Frequently Ask Questions about

Bookkeeping Services
1. What is bookkeeping?
Bookkeeping is the process of recording your or a
companys financial transactions and the first basic
step of the accounting process. The accounting
process involves classifying, reporting and analysing
of data and none of it can take place if there is no
organized and accurate bookkeeping.
2. What is the Importance of Bookkeeping?
o The importance of bookkeeping cannot be
emphasized enough, but here are top reasons why
this is vital to the health and life of your business.

Fulfilment of Tax Obligations

Bookkeeping keep tracks on any information and
documents in order to accomplish annual taxes.
You dont have to rush any more to find all those or
try remembering expenses when tax time comes.
Tax returns are also made easier with an organized
Balance Sheet, Cash Flow and Profit and Profit &
Loss, your tax advisor will devote time in giving
you sound tax advise instead of correcting entries
in the financial statements.

Better Financial analysis and

management

Cash flow management is one of the most

important things to focus. Regardless if you are
busy or not, once invoices are delayed, no follow
ups on customer payments and falling out on
suppliers list of customers will eventually crash
you down. Bookkeeping can systematize it up from
up-to- date follow-ups, invoicing and on-time
payment for suppliers.

 Proper Record Keeping as Required by

Law
Bookkeeping keeps record keeping properly
organized from small to big big/invoice. It makes
retrieving process easy once audit time comes

Business Planning is Easy

What you need is only the Balance sheet and Profit

& Loss to check if the company is on the right
track financially, from there you can start your
business planning so much easy.
3. What Kind of Services Offered of JEBE
Bookkeeping Services?
Filing and submission of e-BIR Forms
Payroll
Accounts Receivable Management
SSS, Phil health, Pag-ibig payment
Recording of business transactions in the books of
accounts
o Preparation of monthly Financial Statements
o Record Management and Archiving
o
o
o
o
o

4. How to File and submit the eBIR Forms?

This Circular is issued to provide guidelines in filing
BIR Forms Nos. 2551M, 2551Q,2550M and 2550Q,
using the ELECTRONIC PLATFORMS. This circular does
not cover Taxpayers who are not mandated to use
eFPS/eBIRForms and who have not opted to file
electronically, and thus, the existing procedures on
manual filing shall apply.
5. How to use Offline eBIR Forms?
Those Taxpayers filing with payment or no payment
using the Offline eBIRForms of the said forms shall
follow the same procedures in Annex D of RMC 142015 and efiled by attaching xml file to email. After
validating the tax return, click FINAL COPY, open

the directory C:eBIRForms/IAF_RDO_Copy/ in the

computer. Look for the xml file of the encoded tax
return form with the following naming convention:
(RMC No. 21-2015)
6. What is Accounts Receivable Management?
Account receivable management includes
establishing a credit and collections policy for your
credit accounts, including aging accounts receivables
and whether to sell on credit at all.

7. What are the benefits of SSS?

Covered employees are entitled to a package of
benefits under the Social Security and Employees
Compensation (EC) Programs in the event of death,
disability, sickness, maternity and old age. Selfemployed and voluntary members also get the same
benefits under the EC program. Basically the SSS
provides for a replacement of income lost on account
of the aforementioned contingencies. The benefits of
Social Security Program are: Sickness, Maternity,
Disability, Retirement, Death, and Funeral.

8. What are the benefits of Phil health?

o Phil health beneficiaries have access to a nearly
comprehensive package of services, including
inpatient care, catastrophic coverage, ambulatory
surgeries, deliveries, and outpatient treatment for
malaria and tuberculosis. Those identified as indigent
and OFW are also entitled to outpatient primary care.
o Inpatient care includes room and board, medicines,
diagnostic and other services, professional fees and

operating room services. These benefits are subject

to some limits, which differ based on the level of the
health facility/hospital (level 1to 4 hospitals and
Ambulatory surgical centers equivalent to level 2
hospitals) and the severity of the cause of admission
(case type A, B, C and D). Catastrophic conditions,
ambulatory surgeries including ambulatory dialysis,
deliveries and outpatient malaria and TB-DOTS care

9. How to pay the Pag-ibig Payments?

o Fill-up Members Contribution Remittance Form
(MCRF)
o List down the entire employees name, Pag-ibig MID
No., monthly compensation, employee share and
employer share.
o Pay it the total amount of contributions to the nearest
branch in your company
10.

What is Records Management?

Records Management is an organization-wide
administrative service responsible for creating and
maintaining systematic procedures and controls over
all phases of the records life cycle.

11.

What is Recording Transactions?

