Start-up Business

Start-up Costs (Pre-operating

Expenses)
 • Expensed Outright. Those that will not fall into
the definition of ASSET or per discretion of the
management.

Expensed Examples of expensed outright disbursements:

1. Payments for securing the registrations
Outright (Pre- (SEC, BIR, Cityhall)
operating 2. Research and Development expenses
(Food tasting, product mix trials.)
Expenses) 3. Costs incurred in looking for the store
locations.
4. Professional fees paid to the people
who processed the permits etc.
 • Capitalized Costs. Those that will fall into the
definition of ASSET or per discretion of the
management.
Capitalized Examples are:
(Pre-operating 1. Computers/ Laptops
2. Construction costs – Leasehold
Expenses) Improvements
3. Store Furnitures and Fixtures
4. Store Equipment
Compliance
 • Securities and Exchange Commission (SEC)
Registered – SEC Certificate of Registration
(COR)
• BIR Registered – BIR 2303
• Local Government Compliance – Health
Permits, Fire and Safety Permits, Zoning Permits
Head Office • Accounting records and accounting files
Compliance safekeeping – Must be kept within 10 years as
required by the BIR (In accordance with the
Philippines Financial Reporting Standards and
SEC mandatory notes).
• External Audit requirement by the SEC. – Done
every yearend.
 • Securities and Exchange Commission (SEC)
Registered – SEC Certificate of Registration
(COR)
• BIR Registered – BIR 2303
Store (Branch) • Local Government Compliance – Health
Permits, Fire and Safety Permits, Zoning Permits
Compliance • Ask for Receipt Sticker
• Books of Accounts – Cash Receipts (Sales)
Journal, Cash Disbursements (Expenses)
Journal, General Journal, Purchase Journal,
Senior Citizen and PWD Journal.
 • Monthly remittance of withholding taxes –
expanded, compensation and final tax
• Monthly payments of VAT
• Quarterly listing requirements – Summary List
Tax of Sales (SLS), Summary List of Purchases (SLP),
Summary List of Inventory (SLI), Quarterly
Requirements Alphabetical List of Payees
• Issuance of Official Receipts (POS tape receipts).
• Remittance shall be done right after the BIR
registration.
 • Accountability Form – used whenever there will be a
company asset that will be issued to the employee
for his/her office use. (Eg. Laptop, Cellphone)
• Liquidation Form – used for the liquidation of cash
advances and for replenishment of the petty cash
Forms and • Request for Payment form – used for the
expenditures that have no purchases order (Non-PO
Receipts items).
• Acknowledgement Receipts – For payments like
down payments, partial payments
• Official Receipts – printed through BIR Accredited
printer.
 • QuickBooks
• Microsoft
Dynamics 365
• NAVISION
Accounting
• Others
Software
 • For store Biometrics
• See quotation

Biometrics
Internal Controls
 • Petty Cash Fund Set- Up
• Liquidation Policies
Cash • IOUs and Cash Advances
Management • Sales Depositing procedures
• Bank Reconciliation
 • Inventory Costing – FIFO, Weighted Average
Inventory • Inventory Stocking (Storage)
Management • Inventory Ordering point – with operations
• Inventory count
 • Suppliers Accreditation
Procurement • Suppliers Awarding – Highest Bidder
Policies • Procurement procedures
 Accounts • Timely payments
Payable • Aging of Accounts Payable
• Avoiding Penalties and Interests
Management
 • Asset Tagging
• Lapsing Schedule
Fixed Assets • Accountability Forms
Management • Initial inventory of fixed assets
• Fixed Assets count
 • Chart of Accounts – Done. *Clarification on
packaging expense*
• Opening of Bank Account – BDO, requirements
are still incomplete.
Update • Product Costing – Done. For finalization.
• Cash Management Policy – In progress
• Financial Report – In progress
END