reload the SIM with regular Globe credits. Business Capped Plans also allow the user to avail of Globe’s various prepaid promos, like Supersurf, to maximize the use of their load allowance.


SMBs that need to send a high volume of text messages will greatly benefit from Globe Business TxtConnect—it is a Web-based service that broadcasts SMS messages to groups of people using a computer with an Internet connection. This makes it easier to send SMS blasts in just one broadcast, with just a few keystrokes on the computer.

TxtConnect also charges rates that are much lower than regular text messaging or phone calls. It is very cost-efficient as it charges lower text message fees with a plan that starts at P1500 per month. Subscribing to TxtConnect results in as much as 35 percent in saved cost compared to the regular text messaging service charges.

Direct Internet Lite

No serious enterprise, one that is aiming for sustainability and growth, will be able to do business today without an Internet connection. Direct Internet Lite is designed to provide a fast, reliable, and powerful Internet connection to SMBs—at more affordable rates.

Direct Internet Lite uses a leased line set-up with basic Internet connectivity for both Foreign and Domestic routes. SMBs can choose from bandwidth options ranging from 2,000 Mbps to 10,000 Mbps and enjoy always-on Internet connection that they can use for their business communication needs.

AutoMAX Corporate Edition

Using Globe Business AutoloadMAX Corporate Edition helps SMBs manage, schedule, and automatically reload prepaid credits directly to employees’ cell phones. The company may also keep track of the mobile phone spending of a department, or individual employees. AutoloadMAX Corporate Edition allows unlimited calls within the company. A predetermined amount of consumable load is automatically reloaded to employees’ cellphones every month.  Employees’ prepaid accounts may be reloaded individually or in bulk. A Top-Up and Usage Report is also generated for every user under the service.

Globe Business is the corporate arm of Globe Telecom, the leading mobile telecommunications company in the Philippines. Globe Business provides wireless and wireline solutions for a diverse set of industries, businesses, and commercial enterprises. It assures SMEs of affordable, reliable, and dependable services for all communication needs, both wireless and wireline solutions, to generate the highest possible profit at the lowest possible cost.

Learn more about what Globe Business PayrollCloud and other Globe Business products and services can do for you by visiting or calling +632 730-1010.


RESEARCH AND DEVELOPMENT COST under PAS 38, paragraph 52, provides that to assess whether an internally generated intangible asset meets the criteria for recognition, an entity classifies the generation of the asset into a research phase and a development phase.

Research is original and planned investigation undertaken with the prospect of gaining scientific or technical knowledge and understanding.

Otherwise stated, a research activity is undertaken to discover new knowledge that will be useful in developing new product or that will result in significant improvement of existing product.

Development is the application of research findings or other knowledge to a plan or design for the production of new or substantially improved material, device, product, process, system or service, prior to the commencement of commercial production.

Simply stated, a development activity involves the application of research findings to develop a new product.

Paragraph 53 provides that if an entity cannot distinguish the research phase from the development phase, the entity shall treat the expenditure as if it were incurred in the research phase only.

Research activities include:

  1. a.       Laboratory research aimed at discovering or obtaining new knowledge.
  2. b.      Searching for application of research finding and other knowledge.
  3. c.       Conceptual formulation and design of possible product or process alternatives
  4. d.      Testing in search or evaluation of product or process alternatives. 

Development activities include:

  1. Design, construction and testing of preproduction prototypes and models
  2. Design of tools, jigs, molds and dies involving new technology
  3. Design, construction and operation of a pilot plant that is not of scale economically feasible for commercial production
  4. Design, construction and testing of a chosen alternative for new or improved product or process

Normally, research and development activities occur prior to the beginning of commercial production and distribution of product or process.