Bookkeeping (and accounting) involves the recording
of a company's financial transactions. The
transactions will have to be identified, approved,
sorted and stored in a manner so they can be

retrieved and presented in the company's financial

statements and other reports. The transactions will
be sorted into hundreds of accounts including Cash,
Accounts Receivable, Loans Payable, Accounts
Payable, Sales, Rent Expense, Salaries Expense,
Wages Expense Dept 1, Wages Expense Dept 2, etc.
The amounts in each of the accounts will be reported
on the company's financial statements in detail or in
summary form.

12. How to simplify the set of Bookkeeping

Records?
Consists of the record of duly sales and cash receipts,
the record of daily purchases, expenses and cash
disbursements, record of the summary of
transactions, and the yearly statements of net worth
and operations, which may be in combined form or in
separate booklets. Said records should be specially
designed for each class or kind of trade or business
and prepared by a certified public accountant, should
conform substantially to the forms illustrated in
Revenue Regulations No. V-13, should be regularly
bound, and may be printed, mimeographed or
typewritten. (As amended by Sec. 2, Reg. No.V-13
and Sec. 1, Rev. Reg. No.V-43.
13. What are the modes of Payment of JEBE
Bookkeeping Services?
o P1,000.00-non-VAT below 1,000,000 sales
o P3,000.00- non-VAT with more than P1,000,000 sales;

o P5,000.00- VAT taxpayers with sales below

P10,000,000 sales;
o P10,000.00- VAT taxpayers with sales of more than
P10,000,000 sales;
o P20,000.00- VAT taxpayers with sales of more than
P100,000,000;
o Other one-time service-depend on the scope and
requirements of regulatory agencies.
14. How to Avail the JEBE Bookkeeping Services?
o Visit our website- jebebookkeeping.weebly.com
o Click the Services Offered button or go to Services
tab.
o Click the Avail Our Services button
o Fill-up the Registration Form to avail the services and
click Submit.
o Download, fill-up and sign the JEBE-Client Service
Agreement and Letter of Engagement and email to us
at jebebookkeeping@gmail.com
o Expect a call or email from our representative to
discuss your concern.
o Wait for the approved Letter of Engagement
o Remit acceptance fee to selected banks.

15.

What is Official Receipt mean?

It is a document where receipt of cash is recorded from

the transaction involving cash sales on collection of
receivable, sales of asset, collection of loans, selling of
shares of stock and cash investment of owner. This
document is issued upon receipt of cash from customer,
owner, and other concerned. This contains the name of
the company, TIN or VAT number, and the address and
telephone number of the company. The receipts are
serialized with the BIR registration number. It is
evidence that the company has received cash from the
payees.

16.

What is the Sales Invoice?

It is issued when service or merchandise is delivered
to a customer or client. The invoices itself bear the
name of the business, address, and phone number,
business number, invoice number, date, and TIN or
VAT number, customers name and address,
description of service or merchandise, amount, and
signature of the employee.

17.

What are the Books of Accounts?

o Journal
o Ledger
o Subsidiary Ledger

18. Who are required to keep the Books of

Account?
Corporations, companies, Partnerships, or Persons
Required keeping Books of Accounts

19.

What is Journal?
o Book of original entry in which the happenings or
transactions affecting the business of a taxpayer of
a taxpayer are recorded consecutively day by day
as they occur
o The journal may consist of only one book, the
general journal. Its equivalents may consist of
several books such as sales book, purchase book,
cash book and such other books as the taxpayer
may find convenient for his business. Such books
are also books of original entries where all the

daily transactions, whether cash or otherwise, are

recorded in their chronological order.
20. How can it be that the Journal used in
recording transaction?
A journal, in order to comply with the provisions of
these regulations, must contain all the transactions
affecting the business. Every entry in the general
journal shall carry a brief but complete explanation of
the nature of the business transaction and be
supported by proper vouchers
21.

What is Ledger?

o It is a book of final entry to which are posted the

classified accounts or items of all transactions
entered in the journal or its equivalents
o The ledger, like the journal, may consist of one book,
the general ledger. Its equivalents, may consist of
several ledgers such as customers' ledger, creditors'
ledger, stock ledger, and such other books as the
taxpayer may find convenient for his business
o All entries in the journal must be posted to the ledger
not later than seven days from the date of the
transaction and shall be classified in the ledger so as
to show the assets, liabilities, capital, and the
operating accounts from which a balance sheet, and
a profit and less statement covering the operation of
the business can be prepared
o No entry shall be made in the ledger or its
equivalents unless said entry originates from the
journal or its equivalents. The general ledger shall be
in bound form. Where subsidiary ledgers are used,
the same may be either in book form or in loose-leaf
form, provided that the entries in the loose-leaf
subsidiary ledger are reflected in the general ledger
by a controlling account.

