their Accounting and Taxes
Accounting and tax compliance services are crucial for businesses of all sizes to ensure they adhere to government regulations and minimize their tax liabilities. These services encompass a range of activities that help businesses manage their financial records, prepare tax returns, and comply with the Bureau of Internal Revenue (BIR).
Upcloud Accounting offers a wide range of services including bookkeeping, tax preparation, payroll processing, and financial reporting. By utilizing cloud technology, they provide clients with secure access to their financial data anytime, anywhere, and facilitate collaboration between clients and their accounting team. With a commitment to
accuracy, reliability, and client satisfaction,
We offer customized pricing based on your revenue, transaction volume, number of accounts, and marketplaces. To get a precise quote, including any setup, catch-up, or cleanup fees, please contact us for a personalized assessment.
Find the answers you need by reading the following info down below
Small business accounting made easy
We offer accounting and bookkeeping services for businesses across a wide range of sectors and industries in different countries (USA, Canada, Australia, and, Philippines) through the use of cloud accounting technology, namely Xero and Quickbooks Online.
We will keep your books up to date and in compliance with accounting standards and financial reporting requirements.
How does it work?
1. We study and analyze your business process
2. You provide us with the needed document (receipts, invoices, payroll details, statements, purchase orders, etc) by uploading these into a secure online platform such as Google Drive, Dropbox, Sharepoint, and, etc.
3. We process those files to your accounting and bookkeeping into your cloud-based software.
Why are many businesses switching to cloud-based accounting?
• It is automated! Save time, labor cost, and energy from process redundancy. Improves accounting accuracy greatly than manual accounting
• Protect your files from physical loss, destruction, and data privacy risk
• Reduce or eliminate storage cost
• Reduce or eliminate the paper cost
•Save you more space in your office
• Generate different business reports in a snap
• Overview of your current finances any time, and anywhere.
• Your account is secured through high-end encryption and double authentication feature
Have an accounting-related question? No problem! Our CPA-led team of experts is just one message away. No need to visit your offices or for you to visit ours. We can conduct online meetings and conferences. The way we perform our services generates real efficiencies across your entire business thus saving you from transportation cost too.
Tax compliance in the Philippines is complex and tedious because of many different forms with complex contents and required attachments.
By outsourcing your tax duties to Upcloud Accounting, we can help ensure that your business never misses a tax filing deadline again with our established processes and state-of-the-art technologies approved by the Bureau of Internal Revenue (BIR).
We ensure that the tax compliance process is simple, efficient, and timely updates through our strong customer service relationship process and the latest technology for all our clients.
We process the following tax compliance:
1. Income Tax Return (ITR)
• Individual (Forms 1701Q, 1701, 1701A)
• Partnership/Corporation (Forms 1702Q, 1702, 1702-RT, 1702-MX, 170–EX)
2. Percentage Tax (Form 2551Q)
3. Value-Added Tax (Form 2550M, 2551Q)
• VAT RELIEF
• Summary Listings of Sales (SLS)
• Summary Listings of Purchases (SRS)
• Semestral List of Suppliers (SRS)
4. Withholding Tax - Expanded (Forms 0619E, 1601EQ, 1604E)
• Monthly Alphalist of Payees (MAP)
• Summary Alphalist of Withholding Tax (SAWT)
• Certificate of Creditable Withholding Tax at Source (Form 2307)
5. Withholding Tax - Compensation (Forms 1601C, 1604C)
• Alphalist of Employees
• Certificate of Compensation Payment/Tax Withheld (Form 2316)
6. Withholding Tax - Final (Form 0619F, 1604F)
Our BIR Tax Filing Services Include:
Document Gathering & Review: We collect and review all necessary financial documents (receipts, invoices, bank statements, payroll records, etc.).
Accurate Tax Calculation: We compute your tax liabilities using the latest tax laws and regulations, leveraging digital tools and manual verification.
BIR Form Completion: We accurately complete the appropriate BIR tax forms (Income Tax Return, VAT, Percentage Tax, etc.).
Online or Onsite Filing & Payment: We file your returns electronically (eFPS) or onsite, and handle tax payments securely.
Secure Record Keeping: We store your stamped and received BIR tax returns and payment receipts for your records and future audits.
Financial Statements are the product of Accounting and Bookkeeping, get the most valuable financial information that will enable you to understand your finances, plan for future growth, and make the best decision for your business. We ensure that your finances make sense and deliver financial reports to our clients regularly throughout the financial year – monthly or quarterly depending on your needs. There is no need to wait for the year-end. A company needs to understand how its business is performing at all times in the most accessible and easy-to-read format.
Payroll and Payroll Outsourcing FAQs
1. What is Payroll?
Payroll encompasses all aspects of compensating employees, including:
The payroll department itself
The process of calculating and paying wages/salaries
The list of employees and their payable wages/salaries
The total amount paid to employees
2. Components of Employee Monthly Payroll:
Typically includes:
Basic monthly salary (taxable).
Ad hoc payments (overtime, holiday, night differential).
Allowances and de minimis benefits (non-taxable).
Deductions (absences, tardiness)
Statutory contributions
Loan payments
Tax deductions
3. Why is Payroll Crucial?
Effective payroll management is vital for:
Maintaining a positive company reputation
Ensuring legal compliance
Improving talent retention
Protecting financial integrity
Boosting employee morale and productivity
4. Payroll Processing Methods:
Manual processing.
Electronic processing with payroll software.
Outsourcing to a payroll service provider (like Upcloud Accounting).
