When it comes to fulfilling your tax obligations with the Bureau of Internal Revenue (BIR) in the Philippines, one of the simplest and most accessible methods is through manual books of account. These physical records, when properly maintained, not only help your business stay compliant—but also give you a clear picture of your financial health.
In this guide, we’ll walk you through what manual books are, how to register them with the BIR, how to maintain them properly, and the best practices to avoid penalties.
What Are Manual Books of Account?
Manual books of account are pre-printed, bound ledgers where business transactions are handwritten or manually recorded. These are the most basic form of bookkeeping and are commonly used by freelancers, sole proprietors, and micro to small enterprises.
They are affordable, easy to use, and ideal for businesses with a low volume of daily transactions.
Types of Manual Books Required
The BIR requires the following books, depending on your business type and tax registration:
Basic Books:
General Journal – Chronological record of all financial transactions.
General Ledger – Summarizes transactions by account (e.g., cash, sales, expenses).
Subsidiary Books (as applicable):
Cash Receipts Book – Records cash inflows.
Cash Disbursements Book – Records cash outflows.
Sales Journal – Required for VAT or Percentage Tax payers to record sales.
Purchases Journal – For tracking purchases of goods or services.
Not all businesses need to maintain all books. Consult with an accountant or your BIR RDO for requirements based on your setup.
How to Register Manual Books of Account with the BIR
Follow these steps to ensure your manual books are legally recognized:
Step 1: Register Your Business
Before anything, make sure you have:
BIR Certificate of Registration (Form 2303)
TIN (Taxpayer Identification Number)
Authority to Print receipts/invoices
Step 2: Buy Bound Ledger Books
Buy bound columnar or ledger books from a bookstore or office supply store. Avoid loose-leaf or spiral notebooks—they are not allowed for manual books.
Step 3: Go to Your Assigned BIR RDO
Prepare the following documents:
BIR Form 1905 (for registration of books)
A list of books you want to register
Your BIR Certificate of Registration (Form 2303) – bring a photocopy and the original
Your valid government-issued ID
Your books (blank) for stamping
Step 4: Submit & Have Your Books Stamped
The BIR will review your documents, and if all is in order, they will stamp the first and last pages of each book with their official seal and date.
Once stamped, your manual books are officially registered and ready to use.
How to Maintain Your Manual Books Properly
Proper maintenance is essential. Here’s how to do it right:
1. Write Legibly
Use black or blue ink. No pencils. Entries must be clear and readable.
2. Chronological Entries
Record transactions as they happen. Never backdate or skip pages.
3. No Erasures or Whiteouts
If there’s a mistake, cross it out with a single line, write the correction above or beside it, and initial the correction.
4. Daily or Weekly Updates
Don’t wait until tax season—update your books regularly to stay organized.
5. Use Consistent Formats
Stick to a standard format (e.g., date, description, reference number, amount). It makes auditing and reporting much easier.
When to Register New Books
You must register a new set of books when:
Your current book is fully used (all pages filled)
You are switching from one method to another (e.g., from manual to loose-leaf)
You’ve made a significant change in business operations (e.g., change in tax type or company structure)
Penalties for Non-Compliance
Failure to register or maintain manual books properly may result in:
Fines up to ₱50,000
Disallowed expenses during audits
Potential suspension of business operations
Best Practices
Keep a record of when each book is registered and when it was used.
Have a backup summary (e.g., Excel sheet) to help compile data for tax returns.
Regularly review entries for consistency and accuracy.
Consult with a BIR-accredited tax advisor at least once a year.
Final Thoughts
Manual books of account remain a practical and cost-effective way for small businesses to stay BIR-compliant. While they require discipline and consistency, they provide a straightforward way to document your financial activity—especially when paired with good recordkeeping habits.
Taking the time to do it right today can save you time, money, and stress down the road.
Need help setting up your books or unsure which ones apply to you? Reach out to a certified public accountant (CPA) or message us directly—we’re here to help you stay on track with your BIR obligations.
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