22. How to use the double entry bookkeeping

system?
The use of the double entry bookkeeping system is
permissible in any business transaction and,
therefore, said system may be used by retailers and
wholesalers.
23.

What is a Subsidiary book?

Persons required to keep the books and records
mentioned in section 334 of the National Internal
Revenue Code may, at their option, keep such
subsidiary books as the needs of their business may
require and such other books as may be required by
these regulations

24.

What is the use of subsidiary books?

Pursuant to section 335 of the Tax Code, where
subsidiary books are kept, they shall form part of the
accounting system of the taxpayer and be subject to
the same rules and regulations as to their keeping,
translation, production and inspection as are
applicable to the journal and ledger. Accordingly, the
requirement of registration and approval prior to the
use of the journal and ledger is applicable to the
subsidiary books

25.

What is Subsidiary Ledger?

Subsidiary Ledger is the customers individual record
to support the balance of the controlling in the
statement

26. What is subsidiary Ledger for Suppliers

Account?

For the Suppliers Part, a ledger is also kept by the

company to monitor the portion of payable to
suppliers called accounts payable subsidiary ledger.
27.
At what point does the subsidiary ledger
support the general ledger?
The total amounts of these subsidiary ledgers will
support the account balance appearing in the general
ledger
28.

What is cash on hand?

To record cash collected from sale or collection of
receivables and other sources of cash presently in
the hands of the business under the custodianship of
the cashier.

29.

What is cash in Banks?

To record the amount of money deposited under the
savings and current account which is used without
restriction to the business. This amount of cash is
made available for the current operation.

30.

How to use Petty Cash Fund?

The business normally uses petty cash account to
take care of the small expenses. Issuing a check is
impractical for small expenses. A custodian of the
petty cash fund is appointed separate from the
general fund cashier.

31.

What is Notes Receivable?

These are claims of the owner from its customers or
other stakeholders evidenced by promissory notes
under the control of the business. It may be interest
or non-interest.

32.

What is accounts Receivable?

These are claims from the customers not evidenced

by a promissory note usually from sale on account or
making advance payments to clients. Also called
open-account receivable.
33.

How to use prepaid Rent?

The account prepaid rent is used to record advance
payment and security deposit paid in advance to
occupy the rented premises. An asset account until
the expired portion is changed to expense.

34.

What is Prepaid Insurance?

The account prepaid insurance applies to the
insurance premium paid in advance for more than a
year. An asset account until applied to the expenses
portion.

35.

What are Office supplies?

This account is used to record the purchase of office
supplies such as worksheet, computer ink and paper,
pencil, ball pen, coupon bond, and other supplies
used in the office.

36.

What is Accounts Payable?

An account used to record the liability from acquiring
materials, goods and supplies from the creditor on
account.

37.

What is Notes Payable?

An account used to record issuance of promissory
note with a term less than a year.

38.

What is Loans Payable?

An account used to record the liability from receiving
a loan from a bank and other financial institutions.

39.

What is Mortgage Payable?

An account used to record a liability from obtaining

large amounts of loan using some collateral
properties.
40.

What is Salary Payable?

An account used to record unpaid salary

41.

What is Interest Payable?

An account used to record accrued interest from loan
and mortgage payables.

42.

What is Long-Term Notes Payable?

An account used to record issuance of promissory
notes with a term of more than a year.

43.

What is Service Income?

An account used to record revenue received from
client from rendering of services.

44.

What is Gain on Sale?

An account used to record the gain on sale of old
asset.

45.

What is Interest Income?

Account used to record the interest earned from
penalty imposed on delayed customers and from
receipt of payment of interest- bearing promissory
notes.

46.

What is Miscellaneous Income?

An account used to record revenue from selling other
assets like retaso, old newspapers, and the like.

47.

What is Salary Expense?

To record payment of salary to office employee,

factory worker and ordinary worker. It includes
payment of 13th month pay, sick leave, and vacation
leave.
48.

What is Rent Expense?

To record payment of rent on leased premises
whether store or space, or warehouse. It includes
vehicle and equipment rental

49.

What is Light and Power Expense?

An account used to record electricity cost for the
month

50.

What is Water Expense?

An account used to pay water consumption for the
month

51. What is telephone and Communication

Expense?
An account used to record cost of communications
for the month
52.

What is advertising Expense?

Account used to record the cost of advertisement,
pamphlet, tarpaulin, radio time, and airtime

53.

