Section: Books of Accounts Subsection: 040-01

Subsection: Overview Page 1 of 1

OVERVIEW

Books of account refer to the records or books in which all financial information

(transactions) of a business or an entity is recorded and maintained. As a company

maintaining a record of its day to day business transactions is not only a necessity, but

a requirement. Books of account are the records of transactions or financial information

of a business which is why books of account are important for a business’s decision

making, strategies formulating, evaluating the financial performance and making sure

that business is complying with the rules of regulatory bodies.

There are many BIR approved ways to maintain a company’s books of accounts;

manual, loose-leaf, computerized and such; and due to technology advancement, it is

only but imperative for the company to maintain their books of accounts in a way to

serve their partners in business in the most convenient and advantageous way. That is

why having the books of accounts in a computerized manner is such a big move and a

vital part for the company’s every day business transactions and decision making.

Computerized Books of Accounts employs the use of computer programs that

have been configured in an accounting system to facilitate easy, accurate, and speedy

record keeping. Using computerized books of accounts can also lead to conducting

business in the handiest way and help the company save from labor work, space and

time of keeping the documents safe and accessible.