Examples of activities that relate to commercial production do not result to research and development activities include:

  1. Engineering follow through in an early phase of commercial production
  2. Quality control during commercial production including routine testing
  3. Trouble shooting in connection with breakdowns during production
  4. Routine on-going efforts to refine, enrich or improve qualities of existing product
  5. Adaptation of an existing capability to a particular requirement or customer need
  6. Periodic design changes to existing products
  7. Routine design tools, jigs, molds and dies
  8. Activity, including design and construction engineering, related to construction, relocation, rearrangement or start up of facilities and equipment.

PAS 38, paragraph 54, provides that no intangible asset arising from research or from the research phase of an internal project shall be recognized.

In other words, expenditure on research or on the research phase of an internal project shall be recognized as expense when it is incurred.

The reason is that at the research phase of a project, an entity cannot be certain that future economic benefits would probably flow the entity.

At the research phase, an entity cannot demonstrate that an intangible asset exists that will generate probable future economic benefits.

In contrast, development cost is incurred at a later stage in a project and the probability of success may be more apparent.

Accordingly, development cost may be expensed or capitalized depending on whether certain criteria or conditions are met.

Thus development cost may qualify as intangible asset if and only if the entity can demonstrate all of the following:

  1. The technical feasibility of completing the intangible asset so that it will be available for use or sale.

This is achieved when a prototype or model is produced.

The entity has completed the testing of the model and it is now convinced that it has a product to sell or use that is significantly better than any other product available in the market. The entity plans to file a patent application for the product.

  1. The intention to complete the intangible asset and use or sell it.
  2. The ability to use or sell the intangible asset.
  3. How the intangible asset will generate probable future economic benefits. 

Among other things, the entity shall demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself.

  1. Availability of resources or funding to complete development and to use or sell the asset.
  2. The ability to measure reliably the expenditure attributable to the intangible asset during its development.

Explain the accounting for “acquired in-process R and D project”.

An in-process research and development project acquired separately or in a business combination is recognized as an asset cost, even if a component is research. 

Subsequent expenditure on that project is accounted for as any other research and development cost which may be expensed or capitalized depending on the recognition criteria for an intangible asset.

Accordingly, the subsequent expenditure is recognized as an expense if it is a research expenditure.

The subsequent expenditure is added to the carrying amount of the in-process research and development project if it is a development expenditure that satisfies the recognition criteria for an intangible asset.

Otherwise, the subsequent development expenditure is recognized as an expense.

The AICPA Financial Accounting Standards Board stipulated that expenditures for research and development which have alternative future use, either in additional research projects or for productive purposes, can be capitalized. 

This exception permits the deferral of costs incurred for materials, equipment, facilities and purchased intangibles related to research and development activities but only if an alternative future use can be identified. 

The cost of materials subsequently used, the depreciation on the equipment and facilities, and the amortization of the purchased intangibles would then be charged to research and development expense. 

 Cost incurred in creating an computer software product shall be charged to expense when incurred until a technical feasibility has been established for the product.

Actually, this the research stage where there is so much uncertainty about the future economic benefits. Accordingly, all the research costs shall be expensed outright.

As a minimum, technological feasibility is established, capitalizable software costs include the cost of coding and testing and the cost to produce masters. 

The costs incurred to actually produce the software from masters and package the software for sale shall be charged as inventory. 

The amortization method for a computer software shall reflect the pattern in which the asset’s future economic benefits are expected to be consumed by the entity.

If such pattern cannot be determined reliably, the straight line method is used.

  1. As a rule, computer software is classified as an intangible asset.

Under US GAAP, a computer software is classified as technology-based intangible asset.

  1. Computer software purchased for resale shall be treated as inventory.
  1. A computer software purchased as an integral part of a computer controlled machine tool that cannot operate without the specific software shall be treated as property, plant and equipment.

However, if the computer software is not an integral part of the related hardware, if it classified as an intangible asset.

Under SIC 32, a web site that has been developed for the purpose of promoting and advertising an entity’s products and services does not meet the requirement to be recognized as an intangible asset.

Therefore, web site development cost shall be expensed when incurred.