What is Office Supplies Expense?

An account to record the cost of supplies used in the
office such as computer ink and paper, pencil, pen,
photocopying expense and other office supplies.

54.

What is Insurance Expense?

An account to record the cost of insurance premiums

paid to insurance company for the safety and
insurance of company- owned asset and property.
55.

What is the Repair and Maintenance Expense?

An account used to record the cost of maintaining
equipment and vehicle of the company. It is used to
record the cost of maintaining equipment vehicles
and furniture.

56.

What is Taxes and Licenses expense?

An account to record to record the cost of mayors
permit and registration fees to government agencies.

57.

What is Membership fees Expense?

An account used to record membership fees paid to
accredited institution.

58.

What is Contribution and Donation Expense?

An account used to record contribution and donation
made by the company such as religious and
charitable donations.

59.

What is Gas and Oil Expense?

An account used to record gasoline and oil expense
used by the company

60.

What is Transportation expense?

An account used to record freight or transportation
fares incurred in rendering of service, and other fare
expenses.

61.

What is the T-Account?

The simplest form of a ledger is called the T- Account.
It has two sides to record the increase and decrease

of an account. The left side is for recording of

increases in ASSET and EXPENSE accounts, while the
right is used to record the increase of LIABILITY,
INCOME, and CAPITAL. At the center of T- Account is
the title of the account.
62.

How to Post accounts to the ledger?

Posting to ledger is done to sort-out the accounts and
to summarize the balances on the last day of the
accounting period.

63.

What is Trial balance?

A trial balance is an internal report that lists. 1) each
account name, and 2) each account's balance in the
appropriate debit column or credit column

64.

What is adjusting entries?

o It began with an accountant preparing adjusting

entries so that the accounts reflected the accrual
basis of accounting. Adjusting entries were necessary
for the following reasons:
o additional revenues and assets may have been
earned but were not recorded
o additional expenses and liabilities may have been
incurred but were not recorded
65. Why adjusting entries are needed?
In order for a company's financial statements to be
complete and to reflect the accrual method of
accounting, adjusting entries must be processed
before the financial statements are issued.

66. What is Double-Entry?

Except for some very small companies, the standard
method for recording transactions is double-entry.
Double-entry bookkeeping or double-entry
accounting means that every transaction will involve
at least two accounts.
67. What is Debit and credit?
o The words debit and credit have been associated
with double-entry bookkeeping and accounting for
more than 500 years. Here are the meanings of those
words:
o debit: an entry on the left side of an account
o credit: an entry on the right side of an account
68. What is Delivery receipts part of accounting
records?
The so-called delivery order receipts used by a firm in
accompanying the delivery of manufactured lead on
sales made by it in its Manila office are, like the
regular invoice and receipts, a part of the accounting
records and, therefore, subject to registration and
approval by this office before the actual use of the
same, pursuant to Section 14 of the Revenue
Regulations No. V-1
69. A vendor inside public market is required to
keep books of accounts?
Yes, the fact that Filipinos selling meat in public
market places are exempt from the fixed and a sales
tax does not relieve them from the duty of keeping
books of accounts
70. Vendors inside public market, is liable to keep
the books?

Yes, Public market vendors selling meat, poultry, fish,

fruits, vegetables and other food products though
exempt from the business tax are, nevertheless,
required to keep books of accounts, because they
are, in proper cases, subject to income and additional
residence taxes
71. How does the Gross income in relation to the
use of books of accounts?
Where the gross sales, receipts, or gross value of
output of a taxpayer exceeds P5,000 during any
quarter of the year, he cannot avail himself of the
use of the simplified set of bookkeeping records even
if during the other quarters his gross sales, receipts,
or gross value of output are only P5,000.00 or less.
72. How do the Books of accounts should be kept
by branch establishments?
An owner of a store who maintains a branch
establishment need not keep two sets of books of
accounts if the branch store merely buys goods or
merchandise for the principal store and no sale is
effected in the former, provided that memoranda of
transactions therein are kept and duly taken up in the
books of accounts of the principal store; otherwise,
the branch establishment should be provided with
separate books of accounts.

73.

Who are required to keep Books of Accounts?

Persons required by law to pay internal revenue taxes
whose gross quarterly sales, earnings, receipt, or
output, whether subject to percentage tax or not,
exceed five thousand pesos (P5, 000), are required to
keep books of accounts in accordance with the
standard accounting system. The said books of

accounts shall consist of journal and a ledger, or their

equivalents, and shall contain all information
necessary for the accurate determination of the
internal revenue taxes due on their businesses.

