Bookkeeping
Bookkeeping is the process of recording, organizing, and tracking all financial transactions of your business — including sales, expenses, inventory, payments, and receipts.
In Filipino terms: ito yung maayos na pagtatala ng pera na pumapasok at lumalabas sa negosyo.
Good bookkeeping ensures your financial records are accurate, updated, and ready for reporting, tax filing, and decision-making.
Why Bookkeeping Matters
For Filipino MSMEs, bookkeeping is essential because it helps you:
- Know if your business is really earning — hindi puro “malakas benta” pero wala namang naiipon
- Avoid penalties — especially for BIR compliance
- Track expenses properly — so you know where your money goes
- Manage cash flow — by monitoring payables and receivables
- Prepare for loans — banks require clean financial records
- Prevent fraud or leakage — especially if you have staff
Many Filipino businesses fail not because of low sales, but because they don’t track their finances properly. Bookkeeping gives you control and clarity.
Example / Context
Example 1 (Sari‑sari Store):
You record daily sales, supplier payments, inventory purchases, and expenses like load wallet or electricity.
Example 2 (Online Seller):
You track shipping fees, packaging costs, platform fees, returns, and payouts from Shopee/Lazada.
Example 3 (Freelancer):
You record invoices sent, payments received, software subscriptions, and equipment purchases.
Example 4 (Food Business):
You track ingredient costs, daily sales, spoilage, staff salaries, and utilities.
Related Terms
FAQs
1. What’s the difference between bookkeeping and accounting?
Bookkeeping is recording transactions.
Accounting is analyzing those records to create financial statements and insights.
2. Do small businesses need a bookkeeper?
Not always. Many MSMEs start with simple spreadsheets or apps. But as you grow, hiring a bookkeeper helps keep things accurate and compliant.
3. What tools can MSMEs use for bookkeeping?
Excel, Google Sheets, POS systems, Wave, QuickBooks, Xero, or even simple notebooks for microbusinesses.
4. Is bookkeeping required by BIR?
Yes. All businesses must maintain books of accounts — manual, loose-leaf, or computerized.