As a business owner, I understand how paying taxes can be overwhelming and intimidating. It’s more than just paying your annual income tax returns (ITR).

Watching the webinar, ‘Practical Practices: Accounting & Taxation Best Practices for MSMEs’, was really helpful to understand the ins and outs of accounting and taxation in managing your business.

Here are my few takeaways from the webinar.
 

1. Having the right mindset

Paying your taxes starts from having the right mindset. We need to understand that taxes are not tools for oppression. It’s our social responsibility to our country which can help the government in improving and funding projects including building roads, schools, and hospitals for Filipinos.

You might argue, “I don’t see where my taxes go,” but this doesn’t mean you have to run away from your obligations. Instead of using this excuse, what you can do is to get the most out of the taxes you pay. Be proactive. Call out the elected officials if necessary to improve government facilities and public services.

You may not realize the long-term benefits of the taxes you paid, but there are people who have actually benefited from your taxes. And with more taxes being collected, the government can be able to improve the quality of basic services and widen development programs to every Filipino.

2. Getting a reliable accountant

I learned this the hard way. I didn’t exactly understand the essence of getting an accountant until I paid a penalty for missing the deadline for my quarterly income tax return. One of the best practices shared in the webinar is that revenue should be reported in the proper period. If not, just like what happened to me, you will face and pay certain penalties.

But not all lessons are learned the hard way. So better get a reliable accountant who is experts in this field. This is why an accountant exists.

Getting a reliable accountant allows you to sleep better at night and helps you to focus on growing your business.

3. When in doubt, ask

Ask for help. Don’t hesitate to seek advice. UnionBank GlobalLinker, together with reputable accounting firms P&A Grant Thornton and MGP accounting, launched Project Luca, an initiative that provides free accounting consultations to MSMEs. Join the Project Luca here and post your accounting and tax-related concerns on the discussion board. You can also email us at info@unionbank.globallinker, Project.Luca@ph.gt.com, and marketing@MGPaccounting. The team is more than happy to listen and help.

Also read: Project Luca: Free accounting consultation for MSMEs

Other best practices shared in the webinar:

• Ensure that the prescribed conditions are met for expenses to be deductible for income tax purposes
• Ensure that revenue/receipts reported in the ITR and VAT returns are supported with invoices and official receipts.
• For lease and other income with different recognition methods for income tax and reporting, the amount reported in the ITR/VAT return should be traceable to the contract/agreement.
  
  

Remember, it starts with the right mindset. Let’s just say that you are blessed to be able to pay taxes. 

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Disclaimer: This article is based solely on the inputs shared by the featured members. GlobalLinker does not necessarily endorse the views, opinions & facts stated by the members