5. Benefits of Outsourcing Payroll:
Outsourcing offers:
Cost and time savings
Increased efficiency
Expert payroll management
Ensured tax and statutory compliance
Enhanced data security
Scalability
Improved employee satisfaction
Personal interaction
Upcloud Accounting: Outsourced Payroll Services
Upcloud Accounting offers the following outsourced payroll services:
Payroll Calculation: We calculate gross pay, net pay, deductions (including taxes and statutory contributions), pro-rata 13th-month pay, and final pay for departing employees.
Statutory Compliance: We handle all filings and payments to SSS, PhilHealth, and Pag-IBIG, including contribution and loan reports.
Payroll Document Generation: We generate payroll summaries, contribution summaries, loan reports, and customized payslips (payslip distribution remains the client's responsibility).
BIR Form 1601-C Preparation: We prepare the details for BIR Form 1601-C (Monthly Remittance Return of Income Taxes Withheld on Compensation).
Value-Added Services (Package-Based): Depending on your chosen package, additional services include alphalist encoding, BIR Form 2316 generation, substituted filing, income/tax annualization, and year-end compliance tasks.
Are your accounting books a mess, outdated, and you’re not sure how to sort them out because of various reasons?
Fallen behind on their tax compliance with the Bureau of Internal Revenue (BIR)?
Missed important tax deadlines?
Misplaced important records or have poor compliance and reporting controls in place?
Don’t worry, we can help you!
How do we do it?
1. We perform our catch-up accounting service.
2. We collect historic receipts, invoices, tax documents, debt documentation, business expenses, and other financial and commercial documentation relating to your business.
3. We then record the information accurately and conduct any necessary reconciliations to get the latest and complete picture of your company’s finances.
4. Clear all the backlogs
5. Provide advice on the most efficient processes and controls to ensure your accounts remain in order
Here are frequently asked questions regarding BIR filing guidelines:
1. Do we need to file BIR returns if we're not yet operational?
Yes, all BIR-registered companies, regardless of operational status, must file the returns specified in your Certificate of Registration (COR). Failure to file on time incurs penalties (minimum PHP 1,000).
2. Are we subject to tax if we have no revenue?
No income tax is due without revenue. However, we recommend withholding taxes on payments for professional fees and rent. Withheld taxes must be remitted to the BIR.
3. Do we file 1601C and 0619E on December 10th?
Yes, and also Form 2550M (VAT) on December 20th. Filing can begin on the first day of the following month (e.g., 1601C and 0619E can be filed as early as December 1st for November).
4. Can BIR returns be filed online?
Yes, using the latest eBIRForms Offline Package or other tax softwares available in the market.
Here are frequently asked questions about BIR Letters of Authority (LOA):
1. What is a BIR LOA?
A formal notice from the BIR informing a taxpayer of an upcoming audit. It authorizes specific BIR officers to examine the taxpayer's books and records.
2. Who Issues a LOA?
The Commissioner of Internal Revenue (for National Office taxpayers) or the Regional Director (for Regional Office taxpayers).
3. How are Taxpayers Selected for Audit?
BIR officers prepare a list of taxpayers meeting specific criteria outlined in Revenue Memorandum Orders (RMOs). This list undergoes pre-approval and final approval processes. (Reference: RMOs 64-99, 67-99, 18-2000, and 19-2000).
4. How Many Audits Per Tax Year?
Only once, except in cases of fraud, taxpayer request for re-investigation, verification of tax compliance, capital gains tax verification, or when the Commissioner needs information related to other taxpayer examinations (Secs. 5 and 235, NIRC).
5. Commissioner's Powers During Audit:
Besides examining books, the Commissioner can obtain information from third parties and conduct inventory/surveillance (Sec. 5 & 6, NIRC).
6. What is a Notice for Informal Conference?
A notice informing the taxpayer of potential additional taxes or deficiency assessments following an audit. The taxpayer has 15 days to respond.
7. Assessment Time Limit:
Three years from the tax return's due date (or filing date if late), except for tax fraud (10 years from discovery). Assessments outside this period are generally uncollectible unless a Waiver of Statute of Limitations exists.
8. What is a Jeopardy Assessment?
An assessment made without a complete audit when delay jeopardizes tax collection due to the taxpayer's non-compliance with audit requirements or failure to substantiate deductions/exemptions.
9. What is a Pre-Assessment Notice (PAN)?
A communication informing the taxpayer of audit findings. The taxpayer has 15 days to respond if they disagree.
10. When is a PAN Not Required?
For mathematical errors, discrepancies between withheld and remitted taxes, excess creditable withholding tax carryovers, unpaid excise taxes, or sales of excisable articles to non-exempt persons.
11. What is a Notice of Assessment/Formal Letter of Demand?
Issued to taxpayers who don't respond to a PAN or whose reply is deemed without merit. It demands payment of deficiency taxes.
12. BIR Audit Process Summary:
LOA Issuance: The BIR issues a Letter of Authority specifying the tax to be examined and the year covered.
Documentation Request: The BIR requests relevant documents. Non-compliance may lead to a subpoena.
Notice of Discrepancy (NOD): If discrepancies are found, a NOD is issued, followed by a Discussion of Discrepancy (DOD).
Preliminary Assessment Notice (PAN): If discrepancies remain, a PAN is issued, allowing the taxpayer 15 days to respond.
Formal Letter of Demand (FLD) and Final Assessment Notice (FAN): If the PAN response is unsatisfactory or absent, an FLD/FAN is issued, allowing a 30-day administrative protest.
Final Decision on Disputed Assessment (FDDA): The Commissioner issues a final decision, which can be appealed to the Court of Tax Appeals (CTA).
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