74. How to preserve of Books and Accounts and

Other Accounting Records?
All the books of accounts, including the subsidiary
books and other accounting records of corporations,
partnerships, or persons, shall be preserved by them
for a period beginning from the last entry in each
book until the last day prescribed by Section 203
within which the Commissioner is authorized to make
an assessment.
75.

How to dispose of Records?

A taxpayer can dispose of his general ledgers,
journals, subsidiary books and other accounting
records after three (3) years reckoned from the day
following the deadline in filing a return.

76. How to simplify the set of bookkeeping

records?
o The record of daily sales
o The record of daily purchases, expenses and cash
disbursements
o The record of the summary of transactions
o Yearly statements of net worth and operations
77. What is the Language in which books are to be
kept?

Language in which Books are to be kept; Translation. All such corporations, companies, partnerships or
persons shall keep the books or records mentioned in
Section 232 hereof in native language, English or
Spanish: Provided, however, That if in addition to said
books or records the taxpayer keeps other books or
records in a language other than a native language,
English or Spanish, he shall make a true and complete
translation of all the entries in suck other books or
records into a native language; English or Spanish, and
the said translation must be made by the bookkeeper,
or such taxpayer, or in his absence, by his manager and
must be certified under oath as to its correctness by the
said bookkeeper or manager. The keeping of such books
or records in any language other than a native
language, English or Spanish, is hereby prohibited, an
integral part of the aforesaid books of accounts
78.

What are the records to be kept?

o Aside from the books and other records required,

stockbrokers, dealers in securities, real estate
brokers, real estate dealers, commercial, customs
and immigration brokers shall use serially numbered
contract forms, which shall be issued in chronological
order, for each agreement had with their customers,
showing the date and other facts concerning the
services rendered or to be rendered and the
signature of the parties thereto
o The contracts shall be recorded every day in a
register book showing the date and number of the
contract, the name of the customer, the services
desired, the subject matter and the value thereof (in
case of properties), the compensation agreed upon
and the duration of the contract; and upon
termination of the contract, a remark as to the date

and number of the receipt issued for the

compensation received. The contracts shall be filed in
the office of the broker in numerical order together
with copies of all papers concerning the transactions.
79.

What is record of inventories?

o Persons required by law to pay internal revenue taxes

on business on business shall keep, in addition to the
other books and records prescribed in these
regulations, a book of inventories, in which they shall
record in detail the quantity, description, unit and
total cost of every item of their stocks-in-trade,
materials, supplies and other goods found in the
premises of their establishments at the time they
start business and at the close of the calendar year
or accounting period
o The inventory at the beginning shall be made and
submitted to the Commissioner of Internal Revenue,
if the place of business is in Manila, or to the deputy
provincial or city treasurer, if in a municipality or city,
within ten days after securing the privilege taxreceipts or starting the business, and the subsequent
inventories not later than thirty days after the close
of the calendar year or accounting period
80. What are the kind of business offered of JEBE
Bookkeeping Services and Tax Management
Services?
o
o
o
o
o
o
o
o

Bookkeeping
Bookkeeping
Bookkeeping
Bookkeeping
Bookkeeping
Bookkeeping
Bookkeeping
Bookkeeping

For
For
For
For
For
For
For
For

Hospitals
Medical Practitioners
Actors and Actresses
Real Estate Brokers
Travel Agencies
Security Agencies
Poultry and Piggery
Manufacturing Companies

o
o
o
o
o
o
o
o

Bookkeeping
Bookkeeping
Bookkeeping
Bookkeeping
Bookkeeping
Bookkeeping
Bookkeeping
Bookkeeping

For
For
For
For
For
For
For
For

General Merchandising Business

Recruitment Agencies
Restaurant Operators
Hotels and Resorts
Service Agencies
Fishpond Operators
Real Estate Lessors
Construction Companies

81. What are the modes of Payment Terms of JEBE

Bookkeeping Services??
o BPI
o BDO
o Land Bank
o Security Bank
o PNB
o Fax or email us the deposit slip
o Confirm receipt through email, SMS or telephone
82.

What are the legal bases of Bookkeeping?

o Section 232-234
o of NIRC, Keeping of Books of Accounts
o Pursuant to section 335 of the Tax Code, where
subsidiary books are kept
o RMC No. 21-2015
o As amended by Sec. 2, Reg. No.V-13 and Sec. 1, Rev.
Reg. No.V-43.
o Chapter 4 Debit credit principles and JournalizationService Concern Business (Accounting for Hotel and
Restaurant Management and Tourism Industry)