One of the many requirements that businesses have to comply with is to register with the BIR or the Bureau of Internal Revenue. The BIR agency monitors the taxes, fees, and contributions of all individuals and businesses. They do that to make sure that all the due taxes are paid and the records of the company are discrepancy-free.
According to tax services in Manila, it’s especially important that you register your company with the BIR to ensure that you are operating within the bounds of the law. Otherwise, you could end up facing steep penalties like hefty fines and arrears surcharges. If that does not convince you, this article will list down to you the 7 reasons why you should register with the BIR.
- Help Improve Your Community
The national and local government uses the taxes you give to help improve the community. Many tax and accounting services in the Philippines share that these taxes that the citizens pay are used for building and expanding roads, urbanizing, creating more job opportunities, enhancing the safety of public spaces, improving healthcare systems and educational institutions, and better planning. When you register your business with the BIR, you are able to help not only yourself but you are also able to contribute to your community.
- Promote Your Business Better
A BIR-registered business does not have to fear creating advertisements and promoting one’s business. Being registered with the BIR will give you confidence in your brand and you can take great advantage of social media to promote it and gain more sales. After all, your operations are legitimate since you comply with the tenets of the law.
- Gain and Increase Brand Credibility
When you register with the BIR, it means you are legally operating your business and your business is monitored by government agencies. The BIR certificate you have makes your customers feel at ease since they are sure that they are not being scammed. Trust will then grow between the customers and your business. When you’re duly registered with the BIR, you can issue official receipts or sales invoices, which makes your business more credible. More importantly, you can use them as supporting evidence for any deductibles.
- More Opportunities to Grow
Your business can grow more when you operate legally. From the point of view of Investors, businesses who operate legally are appealing. Different accounting services in the Philippines attest that investors will only invest in your business if they know you are a legitimate business. You can get additional capital and even prove your authority by getting registered with the BIR and receiving your certificate of registration.
- Greater Access to Financial Services
If you need access to financial services, you will not have a difficult time getting it when you’re legally operating your business. You need to register with the BIR to get access to bank loans, corporate accounts, and many other financing opportunities. You will surely have better access to these kinds of services if you register with the BIR and become a legitimate business, with proper supporting documents.
- Avoid Getting Penalties
When you fail to comply with the BIR registration requirement, you can be fined an amount ranging from P5,000 to P20,000. Apart from the fines for failing to comply, you could stay in jail for 6 months to 2 years for tax evasion and non-compliance. The registration process for getting your BIR Certificate of Registration requires a lot of effort, but it is way better than getting penalized and posting bail. Which is a better option for you? Spend hours registering your business or get a prison sentence for failing to comply with BIR registration. Choose wisely. In the long run, it makes more sense to register because it will help you generate more profits and save more money.
- Providing Better Services
Having a certified and registered business will help you provide better services to your customers since you can invest more in the improvement and expansion of your business. It is also important that you start issuing official receipts to give your customers security and as well as to monitor all your business transactions. Most would prefer to support an accredited business compared to those who are not certified by the BIR. They’d want an official receipt to properly monitor all transactions.
Without enough preparation, operating a business is already a challenge. It becomes even more difficult when you need to face legal issues and government investigations. It’s important to remind yourself that nobody is above the law. Therefore, you should find the time and exert effort to register your business. If you need assistance, our accounting firm provides business registration services. And, of course, we offer bookkeeping and accounting services in Pasig, Metro Manila to make strengthen your company’s fiscal health.
